The Over-The-Counter Drug Industry
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Transcript of The Over-The-Counter Drug Industry
PIYUSH [email protected]
OTC MEDICINESMARKET
INTRODUCTION• Non-Prescription Drugs• No Legal Recognition in India• Same Standards as Prescription Drugs• Not Included in Schedules H and X of the
Drug and Cosmetics Rules• Legally Allowed to be Sold by Pharmacists
or Medical Stores without Prescription from a RMP
Importance of Self-Care• TRUSTED First Line of Treatment• Provide ACCESS 24/7• AFFORDABLE Treatment• EMPOWER Individuals & Families• Your Health at Hand
Major CompaniesDr.Reddy's, Wockhardt, Cadista, Cipla & Zydus Cadila are
examples of Indian companies that havedone well in the OTC segment. The
attractiveness of the Indian OTC markethas extended to MNCs as well. Novartis, Sanofi, GSK,
Pfizer and Johnson & Johnson areexamples of MNCs that have a strongpresence in the Indian OTC segment.
Perrigo - A classic example of OTC focused company
Total OTC Medication Sales in the U.S.
2010 2011 2012 2013 201432
34
36
38
40
42
44
46
37.2*38.4*
40.1*
42.1*
44.3*
* Sales in billion U.S. dollars
#
# Statista 2015
Mega Categories within OTC Contribute (70% of total)
• Nutritionals ($9.7)• Respiratory ($7.5)• Analgesics ($4.4)• Gastrointestinal ($4.3)• First Aid ($3.0)
U.S.
Study Findings 1• The availability of OTC medicines provides
$102 billion in value to the U.S. healthcare system annually.
• Each dollar spent on OTC medicines saves$6-7 for the U.S. healthcare system.
• If OTC medicines did not exist, an additional56,000 medical practitioners would need towork full-time to prescribe medicines for self-treatable conditions.
Study Findings 2
Study Findings 3
Globally, Western Europe and the U.S. remain the largest OTC
regions representing 43% of thesector’s sales, but the real driving
forces behind its recent performance are the developing markets of South East Asia, Latin
America (LA) and Central & Eastern Europe (CEE).
Effectiveness of Marketing Campaigns
Adver-tisement
Education Magzine Executives Consumers0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OTC Recommendation
Headache Fever Cold/Cough
Acidity Pain Digestive0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OTC Market in India
• Ranks 3rd in terms of Volume
•14th in terms of Value
• India ranks 11th in terms of the OTC Market Size
OTC Products in India• Analgesic or Cold Tablet (Crocin, Disprin)• Antiseptic Cream (Boroplus)• Balm or Rubs (Himani Fast Relief, Moov)• Cough Lozenges (Strepsils)• Digestives (Dabur Hingoli, Eno)• Health Supplements (Boost, Horlicks)• Skin Treatment (Itchguard) etc….
OTC Market Growth DriversWIDER
DISTRIBUTIONCHANNEL
DIRECT TOCONSUMER
ADVERTISEMENTS
INCREASEDCONSUMERAWARENESS
LOWPRICE
CONTROLS
Growth drivers of OTC Market in India• RISING AWARENESS AMONGST
CONSUMERS• SELF MEDICATION TENDENCY• LIFESTYLE FACTORS• RISING PURCHASING POWER PARITY OF
CONSUMERS• PSYCHOLOGICAL FACTORS/ MINDSET
CHANGE
Continued ...• PRODUCT INNOVATION• PROMOTION• CHANNELS DEVELOPMENT• RISING AWARENESS ABOUT SAFETY• RURAL PENETRATION• PRODUCT INNOVATIONS• EXPLORING NEW POSITIONING• EVOLUTION OF DIGITAL MEDIA
OTC Medicine Market ForecastINDIA
REFERENCES• BMI Research• www.equitymaster.com (Pharma OTC: A step
beyond generic drugs)• Statista 2015• IRI• Dolcera• IMS• CHPA