MAT Q1 2015 update: Three key Market Mover trends revealed

Our OTC DASHBOARD tutorial series continues, this time turning our attention towards the recently updated Market Movers section. I’ve outlined major MAT Q1 2015 growth drivers, such as US nasal steroids and Chinese health tonics, and included some tips and tricks to help you navigate the page. Meanwhile, Valeant has snapped up Sprout Pharmaceuticals and this week’s infographic looks back at its insatiable appetite for dealmaking – Regards, Owen Hartnett.

1. The Top 3 Market Movers were US OTC launches

The power of Switch was evident during MAT Q1 2015 with three product launches in the US recording the biggest change in total sales. Pfizer’s Nexium 24HR led the way generating US$201mn since its introduction in Q2 2014, following Rx-to-OTC switch approval, and continues to rapidly gain market share in the once ailing PPI antacids segment.

The emergence of a new OTC nasal steroids class is an important theme, with the next two biggest Market Movers being recently switched allergy remedies. Sanofi’s launch of Nasacort 24HR in early 2014 was the first 24-hour full prescription strength nasal allergy spray available in the US, and since then has garnered US$150mn in sales. More recently, in early 2015 Flonase (GSK) entered the fray, enjoying an impressive US$100mn in our reporting period, and is set to further expand this burgeoning category.

You can access these profiles at otcdashboard.com/market-movers (requires login), where you will be presented with an overview of the Top 6 dynamic growth brands as well as those in decline. OTC DASHBOARD contains a handpicked selection to highlight major brands of interest, limited to no more than three from one country.

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Quick tip: You can view each brand’s active ingredients, indication, tagline, nearest competitors and performance summary by clicking “More info”.

2. Chinese health tonics are on the rise

As you can see, Chinese tonics & cure alls are well represented in our Top 6, determined by the cost of raw materials and price rises. Dong-e E-jiao (Dong-e E-jiao Group) capitalised on strong growth of donkey hide e-jiao products, having had an 18% price increase in March 2014, and sales of “The nation’s tonic treasure” reached US$303mn in the 12 months to March 2015.

Qinghai Spring’s Very Grass grew by 22%; however, this represents a slowdown on its historical performance driven by reduced costs of caterpillar fungus following a nationwide crackdown on use of public funds to purchase premium gifts. Caterpillar fungus is one of the ingredients covered in China’s Development Plan for Raw TCM (2015-2020), which aims to strengthen quality and safety inspection of raw TCM and modernise its production and distribution.

3. Global supply issues hit smoking control category

Casting an eye over those Market Movers that posted a negative performance, we find that GSK’s smoking control business ran into several issues. Intense competition from e-cigarettes and the recall of Nicorette Mini lozenges caused many consumers to switch to private labels, damaging US sales of Nicorette, with growth down by -17% in our reporting period.

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Quick tip: You can easily switch between growing and declining brands using the respective buttons on top.

Over in the UK, sales of NiQuitin CQ dipped by -49%, with the impact of the early 2014 recall of lozenge formats still being felt. GSK has struggled with supply issues globally, including NRT supply for Nicabate in Australia, and recalls of obesity treatment Alli in the US (this caused the OTC category to be wiped out almost entirely), although the marketer says it has now fixed such issues. In Q3 2015, GSK will divest key smoking control brands like NiQuitin to Perrigo, in connection with its consumer health j-v with Novartis.

Don’t forget, you can also view the Top 10 fastest-growing companies by Compound Annual Growth Rate (CAGR). Our CAGR table below takes the Top 100 OTC marketers globally, and then sorts this by their mean annual growth over the last five years (2014/2010, calculated in local currency). Please note, current figures refer to the full-year 2014 period.

Screen Shot 2015-08-24 at 11.42.22

Quick tip: Click the respective headings to sort the table by CAGR %, global rank or alphabetically.

Our Market Movers feature is powered by Nicholas Hall’s DB6 Global OTC Database. For the full list of brands, or if you have any questions regarding the wider database, please contact Kayleigh at: kayleigh.griffinhooper@NicholasHall.com

For OTC DASHBOARD matters, get in touch at: otcdashboard@NicholasHall.com

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