The Value of OTC Medicines

Over-the-counter (OTC), or nonprescription, medicines are products that consumers can KEY TAKEAWAYS
purchase in pharmacies, supermarkets and other retail stores as well as online without a
prescription.1 OTC medicines are deemed safe and effective treatments by the U.S. Food OTC medicines help reduce health care
and Drug Administration and other health authorities around the world. These medicines costs by offering safe, effective medicines
treat common, self-treatable health conditions and symptoms such as the common cold, to over 180 million people for commonly
minor pain, allergies, and other conditions that impact large segments of the population.2 occurring conditions.2

OTC medicines are a critical component in advancing consumer health because they allow
people to treat or manage many health conditions conveniently and successfully. Because 9 out of 10 consumers in Europe view
they enable people to self-treat, OTC medicines save health systems valuable resources self-care as a vital part of the
and can save consumers time and money. While OTC medicines are an important part of management and prevention of both
the care continuum, a healthcare professionals advice should always be sought for serious minor ailments and chronic conditions
conditions, or when common ailments persist. and diseases; OTC medicines help fulfill
growing consumer appetite for self-care.5
OTC medicines have played a significant role in expanded access to safe and effective
treatments in developing regions of the world. Many people in these regions do not have
$1 spent on OTC medicines equals $6 to
access to health services and rely heavily on self-care and self-medication, and OTC
$7 in savings for the U.S. health system
medications provide valuable resources to address health conditions.3
due to fewer physician visits and spending
on more expensive care.2

OTC medicines provide consumers safe and

effective treatments for commonly occurring A study of seven European countries found
that increased self-medication could save
conditions, saving them time and money that more than 11.5 billion annually.22

might otherwise be invested in other, more

expensive health services.

Societal Health Impact

OTC medicines provide easier access to treatment options for common conditions, offering
not only convenience, but also timely treatment and relief for sudden symptoms or minor
ailments.4 Research shows that 81 percent of adults use OTC medicines as a first response
to minor ailments. And one U.S. study analyzing the seven most common acute and
chronic, self-treatable conditions found that 92 percent of those who use OTC medicines
in a given year would seek other, likely more expensive, treatment elsewhere if OTCs were
not available.2 If OTC medicines were not available, the increase in consumers seeking
prescriptions for self-treatable conditions would cause a surge in office visits that would
require 56,000 additional full-time medical professionals to accommodate.2

1
 56,000 MEDICAL PROFESSIONALS =
ADDITIONAL FULL-TIME

OTC

Research shows that 81% of adults use OTC If OTC medicines were not available, more consumers would seek
prescriptions, causing a surge in office visits that would require
medicines as a first response to minor ailments
56,000 additional full-time medical professionals to accommodate.
Consumer Healthcare Products Association. Statistics on OTC Use.
Source: Consumer Healthcare Products Association. The Value of OTC Medicine to the United States,
http://www.chpa.org/MarketStats.aspx#access
January 2012. Retrieved from http://www.yourhealthathand.org/images/uploads/The_Value_of_OTC_
Medicine_to_the_United_States_BoozCo.pdf

Not only are OTC medicines important to ensuring that consumers or an OTC medication purchase. With the growth of pharmacy
have the ability to access care that can be self-managed outside retail clinics, nurse practitioners are an additional advocate for
of a doctors office, but they are important to fulfilling consumers self-care.
growing desire to treat their own medical conditions. A survey that
tracks the opinions of European consumers found that nine out Although the percentage of the worlds population without access
of 10 consumers view self-care as a vital part of preventing both to essential medicines has fallen from an estimated 37 percent in
minor ailments and chronic health conditions and managing their 1987 to around 30 percent in 1999, the total number of people
symptoms. As the health care landscape evolves and consumers
5
without access remains between 1.3 and 2.1 billion people,9 and
more proactively seek health information, use new technologies, these people rely heavily on the existence of OTC drugs that can be
and expect to live longer and more productive lives, OTC medicines found in local stores. A number of studies have suggested that OTC
are an important way to meet these demands and engage medicines have significantly reduced the time to treatment for
consumers in their own health care. This is especially important deadly infectious and parasitic diseases in countries where access
given that evidence has shown that patients who are more actively to health facilities are poor.10 These differences have also been
engaged in their health care experience better health outcomes shown to impact health expenditures for poor households, severity
and lower costs.6 of disease, and even mortality.11 Barriers to effective medicines
have been highlighted as a significant cause of health disparities
Health Care Professional Perspectives globally.12 The issue of distance is not just a problem confined to
poorer countries, with a recent study looking at rural North Dakota
Physicians recognize the important role OTC medicines play in
suggesting that the average distance an elderly person travels for
treating patients and serving as a trusted, first line of defense for
the routine management of a chronic condition is nine miles.13
many minor ailments. In a survey of U.S. primary care physicians,
75 percent would recommend an OTC product prior to prescribing
Greater recognition is being given to the importance of consumer
a medicine to relieve their patients symptoms for ailments such as
empowerment and the positive role of self-care and self-medication
allergies, pain, cough and cold, and acid reflux/upset stomach.7
in improving individual and public health. Regulators and health
care companies have recognized that as more innovative medicines
Pharmacists are also a critical component to realizing the benefits
are available over the counter, people will have a greater variety
of OTC medications. They assist patients by navigating the many
of treatment options for self-treatable conditions, potentially
product options and recommending the right medication for an
contributing to overall health.14 And because OTC products are
individuals needs. Pharmacists are available to provide safety
more broadly available at a variety of outlets, including discount
information by identifying possible drug interactions between OTC
department stores, grocery stores, and warehouse outlets,
products or between an OTC product and a prescription drug, food,
consumers have greater convenience and enhanced access.
or dietary supplements.8 They are the face of health care in the
pharmacy; they provide unparalleled access to professional advice
and deliver valuable consultation at the moment of a prescription

2
 A recent study estimated that the impact of changing smoking
In one study, the introduction cessation drugs to OTC status produces a 7892 percent increase
of the first OTC drugs increased in utilization, and that the resulting reduction in smoking would be
utilization at the class level by an valued at between $1.8 billion and $2 billion per year.18

AVERAGE OF 30% OR MORE.

Economic Impact
Albaugh, M., Philipson, T., Sood, N., & Stomberg, C. (October 2013). Utilization eects of Rx-OTC switches Not only does greater access to OTC medicines improve public
and implications for future switches. Health, 5(10). Retrieved from http://www.scirp.org/journal/
PaperInformation.aspx?paperID=37789#.Uukk2_t7Ck8.doi: 10.4236/health.2013.510225. health and provide greater options, convenience, and access to
care for consumers, these products have proven economic benefits
An important way to introduce novel new ingredients into the OTC
as well. The use of OTC medicines yields significant savings to both
market is by switching a product from prescription-only to OTC
consumers and the health care system by reducing unnecessary
status. Today, hundreds of currently available OTC products use
physician visits for otherwise self-treatable conditions.
ingredients and dosages that were only available by prescription
OTC medicines are affordable options for consumers 86
just a few decades ago.15 Conditions that have expanded consumer
percent of whom believe the use of OTC medicines helps lower
treatment options include yeast infection, diarrhea, allergies,
their health care costs.19
heartburn, smoking cessation, overactive bladder, and insomnia.
By making safe, effective products available over the counter, more Research has estimated that consumers and taxpayers
consumers benefit by being empowered to manage their own could save $5.2 billion annually through increased self-care,
health and are more able to efficiently access health care. In fact, including use of OTC medicines and subsequent avoidance of
research has shown that switching products to OTC status can unnecessary visits to primary care physicians.19
significantly increase utilization of certain medicines where a large One study analyzing the value of OTC medicines in the U.S.
proportion of the population has traditionally gone untreated.16 found that OTC medicines offer $102 billion in annual savings
relative to available alternatives.20
OTC
SMOKING
CESSATION
Importantly, lower use of alternate health services in systems with
SLEEPLESSNESS
OTC greater access to OTCs can mean greatly reduced costs to the
By switching to OTC, OTC DIARRHEA
public in publicly funded systems. For certain ailments, greater
treatment options for OVERACTIVE self-medication leads to more efficient use of health care providers,
BLADDER
a number of conditions
OTC
HEARTBURN
have expanded.
more access to medication, and lower costs.21
ALLERGIES OTC

YEAST
The impact and economic value of OTC medicines is important
OTC INFECTIONS
in diverse global health care settings many countries are
benefitting from expanding responsible usage of OTC medicines
Albaugh, M., Philipson, T., Sood, N., & Stomberg, C. (October 2013). Utilization eects of Rx-OTC switches
and implications for future switches. Health, 5(10). doi: 10.4236/health.2013.510225. Retrieved from and self-care, saving billions of dollars in reduced health care costs
http://www.scirp.org/journal/PaperInformation.aspx?paperID=37789#.Uukk2_t7Ck8
and physician visits.

The World Health Organization has determined that it is

appropriate to switch products to OTC status when they are
widely used and have been proven safe over a sufficient period =
to determine that they can be entrusted for consumer use.17 For
example, OTC availability of nicotine replacement therapy (NRT) $1 SPENT $6-7 IN SAVINGS for the U.S. health
on OTC medicines system due to fewer physician visits and
has resulted in a greatly reduced burden of diseases caused by
reduced spending on more expensive care.
tobacco smoking. Globally, 37 percent of smokers have tried an
OTC NRT, leading to more people quitting smoking.14 Consumer Healthcare Products Association. The Value of OTC Medicine to the United States, January 2012.
Retrieved from http://www.chpa.org/ValueofOTCMeds2012.aspx.

3
Value Attributable to OTC Medicines Consumers, health care professionals, and public health officials
OTC Value Per Dollar Spent
recognize the convenience and efficacy of OTC medicines

$6.50 TOTAL and their value in providing numerous options for common
and minor illnesses. The wide availability of OTC medicines

$1.60 $4.90 greatly advances individual and public health. New medicines
made available through the prescription-to-OTC switch process
Drug Cost Savings Clinician Visit Cost Savings will enhance options for consumers and help support the

Adapted from: The Value of OTC Medicine to the United States, January 2012,
movement toward greater patient empowerment and self-care.
Consumer Healthcare Products Association Additionally, OTC medicines can save money for both consumers
and health care systems.
For instance, in a study of seven European countries, increased
self-medication could save more than 11.5 billion annually.22

Additionally, in developing regions like Southeast Asia, where it

is estimated that 6585 percent of all health care in the region
is provided by an individual or family without professional
intervention, self-medication and OTC medicines can help
foster health promotion.3

Endnotes
1 U.S. Food and Drug Administration. Prescription and Over-the-Counter (OTC): Questions and Answers. Retrieved from http://www.fda.gov/Drugs/ResourcesForYou/Consumers/QuestionsAnswers/
ucm100101.htm.
2 Consumer Healthcare Products Association. The Value of OTC Medicine to the United States, January 2012. Retrieved from http://www.chpa.org/ValueofOTCMeds2012.aspx.
3 World Health Organization Regional Office for Southeast Asia. Self-care in the Context of Primary Health Care, 7-9 January 2009.
4 Consumer Healthcare Products Association. Statistics on OTC Use. http://www.chpa.org/MarketStats.aspx#access.
5 Bowman-Busato, J., & Pavlickova, A. The Epposi Barometer: Consumer Perceptions of Self Care inEurope (October 2013). Retrieved from http://selfcare.epposi.org/pdfs/EPPOSI-Self-Care-Barome-
ter-Report-2013-EN.pdf.
6 James, J. (February 14, 2013). Health Policy Brief: Patient Engagement. Health Affairs. Retrieved from https://www.healthaffairs.org/healthpolicybriefs/brief.php?brief_id=86.
7 Consumer Healthcare Products Association. (March 6, 2013). Understanding Trust in OTC Medicines: Consumer and Healthcare Provider Perspectives. Prepared by Nielsen and IMS. Retrieved from
http://www.yourhealthathand.org/images/uploads/CHPA_OTC_Trust_Survey_White_Paper.pdf.
8 American Pharmacists Association (APhA). (July 1, 2013). Counseling Patients on Choosing and using OTCs. Retrieved from http://www.pharmacist.com/counseling-patients-choosing-and-using-otcs.
9 World Health Organization. (2004). The World Medicines Situation. Retrieved from http://apps.who.int/medicinedocs/pdf/s6160e/s6160e.pdf.
10 Sirima SB, Konate A, Tiono AB Convelbo N, Cousens S, Pagnoni F. Early treatment of childhood fevers with pre-packaged anti-malarial drugs in the home reduced malaria morbidity in Burkina Faso.
Trop Med Health 2003 Feb; 8(2): 133-9.
11 Hopkins H, Talisuna A, Whitty CJ, Staedke SG. Impact of home based management of malaria in Africa: a systematic review. Malar J. 2007 Oct 8;6:134.
12 Chuma, J., Okungu, V., & Molyneux, C. Barriers to prompt and effective malaria treatment among the poorest population in Kenya. Malaria Journal. 2010. 9(144). doi: 10.1186/1475-2875-9-144.
Retrieved from http://www.malariajournal.com/content/9/1/144.
13 Matteson J. Transportation, Distance and health care utilization for older adults in rural and small urban areas. Upper Great Plains Transportation Institute (December 2010). Retrieved from http://
www.ugpti.org/pubs/pdf/DP236.pdf.
14 World Self-Medication Library. Switch: Prescription to Nonprescription medicines Switch. WSMI 2009. Retrieved from http://www.wsmi.org/pdf/wsmi_switchbrochure.pdf.
15 Harrington, P. & Shepherd, M.D. Analysis of the Movement of Prescription Drugs to Over the-Counter Status. Journal of Managed Care Pharmacy. November/December 2002, 8(6). Retrieved from
http://amcp.org/WorkArea/DownloadAsset.aspx?id=6696.
16 Albaugh, M., Philipson, T., Sood, N., & Stomberg, C. (October 2013). Utilization effects of Rx-OTC switches and implications for future switches. Health, 5(10). doi: 10.4236/health.2013.510225.
Retrieved from http://www.scirp.org/journal/PaperInformation.aspx?paperID=37789#.Uukk2_t7Ck8.
17 C.P. de Joncheere et al. (Eds.). Drugs and Money: Prices, affordability and cost-containment. 7th Ed. 2003, Amsterdam. World Health Organization. Retrieved from http://apps.who.int/medicinedocs/
pdf/s4912e/s4912e.pdf.
18 Keeler, T.E, Hu, T.W., Keith, A., Manning, R., Marciniak, M.D., Ong, M., & Sung, H.Y. The benefits of switching smoking cessation drugs to over-the-counter status. HealthEcon. 2002 Jul;11(5):389-402.
Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/12112489.
19 Consumer Healthcare Products Association. Statistics on OTC Use. Retrieved from http://www.chpa.org/MarketStats.aspx#access.
20 Consumer Healthcare Products Association. The Value of OTC Medicine to the United States, January 2012. Retrieved from http://www.chpa.org/ValueofOTCMeds2012.aspx.
21 Hughes, C.M. et al. Benefits and Risks of Self-Medication. Drug Safety, 2001; 24(14): 1027-1037. Retrieved from http://rd.springer.com.proxy1.athensams.net/arti-
cle/10.2165/00002018-200124140-00002.
22 Association of the European Self-Medication Industry. (June 2004). The Economic and Public Health Value of Self-Medication. Retrieved from http://www.aesgp.eu/media/cms_page_media/68/
2004study.pdf

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