4 NOTF FOR THF TOBACCO STRATEGY RFVIEW TEAM I ol TRANSDERNtAL NICOTLNE 1 7,747 PRODUCT Nicorin: patches are a system of delivering ni.cotine into the blood stream. Nico6ne patches were introduced onto the market as a pharmacy-only product in New Zealand in ]9q* and in the U.S.A. the-, were approved by the Food and Drug Administration for pr-,ic-niprion-only sales from 1992. Phar=z=ical companies manufacturing nicotine patches are currently marketing them. "treatment of nicotine dependence--as a smoking cessation aid, claiming for exarr.7::, the psychopharmacological stimulant effects of nico6ne underlie the tobacco nicor.:-.t addiction". This paper also considers issues relating to other potential uses of the tr=3dermal nicotine patch. i.e- dual usage by smokers of patches and cigarettes and choice of the patch solely for nicotine intake. i AS A METHOD OF ADMINISTERING NrICOTIN-E Gul C':'rics for use of nicotine patches issued by the manufacturer Ciba GeIgY reco=cnd that the subject should stop smoking complete],. and use patches for no loner :han three months '~as treatment period and doses above 52mg per patch have not evaluated). The guidelines advise against use by non-smokers, occasional smok---s and subjects with certain medical conditions. the standard nicotine patch (e.g. Nicotinell) nor the "Stowic" patch match the deli,_- pattern or impac-. ofnicotine that is obtained when smoke is inhaled from a cigartne. They do. however, match more closely the pattem of some other forms of tobaczo usage. e.g. pipes, cigars, and snuff, although there is some debate on th:: actual impo,-ance of the peaks and troughs in nicotine levels associated with inhaling cfiza:,-7e smoke. Cz BATCo document for Province of BritiSh Columbia 26 October 1999 Tobacco companies market cigarettes to smokers who enjoy smoking. Part of tha: enjoyment may relate to intake of nicotine but the smoker decides by the way be smokes whether he receives from 0 to 3 mg nicotine per cigarette. This is quite unlikt the steady stream from the nicotine patch which is somewhat akin to an intravenous drip. While delivering nico6ne, patches do no- mimic any of the other facets of smokinQ civarvics. In addition, as presently developed, they are a totally automatic delive-y system Lnd have none of the flexibility of tobacco usage, both as to amount and t-ming of delive-v. In certain circumstances nicotine-containing patches are potentially dangerous. t1n.-Y can be easily misused or tampered with arid, as currently manufactured, can be mistak= for plasters by the elderly or the young. The total nicotine content of individ-zal nicotine patches can be as high as 51 ma, roughly equivalent to the dose fc- a man of average weight- Whethcr by multiple patching, ingestion. or inadvertent nicotine extraction, niocz:nc ilaiciliry in patches is sufficient to give rise to the concern that acute toxicit,.- '17 val a adults and possible child fatality could occur. Salient questions are: What woul_~ be the c"ccl ot weariniz more than one patch at a time" If patches were discarded cart-~itiz significant residuals ofnicotine what would be the effect ofaccidental ingestion by children9 What would be the effect of inadvertent extraction of th-, nicotir, in a patch by spilled alcohol (dr-Inks for example)? 3. 7-zFFCTIVENESS OF PRODUCT IN SMOKJNG CESSATION The evidence produced by the makers ofNicotintll (Ciba Gcigy) is not convincin'2 and does not indicate substantial advantages compared to a placebo. A report by thc New York Times (8th April 1992) suggested that those who quit using patches relapse at about me same rate as anyone else. In one series of follow-up studies, six mon,_'-s after havin,z stopped using the patches, the share of subj ccts not smoking ranged frorr -, to 481,~ compared w~ith a rate of 0 to 40% of those who did not use the-n. It has also been suggested that the patches arc relative!y ineffective unless used 'n comunc-ion with some form of behavioural therapy. A consumer group is no,.;,, U-1 CD complaining to the U.S. Federal Goverrimcrit that advertisements for the patcheS are f1i misl--zdlnp- by implying that the patch is all that is needed to quit smoking. Thce Zroup kJ-1 C~-) BATCo document for Province of BritiSh Columbia 26 October 1999 is petitioning fc- -:quirement of labels waminp smokers of the risks of smoking while wearing the par--- and that they may also need counselling to help o"crcome, ,. psychological ---~iiction" of smoking. 4. NICOT-'~-:- IN RELATION TO N-EURODEGENER-ATIVE DISORT)ERS AND 07--ER DISFASES Current advice --= consultants to BAT is that the epidemiological basis of a negative associafion bet- -.-i smoking and incidence of Alzheimer's disease is hardening. There is also good c-,:-'--nce that smoking alleviates the symptoms of Alzheimer's disease. The situation rt2ard to Parkinson's disease is similar but rather more certain. These observa-'-ns are %idely believed to be due to nicotine but this has not been substantiated- Lih ough the view is consistent with current pharmacological knowledge. One adviser, D-. S. Wannacott (University of Bath), is of the opinion that nicotine has unique propcr-.:s and 'protects' nerve cells aeainst damace leadiniz to neuredegenerai:--t disorders. On this basis she believes that the pharmaceutical companies wil'. easily be able to develop a drug to replace nicotine in relation to Alzheimer's In relation to alleviating symptoms of Parkinson's disease the position is difft7n: and another material (1-dopa i is preferred. This is because different regic7z z` -,he brain art involved It has also been 3~;ggtsted over the years that nicotine may be implicated in some smoking-assoc:Z::--' diseases. more especially cardiovascular disease. This possibility has not been d:~-70ved although Wald and Froggart ( 1989) do not find the evidence persuasive. Generally spea;:~.-,, this area of work is likely to increase the interest in nicotine administration. ts-occiall'v since Alzheimer's disease is likely to be a major health issue in the next ce7:=7,.. as life expectancy increases and birth rates fall. 5. POSS:-:;--'-= DEVELOPMENTS The possible dv-t7opment of more sophisticated patches can be foreseen. for example in which compz:--:.nds other than nicotine could be co-administered. Patches containing reduced amou-.:s of nicotine (and shorter useful contact times) are obviously possible, VI as are user-co-.::--dablc patches CD INJ ~-rl co BATCo document for Province of BritiSh Columbia 26 October 1999 4 Such de, --lopmenu would be expected to make the product more acceptable to potential consume-; and, possibly, lessen some of the safety concerns associated with it. 6. F7~71 UTRF "'z'ODUCT RFSEARCH ARRANGEMENTS The following =anzcments have been put in place as part of BATCo's. continuing review of transde7---al nicotine patches ("TNIPs"). a] Meeting A-i---- Stowic Resources (May 19th) - to ascertain their views on the17 product. b] Informal rr.,::7:ng on May 21 st w~iih the Chairman of the U.K. Committee on Saf,-ry or, V--dicines (Professor M. Rawlins, University of Newcastle) to bear his ,. i-,,,-s on 'ht 77obable approach to nicotine patches in the U.K. cl Briefbeha-,-._-_i7al study to compare the efficacy ofnicotine patches w~ith smoking ir. a vlgllan~: -ask. (Surnmer, 1992 - subject to approval from the Universi-.~- of Rnding~. 7. PRODUCT',_-\: AND PROF17.ABILITY POTEN71AL Patches ar: a lo--.2,zhi-ioloev manufacturing challenge probably associated with a lo,- capital investmen: iHr--shold- Althouah T,Ps civarettes have a common element only in that they both dch,cr nicotine. the pos. _'.t diversification of Tobacco manufacturers into the production and marke-inq ofT\-z 's not supported b~ synergistic benefits:- I.. The technolozies involved are distinct i-.. The fabrication processes are different. C) n. 'here is little commonality in terms of raw materials used. BATCO document for Province of BritiSh Colurnbia 26 October 1999 iv -: he channels of disnibution are different. V. Any potential advantage arising from the use of common brand -Ps are likely only names would be constrained by the fact that TN to be available on prescription. It is believed that pr:-'itability on a unit basis is likely to be substantially greater than cigarenes. Patches probably be marketed at a retail price closely equivalent to a pack of cigarettes. 2:: most likely to be cheaper to manufacture, and attract no excise duty. 8. MARKETINC --ONSIDERATIONS Sales of patches in '.'tw Zealand are said to have been better than the makers expected and it is reported t---- demand is "amazing" in the U.S.A. Analysis have said that the combined sales of---- hree brands in the U.S. could reach USSI billion annually. The products have :.-.',% been on the market for five months and the early Findings of research on the pr--Z-:ts' effectiveness as a smoking cessation aid ar!! inconclusive. It is, therefore, difflc-.~.-. to predict their long term sales potential. Freedom of Choice -t could be argued that patches represent an alternate product for nicotine users (alon, A;ith gums, snuffs and inhalants), and thus having the potential to be marketed as a ct-&iation aid or a means of cutting down smoking. They would however need to be :.earlv positioned as not being an alternative to cigarette smoking, since this would z=i-zously suggest that the cigarette itself is a simple nicotine delivering devict. Erosion of smokin; ---anchise. By topping up the -.vholebody nicotine reservoir. patches might be :-:7ccted to reduce daily consumption of cigarettes. We CUTTe-Itly N) (-rl CID J::- U-- CID ON BATCo document for Province of BritiSh Columbia 26 October 1999 6 know insufficient about the potential demand for such products and, hence, the potential business rrade-off value between patches and cigarettes is unknown. Dual Usaize Risks. Patches do not appear to be an effective cessation aid in the medium term. There is, however, the possibility that people will use them in addition to cigarettes, with the possibility of.-- (a) nico6ne overdosing for regular smokers: (b) habituation to continual body reservoir nicotine requirement-. and (c) consequential dtbate that patches actually synergise rather than antagonise the smoking habit. Patches would therefore not appear to be immediate]%, appropriate for marketing for use by smokers as Ln alternative product in circumstances where smoking is proscribed e.g. airlines, theatres. etc. Association with ?_-.,on Druz. However insulated from cigarenes the patch alternative may be, it shares a ~mo,,,-n common feature, nicotine. Patches may focus debate on nicotine as a psych~-active component of cigarettes. diverting attention from other valid aspects of smoll-ing satisfaction (taste, texture, visual/tactile stimuli) and potentially focusing on nicotine as a drug and a poison. Erosion of Brand Vaiuc. Patches do not offer great markering flexibility in terms of product and brand innage differentiation since the only variables currently available are amount and relative szeed of dosing. If the nicotine centrality argument generalises back to cigarettes. ,-nc~ are in thernselves relatively homogeneous at product level. some consequential --rand value erosion could follow. Co cc BATCo document for Province of British Columbia 26 October 1999 ~Iarketinv- Comr)eTence. Patches are most likely to be controlled as prescripticn-only drugs which is not an area of marketing competence for BAT. Given the 'dru&'profile of patches it would also be important to separate the business completely from cigarette markeriniz. 9. OTHER CONSIDERATIONS The classification of nicotine patches as a drug delivery system may or may not apply in all countries. In the U.S.A., tobacco products are not regulated by the F.D.A. unless health claims are made, e. u- "Premier" came under the scrutiny of the F.D.A. If tobacco companies were to market nicotine patches, this could be seen as a move towards tobacco companies being regarded as pharmaceutical companies. The anti- smoking lobby has in the past offensively referred to the tobacco industry as "no better than drug pushers". The issue ofaddiction has been ,k~idzly debated in respect of smoking and the potential use of nicotine through patches is likely To lead to further public interest in that issue. The 1988 U.S. Surgeon General's Rtport observed that nearly half of all living adults who ever smoked have quit but still concluded that nicotine is addictive. The tobacco industry's response is that addiction is a frequently misused term that has become a catch phrase for many habits. In product liability litigation tobacco companies assert that people continue to smokc because they enjoy it and that it is not appropriate to term smoking as addictive when millions of smokers have R-i, en up voluntarily and without assistance. 10. SUMMARY In view of the different product characteristics of TNTs and smoking, cur-rent designs of TNP5 would not appear to be a se-ious threat to the tobacco industry. It is, however, difficult to make confident predictions about the likely success of TNPs although there are clearly some major issues associated %vith their xidespread use. cc _1 :~- V-1 CID Or- BATCO document for Province of BritiSh Columbia 26 October 1999 On the assumption that they are viewed by consumers as an acceptable and valuable method ofniconne intake, T-N-Ps have the poitntial to be a highly profitable business activitv. This is because the likely retail price of such patches is similar to that for a pack of cigarettes whilst the manufacturing costs are likely to be lower than those for cigarenes and TNPs attract no excise duty. Arguments against an extension of business activity into the production and marketing of TNP s are: - i. TN?s are commodity products, differentiated by very little except perhaps speed ofaction. They therefore, be very difficult to invest credibly with product~brand image differentiation. ii. BAT would be placed in an invidious and legally difficult position ifit promoted the product: - i a) As an aid to stop smoking - if, as preliminar-y studies suggest, the patches are not effective as a smoking cessation aid, marketing it would be likely to lead to an allegation of misleading claims being made for the product. It should be noted. however, that if the product is ineffective as a cessation aid this is consistent with the tobacco industry position that smokers are not physically "addicted" to nicotine but choose whether to smoke or not, and therefore they have no need for such an aid. (b) As a product which consumers freely choose in order to satisfy their desire for nicotine uptake, given the fact that TN,?s are likely to be available only on prescription. U-1 CD r1 j L.r co -Cl- BATCo document for Province of British Columbia 26 October 1999 (c) As a _`ual-usage product for smokers given the lack of research done on the 52~':t-V Of Use of the patches in conjunction "kith smoking iii. Patches are zapable of being misused, and this is likely to lead to their disnibution *.-!-.ng restricted and,,or potential litigation. There are no significant technological or processing synergies between tobacco manufacturing and production of patches other than the use of tobacco waste as a source of nicotine. z"7 Thus, from a busin:---,s opportunity viewpoint, TNPs should be iewed as a high profit . ~ A\ potential but hiszh nzl- venture. I RFCOMM-=\-DATIONS FOR FURTHER ACTION If it is decided thaz ~_:nher investigation of the role of the nicotine patch is to be made, it is recommended -.-at - I . Thc ~ Diential of nicotine patches should continue to be investigated, parz:zularly against the possibility that improved patches are developed Cons:jcration should be given to supporting research projects in relation to A.~,ieimer's disease and Parkinson's disease in vie\;,- of the probable the.-a::,:utic value of nicotine with regard to these conditions and levc7zge of the positive perception of nicotine. 3. The '-.-Kelihood of a scenario emerging \vhere people consume both TN-?z and tobacco products should be evaluated and estimates made of the '--_Lsiness tTade-off value therein. 4. Qu--*.::ative consumer research on the scope for insulating cigarette perz-,-~-tion.!usage from patch perception..'usaze and the scope for U1 bra7.-"ng differentiation ofpatches should be investigated. CD r\-) U-1 cc U_ BATCo document for Province of British Columbia 26 October 1999 If the production of TNPs were considered to be an acceptable PTOPOSItion, the business po=tial and viability should be rcvlewe~ b" a project team specifically brought together for this purpose under the auspices of BAT Industfies rather than being based within one of the BAT tobacco operations. 19.5.92 U-1 U-1 co X::b BATCo document for Province of British Columbia 26 October 1999