Upper Respiratory OTC Medications Post Strong Growth in Canada Despite Milder Cold Season

-- Recent Kline market study shows preventive use products help expand categories --

LITTLE FALLS, NJ, April 11, 2007 – Canadian sales of over-the-counter (OTC) cold remedies showed growth in 2005-2006 despite a shorter and less severe cough/cold season. The notable performance of the herb-based cold medication, COLD-fX, helped the market category maintain modest growth of 2.8% for 2006, according to the latest market study from Kline & Company, a global management consulting and market research firm. Furthermore the allergy remedy, Reactine, was moved from restricted status to unscheduled status, helping the allergy category to post strong gains of nearly 7% in 2006.

“OTC cold and flu remedies continued to grow faster than the overall industry bolstered by the strong performance of COLD-fX,” says Laura Mahecha, industry manager of the Healthcare practice for Kline’s research division.

Extensive pre-launch testing and an endorsement campaign featuring Canadian hockey players are likely keys to COLD-fX’s success, says Mahecha. Kline’s recent publication, Nonprescription Drugs Canada 2006, shows the cold remedy garnered an impressive 26.6% market share in 2006. “Because COLD-fX is often used by consumers to prevent colds it is purchased more frequently than the traditional OTC cold medications which are typically purchased at the onset of cold symptoms,” says Mahecha.

The change in the drug schedule of pseudoephedrine (PSE) and its salts may give another edge to COLD-fX if traditional cold remedies containing PSE are moved behind the counter. With two years of strong sales and the introduction of the product into the U.S. market, it’s certain that the larger, established OTC manufacturers are paying close attention to COLD-fX’s performance and its impact on the OTC cold medications market.

Nonprescription Drugs Canada 2006, the eighth edition of Kline’s biennial study, analyzes 26 market categories for OTC medications and profiles several key suppliers to the Canadian market. The study offers an extensive examination of the industry, including new product launches and line extensions, Rx-to-OTC switches, advertising and promotional spending and strategies, and regulatory developments.

About Kline & Company

Established in 1959, Kline & Company, Inc. is a global management consulting and market research firm serving the chemicals and materials, consumer products, energy, and life sciences industries. Kline provides clients with practical business solutions derived from a distinctive combination of industry expertise, global reach, strategic consulting, and market research capabilities. To learn more about Kline visit: www.klinegroup.com.

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