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Morning-after pill headed OTC?

Ashley Milne-Tyte Aug 1, 2006
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Morning-after pill headed OTC?

Ashley Milne-Tyte Aug 1, 2006
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TEXT OF STORY

SCOTT JAGOW: The morning after pill still isn’t available over the counter, but yesterday the FDA said it might allow over-the-counter sales of Plan B, as the pill is called. Ashley Milne-Tyte looks at what this could do for the company that makes it.


ASHLEY MILNE-TYTE: Plan B is already available via prescription. It brings in about $20 million a year for drug maker Barr Pharmaceuticals. With three million unplanned pregnancies a year there are plenty of potential buyers should the drug become more widely available.

Bridget Bailing is with The Tan Sheet, which covers the world of non-prescription drugs:

BRIDGET BAILING: “I think it remains to be seen how much of a marketing effort they put behind it because as of right now the company hasn’t done a whole lot to promote the drug, and everything you’ve heard about it has been in the news.”

Morningstar analyst Brian Laegeler says over the counter sales of Plan B could more than double its revenue. But that won’t do much to fire up investors.

BRIAN LAEGELER:“I think that somewhere around $50 million is probably reasonable . . . it’s an exciting development for the company but I don’t think it’ll have a huge material impact on the share price.”

Laegeler says compared to some of the company’s other drug lines, Plan B is a rather small player.

I’m Ashley Milne-Tyte for Marketplace.

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