E-commerce: Amazon picks up PillPack

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Amazon’s latest foray into the healthcare sector – a definitive agreement to acquire US online pharmacy, PillPack – has huge disruptive potential for the traditional drugstore pharmacy sector. A start-up founded in 2013, PillPack is licensed in 49 US states to offer pre-sorted doses of medications, coordinate refills and renewals, and ensure timely home delivery to customers. Financial terms of the deal were not revealed, but the transaction is expected to close during Q2 2018, subject to regulatory approvals and other customary closing conditions.

Walmart was rumoured to be interested in acquiring PillPack earlier this year, and the company lost US$3bn in market capitalisation after the Amazon deal was announced on Thursday 28th June. The two companies are now locked in an intense global rivalry, with Walmart coming out on top in India after acquiring a 77% stake in Flipkart in May 2018. Such huge M&A investments will advance e-commerce’s share of the pharmaceuticals market in key markets like India and the US, with the potential to revolutionise the consumer healthcare sector too.

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PillPack is currently a small operation, expected to post revenue of US$100mn this year, but Amazon’s existing customer base and shipping infrastructure could allow it to quickly scale up. Brick & mortar pharmacy chains are already seeing the consequences of the deal; as the news broke, shares in Rite Aid fell 11%, Walgreens Boots Alliance 9.9% and CVS Health 6.1%, a collective US$11bn in market value.

Though consumers in many markets remain hugely reliant on pharmacist advice when making OTC purchases, there’s no doubt that price is a very sensitive area that makes traditional brick & mortar retailers vulnerable in this evolving retail landscape. Certain OTC categories where there is a strong wellness or personal care element, such as VMS and dermatologicals, are most likely to see a significant rise in e-commerce sales.

E-commerce, as well as OTC adjacencies and digital health, are three of the hot topic areas that OTC DASHBOARD will be focusing on this year, in its weekly briefings, infographics and blogs. For a free trial of the service, please contact hannah.burke@nicholashall.com

AESGP meeting 2018: Key learnings

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OTC INSIGHT Europe Editor Sarah Carter reports back from this year’s 54th AESGP Annual Meeting, which was held in Amsterdam and served as a farewell to Dr Hubertus Cranz, who retired as Director General after 30 years in the role.

Below are 8 key learnings from the meeting:

  1. Representatives from Pfizer and Hexal / Sandoz demonstrated how Rx-to-OTC switch can act as a growth driver for the consumer healthcare industry, with Nexium Control (EU Centralised Switch) and MometaHexal (Germany) given as case studies. Both asserted that the Rx heritage of the brands was instrumental in their successful switch, with both market leaders in their respective Rx spheres.
  2. However, while switch offers growth opportunities, several speakers stressed that the limited 1-year data exclusivity available with a switched product in the EU can deter marketers from making the timely and costly investment needed to switch their product.
  3. Digitalisation has transformed the rules of the healthcare industry and education. According to Google, search engines and online videos are the most important touch points for OTC purchasers, with one in 20 searches on Google related to health. In 2017, there were 40bn healthcare queries in EMEA alone.
  4. The global volume of healthcare data doubles every 18 months. It is crucial that we build trust with consumers regarding Big Data, ensuring that our industry uses this in a responsible manner, particularly salient given the introduction of the EU’s General Data Protection Regulation on 25 May 2018.
  5. Low levels of health literacy act as a barrier to self-care. We must empower consumers with the tools and knowledge necessary to play an active role in their health management, healthy ageing and prevention. Healthcare systems need conscious individuals who actively pursue a healthy lifestyle, and seek HCP advice where necessary.
  6. Technology such as wearables and apps has helped to raise health awareness and engagement among consumers, driving the trend for wellness and encouraging people to become key actors in their health management. In the industry, we see increasing purchases of long-term preventive products, rather than OTC treatments.
  7. It is vital that we understand the consumer at a much deeper level than we have done historically, as they no longer want to be sold to, but engaged with. The advent of Big Data and AI deliver us new tools to generate insights and ultimately create more meaningful connections and stronger relationships.
  8. There is little to report on regulations — still no decision on botanicals, and no real update on medical device regulations.

Only two weeks to go until the annual North American OTC Conference! Hosted by Nicholas Hall and Everything Health in Morristown, New Jersey, 20-21 June, this highly-anticipated meeting will review crucial topics impacting the competitive landscape around the central theme of The Future of Consumer Self-care: New OTC Solutions. With topics on the agenda including the e-commerce revolution, a presentation on “Magical Marketing in Healthcare” from Google and a look at the industry’s ‘Switch wish list’, this promises to be an event you can’t afford to miss. To receive a copy of the full meeting agenda or to reserve your place now, contact lianne.hill@NicholasHall.com

World first digital pill gets FDA green light

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Otsuka (in association with Proteus Digital Health) has been granted approval by the US FDA for Abilify MyCite, the world’s first digital pill, which contains a sensor that tracks when the medicine has been ingested by the patient. Though Abilify is an Rx medicine for schizophrenia and bipolar disorder, its approval has far-reaching implications for both prescription drugs and consumer healthcare.

How it works: Containing a sensor the size of a grain of sand, Abilify MyCite emits an electrical signal when it comes into contact with stomach acid, and this signal is received by a patch on the patient’s rib cage. In turn, this patch communicates with a smartphone app via Bluetooth, providing data such as time of ingestion and dosage. As well as the doctor and patient, up to 4 other people (including family members) can have access to the app’s data – though, importantly, the patient has control and can revoke access.

 

Mitchell Mathis, Director of the Division of Psychiatry Products at the FDA’s Center for Drug Evaluation & Research, said: “The FDA supports the development and use of new technology in prescription drugs and is committed to working with companies to understand how technology might benefit patients and prescribers.” Inevitably, during the initial phase, the digital pill will be incorporated solely into Rx medicines – to allow the FDA to monitor its impact on safety and adherence – however, at a later date, there is nothing to stop this new technology being part of innovative Rx-to-OTC switches.

Patients, doctors and insurers are increasingly coming to appreciate the ability to access objective data about the whole range of our medical consumption – from Rx drugs to OTCs and supplements. Once the price of these new sensors is reduced to a certain level of affordability, we could see a much wider rollout of the technology.

That said, a major stumbling block could be the issue of privacy. Some are concerned that patients who fail to take their medicines on a regular basis may be punished by their health insurers, while others have worries that the technology could be used as a coercive tool against certain types of patients. However, those concerns aside, the future for healthcare looks increasingly digital and the FDA is already hiring more staff in anticipation of a raft of new applications for digital pills.

FDA permits marketing of first mobile medical app

USA’s Food & Drug Administration has permitted marketing of the first mobile medical application to help treat substance use disorders (SUD). It is planned that the reSET application, to be marketed by Pear Therapeutics, will be used with outpatient therapy to treat alcohol, cocaine, marijuana and stimulant SUDs but will not treat opioid dependence.

The reSET device was reviewed through the de novo premarket review pathway, a regulatory pathway for some low to moderate-risk devices that are novel and for which there is no legally marketed predicate device to which the device can claim substantial equivalence.

Carlos Peña, Director of the Division of Neurological & Physical Medicine Devices at the FDA’s Centre for Devices & Radiological Health commented: “This is an example of how innovative digital technologies can help provide patients access to additional tools during their treatment.” Peña continued, “More therapy tools means a greater potential to help improve outcomes, including abstinence, for patients with substance use disorder.”

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The reSET device is a mobile medical app containing a patient application and clinician dashboard. The device delivers cognitive behavioural therapy to patients to teach the user skills that aid in the treatment of SUD and are intended to increase abstinence from substance abuse and increase retention in outpatient therapy programmes.

The FDA reviewed data from a multi-site, unblinded 12-week clinical trial of 399 patients who received either standard treatment or standard treatment with the addition of a desktop-based version of reSET which could be accessed at the clinic or at home. The data showed a statistically significant increase in adherence to abstinence for the patients with alcohol, cocaine, marijuana and stimulant SUD in those who used reSET (40.3%) compared to the patients who did not (17.6%).

The reSET device is indicated as a prescription-only adjunct treatment for patients with SUD who are not currently on opioid replacement therapy, who do not abuse alcohol solely, or whose primary substance of abuse is not opioids.

App “as effective as the contraceptive pill”

A revolutionary form of contraception, especially available over-the-counter, has been long awaited. This year alone we have seen trials in male contraceptive injections and demands for numerous OTC contraceptive pills. Drastic change and action have long been in high demand.

What started out as a hobby project for Elina Berglund Scherwitzl has now become approved as the world’s first contraceptive app. The nuclear physicist, who had been working on the team that discovered the Higgs boson, felt finished with hormonal contraceptives and their physical and mental pitfalls, but was not yet ready to have a baby.

With a wealth of data skills, Elina was determined to find an alternative form of contraception. “Like many women I had tried many different contraception options since my teenage years and hadn’t really found a solution that fit me,” she explained. “It was in my quest for an effective natural alternative that I discovered that you can see when you’re fertile by your temperature, and for me that was really a revelation.”

Using complex mathematics and data analysis, Elina began developing an algorithm designed to be so accurate that it could identify exactly when in her cycle she would ovulate. This then enabled planning for when she would need to use protection, to a much higher degree of certainty than natural planning methods, which many women with timely periods are able to use.

These results proved to be so accurate that, together with her husband, fellow physicist, Raoul Scherwitzl, Elina set about founding her own business, Natural Cycles.

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Natural Cycles is an app designed to help women around the world with their fertility and contraception needs, allowing them to collect their own temperature datasets and closely monitor their cycle trends in the process.

Launched in 2014, the app now has some 300,000 users, who pay a monthly or annual fee for the service. Following several medical trials, the app became the first tech-based device on the planet to be formally certified for use as contraception, in February this year. It gained approval for use across the EU after getting the green light from the German inspection and certification organisation Tuv Sud.

The start-up now markets itself as being “as effective as the pill” following one of the largest clinical studies in contraception involving more than 4,000 women, published in the peer-reviewed European Journal of Contraception and Reproductive Health Care.

The researchers, which included the co-founding couple, found that 7% of women who used the app in a “typical” way (allowing for some human error) got pregnant, compared to 9% taking the pill and less than 1% using IUD coils. “Just like the pill we need some effort from the user on a daily basis. But we really hope to be the default alternative if you don’t want to use hormonal contraception or IUDs,” Elina commented.

While the product is only currently certified in the EU, where its users are concentrated in the UK and the Nordics, it is available worldwide and, despite its earlier controversies, has attracted users in some 160 countries.

Apple deal with device maker sign of more to come?

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Apple announced at its recent WorldWide Developers Conference in California that it would soon be offering users the chance to monitor their glucose levels. The company has partnered with medical device maker Dexcom and will link the company’s glucose monitoring device with the Apple Watch.

For some time now, Apple has been positioning itself as a dedicated health and fitness provider through the Apple Watch series. However, while Apple has previously marketed itself towards lifestyle and fitness fanatics, it has yet to enter the medical device sector.

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Apple has also previously been reported to be hiring a small team of biomechanical engineers to develop sensors that monitor the body’s blood sugar levels. The team are said to be working on non-invasive sensors that do no require users to prick their skin for blood testing.

Apple is also now home to our new OTC DASHBOARD app. To download it from the Apple Store now, click here.

Pfizer unveils antimicrobial ATLAS

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Last week Pfizer announced the launch of the their Antimicrobial Testing Leadership and Surveillance (ATLAS) website. The site is designed to supply physicians and the global health community with easy access to crucial data on the efficacy of numerous antibiotic treatments and emerging resistance patterns across more than 60 countries.

The interpretation of evolving bacterial resistance patterns is a key development in the process of understanding and managing the rise of antimicrobial resistance. Putting this into perspective, ATLAS can not only help physicians select the most appropriate treatment choices for their patients but also enable global health authorities to develop data-driven antimicrobial resistance mitigation strategies.

Pfizer officially unveiled ATLAS at the European Congress of Clinical Microbiology and Infectious Disease (ECCMID) in Vienna last Saturday. With smartphones and tablets providing such benefits for healthcare professionals these days, Pfizer also offers ATLAS as a mobile app to enable speedy access to vital resistance information during patient care.

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The application works as an interactive platform allowing physicians to evaluate data, conduct analyses and export tables and figures that include parameters such as pathogen, region, specimen source and in vitro susceptibility data.

Another great benefit is that the database is updated every six months with new resistance data from healthcare institutions in over 60 countries.

Dr Freda Lewis-Hall, Chief Medical Officer of Pfizer, said the database was “an important aspect for physicians when treating patients”, adding that “knowledge of where certain resistant bacterial infections tend to occur and knowledge of which antibiotics remain effective against them”. The CMO further added: “ATLAS underscores our continued commitment to providing patients and physicians with meaningful resources that can help ensure appropriate utilisation of antibiotics and improve infection prevention and control.”

#NHOTC17: Day 2

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This week we publish our second and final blog update on our 28th European OTC INSIGHT conference, which took place in Munich earlier this month and was centred on the theme of Making the Most of New Technology. Below is a quick round-up of proceedings on Day 2.

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Ed Rowland opens Day 2 proceedings

Ed Rowland opened the conference with an update on key drivers and dynamics in the US OTC strategic landscape. Akhil Chandra of Reckitt Benckiser led us into our final networking hour with a discussion on what makes an iconic brand in a world of biosimilar products. Chandra based his talk around the “iconicity” of Nurofen, insisting that when it comes to brands we should challenge the tendency to default, and instead create, identify and nurture iconic / symbolic elements.

Following an hour of networking with OTC peers, our delegates returned for our final session with Jesus Carrasco, Head of Healthcare at Société Générale, who discussed consolidation and the increasing attractiveness of the consumer healthcare industry from a corporate and investor perspective.

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Thornsten Umland from Bayer gave the final presentation on strategic growth and how to build OTC businesses and brands via well executed acquisition and true product innovation.

And finally, a personal message from Nicholas: “Thank you all for making a brilliantly successful conference, the array of speakers and topics covered have certainly left us all with food for thought on the OTC landscape in a world of digital!

As an official announcement, now the conference has ended, we hope to see you next year in… BARCELONA for our 29th European OTC conference #NHOTC18. Auf Wiedersehen or should I say… Adios!”

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Are wearables wearing thin?

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The wearables market has had a rollercoaster ride in recent months. This time a year ago analysts were penning multi-billion dollar forecasts for the developers of health trackers and smartwatches. Apple was setting the stakes high, brazenly selling a gold edition of the Apple Watch for US$10,000.

More recently though, once popular fitness tracker brand, Jawbone, confirmed to TechCrunch that it would be leaving the consumer market in order to focus on healthcare providers. Microsoft have also removed its Fitness Band from its online store (although it is still available on Amazon); most significantly they will no longer provide the Band developer kits.

Fitbit remains a leading brand name, and is still very much the heart of the fitness tracker revolution. Fitbit recently acquired one of its rivals, Pebble Watch. However, on the downside, it was reported that the company were making staff cuts and founder James Park said the firm had experienced “softer than expected” sales during the 2016 Christmas period.

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Numerous devices claim to measure heart rate, sleep activity and count calories. Counting steps is seemingly the most common use for wearable devices, which has been edifying for many in terms of daily exercise expectations. Recently, though, experts have questioned whether the golden goal of walking 10,000 steps a day is actually worthwhile, and a US study concluded that health trackers did not aid weight loss.

Mr Bryant from Futuresource says many wearables aren’t yet independent enough and rely on being tethered to a smartphone, or replicate functionality, such as step counting, that the handset already has. However, Mr Bryant believes that while wearables may be down, they are not yet out.

“We feel the slowdown is temporary and the market will accelerate this year,” he said. He thinks that improved power, appearance, and mobile pay options could give them a boost alongside a maturing user group.

Wearable Devices will be one of many themes explored at our 28th Annual OTC INSIGHT European Conference & Action Workshop, being held in Munich in just over a month! The wider conference will focus on the theme of Making the Most of New Technology. To reserve one of our final few places, please contact lianne.hill@NicholasHall.com