ZURICH -- Novartis AG said Thursday it received U.S. approval to sell a prescription-free version of heartburn drug Prevacid, a boost to the drug maker's consumer-health division where sales are suffering from the economic downturn.
Basel, Switzerland-based Novartis said the Food and Drug Administration approved the sale of an over-the-counter version of Takeda Pharmaceutical Co.'s top-selling heartburn drug Prevacid.
The prescription version of the drug was one of the top five prescription brands in the U.S., with annual sales of $3.37 billion in 2008, said Karl-Heinz Koch, an analyst at broker Helvea in Zurich.
Sales of a prescription-free version are expected to be much lower, as analysts' estimates range between $150 million to $200 million, but sales from the drug will be a welcomed revenue boost at the consumer-health unit.
"It is a good opportunity for the company because each little hole they can fill is good -- and weak growth at the consumer health unit is one such hole," said Carri Duncan, pharmaceutical analyst in Zurich with private bank Sal. Oppenheim.
Sales at Novartis's consumer-health division declined 11% in the first quarter to $1.3 billion. Some of the fall was due to the dollar's strength; excluding currency effects, revenue advanced 1%.
Sales of prescription-free drugs are vulnerable to economic weakness, as consumers switch to cheaper product or decide not to buy drugs at all to save money, said Andrew Weiss, pharmaceutical analyst with private bank Vontobel in Zurich.
This contrasts with prescription-drugs, which are typically for more serious illnesses and get paid for by health insurance.
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