Perrigo Expands Smoking Cessation Line As Private Label Burns Up Category

Perrigo launches a private label version of Nicorette White Ice Mint Gum, a product it says generates nearly $80m in annual sales. Private label leads the smoking cessation category, with GSK the leading branded marketer.

Perrigo Company PLC strengthens its already extensive OTC private label smoking cessation lineup with a generic of GlaxoSmithKline PLC’s Nicorette White Ice Mint gum, which has nearly $80m in annual sales.

After receiving approval for an abbreviated new drug applications referencing the Nicorette offerings, Perrigo will distribute the nicotine polacrilex product in 2mg and 4mg sizes as retailers' store brands or “own label” brands, the Dublin-based firm said in a Dec. 20 release.

Like Nicorette gum, the generic alternatives are indicated to help consumers quit smoking by reducing nicotine withdrawal symptoms. Perrigo says sales for Nicorette White Ice Mint Gum reached $79m for the 12 months ending in November.

The branded product, which is marketed by the GSK Consumer Healthcare joint venture Glaxo operates with Novartis AG, is available at retailers and online for $10.29 for a 20-piece pack.

Gum is the largest smoking cessation product category, which also includes patches and tablets. For the 52 weeks through Nov. 27, the segment of products considered “anti-smoking gum” grew 3.5% to $533.1m, according to market research firm IRI. Total sales for all “anti-smoking” products in the US for the same period grew 5.8% to $972.8m, according to Chicago-based IRI (see table below).

Private label products lead sales in the smoking cessation gum category with $280.9m on 3.6% growth for the 52-week period through Nov. 27. Glaxo is the leading branded product marketer, with sales of $246.8m on 2.9% growth during the period, according to IRI's retail sales data from supermarket, drugstore and mass merchandise chains, military commissaries and some club and discount chains.

Perrigo’s latest joins its lineup of private label smoking cessation products that has grown over 12 years to include equivalents to Nicorette gums in varieties including Fresh Mint, Fruit Chill and Orange flavors, as well as a generic of mint-flavored Nicorette Mini Lozenges. (Also see "In Brief" - Pink Sheet, 15 Oct, 2012.)

Sales of the firm’s smoking cessation portfolio have grown from $193.2m for the 12 months ending in June 2013, to $236.8m in 2014 and to $299.4m in 2015, according to a Perrigo spokesperson. The category accounts for about 12% of Perrigo’s overall consumer health care category and 6% of net sales,the spokesperson said.

In addition to expanding Perrigo's smoking cessation offerings, the launch is the firm's latest that leverages its core market strength – private label – to drive revenue growth as it attempts to turnaround its European branded consumer health business and its Rx generic specialty topicals business and divest its royalty license for the multiple sclerosis treatment Tysabri (natalizumab). (Also see "Perrigo Starts Branded Consumer Product Rescue Mission In Belgium" - Pink Sheet, 8 Dec, 2016.)

Smoking Cessation Sales Data: 52 Weeks Through Nov. 27
Type/Brand	Sales (millions)	% Change From Year Ago	% Of Market
Gum
Private Label	$280.9	3.64	52.69
Nicorette	$246.8	2.86	46.30
Zonnic	$3.9	42.70	0.73
Rexall Sundown	$1.3	22.07	0.25
Rugby	$0,163	(17.70)	0.03
Patch
Private Label	$97.2	0.70	57.51
Nicoderm CQ	$69.96	3.41	41.40
Habitrol	$1.1	(41.79)	0.64
Rugby	$0,749	89.36	0.44
Tablets
Private Label	$226	1.98	83.53
Nicorette	$43.9	179.90	16.22
Rexall Sundown	$0,620	101.59	0.23
Zonnic	$0,070	0	0.03
Source: IRI Dec. 20 retail sales data from supermarket, drugstore and mass merchandise chains, military commissaries and some club and discount chains.