Passing the Test

With data-driven health care becoming a reality, sales of OTC monitors that can store and share information with patients’ health care professionals are driving the at-home testing market. For instance, blood glucose and blood pressure meters are offering patients increased storage for readings and interconnectivity to other electronic devices.

According to the Alexandria, Va.-based American Diabetes Association, the average diabetes patient spends $103 per year on testing supplies. With testing strips averaging $1 apiece and patients on an intensive insulin regimen testing six to eight times a day, many patients are spending much more on testing supplies.

Blood glucose meter sales across all outlets totaled $292 million for the 52-week period ending April 19, 2015, according to data from Chicago-based IRI. Lancet sales came to $27 million for the 52-week period, an increase of 14 percent, while testing accessories sales were flat at nearly $47 million.

In the blood glucose monitor segment, sales of private label monitors outpaced branded products. Private label monitors had sales of $138 million, up 4.6 percent compared with last year, with private label products accounting for 47 percent of glucose monitor sales during the 52-week period. Reimbursement requirements have shifted the business to private label devices, since insurance companies steer patients to more affordable products. Branded meters from Lifestyle, Bayer, Roche and Abbott all had dollar sales declines, largely as a result of lower prices for their private label counterparts.

Meters have become more technologically advanced, with many allowing users to store and track results and to connect the device to other electronics so that patients can better track their own data, as well as share them with physicians or pharmacists.

“A lot of the progress in the category has already been made. Things have improved dramatically, with good results requiring very little blood,” affirms Matt Petersen, managing director of medical information at the American Diabetes Association. “Competition now is concentrating on secondary features such as interconnectivity with other devices, and different colors.”

“Consumers, as well as retailers and insurers, are looking for a quality value solution, and that’s where store brands, or own brands, can win in the marketplace,” says Mike Schlanger, senior marketing manager for channel marketing at Fort Lauderdale, Fla.-based Nipro Diagnostics, which manufactures co-branded private label blood glucose meters, test strips, lancets and other diabetes supplies. “The innovation behind our new True Metrix Air blood glucose meters delivers on [our] commitment to elevate store-brand product offerings that solve patient needs.”

High Tech, Higher Accuracy

True Metrix Air, introduced in April, can deliver data wirelessly to a user’s smartphone, and True Metrix test strips can detect, analyze and correct for environmental and physiological variability (including hematocrit and temperature) with proven precision and accuracy.

Alameda, Calif.-based Abbott Diabetes Care launched FreeStyle Precision Neo Blood Glucose Monitoring System, a high-accuracy blood glucose meter that retails for $22 to $28, and test strips that retail for $14 to $17, a lower cost than other branded meters and test strips. The new product is the first in Abbott’s FreeStyle family of products, which is available over the counter with preferred co-pay pricing that gives patients the option to pay out of pocket to obtain their monitors and test strips, instead of dealing with the insurance paperwork and co-pays often needed to purchase branded diabetes supplies.

Earlier this year, LifeScan, a Johnson & Johnson company based in Milpitas, Calif., introduced the OneTouch Verio Blood Glucose Monitoring System, which helps people with diabetes better understand their results. The system features a color-coded range indicator that shows whether a test result is within, below or above the range limits set in the meter, without the need to scroll or push buttons. It also looks for signs of improvement and provides positive reinforcement via Progress Notes, which inform patients on the progress they’re making in managing their diabetes and how often their blood glucose results are in range.

ECRM data show that circular promotions that combined offers for glucose monitors with lancet promotions increased 44 percent for the 52 weeks ending May 9, 2015. “This is a good indicator that supermarkets are utilizing promo space and supportive product promotions to offer one-stop [shopping] on promo opportunities,” says Danal Harvey, an analyst at Solon, Ohio-based ECRM.

“Branded lancets, tablets/sprays/gels, and syringes all gained promotional share for that period,” adds Harvey. “Supermarkets are using these products as traffic drivers. Coupled with in-store pharmacy services, these ads could drive sales.”

Price-only offers dominated the promotional landscape for the past two years, according to ECRM. Within incentive offer promotions, blood glucose meters were promoted as a free item in 73 percent of supermarket glucose meter promotions for the past 52 weeks. These promotions offered the monitor free with the purchase of test strips, rather than offering the strips free with the purchase of the monitor.

“It’s important to take the time to create a diabetes display with meters, strips and foot care,” says Kelly Rawlings, editorial director of the American Diabetes Association’s Diabetes Forecast magazine. “A big part of taking care of diabetes takes place in other parts of the store, when you are making decisions about what to eat. Using tests strips before you eat something, and again two hours after, can be a real eye-opening education on how certain foods affect you.”

Nipro’s Schlanger says that supermarket retailers are doing a good job of integrating their nutritional and pharmacy expertise to help educate patients on managing their condition. “Many of our retail partners are doing diabetic screening events and nutritionist events that help educated consumers, but I’d like to see them doing more to actively seek that consumer with the kind of displays and programs that Publix and H-E-B are doing,” he notes.

For one drug retail partner, Nipro created a display that included blood glucose meters, test strips and lancets, fast-acting glucose tablets, Ketone test strips, skin care products, and magazines. “The display educates the consumer and builds awareness of all of the own-brand products available to meet the needs of the consumer with diabetes,” he explains.

Blood Pressure Meters

Since those patients with diabetes often also suffer from a number of other conditions and complications, including high blood pressure, other tools and devices can appeal to them. Recent Mintel research found that 84 percent of patients with diabetes said they used a blood glucose meter in the past 30 days, while 44 percent of patients with diabetes said they used a blood pressure monitor during that same time period.

Blood pressure monitoring kit sales totaled $205 million across all outlets, up nearly 2 percent for the 52-week period ending April 19, 2015, according to IRI data. Private label monitors accounted for 56 percent of glucose monitor sales, but saw dollar sales dip 1 percent to $115 million. Kyoto, Japan-based Omron, which has its U.S. headquarters in Lake Forest, Ill., dominated the branded market, with 41 percent of the market, seeing a nearly 16 percent dollar share increase at the same time that all other brands experienced dollar sales declines.

Omron recently implemented new algorithm technology in its upper-arm blood pressure monitors to help ensure more consistent and precise readings. “Our newest line features Bluetooth Smart technology, which allows consumers to take accurate blood pressure readings and wirelessly transfer their readings to their smartphone through our new Omron Wellness App,” says Rob Schneider, the company’s executive marketing director. “This feature also allows consumers to easily show their doctor their blood pressure tracked over a specific period of time, when they go into the office for a checkup.”

Like other manufacturers, Omron is making its devices smaller, and plans to introduce the Ultra Silent wrist model, which can monitor anywhere, anytime, in late 2015.

“Branded lancets, tablets/sprays/gels, and syringes all gained promotional share … Supermarkets are using these products as traffic drivers. Coupled with in-store pharmacy services, these ads could drive sales.”
—Danal Harvey, ECRM

“Consumers, as well as retailer and insurers, are looking for a quality value solution, and that’s where store brands, or own brands, can win in the marketplace.”
—Mike Schlanger, Nipro Diagnostics