GSK now marketing supplement as Rx

Sep/27/2008 02:03
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LOVAZA is the name of a new prescription medication that is made from natural fish oil for high triglycerides According to GSK the fish oil is put through a five-step refinement process to help remove toxins and fats. This gives it a high concentration of nutrients known as EPA and DHA. Also according to GSK "by prescribing LOVAZA, your doctor is giving you the only prescription Omega-3 medication. A prescription medication is a drug that has passed the U.S. Food and Drug Administration's (FDA) rigorous review and approval process to evaluate its safety and effectiveness. Dietary supplements do not undergo rigorous FDA reviews for safety and effectiveness, and the FDA does not require dietary supplements to follow the same manufacturing standards as prescription medications like LOVAZA". In a healthcare system that is already burdened with high costs why would someone at GSk believe that that fish oil capsule at $1.28 (average wholesale price) is viable. Maybe fish oil does work to lower high triglycerides but there are so many OTC versions available I doubt consumers are going to fall for the argument that prescription capsules are better than OTC version.


I worked in the supplement market when sales were increasing by double digits every month. Items like St. John Wart, Gingko and Ginseng were thought to be instant answers to an aging population. Since that boom in the 90's the market has cooked off quite a bit largely because studies proved that supplements did not provide the efficacy that boomers were looking for and also because there was a big disparity between the quality of the ingredients in these supplements.


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Over the last year we have seen companies like Bayer and Wyeth add phytosterols to products as way to lower high cholesterol and there has been a lot of talk about Omega 3 fatty acids lowering cholesterol and high triglycerides. Everyone from GNC to local drugstores now have shelves full of Omega 3 fatty acid supplements so when I saw the ad for Lovaza I had to scratch my head and ask "what are they thinking?"

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GSK's argument is that since they area a pharmaceutical company they can manufacture the product to FDA standards (i.e. don't trust OTC supplements). While there are some people that might buy that my guess is that there are not a whole lot of insurers who are going to reimburse patients $1.28 a capsule when it can be purchased for a whole lot less ($.02 a capsule) at places like Costco. I sold to Costco and since they want to protect their members they visit the facilities of vendors to ensure that they are up to standards. Costco Omega 3 supplements are also USP certified which adds a lot of credibility.


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A years supply is $1.28 per capsule

So what's next prescription calcium and vitamins ? If this is any indication of new products from pharma than perhaps we had all better sell our stocks now..









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