Fast Fact - Zuellig Pharma
Fast Fact - Zuellig Pharma
Fast Fact - Zuellig Pharma
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Global OTC sales 2007-2011 (US$ million)<br />
was the fastest-growing category (+14.5%), thanks<br />
to a strong hay fever season, line extensions and<br />
the switch of Boehringer Ingelheim’s Alesion 10.<br />
The bright spot in the flat dermatologicals category<br />
was vaginal yeast infection antifungals, boosted by<br />
launches such as Sato’s Empecid L (clotrimazole)<br />
and Kobayashi’s Feminina Candida (oxiconazole).<br />
The switch of neticonazole hydrochloride cream in<br />
late 2011 should enhance sales further.<br />
OTC sales growth remained modest in<br />
Australia (+3.4%), growing roughly in line with<br />
volume for the third year running. Australia is still<br />
predominantly driven by the pharmacy channel as<br />
companies risk losing pharmacist support if brands<br />
are moved to mass market retailers. Modest growth<br />
of systemic analgesics was dampened by the May<br />
2010 up-scheduling of codeine in combination with<br />
other analgesics from pharmacy-only to pharmacistonly.<br />
However, topical analgesics boomed as<br />
consumers turned to natural formulations.<br />
The cough, cold & allergy sector grew across the<br />
board (+4.1%) with the exception of systemic cold<br />
& flu, impacted by a weak cold season, private label<br />
competition and a ban on pseudoephedrine brands<br />
being advertised to consumers from June 2011.<br />
Meanwhile, switch approval for oral famciclovir<br />
should further boost cold sore treatments. Vitamins,<br />
minerals & supplements benefited from strong<br />
interest in vitamin D supplements and innovative<br />
launches from long-line marketers such as Swisse<br />
and Blackmores.<br />
India’s OTC market grew by 11.4% in 2011,<br />
though low prices and limited disposable income<br />
mean that average consumer spend on OTCs<br />
(US$1.66 per person) is small by international<br />
standards. Growth of topical analgesics (+19.5%)<br />
and antacids & antiflatulents (+18.2%) was strong as<br />
both are highly consumerized categories benefiting<br />
from innovative line extensions and advertising<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
92.5<br />
96.6 (+4.5%)<br />
101.6 (+5.1%)<br />
105.4 (+3.8%)<br />
110.2 (+4.5%)<br />
and promotion. Systemic cold & flu remedies grew,<br />
despite a low incidence of colds, while advertising<br />
and promotion for Otrivin (Novartis) and Nasivion<br />
(Merck KGaA) assisted topical decongestants.<br />
Steady growth continued in South Korea (+6.5%)<br />
as some marketers placed increased focus on their<br />
OTC brands. This was in expectation of a negative<br />
impact on ethical portfolios caused by governmentenforced<br />
price cuts on 6,506 reimbursable Rx and<br />
prescribed OTC products from April 2012. Another<br />
hot topic in 2011 was the mass market, with 48<br />
brands down-scheduled to quasi-drug status. This<br />
included Bacchus-F, a line extension of South<br />
Korea’s No.1 OTC brand Bacchus-D (Dong-A).<br />
Further expansion continues to be discussed in<br />
2012 despite strong opposition from pharmacists.<br />
Solid growth in Indonesia (+6.2%) reflected<br />
strong performances in all categories due to price<br />
rises, a boom in advertising via social media and<br />
increasing disposable income among consumers in<br />
urban areas. One weak spot was analgesics (+1.8%)<br />
as systemics were held back by a lack of new<br />
product development.<br />
North America: Allegra switch softens<br />
impact of recalls<br />
OTC sales in North America increased by 2.6% as<br />
growth in the US (accounting for 90% of regional<br />
sales) reached 2.5% and Canada grew by 3.9%.<br />
Another relatively slow year for US OTC<br />
sales growth reflected modest upturns in most<br />
categories, which came as a result of the lingering<br />
effects of highly publicized recalls involving a<br />
number of McNeil/Johnson & Johnson OTC<br />
brands. In addition, the market as a whole lost out<br />
as consumers traded down to private labels. For<br />
example, in systemic analgesics, private labels grew<br />
by 9% and now account for over 30% of category<br />
sales by value.<br />
Cough, cold & allergy was the strongest category,<br />
with allergy remedies enlivened by the switch of<br />
Allegra in March 2011. Systemic cold & flu sales fell<br />
by 2.5% as recalls of Johnson & Johnson’s leading<br />
entries, Tylenol and Sudafed, devastated the topline.<br />
Antacids & antiflatulents declined as leading proton<br />
pump inhibitors, including Prilosec OTC (Procter &<br />
Gamble) and Prevacid (Novartis), suffered owing to<br />
competition from private labels and new rivals such<br />
as Zegerid OTC (MSD). Multivitamins produced<br />
moderate growth as a result of the dynamism<br />
of formats such as gummies, and specialized<br />
formulations including eye care vitamins.<br />
In Canada, sales of analgesics (+5.1%) were<br />
boosted by a strong topicals category resulting from<br />
the meteoric rise of Novartis’ Voltaren Emulgel<br />
since it gained unscheduled status in April 2010.<br />
Cough, cold & allergy was the best-performing<br />
category as systemic cold & flu remedies benefited<br />
from a more severe cold and flu season. The shining<br />
light in dermatologicals was vaginal yeast infection<br />
antifungals, boosted by the performance of newly<br />
switched oral fluconazole brand Canesoral (Bayer).<br />
Europe: Central & Eastern Europe markets grow<br />
again as economic issues hinder West<br />
European OTC sales increased by 2.8%, driven by<br />
the emerging markets of Central & Eastern Europe<br />
(+6.7%). In Western Europe, which accounts for<br />
72% of the region’s US$31 billion OTC sales, growth<br />
of 1.4% exceeded the flat performance of 2010.<br />
However, tough economic conditions continued to<br />
take their toll.<br />
Germany – Europe’s No.1 OTC market – grew by<br />
0.6%, an improvement on declines in previous years.<br />
Falling sales of vitamins, minerals & supplements<br />
and a flat performance by cough, cold & allergy<br />
were offset slightly by growth for analgesics and<br />
dermatologicals. Generics and branded generics<br />
(retailing at significant discounts) are a major bar to<br />
OTC growth, enjoying strong on-shelf presence and<br />
pharmacist recommendations.<br />
In France, a flat performance in 2011 was an<br />
improvement on the downturn of 2010 (caused<br />
primarily by cuts to the reimbursement rate).<br />
Further cuts (from 35% to 30%) in May 2011<br />
hit certain acne remedies, allergy remedies and<br />
antifungals, and, in October 2011, the government<br />
de-reimbursed 80 medicines deemed to have<br />
“insufficient medical benefit”. These included<br />
some mouthwashes, antiseptics, calcium products,<br />
herbal joint health supplements and hemorrhoid<br />
preparations.<br />
In May 2011, cough remedies – already suffering<br />
from the ban on mucolytics for use in children aged