Several pharma companies with consumer healthcare segments have been working on making prescription (Rx) drugs available over the counter (OTC.TO). Rx-to-OTC switches ensure that patients can easily access these drugs without having to go to the physician.

Some prescription drugs that were converted to OTC include Nasacort Allergy 24HR (nasal spray – allergic rhinitis), Allegra, Allegra D 12 hr and Allegra 24 hr (antihistamine), Prevacid 24 HR (acid reducer/PPI – proton pump inhibitor) and Zegerid OTC (acid reducer/PPI) among others. Pfizer (PFE) also gained approval for OTC Nexium 24HR (heartburn) in March.

Now it looks like erectile dysfunction pill Cialis will also be available over the counter. Eli Lilly and Company (LLY) and Sanofi (SNY) recently signed a deal under which Sanofi acquired exclusive rights in the U.S., Europe, Canada and Australia for Cialis OTC.

Once approval for the OTC version is gained, Sanofi will market Cialis OTC exclusively. While additional details regarding the deal remained under wraps, Sanofi said that the product would be launched after certain patents expired. The compound patent is slated to expire in 2017.

Cialis was first approved in the EU in 2002 followed by U.S. approval in 2003. The drug is approved for erectile dysfunction as well as the signs and symptoms of benign prostatic hyperplasia.

Cialis has been a major contributor to Eli Lilly’s top line with 2013 sales coming in at $2.16 billion. Ever since its launch, the product garnered worldwide sales of more than $14 billion. With this deal, Sanofi is looking to boost its Consumer Healthcare segment, which posted sales of approximately $4.1 billion in 2013, up 5.2%.

Both Sanofi and Eli Lilly are Zacks Rank #3 (Hold) stocks. A better-ranked stock in the pharma sector is Allergan (AGN), a Zacks Rank #1 (Strong Buy) stock.

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