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AMWAY SEES NUTRILITE SALES SURGING 150% NEXT YEAR
Amway India, on Tuesday announced its entry into the kids' nutritional category by launching five products under Nutrilite. "Nutrilite will easily cross `1,000 crore by the end of this year. With the launch of the new products, we are targeting sales of `2,500 crore from the brand by 2012," Amway India managing director and chief executive officer William S Pinckney said. Currently, Nutrilite is the leading brand, with a share of around 19% in the around `2,500 crore Indian dietary supplementary market with turnover of around Rs. 1790 crore. Comment: Kids nutrition segment is fast becoming an ‘attractive proposition’ for both existing players as wel as for companies aspiring to enter in this space. With increasing competition and overal stress on children increasing, parents, especial y mothers, are increasingly concerned and continuously asking one question to them, “am I doing enough for my child”. And this paranoia, leads them to increasingly depend more on supplements. Estimated size of the kids nutrition would be over Rs. 4500 crore, which includes health food drinks, VMS, Chayawanprash and growing at a healthy double digit rate of 15%+ DRUG COS OPPOSE DCGI’S NEW BARCODE PLAN
Drug regulator’s plans to make it mandatory for every company to ensure al medicine sold in the country has a 2D barcode and a unique randomly generated numeric code to prevent sale of spurious medicines. The drug regulator said it is acting on an Al ahabad HC order fol owing a public interest litigation (PIL). The commerce ministry had also recently mandated al medicines manufactured and exported out of the country to have a barcode from July 1. Local drugmakers have not yet opposed this provision as they have three months to comply with the same. In the case of domestic sales the DCGI has not come out with an official order to comply with proposed norms. Global y a few countries, including Malaysia and some others in the European Union, have reportedly implemented such a provision where a consumer can send a message with the numeric code mentioned in the medicine packet to a specified number, to verify if the medicine is original. Comment: Problem of availability of counterfeit medicines in India is not new. Estimate of their incidence ranges from 10-20% in the Indian market. This problem has implication for allowing more drugs as OTC, since regulator’s opinion is that if more drugs are al owed to be sold as OTC medicines, then it may lead to increase in this phenomenon especial y in the case of OTC medicines. Some OTC brands, like Crocin, have addressed this problem by launching ‘hologram protected’ packaging to ensure the genuineness of the brand available in the market. RECKITT TO ABSORB TOP-10 PARAS EXECS AT BADDI PLANT
Reckitt Benckiser, which is in the final stages of completing its Rs32.6bn (US$719mn) acquisition of Paras Pharmaceuticals, plans to make a Paras manufacturing facility in Baddi the company’s main OTC plant in India. Paras is a strong OTC player, fielding products such as anti-itch cream ItchGuard, antifungal RingGuard, topical analgesic Moov and systemic cold & flu brand D’Cold, plus several personal care brands. According to unconfirmed reports in the Economic Times, RB wil retain 10 top Paras executives and 200 employees at the Baddi plant. However, with RB’s local sales team already in place, distributing products such as Dettol, the future of Paras’ 400-strong sales and distribution team remains uncertain. (Economic Times 22rd February 2011/ UNION BUDGET 2011: INCREASED EXCISE DUTY, MAT ON SEZS TO HURT PHARMA INDUSTRY
Excise duty on formulations has increased from 4 per cent to 5 per cent. Imposed MAT on developers of Special Economic Zones as well as units operating in SEZs. Higher excise duty proposed in the Budget 2011-12 would make medicines costlier and hurt the common man. Imposition of Minimum Alternate Tax (MAT) on Special Economic Zones would adversely impact their profits, since most export units of drug firms are located in various SEZs. “The one per cent increase in excise duty wil increase the cost of medicines to the consumer by about 1.5 per cent," Pfizer MD Kewal Handa told PTI. Comment: Wil this budgetary measure lead to more self-medication or not, is the question which is being debated in the industry. With the overall cost of healthcare set to increase with this measure coupled with certain class of hospitals / nursing homes being brought under the ambit of Service Tax, people may be increasingly inclined to resort to self-medication, ‘guided’ by their local chemists, rather than going to doctors for day-to-day ailments. Industry has already lobbied the government to withdraw the new tax on the hospitals, which it seems, government is considering favorably. Even then, it is in no doubt, that the increased burden of excise duty will be passed on to the consumers, resulting in their prices going higher. SANOFI AVENTIS LOOKS TO ACQUIRE GENERIC, OTC BRANDS IN INDIA
Sanofi Aventis intends to acquire branded generics and over-the-counter (OTC) consumer healthcare brands across vitamins, mineral supplements, orthopedic, gynecology and nutraceutical in India. Sanofi Aventis, has forayed into branded generics market for rural India by introducing Combiflam ointment which is its first consumer healthcare product. Comment: With limited available options for acquiring corporate assets in the OTC domain, looking for individual brands with inherent strengths in relevant domains seems to be the ‘most appropriate’ strategy to enter or grow in the OTC domain and have a quick build-up. There are quite a few brands, which are currently in Rx domain, can move to OTC as they have a clear regulatory path in addition to ‘some’ consumer equity as wel . Sometime back, news appeared that even Piramal is looking at this approach to further strengthen their OTC business DPT SURVEY REVEALS PHARMACISTS RANKED SECOND AFTER DOCTOR
Consumers ranked pharmacists No.2 after doctors for behaviour and usefulness in a study conducted by the Delhi Pharmaceutical Trust. In the survey of 3,086 people from urban and rural areas of Bangalore, Mumbai, Delhi and Kolkata, pharmacists scored highly on trustworthiness and over 60% of respondents said information provided by the pharmacist helped them to get better. According to the DPT, a common perception among members of the pharmaceutical industry, other than those involved in community pharmacy, is that pharmacists / chemists operate as traders, do not provide any professional service and society does not hold them in the high esteem shown to other healthcare workers. However, an earlier DPT study among consumers in Bangalore and Delhi found that this is not the case and highlighted changing perceptions. Comment: This has been apparent for long that chemists in India, not only dispense medicine but also dispense advice. More than 30% of the people, who walk into a chemist outlet for day-to-day ailments, seek his advice and go with it. This number could actual y be higher in smal er towns or rural markets due to lack of adequate number of doctors or of information among the people. While this is the ground reality, pharma companies, so far, hasn’t done much to empower chemists with knowledge and train to do practice ‘responsible recommendation’. Probably, the time is right for undertaking such programmes. (CubeX had undertaken a chemist monitor study ‘COMPASS’ on pan-India level. This report, entitled Chemist’s OTC Market Probe & Assessment Study, explores the attitudes and behaviour of Indian pharmacists towards OTCs, with coverage of over 1,100 pharmacists across India. This study answers all of the questions you have ever wanted to ask a pharmacist in this developing OTC market. To know more about the extensive study please visit our website HUL PLANS TO FILL RECKITT SLOTS IN MODERN RETAIL OUTLETS
Hindustan Unilever is launching a special marketing drive in modern retail outlets days after most big retailers stopped fresh orders from rival Reckitt Benckiser due to differences over margins. Reckitt had cut margins of big retailers to 14% from 16% on some of its products to partly offset rising input costs. The move resulted in leading retailers holding back al orders of Reckitt's brands. Smaller kirana stores, which contribute over 90% of Reckitt’s total sales, accepted the margin cut; most modern retailers had stopped issuing fresh orders for Reckitt’s products. India’s largest consumer products company plans to flood modern retail shelves with its brands Lifebuoy and Domex that take on Reckitt Benckiser’s top brands Dettol antiseptic and Harpic toilet cleaners, and support it with brand promotions and price-offs. Hindustan Unilever wil rol out a ‘15 day burst campaign’ from March 1 to create special counters for its brands as said by one of its officials. (Economic Times 28th February 2011) TROUBLE FOR SUPRACTIV AD
The Consumer Complaints Council of the Advertising Standards Council of India has upheld a complaint
about a TV ad for Piramal’s ginseng + multivitamin supplement Supractiv. The ad in question offered a
money-back guarantee if Supractiv did not work in eight days and claimed that the product provided al -
day energy. The CCC concluded that the ad was misleading as there are no scientific studies to back the
claims.

Comment: One of the bigger chal enge in OTC medicines marketing is of making ‘appropriate and
substantiable’ claims in their communication. In the past many OTC brands have come under the ASCI
scanner for making unsubstantiated claims. Nutralite ad by Cadila was objected on account of making in-
correct negative claims about butter and about margarines. Pediasure ad was objected on account of
encouraging, ‘picky eating habits’ among children, or for that matter, Dabur Pudin Hara Lemon Fizz, for
its claim on “Quick relief from gas & acidity”. This case only highlights the fact that when operating in
the nutritional supplements domain, importance of making ‘right claims’ can’t be over emphasized
much.
(Regulator challenges- both marketing & advertising, for OTC marketing in India is important piece in deciding the strategy. Very soon CubeX wil come out with a comprehensive report, covering all the regulations that impact OTC marketing. How many OTC brands have managed them would also be part of this report. To know more about CubeX reports & services, please visi MOST INSURANCE CLAIMS FOR ‘ORDINARY’ DISEASES
Policyholders knock the most on insurance companies not for deadly maladies but for everyday ailments. In 2009-2010, these companies received 3.18 lakh health insurance claims for infectious il nesses like malaria, fever and the like, whereas the number for heart diseases was much lower at 1.7 lakh. A few years ago, the maximum claims in individual policies were for cataract and hysterectomy but the new IIB data shows that they have been replaced by circulatory and digestive disorders. After infectious ailments, digestive disorders—like piles, hernia and appendicitis—was the next big category that affected the balance sheet of insurance firms. ERICA L. MANN APPOINTED NEW HEAD OF BAYER HEALTHCARE’S CONSUMER CARE DIVISION
Bayer has appointed Erica Mann to head up the Consumer Care Division and join Bayer’s HealthCare Executive Committee with effect from 14th March. Based in New Jersey, she succeeds Gary Balkema, who retired after 16 years with Bayer. Erica Mann most recently served as President & General Manager of Pfizer Nutritional Health and previously held positions with Wyeth, J&J and Eli Lil y. Highlighting her 25 years industry experience, Bayer HealthCare Chairman Dr Joerg Reinhardt said Erica Mann is noted in the industry for her record of delivering strong results. “Her outstanding experience and insights wil further enable Consumer Care to take advantage of the sustained growth forecast for the OTC market” BAYER ROUNDS OFF RESULTS SEASON
Bayer FY 2010 group sales grew 8% on a currency and portfolio-adjusted basis to E35.1bn (US$48.9bn), “the highest figure in the company’s history,” according to Chairman Marijn Dekkers. Total Consumer Care (OTC) sales were up 4.2% to E3.4bn (US$4.7bn), with highest growth from Aleve (+18.7%). Aleve and One-A-Day (+10%) were driven by increased demand in the US. Bepanthen / Bepanthol skincare products (+12%) developed wel , particularly in Europe and Latin America, because of higher volumes and sel ing prices. Canesten advanced 7.7%, mainly as a result of product launches in Canada. Supradyn rose by 0.7% and Aspirin sales were flat (+0.2%). PROBIOTIC FOUND TO REDUCE GASTRIC ULCERS
A study published in Applied & Environmental Microbiology has identified Bifidobacterium bifidum CECT 7366 as the most effective probiotic strain against Helicobacter pylori, with growth inhibited by up to 95% in vitro. Gastritis and gastric or duodenal ulcers often result from an infection of H.pylori. Antibiotics are not always successful in destroying the pathogen, and probiotics are being considered as an alternative treatment. University of Valencia researchers tested the strain in mice and found that it partially relieves damage to gastric tissues and decreases the H.pylori pathogenicity level. The mice did not experience any adverse effects from B. bifidum. The conclusion is that the strain inhibits growth of H. pylori both in vitro and in vivo, although human trials wil be required before it can become an approved treatment. PHARMA INVESTMENTS IN APPS, WEB RISE 78 PERCENT
Ernst & Young’s Progressions: Building Pharma 3.0 report reveals that during 2010 there was a 78% rise in investment by pharmaceutical companies into the development of smartphone apps, educational websites and social media platforms. Carolyn Buck Luce, Global Pharmaceutical Leader at Ernst & Young, commented: “The companies that succeed in this new healthcare ecosystem wil do so by developing innovative outcomes-focused offerings through structured, systematic and scalable approaches to business model innovation. Just as importantly, pharma companies should demonstrate to new players in the healthcare space why the unique insights they can provide related to patient outcomes wil make them indispensable partners.” WHEN IS 36 MONTHS LONGER THAN THREE YEARS?
A study published in the Journal of Consumer Research found that consumers often distort numerical
information. For example, the difference between an 84- and 108-month warranty looks much bigger --
and more attractive -- to consumers than 7- or 9-years. This “unit effect” influences perception, so a
product rated 90-95 out of 100 wil be seen differently to 9-9.5 out of 10. In a separate study,
participants were offered an apple or chocolate bar, with energy shown in Kilojoules or Kilocalories (247
/ 59 for the apple and 1,029 / 246 for the chocolate). Those in the Kilojoules group more often plumped
for the apple because a 782 Kilojoules difference looks far bigger than a 187 Kilocalories difference.


THE 10 BIGGEST-SELLING DRUGS THAT ARE ABOUT TO LOSE THEIR PATENT
The imminent arrival of the dreaded "patent cliff" has been haunting the pharmaceutical industry for years, and it's final y here. With patents on many blockbuster drugs about to expire, an estimated $250 bil ion in sales are at risk between now and 2015. Once drugs lose patent protection, lower-price generics quickly siphon off as much as 90% of their sales. Although the generic industry wil benefit in the short term, it will also see a slowdown in revenue growth after 2015 because fewer blockbusters wil be coming off patent for them to replicate. According to IBISWorld, the top five best-sel ers set to lose patent protection in each of the next two years are: Lipitor, Zyprexa, Levaquin, Concerta, Protonix in 2011 and Plavix, Seroquel, Singulair, Actos, Enbrel in 2012. Comment: Post ‘patent cliff’ period could actual y lead to a paradigm shift in the pharma domain. With very few new patented drugs coming in the market, generics would become much larger market segment. This could further give push to more Rx to OTC switches in the international market. Wil it have any impact on the Indian OTC market, is in the realm of conjecture. CHEW ON THIS: STICKING WITH NICOTINE GUM FOR THE LONG HAUL
Public health officials are backing away from recommending against the long-term use of nicotine gum, lozenges and patches. The Food and Drug Administration is considering whether to eliminate the 12-week warning and instead recommend nicotine-based quit-smoking aids for extended—perhaps even permanent—use. Anti-tobacco activists andPLC, the U.S.'s leading marketer of nicotine-replacement therapy, or NRT, are also backing the potential move. By giving former smokers the most addictive chemical in cigarettes—nicotine—NRT is designed to ease the difficulty of quitting. In more than a quarter century on the market, nicotine gum, lozenges and patches have amassed a strong safety record. Even among most long-term NRT users, the hazards of nicotine pale beside the dangers of smoking, which is the number one cause of lung cancer and the most preventable cause of cardiac death. Ad of the fortnight: MOOV GEL – “Dard ka INSTANT ilaaj, bina MASSAGE”
Comment: This new variant launch by Moov is its first foray into non-ayurvedic segment. Gel is a Diclofenac based product which would compete directly against Volini. Til now, only Volini was the frank OTC brand in the segment with Diclofenac based formulation, and promising ‘real pain relief’. This ensured that Volini grew by more than 30% over last couple of years at the cost of other brands growth. Will Moov, with this new variant which combines Diclofenac with Capsaicin, impact Volini sales, and further strengthen its own position, needs to be watched closely.

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