Finding White Space: Navigating Through Pakistan’s Herbal Medicinal Product Market

EUROPEAN MODEL FOR

DEVELOPING SUCCESSFUL

HERBAL MEDICINAL PRODUCTS

Muhammed A. Qayyum, MD & CEO

Medics Laboratories Pvt. Ltd.

Origin

Phtyo pharmaceutical

phuein phuton phyto

from Greek phuton ‘a plant’, from phuein ‘come into being’.

greek greek

come in to being

a plant

Herbal Medicinal Product

Terminology

What's the difference?

Phtyo pharmaceuticalPharmaceutical Herbal Medicinal Product

Why Not Nutraceuticals Or Dietary Supplements?

DRAP Act 2012 ….. HOTC …… SRO 412

Phtyo pharmaceuticalPharmaceutical Herbal Medicinal Product

means herbal preparation or herbal

products which contain processed or unprocessed standardized materials derived from plants or parts

thereof or combination of parts of plants,

standardized or quantified extracts or fractions thereof in a dosage

form for internal or external use of human beings or animals and intended to be used

for the diagnosis, treatment, mitigation or prevention of any disease or disorder in

human beings or animals but does not include administration by parenteral

any medicinal product, exclusively containing

as active substances one or more

herbal substances or one or more

herbal preparations, or one or

more such herbal substances in combination with one or more such herbal preparations

Sec 2 xxxv Sec 2 lxxi

Drug:

any substance or mixture of substances that is manufactured, sold, stored, offered for sale or represented for internal or external use in the treatment, mitigation, prevention or diagnosis of diseases, an abnormal physical state, or the symptoms thereof in human beings or animals or the restoration, correction, or modification of organic functions in human beings or animals,

including substance used or prepared for

use in accordance with the Ayurvedic, Unani, Homoeopathic, Chinese or biochemic system of treatment

except those substances and in accordance with such conditions as may be prescribed;

Schedule I Sec 2a

SRO G.S.R. 918(E) 2015

European Medicine Agency

Ayurveda 5000 BCE

Indus Valley Civilization

Mughals

Sher Shah Suri, 1486 – 1545Unani physician at every stopover

house on caravan routes, GT Road.

Traditional MedsSub Continent

Abd Al Rafe Heravi

Ghazni King, Khusro Malik,

Lahore 1160-68

Hakim MuhammedHashim

1794

Hakim Ajmal Khan 1863 - 1927

Hakim Azam Khan (Tayyebi 1800)

Hakim Abdul Rahim Ashraf 1939

Hakim Mohammed Said 1920 - 1998

Hakim Mohammad Hassan Qarshi

Traditional MedsPakistan

Ajmal Dawakhana Pvt Ltd 1948

Tayyebi DawakhanaUnani, Indore 1815

Hashmi SurmaSub Continent, 1700

Qarshi Dawakhana Lahore 1968

Ashraf Laboratories Verowal 1939

Hamdard Laboratories Karachi 1948

1980’s Emergence of Ethical Marketing

• Akhlaque Ahmed, Formerly Albert David & Atco

• Est. 1983 / Verona on prescription

• Bulgarian research on Tribulus

• Sold 1995 / CIS 1996 / 2017 Countries 25

• Tawassul Hussain, Formerly Boots & Macter

• Est. 1986 / Livergen on prescription

• Consumer Since 2013

Qarshi Ethical Marketing Div

Brookes Herbal Division

Dabur India M&P

Himalaya India

Himont

1990’s New Players Enter…

Consumer

Prescription Consumer

Personal Care

HajmolaLIV52

Bonnisan

Personal Care

Vatika & Amla

• Intesar Siddiqui in 1996 – 97

• Started with Himalaya India 2002

• Dr. Koff in 2010 for Rs. 150

• Epitize

• Most Aggressive

• Moving to consumer brands

Game Changer

Ivy Leaf Story

• Initial idea 2009, PKR 75 – too expensive

• Launched in 2011 @ PKR 150

• Prescription – wide acceptability

• Prospan followed in 2013

• 31 Products in 4 years as of Jan 2017

Single Ingredient Premium Quality

Strong Clinical Evidence

HMPC Monograph

Coferb43%

Prospan20%

Kroff9%

Hylixia7%

Olcuf6%

Others10%

Pulmonat5%

Traceability

415MIMS 2016

White Space

We Must Launch Ispaghol

Jan 27, 2016 National Advertising Review Board (NARB) Discontinue Claim that Benefiber “Helps Maintain Regularity.”

blood pressure, triglycerides, cholesterol, bowel function, health claims not supported by EFSA

Can it compete with Ispaghool?

1. Pricing?

2. Positioning?

3. Value Addition?

4. Profit Margins??

World’s Greatest

Idea

Our love for “Ispaghool”

Qarshi’s flagship product

Largest selling cold product

Time, Best of Asia, May 2008

Strongest media blitz

Here Comes Cold

Me too formulation

Heavy media advertisement

No sales or distribution network

1. Pricing? 2. Positioning?

3. Value Addition / Differentiation?

4. Profit Margins??

JOHAR JOSHANDA

HASHMI JOSHANDA

Spot the Difference?

Dill Oil Dill OilFennel

PKR 60 PKR 195PKR 50

9 Billion 55 Mio6 Billion

IMS 139 MQARSHI

Whatever became of them two…

• Livergen peaked 50,000 / month mid 90’s

• Declining to 50,000 / year 2016

• Several set backs

• Market dynamics

• Still contributes to profits

• Verona continues to be a prescription product

• Supported by clinical studies

• Growing in international markets

• Cash cow for the company

• Simple formulation

• Starting as prescription product

• Steady growth

• Limited completion

• 2010 stopped doctor visits

• Small budget TVC 2013

• Growth increased

• Over 2 million 206

How it took away the pain…

The Learning Curve

Market Segmentation

Traditional Unani

Products

Herbal Medicinal Products

PhytopharmaHomeopathic

MedicinesHome

RemediesDietary

Supplements

Expert advice will be pivotal in consumer purchasing decisions

Herbal / Traditional Products in Pakistan Euromonitor International September 2016

Scientifically and traditionally proven premium quality herbal medicinal products or phytopharmaceuticals

The Innovation Ambition Matrix

HBR May 2012

Simple Starting Point

Peak Matters

Reality

World’s Greatest

Idea

Size???Euromonitor International

Nadeem &

Qayyum

PKR 50 – 100 Billion

Lesson fromUnani Medicines

Patient Centric

Goodness

Spiritual