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Flonase continues market strength

8/2/2016

GSK Consumer Healthcare’s Flonase allergy remedy was the single greatest generator of incremental dollars for the 52 weeks ended May 15 across total U.S. multi-outlets, according to IRI data, with $345.2 million in sales on 209.9% growth. The question headed into its second year on OTC shelves is can it maintain its momentum now that private-label competition for Flonase has reached store shelves.


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Flonase continues to deliver strong performance, benefitting from a number of innovative line extensions, GSK CFO and executive director Simon Dingemans told analysts in April. “[But] competitor activity in the category increased during the quarter, particularly private label, and is expected to be tougher in Q2,” he acknowledged.



Competition to GSK Consumer Healthcare’s Flonase franchise is coming by way of McNeil Consumer, which in February launched the latest OTC nasal corticosteroid in Rhinocort allergy spray. Already, “from the makers of Zyrtec” and a value proposition — getting more medicine for less money — are being touted as the key marketing differentiators.



And Perrigo launched fluticasone propionate nasal spray USP, 50 mcg per spray, the store brand equivalent to Flonase, in May. Before that launch, sales of store brand allergy and cold remedies reached $360.7 million on 2.4% growth.


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