Bayer Migraine Formula Seeks Market Share Before Excedrin Returns

Bayer Migraine Formula, already in major retailers nationwide, is “a welcome addition to the pain relief aisle for migraine sufferers … affected by the OTC supply issues this year,” the firm says, referring to Novartis’ voluntarily recall of Excedrin.

Bayer HealthCare Consumer Care launches OTC BayerMigraine Formula in a bid to win market share before Novartis Consumer Health Inc.’s iconic ExcedrinMigraine returns to stores.

The Bayer AGdivision touts the “powerful triple action formula” of 250 mg aspirin, 250 mg acetaminophen and 65 mg caffeine as identical to Excedrin Migraine, and able to treat not just migraine pain, but the nausea and sound- and light-sensitivity that often accompany migraines, according to a Sept. 4 release.

Bayer Migraine Formula coated caplets already are in major retailers nationwide as “a welcome addition to the pain relief aisle for migraine sufferers across America who have been affected by the OTC supply issues this year,” the firm said, referring to Novartis’ voluntarily recall of Excedrin.

Novartis recalled Excedrin and other OTC products in January after the firm uncovered quality control issues at its Lincoln, Neb., facility that caused potential product mix-ups and introduced broken or chipped tablets to the marketplace (Also see "Novartis Opts For OTC Recall, With J&J/McNeil Lessons Still Fresh" - Pink Sheet, 16 Jan, 2012.).

Narrow Window Of Opportunity

Bayer could have as little as a month to establish its brand in the migraine relief category before Excedrin Migraine’s planned return to store shelves in October.

“Excedrin Migraine will be the first product returning to the market,” and “we are working diligently to return other NCH products like Excedrin Extra Strength to store shelves as soon as possible,” a Novartis spokeswoman said in an email.

Novartis prioritized returning Excedrin Migraine, Lamisil athlete’s foot remedy and the animal health drug Sentinel because together they account for about 30% of sales from the Lincoln, Neb., facility, the firm previously said (Also see "In Brief" - Pink Sheet, 23 Jul, 2012.).

For competitive reasons, Novartis would not say how it will support the relaunch, but the spokeswoman said the firm is working to ensure control and adherence to its high quality standards as it restarts production at the Lincoln facility.

Bayer launches a migraine formula to compete with Novartis' Excedrin Migraine and to extend the brand's equity in the pain relief category.

Bayer HealthCare Consumer Care

But Bayer has a strategy designed to grab and hold market share in the face of Excedrin’s expected October return.

By selling its migraine product in 50- or 200-count bottles, the firm could buy time to convert first-time buyers into returning customers. Consumers who buy large quantities of the Bayer product likely will not need to check store shelves for a migraine product when Excedrin returns; and when they need a replacement bottle, the news of Excedrin’s return may have subsided and they may not notice the brand on shelves.

The new formula will “remain on shelves following the return of Excedrin as an effective OTC migraine pain relief option for consumers” and Bayer hopes “to motivate consumers to try it for themselves” by offering a “high-value coupon,” said Reese Fitzpatrick, director of marketing for Bayer Aspirin.

The online coupon offers $1 off the product’s price and a chance to triple the value of the coupon by sharing the “triple power” of the formula with friends by liking the product on Facebook, tweeting about the pain reliever or emailing five friends about it.

“Beyond offering a high-value coupon, we are supporting this launch with multimedia support, including new TV and digital executions,” Fitzpatrick said in an email.

The Morristown, N.J., firm also appeals to sports fans by touting the product as an official pain reliever of Major League Baseball on the Bayer Migraine Formula website, and encourages bloggers to include HTML code for the “Bayer Migraine Share and Save” widget on their sites.

Even without the new migraine formula, Bayer has benefited from Novartis’ temporary shutdown of the Lincoln facility.

Sales of Bayer Advanced Internal analgesic tablets increased 178% to $12 million from the start of the calendar year – about the same time as Novartis’ recalls – through Aug. 12 compared to the same time period last year, according to SymphonyIRI Group’s sales data from supermarkets, drugstores and mass outlets excluding Walmart.

Sales of Aleve pain reliever also climbed 10.1% in the latest quarter, Bayer reported July 31. Likewise, sales of Bayer Aspirin bumped up “a little bit” in the previous quarter, Bayer HealthCare CEO Jorg Reinhardt previously said (Also see "Sales & Earnings In Brief" - Pink Sheet, 6 Aug, 2012.).

In turn, Novartis Consumer Health’s sales fell 23.8% to $904 million in the second quarter, and 22.1% to $1.84 billion for the first half of the year due mostly to the lost sales from the Lincoln facility (Also see "In Brief" - Pink Sheet, 23 Jul, 2012.).

Sales of Excedrin Migraine fell 95% to $1.5 million from the start of the year to Aug. 12 compared to the same time last year, according to SymphonyIRI.

Formidable Private Label Competition

While Excedrin Migraine is currently out of the picture, Bayer still faces immediate competition from Perrigo Co. PLC’s store brand version of the triple-action migraine formula.

Perrigo shifted capacity at its manufacturing plants to capitalize on Novartis’ recalls, which Perrigo estimates created a total store brand opportunity worth between $15 million and $25 million per quarter (Also see "Perrigo Feels Ill Effects Of Mild Cold Season, Excess OTC Capacity" - Pink Sheet, 14 May, 2012.).

Some private-label versions are available at lower prices than the branded product. For example, a 200-count bottle of the Bayer product has a suggested $12.99 to $13.99 price. A comparable version of Equate’s Migraine Relief 200-count version sells for $10.51 on Amazon.

Private label sales of internal analgesic tablets climbed nearly 17% to $513 million from the start of the year to Aug. 12 compared to the previous year’s period, according to SymphonyIRI, which does not differentiate Perrigo’s from other private labelers’ sales.

Bayer will rely on its “established history” in the pain relief category since 1899 and brand profile to differentiate itself from store brand and other competitors, Fitzpatrick said.

“That said, we’re not asking consumers to take our word for it when it comes to the efficacy of Bayer Migraine Formula for migraine pain and accompanying symptoms. As we mentioned, we’re offering a high-value coupon to encourage consumers to try it for themselves,” she added.

Bayer also will compete with homeopathic products that promise migraine relief, including TheraBiogen’s TheraMax Migraine Relief nasal spray (Also see "TheraBiogen Supports Theramax Expansion With Education Push" - Pink Sheet, 2 Apr, 2012.).

However, Fitzpatrick pointed out “consumers are already familiar” with Bayer Migraine Formula’s triple-action formula more than homeopathic remedies.

Extending The Brand’s Equity

The new product also extends Bayer’s efforts in recent years to broaden its image in the U.S. beyond the current consumer perception of Bayer Aspirin for heart health.

“Marketing efforts in the U.S. have focused on cardiovascular benefits in recent years, which may be one of the reasons why consumers associate aspirin more with cardiovascular benefits than pain. However, Bayer has several different aspirin products for different types of pain currently available,” Fitzpatrick said.

For example, she noted the 2011 launch of Bayer Advanced Aspirin (Also see "Zila results" - Pink Sheet, 25 Oct, 2004.).

With that and the launch of Bayer Migraine Formula the firm hopes “to remind consumers that Bayer Aspirin is an effective pain reliever and has been used for pain relief worldwide for decades,” Fitzpatrick said.