Study: Supermarket pharmacies could benefit from drug patent expiries
NEW YORK — Supermarket pharmacies could see a slight rise in gross profits next year as branded drugs lose patent protection and go generic, according to a new report by Moody’s Investors Service.
The report, released Wednesday, noted that while the lower prices of generic drugs depress pharmacies’ revenue growth, they also can help to drive margin expansion. As such, the report found that Kroger, Safeway and Supervalu could see increases in profitability as they fill more generic prescriptions. Still, reimbursement pressure from pharmacy benefit managers looking to reduce reimbursement rates for generic prescriptions could limit gains, according to the report.
"We project a low single-digit percentage increase in 2012 gross profit dollars for the three largest supermarket chains," Moody’s VP and senior analyst Mickey Chadha said. "But the overall impact of the upcoming generic drug wave on supermarkets’ bottom lines will depend on their ability to manage inflationary pressures, increasing competition from alternative food retailers and operating costs."
A number of branded drugs will come off patent over the next 14 months, including two of the top-selling drugs in the world, Pfizer’s cholesterol-lowering drug Lipitor (atorvastatin) and Bristol-Myers Squibb’s and Sanofi’s anticlotting drug Plavix (clopidogrel); these drugs had respective sales of $7.2 billion and $6.1 billion last year, according to IMS Health.
See the report here.
Windex celebrates 75th birthday
RACINE, Wis. — SC Johnson’s glass cleaner brand is marking a milestone: its 75th birthday.
To celebrate its more than seven decades in the market, Windex is looking back through history and inviting families to share their "traditions and shining moments" on the brand’s Facebook page. As part of the campaign, Windex has enlisted three moms to spark conversations and inspire new ideas through the brand’s Facebook page, Twitter and their own personal blogs. The goal: to encourage others to talk about their traditions and also offer families resources to help bring these traditions to life.
"The Windex brand has been a part of the American household for 75 years, which we think creates a nice connection between timeless family traditions with how the brand’s heritage has evolved," said Kelly Semrau, SC Johnson SVP global corporate affairs, communication and sustainability. "Few brands have stood the test of time, which is why we want to hear from the families who have helped make the Windex brand the icon it is today."
Water-Jel plans to build burn care at retail; Herb Baer to lead efforts
CARLSTADT, N.J. — Water-Jel Technologies last month named Herb Baer to the post of EVP North America. Well-known among military and industrial users, the company plans to expand first-degree burn aftercare at retail in the coming year, Baer told Drug Store News.
The company recently launched Burn Jel Plus, a thick gel that salves minor burn injuries containing vitamin E, tea tree oil and 2.5% lidocaine, into the consumer market.
Three more burn treatment products will be launched in the coming year, Baer said. That includes Water-Jel Burn Dressings, a gel-soaked dressing for larger skin surfaces; Water-Jel Unburn, a sunburn aftercare solution; and Muscle Jel, a topical analgesic already in use across several professional markets. The company also has contract manufacturing capabilities across a range of first-aid products, Baer added.
Baer joined Water-Jel from Fuji Film in 2008 as VP marketing, and was later promoted to SVP and chief marketing and sales officer.