Human Capital Index: APAC countries lead the way

In 2017, the World Bank announced the Human Capital Project, involving an index that would track the knowledge, skills and health that people accumulate throughout their lives, to enable comparison of this data across countries. The main idea behind the project is to end extreme poverty and prompt investment in people through nutrition, healthcare, quality education, jobs and skills. Last week, the World Bank published its latest report, involving Human Capital Index (HCI) data for 157 countries.

In terms of methodology, the HCI measures three components:

1. Child mortality (probability of survival to age 5)

2. Schooling, i.e. both quality of education (harmonised test scores) and quantity (expected years of school)

3. Health, via two proxies (healthy growth among children under 5, and adult survival rate)

Each of these measures is then tallied up, with a final index score of between 0 and 1 assigned to each country. Leading the way in 2018 are four Asia-Pacific countries with scores of 0.88 (Singapore), 0.84 (South Korea and Japan) and 0.82 (Hong Kong). Below we’ve created a graph of the Top 10 countries globally.

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Various smaller European countries, plus Australia and Canada, make up the rest of the Top 10. Germany (0.79) is just outside the Top 10, with the UK (0.78), Italy (0.77) and France (0.76) not far behind. Various major economies, including the USA (0.76), Russia (0.73), China (0.67), Brazil (0.56) and India (0.44), all rank outside the global Top 20.

For access to the full report and dataset, follow these links: PDF / website.

Less than a week to go until Nicholas Hall’s 5th Asia-Pacific Consumer Healthcare Conference, which will take place in Singapore! You can join Google, McCann Health and GSK, plus many more major players to discuss key issues surrounding the complex APAC landscape. You can view Nicholas’ opening session 09:00-10:00 Wednesday 17th October HERE. The Panel Discussion, “Is the Avalanche of Personal Data Helping or Hindering the Health of our Consumer?”, with Kantar Health, McCann Health, DevHub Startup & Incubation Centre, and BiblioSexual, will take place at 16:30-17:30 on Wednesday 17th HERE. For details of the full agenda, or to reserve your space and join us on 17-18 October, please contact elizabeth.bernos@NicholasHall.com without hesitation.

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Asia OTC investment in Middle East & Africa

In last week’s blog, we looked at rising Chinese investment in Africa, specifically in the area of pharmaceuticals, and this week our focus is on Indian & SE Asian OTC marketers expanding their operations across the Middle East & Africa. Here we summarise some of the key developments that form this growing trend over the past 6-9 months.

In July 2017, it was reported that a number of Indian pharma companies, including Dr Reddy’s and Lupin, were planing to expand operations in Africa. While Lupin is focused on opportunities in South Africa, following the establishment of a new regulatory authority (SAPHRA) in the country in mid-2017, Dr Reddy’s is targeting an expanded presence in French-speaking countries in Africa, which are markets where Indian generic companies have traditionally been underrepresented.

OTC development by Indian marketers in Africa will not be limited to generics, however. In summer 2017, Emami announced that it is evaluating setting up manufacturing units in international markets to meet growing demand for its brands. The marketer also revealed that it is expanding into Nigeria and Ghana via product launches.

More recently, in January 2018, Strides Arcolab agreed – via its wholly-owned subsidiary Strides Shasun – to acquire a 55% stake in South African-based Trinity Pharma for R55mn (US$4.5mn). Strides Shasun MD, Shashank Sinha, said: “This … provides further impetus to our ‘In Africa for Africa’ strategy as it fast tracks Strides’ presence in the lucrative and high entry barrier market of South Africa. With this acquisition, we are now present in East, West and South Africa, covering all the key markets in Sub-Saharan Africa.”

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Strides Arcolab’s wide presence in Africa

As for Southeast Asian marketers, Indonesian OTC company Dexa Medica launched a brand called Stimuno in Nigeria in November 2017. Formulated with Phyllanthus niruri extract 50mg, Stimuno is a herbal & natural immune stimulant available in packs of 10 capsules. Dexa Medica is already one of Nigeria’s Top 5 OTC marketers, thanks to the success of its systemic analgesic brand Boska, and the company decided to leverage this brand equity by launching Stimuno at an event in Lagos called Pain-Free Day. Boska Brand Executive, Tunde Ojedokun, said that Stimuno is recommended for everyone, both healthy and unhealthy, for the total maintenance of the body system.

In February 2018, Indonesian drugmaker Kalbe Farma announced it is eyeing expansion across the Middle East, as well as Sri Lanka. Following a positive response to test-marketing of its packaged coconut water in the Middle East, Kalbe is now considering launching a range of nutritional products across the region. With local sales still sluggish, Kalbe’s new President Director Vidjongtius is focusing on new markets to broaden the company’s reach beyond Southeast Asia. 

OTC DASHBOARD remains your best port of call for the latest consumer healthcare trends in the Middle East & Africa. In the coming months, we will be updating our reports on 11 countries across the region, including Nigeria and South Africa. 

Nicholas Hall’s Closing Speech at 4th Asia Pacific Conference

Nicholas Hall’s 4th Asia-Pacific Conference has just taken place in Singapore, which included the APAC Consumer Healthcare Awards, an opportunity to recognise innovation in Asia-Pacific’s OTC industry that produced the following winners:

Asia-Pacific Creativity in Consumer Healthcare Award

Panadol 1st

Systane 2nd

Bactidol 3rd

Worldwide Digital in Consumer Healthcare Award

Insto 1st

OBH 2nd

APAC New Product of the Year in Consumer Healthcare Award 

Scotts DHA Gummies 1st

Dimetapp Ultra Plus 2nd

As Nicholas Hall made clear in his closing speech, which you can watch in full above, the high number of companies supporting their awards entries with passionate case studies was an encouraging sign in an OTC industry currently undergoing huge disruption. Some of the uncertainty is emanating from the renewed focus on M&A activity.

Nicholas Hall pointed to the uncertain future ahead of us, arguing that there are now no guaranteed business models for OTC companies. That said, he believes that brands will survive, as long as marketers and product managers “feed and water them” and also convey real emotional benefits to consumers.

Though the OTC industry is currently experiencing poor rates of growth across the world – with the exception of some markets like Vietnam – Nicholas Hall remains positive for the future, insisting on the need for OTC marketers to constantly refresh their portfolios, while also engaging more with the digital world. Now more than ever, the global OTC industry is desperate for continuity and innovation.

Following on from the Asia-Pacific Consumer Healthcare Awards Ceremony at our Singapore Conference, we now look ahead to our 2018 European Marketing Awards! Click here for more details on the awards for which you can enter. With entries closing on 1st February, please contact jennifer.odonnell@NicholasHall.com to find out about entry criteria or to book your place at the conference now!

WHO expresses interest in new Zika test

Scientists in Singapore have developed a kit that can test for the Dengue, Chikungunya and Zika viruses all at the same time in just two hours.

The three mosquito-borne viruses cause similar symptoms such as rashes and joint pain. Symptoms for the Zika virus are generally mild and go away within a week, causing the disease to be misdiagnosed.

The kit is ready for use and only costs a few dollars to produce. Dr Masafumi Inoue, a senior research scientist at the Agency for Science, Technology & Research’s Experimental Therapeutics Centre confirmed that the World Health Organisation (WHO) has expressed interest.

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Dr Masafumi Inoue is currently compiling clinical data for the health authority before sending the kit over for testing. If the testing is successful, the WHO may use the kit to test for the viruses.

As it is extremely important to quickly distinguish between the three major mosquito-borne viruses, the kit could prove incredibly useful in ensuring patients receive the required treatment and care without delay.

All that is required from the patient is a blood or urine sample. The genetic material of the virus is then extracted to find out what the virus is. The detection process takes two hours, reducing the time by threefold if each of the viruses were to be tested for individually.

The idea to develop the kit came about six months ago when Brazil had been hit badly by a large number of Zika cases.