Cold Sore Medication Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) May 09, 2012
Over the five years to 2012, the Cold Sore Medication Manufacturing industry has enjoyed stable growth. From 2007 to 2012, revenue is expected to rise at an average annual rate of 0.8% to 6.3 million, with revenue forecast to grow an additional 1.2% in 2012. Demand for cold sore medication is primarily driven by broader trends including changes in disposable income, demographic shifts, and total healthcare expenditure. Changes in private health insurance coverage can also cause demand to grow or fall. During the recession, says IBISWorld industry analyst Nima Samadi, “High unemployment caused the number of individuals with private health insurance coverage to drop, which priced many consumers out of the market for higher-end prescription cold sore medication.” Furthermore, as per capita disposable income dipped, consumers were more likely to turn to more inexpensive OTC alternatives instead of prescription medication. Over the long term, however, the industry has also benefited from growth in the median age of the population. Cold sore outbreaks generally occur when a person’s immune system is compromised, and because the elderly tend to have more health issues, they are more likely to experience cold sore outbreaks. As the median age of the population rises, demand for cold sore medication benefits.
Over the five years to 2012, the industry has also had to battle rising competition from generic versions of prescription medication. Generics are often sold at a discount compared with their brand name counterparts, and demand for generic medications increased during the recession as per capita disposable income dipped. “Generic cold sore medications have grown in popularity over the past five years,” says Samadi, thanks to patent expirations and the recession. In 2009, the first generic version of Valtrex (valacyclovir) was released. In 2007, the Food and Drug Administration approved the first generic version of Novartis’s Famvir (famciclovir). Since generics are sold at a discount, they reduce industry revenue. Despite the popularity of generics, the two major players in the Cold Sore Medication Manufacturing industry, GlaxoSmithKline and Novartis AG, dominate the market. A number of other cold sore medication manufacturers exist, but none operate on scale comparable to these multinational giants.
Over the next five years, industry revenue is projected rise. As disposable income rates rise and a growing number of consumers are covered under private insurance (due to PPACA coverage and falling unemployment), consumers are expected to become less price sensitive and be more likely to purchase higher-priced prescription cold sore medications, which will encourage revenue growth. Demographic shifts will also continue to drive industry demand. For more information, visit IBISWorld’s Cold Sore Medication Manufacturing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry develops and produces over-the-counter (OTC) and prescription treatments for cold sores, which are inflamed blisters in or near the mouth, caused by infection from the herpes simplex virus.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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