SA DIGESTIVE HEALTH

INDUSTRY LANDSCAPE REPORT

COMPILED: SEPTEMBER 2017

REPORT OVERVIEW

The South African Digestive Health Industry Landscape Report 2017 (111 pages) provides a dynamic

synthesis of industry research, examining the local and global Digestive Health industry from a uniquely

holistic perspective, with detailed insights into the entire value chain – from manufacturing to retail trends

and pricing analysis.

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For the Global Digestive Health Industry Section:

What are the current segmentation and market dynamics of the Digestive Health industry?

What are the Digestive Health industry trends, drivers, and restraints?

For the South African Digestive Health Industry Section:

What are the current market dynamics, market size and forecasts for the SA Digestive Health

industry?

Who are the key manufacturing players in the SA Digestive Health industry?

What are the South African industry trends, drivers and restraints?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players (retail pharmacies, in-store retail pharmacies, hospital-based

pharmacies, general pharmacies) in the SA Digestive Health industry?

What are the prices of popular Digestive Health OTC medication across SA retail pharmacy outlets?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

SCREENSHOTS FROM REPORT

111-page report filled with detailed charts, graphs, tables and insights

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Source: Statista; Statista; Global Newswire Image Source: Onnit; Bulletproof Blog; Chris Kresser

Kantar health surveyed men and

women in several countries on various

health metrics.

As shown in the graph below, gastrointestinal

conditions are common, and more prevalent in

the United States and Europe.

With the exception of China, women generally

have more gastrointestinal conditions than men

as shown in the adjacent graph.

*Note: Results from Kantar Health research: Base numbers of surveyed adult

populations: United States: n = 97,700; European Union (EU-5): n = 80,600;

Japan: n = 39,000; China: n = 26,000; Brazil: n = 15,600; Russia: n = 10,000.

Women, in particular, are seen as being the

principal force behind growth in probiotics.

Female consumers’ buying decisions are

impacted by the focus on maintaining their

families' health, and their high interest in digestive

health ranges from Baby Boomers to Millennials.

21%20%

18%

12% 11%

9%

0%

5%

10%

15%

20%

25%

UnitedStates

EU-5 Brazil Russia China Japan

PREVALENCE OF DIAGNOSED GASTROINTESTINAL CONDITIONS IN SELECTED COUNTRIES AS OF 2016

42% 41% 40% 39%54%

44%

58% 60% 60% 61%46%

56%

0%

20%

40%

60%

80%

100%

Unitedstates

EU-5 Brazil Russia China Japan

DISTRIBUTION OF DIAGNOSED GASTROINTESTINAL CONDITIONS IN

SELECTED COUNTRIES AS OF 2016, BY GENDER

Female

Male

SAMPLE FROM REPORT:GLOBAL INDUSTRY OVERVIEW: PREVALENCE

Source: Khni.Kerry Image Source: Tasteforlife; Thrivemarket; Performatrin

The New Era of the Digestive Wellness

Trend

Digestive Wellness is a long established

benefit platform which is now entering a new

era due to the emergence of new

technologies, new products, and the new

understanding of the broad effects that gut

health has on overall health, especially in

relation to the gut microbiome.

There is a growing excitement amongst

researchers and consumers alike at the

plethora of possibilities that unique microbe

strains may bestow upon Gut Health.

Although Probiotics and more so Prebiotics

have long been recognised for their digestive

and immune health benefits, seeing as 70%

of immune cells reside within the digestive

tract, new products are quickly emerging in

this growing market. Within food and

beverages, prebiotics is one of the leading

digestive health ingredients, becoming

increasingly popular amongst consumers as

treatment for digestive issues.

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SAMPLE FROM REPORT:SA INDUSTRY MARKET TRENDS

Emerging Digestive Health ingredients include

proteolytic enzymes which are primed to grow in

popularity with the trend towards ‘high protein’, as

these enzymes are thought to help digest protein.

Furthermore, next generation ‘plusbiotics’ claim to

support the regrowth of intestinal mucosa (the

innermost layer of the gastrointestinal tract) by

repairing damage and strengthening the intestinal

lining.

5.55.9

0

1

2

3

4

5

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Audited Revenue for theyear ended 30 June 2016

Audited Revenue for theyear ended 30 June 2017

Rand in m

illio

ns

ADCOCK INGRAM REVENUE FOR THE YEAR ENDED 30 JUNE 2017

(IN BILLION RANDS)

SAMPLE FROM REPORT:SA MANUFACTURER OVERVIEW: ADCOCK INGRAM

Source: Adcock Ingram annual results for the year ended 30 June 2017; Business Live Image Source: Adcock Ingram

On 1 April 2017, Adcock Ingram Healthcare

Proprietary Limited acquired 100% of the

shareholding of Virtual Logistics Proprietary

Limited (Virtual), a national distribution company.

Virtual complements the Adcock's reach and

capacity, allowing for improved service levels to

customers.

As illustrated in the graph below, Adcock Ingram’s

turnover for the year ending 30 June 2017

increased from R5.5 billion to R5.9 billion for the

period.

Adcock Ingram’s OTC turnover for the

year ended 30 June 2017 improved by

11% to R1.8 billion, in comparison to

the previous period. This contributed

31% to the group’s revenue.

Over-the-counter (OTC) medicines are

Adcock Ingram’s second-biggest contributor

to revenue but biggest contributor to profit.

Adcock Ingram grew overall revenue by 7%

to R5.9 billion and after-tax profit was up

213% to R561 million in the year to end-

June 2017.

Trading profit grew 10%, to R342 million,

contributing 47% of the group’s total.

The group declared a final dividend of 76c,

taking its total share price for the year to

R1.39, a 34% increase on the prior year’s

R1.04. In the year to date, the share price is

up 34.8%.

Prescription turnover improved by 5.9% to

R1.9 billion, compared to R1.8 billion in June

2016 and this was substantially aided by the

SEP increases.6

SAMPLE FROM REPORT:SA RETAIL OVERVIEW

Source: Insight Survey Image Source: Pixabay; Clicks Online

Product Dis-Chem DurbellPick n

PayClicks MediRite

Alkafizz 60g R39.55 R39.95 R38.99 R43.95 R49.99

Citro-Soda 60g R49.95 R47.95 R54.99 R47.95 R47.99

Eno Active Fruit

Salts 200gR63.95 R69.95 R72.99 R67.95 R69.99

Gaviscon

Heartburn Relief

8 Tabs

R12.95 R14.95 R15.99 R14.95 R15.99

Gelacid 100ml R47.95 R39.95 R41.99 R46.95 R54.99

ProbiFlora

Classic Bowel

Support 30 Caps

R109.95 R109.95 R115.99 R122.00 R119.99

Rennie Antacid

Aniseed 48 TabsR42.95 R44.95 R47.99 R45.95 R44.99

Total R367.25 R367.65 R388.93 R389.70 R403.93

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A product price analysis conducted by

Insight Survey in mid-September 2017

between Dis-Chem, Durbell, MediRite,

Clicks and Pick n Pay pharmacies

shows that, across a selected basket of

products, Dis-Chem offers the cheapest

option for OTC Digestive Health

medication.

A contributing factor for Dis-Chem being the

cheapest retail pharmacy at the time of the

analysis was because four of their Digestive

Health products were at a low cost.

Durbell was the second cheapest basket of

selected OTC Digestive Relief products.

Gelacid, for example, had the lowest price at

Durbell.

MediRite Pharmacy was the most expensive

retail pharmacy store. The basket was

R36.68 more expensive than Dis-Chem’s

total.

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BRAND AND QUANTITY

A.Vogel

200 Gastronol

TabletsR99.95 R99.95 N/A R99.95 N/A

200ml

Molkosan

Original

Prebiotic Food

Supplement

R106.95 R107.00 R129.99 R119.95 N/A

Adco-

Mayogel

100ml

Suspension

AntacidR12.95 R14.50 N/A N/A N/A

Agiolax

4x10g Sachets R36.95 R37.95 N/A R39.95 N/A

250gR188.45 R197.00 N/A R229.95 N/A

Alkafizz60g Gastric

AntacidR39.55 R43.95 R49.99 R39.95 R38.99

Amipro

70 Caps Colon

Ecology R193.95 N/A N/A N/A N/A

60 Caps

DigestizymeR209.95 N/A N/A R269.95 N/A

Anusol 10 Supp R24.75 N/A N/A N/A N/A

This pricing analysis was conducted at pharmacies during w/c 11 September 2017

SAMPLE FROM REPORT:PRICING ANALYSIS: DIGESTIVE HEALTH

TABLE OF CONTENTS

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1. Executive Summary (3 pages):

1.1 Global Industry Snapshot

1.2 South African Industry Snapshot

1.3 Industry Drivers and Restraints

2. Global Digestive Health Industry (22 pages):

2.1 Global Digestive Health Industry Overview: Background

2.2 Global Digestive Health Overview: Related Health Conditions: LEADING WORLDWIDE CONSUMER HEALTH COMPLAINTS: HEALTH CONDITIONS AND

DIGESTIVE HEALTH (Graph & Table)

2.3 Global Digestive Health Overview: Segmentation

2.4 Global Digestive Health Overview: Prebiotics

2.5 Global Digestive Health Overview: Probiotics

2.6 Global Digestive Health Overview: Digestive Enzymes

2.7 Global Digestive Health Overview: Antacids

2.8 Global Digestive Health Overview: Laxatives: TYPES AND THEIR DESCRIPTION (Table)

2.9 Global Digestive Health Overview: Antidiarrhoeal Medications: DRUG CLASS SEGMENTS; LEADING GLOBAL CAUSES OF DEATH AMONG CHILDREN

UNDER 5; WHICH HEALTH RISKS WOULD CAUSE YOU TO CHANGE YOUR TRAVEL PLANS? (Graphs & Table)

TABLE OF CONTENTS

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2. Global Digestive Health Industry (cont.) (22 pages):

2.10 Global Digestive Health Industry Overview: Prevalence: PREVALENCE OF DIAGNOSED GASTROINTESTINAL CONDITIONS IN SELECTED

COUNTRIES AS OF 2016; DISTRIBUTION OF DIAGNOSED GASTROINTESTINAL CONDITIONS IN SELECTED COUNTRIES AS OF 2016, BY GENDER (Graphs)

2.11 Global Key Markets Overview: Regional – North America: TOP 5 SPECIALTY SUPPLEMENT TYPES IN THE U.S. AMONG ADULTS 2016 (Graph)

2.12 Global Key Markets Overview: Regional – Asia-Pacific

2.13 Global Key Markets Overview: Regional – Europe: ATTITUDES TO HEALTHY FOODS IN EUROPE (Graph)

2.14 Global Industry Trends

2.15 Global Industry Drivers

2.16 Global Industry Restraints

3. South African Digestive Health Industry (48 pages):

3.1 South African Digestive Health Industry Overview (15 pages)

3.1.1 SA Industry Market Environment: THE SOUTH AFRICAN PHARMACEUTICAL MARKET BY SEGMENT (IN PERCENTAGE): 2016 (Graph)

3.1.2 SA Industry Overview: Pharmaceutical Market: GROWTH OF THE SA PRIVATE PHARMACEUTICAL MARKET SECTOR (IN ZAR BILLION): 2016 &

2020(f) (Graph)

3.1.3 SA Industry Overview: Over-the-Counter Market: PHARMACEUTICAL MARKET SEGMENTATION: 2016 (Graph)

3.1.4 SA Industry Size: Digestive Health Market : VALUE OF DIGESTIVE HEALTH REMEDIES 2011-2016, VALUE GROWTH % 2011-2016; VALUE AND

VOLUME OF INDIGESTION AND HEARTBURN REMEDIES, LAXATIVES, DIARRHOEAL REMEDIES 2011-2016 (Graphs and Tables), FORECASTS 2017-2021

3.1.5 SA Industry Market Trends

3.1.6 SA Industry Market Drivers

3.1.7 SA Industry Market Restraints

TABLE OF CONTENTS

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3. South African Digestive Health Industry (cont.) (48 pages):

3.2 South African Digestive Health Manufacturing Overview (33 pages)

3.2.1 SA Digestive Health Manufacturers: Adcock Ingram: Overview: ADCOCK INGRAM REVENUE FOR THE YEAR ENDED 30 JUNE 2017 (IN BILLION

RANDS) (Graph)

3.2.2 SA Digestive Health Manufacturers: Adcock Ingram: Digestive Health Brands

3.2.3 SA Digestive Health Manufacturers: Ascendis Health: Overview: ASCENDIS HEALTH REVENUE FOR THE YEAR ENDED 30 JUNE 2017 (IN

BILLION RANDS) (Graph)

3.2.4 SA Digestive Health Manufacturers: Ascendis Health: Digestive Health Brands

3.2.5 SA Digestive Health Manufacturers: Aspen Pharmacare: Overview: ASPEN PHARMACARE REVENUE FOR THE SIX MONTHS ENDED 31

DECEMBER 2016 (IN BILLION RANDS) (Graph)

3.2.6 SA Digestive Health Manufacturers: Aspen Pharmacare: Digestive Health Brands

3.2.7 SA Digestive Health Manufacturers: Austell Laboratories: Overview

3.2.8 SA Digestive Health Manufacturers: Austell Laboratories: Digestive Health Brands

3.2.9 SA Digestive Health Manufacturers: Bayer: Overview

3.2.10 SA Digestive Health Manufacturers: Bayer: Digestive Health Brands

3.2.11 SA Digestive Health Manufacturers: Biogen: Overview

3.2.12 SA Digestive Health Manufacturers: Cipla: Overview

3.2.13 SA Digestive Health Manufacturers: Cipla: Digestive Health Brands

3.2.14 SA Digestive Health Manufacturers: CoMED Health: Overview

3.2.15 SA Digestive Health Manufacturers: CoMED Health: Digestive Health Brands

TABLE OF CONTENTS

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3. South African Digestive Health Industry (cont.) (48 pages):

3.2 South African Digestive Health Manufacturing Overview (cont.) (33 pages)

3.2.16 SA Digestive Health Manufacturers: GSK: Overview

3.2.17 SA Digestive Health Manufacturers: GSK: Digestive Health Brands

3.2.18 SA Digestive Health Manufacturers: Nativa: Overview

3.2.19 SA Digestive Health Manufacturers: Nativa: Digestive Health Brands

3.2.20 SA Digestive Health Manufacturers: Nature’s Choice: Overview

3.2.21 SA Digestive Health Manufacturers: Nature’s Choice: Digestive Health Brands

3.2.22 SA Digestive Health Manufacturers: Reckitt Benckiser: Overview

3.2.23 SA Digestive Health Manufacturers: Reckitt Benckiser: Digestive Health Brands

3.2.24 SA Digestive Health Manufacturers: SA Natural Products: Overview

3.2.25 SA Digestive Health Manufacturers: SA Natural Products: Digestive Health Brands

3.2.26 SA Digestive Health Manufacturers: Sanofi: Overview

3.2.27 SA Digestive Health Manufacturers: Sanofi: Digestive Health Brands

3.2.28 SA Digestive Health Manufacturers: Other Manufacturers/Distributors

TABLE OF CONTENTS

4. South African Digestive Health Retail Analysis (23 pages):

4.1 South African Digestive Health Retail Overview (2 pages)

4.1.1 SA Retail Overview: NUMBER OF STORES PER PHARMACY: 2017; PRODUCT PRICE ANALYSIS: DIS-CHEM, DURBELL, CLICKS, MEDIRITE, PICK N PAY

(Graph & Table)

4.2 South African Pharmacies (8 pages)

4.2.1 SA Pharmacies: Clicks: Overview: PERCENTAGE CONTRIBUTION TO TOTAL SALES OF CLICKS PER HEALTH AND BEAUTY SALES CATEGORY FOR

(6 MONTHS ENDED 28 FEBRUARY 2017) (Graph)

4.2.2 SA Pharmacies: Clicks: Digestive Health Medication

4.2.3 SA Pharmacies: Durbell: Overview

4.2.4 SA Pharmacies: Dis-Chem: Overview

4.2.5 SA Pharmacies: Dis-Chem: Digestive Health Medication

4.2.6 SA Pharmacies: Other SA Retailers: MEDIRITE; PICK N PAY PHARMACY; SPAR PHARMACY; MEDICLINIC PHARMACY; NETCARE PHARMACY; LINK;

ALPHA PHARM; WELLNESS WAREHOUSE

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TABLE OF CONTENTS

4. South African Digestive Health Retail Analysis (cont.) (23 pages):

4.3 South African Digestive Health Pricing Analysis (13 pages)

(conducted w/c 11 September 2017)

4.3.1 SA Digestive Health Pricing Analysis: A.Vogel; Adco-Mayogel; Agiolax; Alkafizz; Amipro; Anusol; Bio-harmony; Biogen;

Black Forest Herbal tea; Brooklax; Citro-Soda; Combiforte Spray; Creche Guard; Dulcolax; Duphalac; Eno; Enteron; Entiro;

Flora Force; Food State; Freshen; Gaviscon; Gelacid; GNC; Iberogast; Imsyser; Inteflora 250; Lacson; Lactovita; Laxador;

Laxette; Lennon; Lenolax Enema; Maalox Plus Suspension; Met-S Dietary Fibre; Movicol; Nativa; Natsure; Natura; Nature’s

Choice; Naturmade; Normacol Plus; NRF FoodMatrix Digestive Enzyme; NutriLida Lp299v; Pharma-Choice Gastro Choice

IBS; Phipps; Phyto Nova African Ginger; Phyto-Force Ginger Tablets; Preparation H; Pro-B6 Suspension; ProbiFlora; Prosit

Alcohol Free; Pure Nutrition Technology; Rennie Antacid Aniseed; Reuterina; Select Digest; Senokot Natural Laxative;

Smecta Diosmecite For Diarroea; Soflax; Solal; Spasmopep Digest; Stillen; Tasectan; Tim Jan; Ulsanic Suspension;

Vitaforcce; Wellvita

- Comparative Pricing at Dis-Chem, Clicks, MediRite Pharmacy, Durbell Pharmacies, Pick n Pay Pharmacy.

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