What are Rx-to-OTC switches and why are they important for the consumer health industry? Rx-to-OTC switch is the transfer of prescription (Rx) drugs to non-prescription (OTC) status. For over 40 years, switching has been an important growth driver for the consumer health industry, driven by increasing importance of self-care against the backdrop of ageing populations and rising pressures on healthcare budgets. Reflecting on our recent conversations with investors, we deem it useful to explore how switching works globally (with a focus on the key market - US) and examine prospects for further switches. Note that in FY22, OTC was c.57% of sales at Haleon and c.17% at Reckitt. Further switches will likely be more difficult to come by Most of the obvious and relatively easy switches have already been done, e.g. in the areas of cold and flu, allergy, pain relief, digestives. While there is scope for future switches in areas such as erectile dysfunction, topical pain, and asthma, they are considered to be more complex and will likely require more time and investment to accomplish (particularly, in the US). Some of the more vocal players (Bayer, Haleon, Perrigo, Sanofi) have in total only 7 switches in the pipeline for the next 5 years. Haleon is better positioned to be considered for future switches relative to Reckitt... Given that switching takes planning, time, medical, scientific, legal, regulatory, and marketing prowess (esp. in the US), we believe that for future switches, the pharma industry will likely favour players with a track record of successful switches and material US OTC presence. We thus view Haleon as better positioned relative to Reckitt: Haleon (GSK CH / Pfizer CH) switched 5 drugs in the past 9 years, more than any competitor, whereas Reckitt has never performed a switch; moreover, we estimate that Haleon''s US OTC business is c.3.4x the size of Reckitt''s. ... however, Haleon''s planned switches may take longer than initially...