Kraków Conference Debrief

I hope you’ve now had a chance to explore our full-year 2015 OTC Market Stats update, which includes up-to-date OTC trends and sales data at global, regional and country level (with the addition of Algeria and Morocco this year). I’ll be covering the key results as usual in the next tutorial blog, but for now, here’s your exclusive round-up from Nicholas Hall & Company’s latest event – Regards, Owen Hartnett.

Another successful conference

Nicholas Hall’s OTC INSIGHT 27th European Conference & Action Workshop was held in the beautiful Polish city of Kraków. Representatives from some of the world’s leading companies detailed their strategies to build sustainable OTC brands while delivering real benefits to the consumer, with all in agreement that the consumer must be at the heart of the brand for it to succeed (this year’s theme was indeed “Building Blocks for a Successful OTC Brand”). It was a great pleasure to meet people so passionate about our industry during the Networking Hours and coffee breaks in which I was conducting live OTC DASHBOARD demo sessions.

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An OTC DASHBOARD segment will feature in the upcoming conference video

One standout topic for me was the need for the consumer healthcare industry to engage with digital by choice, not necessity. Nick Melnyk, Managing Director of Central & Eastern Europe at Sanofi, warned that we could end up working for tech giants in future if we aren’t better equipped and more willing to turn to a digital strategy, noting that it is not the most adaptable who survive, but those who disrupt. Our ever-growing OTC DASHBOARD client base suggests a lot of you are already utilising healthcare data in this way, but we are still a long way off in terms of digital, especially in comparison to industries such as media, telecom and FMCG.

Thursday evening saw the return of the prestigious OTC Marketing Awards Ceremony, sponsored by Medical Brands. With so many talented marketers in the room, picking a winner for each award was far from easy, but the recipients below are certainly worthy winners in their respective categories.

Flonase_asset2Most Innovative Global OTC Marketing Campaign 2016

GSK’s early-2015 launch of Flonase Allergy Relief (following Rx-to-OTC switch approval) has garnered over US$300mn in sales, while remembering to put the consumer at the very heart of its brand proposition. Nick Srikanth, Chief of Staff, Europe Americas Region, graciously collected the award.

Screen Shot 2016-04-29 at 11.13.44The 2016 Colin Borg Award for the Best European OTC Advertising

Focusing on the special connection between father and son, P&G’s #HugYourDad campaign for Wick VapoRub Germany is a great example of a brand connecting emotionally with its consumers. Anna Sacha, Global Head, Consumer & Market Insights, was on hand to claim the top prize.

Screen Shot 2016-04-29 at 11.35.40Most Innovative New Product of the Year 2016

RB’s Strepsils Flurbiprofen Spray (Dobendan / Benactivdol Gola in other markets) wins this year’s Most Innovative accolade as it is the first OTC flurbiprofen product of its kind in a convenient spray format. A delighted Akhil Chandra, Global Category Director Analgesics, received the award.

Nicholas Hall concluded that people must be at the heart of innovation (basis of the newly-launched OTC Training Academy) and closed the conference by revealing the destination for next year’s event: Munich, Germany. I very much look forward to seeing some of you then, or perhaps actually much sooner, as the next stop in the OTC DASHBOARD calendar is the 52nd AESGP Annual Meeting in Athens!

OTC DASHBOARD is a subscription-only web service powered by Nicholas Hall’s DB6 Global OTC Database. To find out how we can help you to save time, work smarter and keep connected, get in touch with us today at: otcdashboard@NicholasHall.com

MAT Q2 2015 update: Three key dynamic market shifts

Global OTC growth hit 5.7% in MAT June 2015 to total US$124bn, and our accompanying OTC Market Stats update revealed several major changes in the leaderboard. Find out how to delve deeper with the latest edition of OTC DASHBOARD’s user tutorial series, below. Meanwhile, our data team is currently beavering away on the upcoming MAT Q3 2015 update, which we expect to publish online next month – Regards, Owen Hartnett.

1. Perrigo is now a Top 20 OTC company

After purchasing European dynamo Omega Pharma earlier this year, Perrigo has entered the global Top 20 at the expense of Genomma. With this enhanced OTC focus, especially within Europe, Perrigo’s sales reached US$678mn in the reporting period (not including private label OTCs), and CEO Joe Papa believes the company is now better-placed to “capitalise on the many megatrends which bend in favour of consumer choice and cost control in healthcare”.

Meanwhile, Mylan’s proposed acquisition of Perrigo is gathering momentum, with the Federal Trade Commission this month providing the final regulatory clearance needed to close the deal. Perrigo continues to “strongly recommend that its shareholders not tender into Mylan’s inadequate offer”.

Quick tip: Click on any marketer in the Company Watch table to launch a pop-up containing a summary of performance with sales split by major OTC category. 

2. J&J is now the leading US OTC marketer

J&J overtook Bayer to reclaim the No.1 US OTC marketer spot in MAT Q2 2015. This was a result of double-digit growth for its US systemic analgesics portfolio, driven by Tylenol and Motrin in both the adult and paediatric segments. These key brands were recently expanded with Tylenol 8HR Arthritis and Motrin Liquid Gels respectively, as the marketer looks to use innovation as a basis to protect its leading position and fend off increasing competition from private labels.

OTC was also a key driving force in J&J’s latest financial results for Q3 2015, with this unit (as part of its Consumer division) posting a 6.3% upturn thanks to a strong performance in Emerging Markets, particularly Russia.

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Quick tip: Our company results tracking feature offers a provisional look at OTC performance ahead of each quarterly update. See the Charts & Graphs archive for a visual round-up of the leading global players.

3. India is now the No.10 OTC market globally

OTC sales in India grew by 9.8% in MAT Q2 2015, enabling it to leapfrog Canada and enter the global Top 10. The market continues to recover from the price caps introduced under the Drug Price Control Order 2013. Meanwhile, key domestic players such as Dabur are focusing on the urban pharmacy channel to obtain recommendations from pharmacists and expand product availability.

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Quick tip: The Market Overview page for all 62 countries provides a snapshot of economic performance, along with soft information to supplement our sales data.

OTC DASHBOARD is a subscription-only web service powered by Nicholas Hall’s DB6 Global OTC Database. To find out how we can help you to save time, work smarter and keep connected, get in touch with us today at: otcdashboard@NicholasHall.com

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.

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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

MAT Q1 2015 update: Three key results and where to find them

So our MAT Q1 2015 update is now live, bringing you the latest insights and analysis on key trends in the global OTC market! To help you navigate the new content more easily I’ve written a short tutorial piece below. This marks the start of an exclusive series where I’ll show you how to incorporate OTC DASHBOARD into your own workflow; whether you’re a recent subscriber or a seasoned user, I hope you find this useful – Regards, Owen Hartnett.

1. The 2015 global sales forecast has been revised from 4.3% to 4.7%

We have increased this year’s sales value projection by 0.4% to reflect the excellent 5.3% recent global upturn, which was driven by a strong cough & cold season in Q1 2015 across a number of important markets (switch and a spike in flu infections being major underlying factors), and the return of key brands like Tylenol in the US. This is the highest growth rate since the 5.5% achieved in the 2009 recession year!

You can view a chart for this at OTC Market Stats > Forecasts, which shows projected year-end MAT value sales up to 10 years ahead. Each forecast vs the 2014 base year is displayed in blue, while the green CAGR line calculates the average year-over-year growth rate. Any market’s forecasts can be accessed using the right-hand navigation panel.

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Quick tip: You can directly print the chart or download it in a range of formats (PNG, JPEG, PDF, SVG) using the button in the top right.

Our 1 and 2-year forecasts are revised on a quarterly basis for the leading global markets. These are generated using a regression-based model taking into account historical sales, macro-economic factors such as GDP and population changes, and industry-specific variables such as switch, regulatory developments and gap analysis. Forecasts are calculated in local currency and converted to US$ at constant exchange rates, inclusive of inflation. The exception to this is Venezuela where we assume there will be significant currency devaluation in the near future and our forecasts are an approximation of real growth.

2. Japan was the only Top 20 OTC market to post a decline

Sales declined here by 3.1% to US$6.9bn in the 12 months to March 2015. This was a result of unfavourable summer weather and a lull in purchasing following the hike in consumption tax in April 2014. Generally a sluggish market, Japan is hindered by poor economic conditions, consumers visiting doctors for reimbursed medicines and a saturated OTC landscape that is dominated by domestic players.

Visit OTC Market Stats > Market Overview for a quick snapshot of Asia-Pacific’s overall performance. Here, you’ll be able to drill down into specific countries of interest, like Japan, using the country list in the central table or navigation panel on the right. You’ll also find further economic indicators such as real GDP growth and OTC per capita spend.

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Quick tip: Click the respective headings to sort the table by OTC market share, growth or alphabetically.

Topline market data is refreshed on a quarterly basis at global, regional and Top 20 country level. For our remaining non-core markets, this is done annually at each full-year update. All sales are expressed at manufacturer’s selling price (MSP).

3. Allergy remedies is now the biggest CCA subcategory in the US

With sales of US$2.2bn (+19.3%), allergy remedies overtook systemic cold & flu to become the leading US cough, cold & allergy subcategory. This was mainly owing to the emergence of a new OTC nasal steroids class, specifically, the switch of Sanofi’s Nasacort Allergy 24HR and GSK’s Flonase, the latter launched early this year. McNeil (J&J) is expected to soon introduce its own offering, Rhinocort Allergy Spray.

Wider CCA performance (+11%) matched growth rates last seen in early 2013, when flu infections reached similar epidemic levels. You can discover more at OTC Market Stats > Category Watch, where you’ll be presented with an initial overview of all major OTC categories; click on one of these interactive charts to launch a pop-up containing key trends, leading brands and graphical representations of the data.

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Quick tip: You can easily switch between downloadable bar and pie chart options using the respective buttons on top.

As with the market topline, category data is updated every quarter for our Top 20 countries, regionally and globally. For our remaining non-core markets, this is done annually at each full-year update. All sales are expressed at MSP.

OTC DASHBOARD is a subscription-only web service powered by Nicholas Hall’s DB6 Global OTC Database. To find out how we can help you to save time, work smarter and keep connected, get in touch with us today at: otcdashboard@NicholasHall.com