The pain relief market in Australia is lucrative - sales were $580.54 million in the 2015 year in pharmacies, supermarkets, petrol stations and convenience stores.
Reckitt the maker of Nurofen and Glaxco the maker of Panadol have 71% of the pain relief market, in approximately equal shares.
So it comes as no surprise that Reckitt would want to increase its market share in such a lucrative market. Based on a 1996 clinical study, it started a mass-marketing campaign headlined by NUROFEN IS BETTER THAN PARACETAMOL for common headaches.
The overall impression given by the advertising (see the picture), particularly the graph with its bright red line for Nurofen and 4 hour time frame, was that Nurofen delivers faster and more effective relief from pain caused by common headaches than does Panadol or paracetamol.
Glaxco was anxious to defend its market share for Panadol. It decided to take legal proceedings to stop the Nurofen marketing campaign, relying upon the argument that the present state of scientific knowledge did not support the claim that Nurofen was better than Panadol for headaches.
Glaxco was successful in the Federal Court. The Court ruled that claims that Nurofen is better than Panadol for headaches were misleading advertising.
Reckitt will need to find another way to increase its market share!