Wake up to Q&A with ZurRose sleep-aid GSK’sAndy breaks potential Mahoney the rules page 16 page 21 page 24

Contents Merckweighs sale 8September 2017 Issue Number 488 of Consumer Health COMPANY NEWS erck KGaA has revealed it is “pre- strategic options,”Garijo added. Karo tables offer3Mparing strategic options” forits glob- StefanOschmann, Merck’schiefexecutive forNorway’s Weifa al Consumer Health operation, “including officer,claimed the reviewofConsumer Health Prestige biding time online 4 full or partial sale of the business, as well representedan“importantstep” in executing the Perrigo pulls out of Russia 5 as strategic partnerships”. The move was firm’stransformation into a“leading science necessary,the German firm pointed out, and technology company”. Cough and cold 6 timing hinders P&G to “support Consumer Health’s successful Merck’s strategy forits Healthcare division futuredevelopment”. wasnow “largely focused” on developing the Mobergoffloads Fiber Choice 7 Noting thatthe reviewofConsumer Health pipelineofits Biopharma prescription medicines GENERAL NEWS wasstill “at avery early stage”,Merck said there unit,heexplained. Thefirm wasundertaking an was“no certainty” that it would lead to a“con- “ongoing strategicportfolio shift within Health- MarketInsight: Ecuador 10 crete strategic option”. care”, he noted, citing the divestment of its Biosi- Newcourse set for11 “Any development will be subject to further, miliars businesstoFresenius Kabi earlier this year. tomorrow’s market detailed analysis,”the companyexplained, “and Merck ’s Consumer Health business gener- German volume stagnates 13 afinaldecision by Merck’sexecutive boardand atedsales of C860 million in 2016,with 50% other relevant bodies.” of thistotalcomingfrom “developing growth Wake up to sleep-aidpotential16 Expanding on the rationale behind the move, markets”, such as Brazil, Chile, Indonesia CHMP opens door 17 Belén Garijo, chief executive officer of Merck’s and Thailand (OTC bulletin,24March 2017, fordesloratadine Healthcare division, said while Consumer Health page 2). The business accounted for 5.7% of RB loses to generics 18 had “maintained asolid position in attractive Merck’stotal sales in 2016, which advanced overMucinexpatent markets and demonstrated apattern of profit- by 17.0% to C15.0 billion. able growth”, Merck wasexpecting “increas- Consumer Health’sportfolio includes the MARKETING NEWS ing internal constraints to fund the business Femibion women’shealth supplement, Na- Flonase offers kids 19 to reach the required scale”. sivin nasal spray,Neurobion vitamin Bline better allergy relief “Fully anticipating this, we are preparing and SevenSeascod-liveroil range. OTC Adcockaims to fillthe GAP20 OTCAwardsgofrom22 strength to strength Stada goes at second attempt REGULARS ain Capital and Cinven’stakeoverbid for values the German generics and OTCspecialist BStada Arzneimittel has succeededatthe at around C5.4 billion exceeded aminimum Q&A–with GSK’sAndy Mahoney21 second attempt. Following shareholder approv- acceptance threshold of 63% by the deadline Events –Our regular listing 23 al,the private-equity firms nominated generic of midnight on 16 August. medicines industry veteran Claudio Albrecht as At midday on 16 August, just over29mil- People –Almirall signs up 27 Guenter as chief Stada’sinterim chief executive officer. lion shares corresponding to around 46.5% of An improved C66.25 per share offer that Continued on page 27 Connect with us on: Twitter LinkedIn OTC-bulletin.com FAST EFFECTIVE RELIEF FROM ALL YOUR BIGDATA PAINS

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Mergers &Acquisitions Mergers &Acquisitions Crescitagrabs Karo tables offer Sanofi’s Alyria anadian skin-care specialist Crescita has forNorway’s Weifa Cacquiredthrough its Intega SkinSciences subsidiary the Alyria range of non-prescription eifa has voiced its support for atake- already receivedpre-acceptances for its offer medical skin-care products from Sanofi. Wover offer by Sweden’s Karo Pharma from shareholders representing around 45% Sold via ‘medi-spas’, the Alyria range was worthNOK35(C3.77) pershare. Theoffervalues of Weifa’sissued share capital. “highlycomplementary”, Crescita said, to its ex- theNorwegian consumer healthcare specialist Commenting on the offer, Karo’schairman, isting Laboratoire Dr Renaud and Pro-Derm at around NOK1.28 billion. Anders Lönner, saidthe proposed takeoverof brands as it covered areas that were currently “The proposed combination of Weifaand Weifawas “based on strong commercial grounds”. not apart of the firm’sportfolio. Karo will create aleading Nordic player,” com- “The twocompanies are highly complemen- Under theterms of the CA$1.7million (C1.1 mented Weifa’schairman Einar Greve.“The tary in termsofboth productportfolio andgeog- million) deal, Crescitawill pay CA$0.8 million synergies are evident and willcontribute to fur- raphy,”Lönner insisted,“and therefore we see in 2017 and aroyalty based on athreshold ther developing Weifa’sposition as aleading [the potential for] important synergies.” of annual net sales of Alyria overanine-year supplier of OTCproducts in Norway.” Acquiring Weifawould “strengthen”Karo’s period starting in 2020. Following a“careful review”,Greve added, Nordicoperations, while givingthe firm a“lead- “This acquisition provides Crescita with a Weifa’sboardhad concluded that theoffer rec- ing position” in the Norwegian market, Lönner numberofimmediate benefits, including syner- ognised the “strategic value” of the company pointed out. gies in leveraging our sales and marketing in- and delivered an “attractive cash premium to “A strong and profitable home market pro- frastructure and know-how, increasing our manu- our shareholders”. vides better opportunities for taking the next facturingcapacity utilisation and increasingour Karo’soffer of NOK35 per share, the firm steps towards newmarkets and co-operations product offering to international markets,”com- noted, represented a10% premium to Weifa’s outside the Nordic region,”headded. mented Crescita’spresident Serge Verreault. closing share price on 23 August, the last trad- Headquartered in Oslo, Weifa’sconsumer “In addition,”Verreault pointed out,“we gain ing day prior to the announcement of the deal. healthcare portfolio includes theBronkyl cough more than 200 newcustomers to expand the sales The purchase price of NOK1.28 billion is andcold line, Ibux and Paracet analgesics and reach of our existing product lines.” 3.2-times Weifa’s2016 sales of NOK400million the Dexyl nasal spray. Headquartered in the Canadian province of and 15.9-times itsearnings before interest, tax, In 2015, Weifasaidithad become a“pure Ontario, Crescita markets arange of both pre- depreciation and amortisation (EBITDA) of consumer health player”, after spinning offits scription and non-prescription skin-care prod- NOK80.5 million. business-to-business (B2B) manufacturing di- ucts. The publicly-traded companygenerated Noting thatthe dealwould have aminimum vision (OTC bulletin, 1 May 2015, page 6). sales of CA$3.5millionin2016, up fromonly acceptance threshold of 90%and an offer period Later thatyear, the companyoutlinedits US$0.2 million in the prior year. of twoweeks–with the option of an additional long-term strategy to expandits reach fromits The substantial increase in the company’s twoweeks –Karo said it hoped to close the Norwegian base into the “wider Nordic-Baltic turnoverreflected the acquisition of prescription transaction by “late September”. region” by securingpartnerships with localplay- and OTCskin-care specialist Intega in Sept- The Swedish firm –which markets both OTC ers in those markets (OTC bulletin, 26June ember last year. OTC and prescription medicines–noted that it had 2015, page 5). OTC

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8September 2017 OTC bulletin 3 OTC COMPANY NEWS

Business Strategy/First-QuarterResults Prestige biding time online

restige Brands will continue to prioritise platforms, you will find the vast majority of Pbricks-and-mortar over e-commerce as the ourproductsare readily available for shoppers vast majority of consumers still prefer to shop that choose to go there,”hesaid. for OTC products in store, according to the Prestige offers anumber of products –such firm’s chief executive officer Ron Lombardi. as the Dramamine motion sickness line and Asked by analysts during the firm’sfirst- Luden’ssore-throat drops –through the web- quarter earnings call about Prestige’sonline plans, sitesofleading US retailers including Walgreens Lombardi said the companywas still waiting and Walmart. The firm also sells to consumers for e-commerce to truly takeoff in the consumer directly on Amazon, withthe Goody’sanalgesic healthcare space. among the brands available from the platform. “What we’ve realised to-date is thatfor our Lombardi made his comments as Prestige Prestige’sonline offering on Amazon needs-based categories, consumers are still show- reported North American OTCsales up by 25.4% Fiber Choice, New-Skinand PediaCare were ing up in stores and we haven’tseenahuge shift to US$216 million (C182 million) in its first all sold to Sweden’sMobergPharma, (OTC to online yet,”henoted. quarter ended 30 June 2017. bulletin, 22July 2016, page 2), as wasthe Der- Better sales of ‘core’OTC brands, and the ac- moplast anaesthetic spray (OTC bulletin, 13 Minimal online sales quisition of CB Fleet (OTC bulletin, 13Janu- January 2017, page 5). “Online is still avery small portion of our ary 2017, page 3), had helped drive up sales Prestige offloaded the Massengill feminine- sales,”Lombardi pointed out. “It wasapproxi- in the three months, Prestige said. care line to Natureplex(OTC bulletin,9Decem- mately 1% or so [in 2016], growing at avery, very “Inour first full quarterofownership, Fleet ber 2016, page 7), while the Early Pregnancy high rate although from avery small base.” has exhibited strongrevenuegrowth consistent Test (EPT) brand wassold to US-based NFI Prestige recognised the “opportunity”pre- with our expectations,”Lombardi noted, “and the Consumer Healthcare (OTC bulletin, 13Janu- sented by e-commerce overthe long-term, he said, integration into our business is largely complete.” ary2017, page 3). and hadalreadybegun to invest in the channel With annualsales of around US$205 million, Meanwhile, International OTCturnoverhad to ensurethe company wasnot left behind. Fleet’s portfolio includes theSummer’sEve fem- advancedby32.2%toUS$20.9 million, the firm “Our[e-commerce] strategy,”Lombardiex- inine-hygienerange, Pedia-Lax paediatriclaxa- said, thanks primarily to the addition of Fleet. plained, “is to makethe right kind of investments tivesand Fleetgastrointestinal treatments. OTCsales accountedfor 92% of Prestige’s total aheadofthe consumer shift that may occurfrom On amorenegativenote, Prestige said North sales in the first quarter, which improvedby bricks-and-mortar to online for our categories.” American OTCsales had been hit by the deci- 22.4% to US$257 million. The remainder was “If you go out and look on anyofthe online siontooffload anumber of ‘non-core’brands. generated by theHousehold Cleaningunit. OTC

Mergers &Acquisitions 24 March 2017, page 5). Noting that both firms would hold a50% Oriola exits Baltic markets equity interest in the resulting business, Orio- la said the “first phase objective”was to build innish wholesalerand retailerOriola is to interest and tax (EBIT) were C1.2 million. achain of 100 outlets and an online store. Foffload its Baltic businesses to the com- Pekka Ruokanen, Oribalt’sdirector, saidthe Specialising in “comprehensive wellbe- panies’ existing management SIA Oribalt Group companywas “very happy” to secure the deal ing”, the business would operate a“complete- to allow it to concentrate on growing its opera- with Oriola. ly newkind of chain store”, Oriola promised. tions in Sweden and its domestic market. The “Our acquiring group has several years of “Inthe joint venture, twostrong and responsi- transaction is expected to close by the end of experience in leading the Baltic businesses, and ble Finnish operators will combine theirforces,” the third quarter of 2017. we are excited to continue developing themfur- commented Eero Hautaniemi, Oriola’spresident Under the terms of the deal, Oribalt will ther as owners,”Ruokanen insisted. andchiefexecutiveofficer. gain for an undisclosed sum Oriola’sEstonian “Deliveringhigh-quality servicesand long- “Together,”continued Hautaniemi, “wewill wholesale business –operated by its AS Oriola term business development,”hecontinued, “are start building aleading health, beauty and well- and Oriola Estonia subsidiaries –aswell as its our top priorities for the future.” being chain in which Finnish people trust. Our Lithuanian wholesale unit UABOriola Vilnius. Commenting on the rationale for offloading plan is, as legislation permits, to expand the The agreement also includes Oriola’sLatvian itsBalticbusinesses, Oriola said it wanted to business into selling pharmaceuticals, without wholesale operation –SIA Oriola Riga–and “focus on developing our business in Finland compromising on pharmaceutical safety, but its Latvian retailarm SIAPanpharmacy, which and Sweden, where we see great potential and emphasising service and expertise.” operates bricks-and-mortar stores as well as have initiated extensive development projects”. Oriola and Keskowould together makean online pharmacyInternetAptieka.lv. In line with this strategy,Oriola earlier this initial investment of C25 million in the joint Oriola’sBalticoperations generated sales year announced plans to join forces with retail- venture, Oriola said, with the aim of opening of C54 million in 2016, accounting for approxi- ing conglomerate Keskotoestablish achain atotal of 15 stores by the end of 2017. The mately 3% of Oriola’s total turnoverof C1.6bil- of “health, beauty and wellbeing” stores across first stores are expected to open their doors in lion. The Baltic unit’s adjustedearningsbefore its domesticmarket in Finland(OTC bulletin, autumn of this year. OTC

4 OTC bulletin 8September 2017 COMPANY NEWS OTC

Mergers &Acquisitions/Second-QuarterResults Perrigo pulls out of Russia

errigo has agreed to offload its Omega device” in Russia that is sold under the Dolphin PBittner Russian OTC business to Alvogen brand (OTC bulletin,9December 2016, page 5). foranundisclosed sum as part of the store-brand Perrigo announced the saleofOmega Bittner specialist’seffortsto“refine”its portfolio.Sub- as it reported group sales in the second quarter ject to customaryclosing conditions, the trans- down by 8% to US$1.24 billion (C1.04 billion). action is scheduled to close by the end of the Turnoveratthe Consumer Healthcare Amer- current quarter. icasunit –whichcomprisesits OTC, infant for- Following astrategic reviewofits Russian mula and animal health operations in the US, Alvogen has gained Perrigo’sOmega Bittner range, operation –launched last year (OTC bulletin, Canada and Mexico –had slipped back by 4% whichincludesthe Lactacyd women’shealth line 9September 2016, page 5) –Perrigo saidit to US$605 million, the companysaid, due to had concluded that Omega Bittnerwould“bet- the sale of its US vitamins, minerals and sup- ter thrive under newmanagement” with the re- plements (VMS) business to contract manu- sources to invest to growthe business. facturer International Vitamin (OTC bulletin, Commenting on the deal, Hacho Hatchikian, 30 June 2016, page 5). vice-president of Alovgen’sCentral andEastern Turning to its Consumer Healthcare Inter- Europe business, said Omega Bittner would in- national division, Perrigo reported sales down crease the Icelandic firm’s “exposure”tothe “high by 9% to US$377 million. Excluding US$39 growth” Russian market. million in salesfromthe exited European dis- “It will create greater scale and diversity tribution business, however, and negative cur- “I remain excited about prospects for this across our portfolio and sales channels,”Hat- rencyeffects, turnoverincreased by 4%. business,”heinsisted. chikian insisted, “while increasing [our] market Consumer Healthcare International comprises ConsumerHealthcareInternational’soper- share in women’shealth and cough and cold.” the Omega Pharma business andbasketofex- ating margin had increased “from the lowto According to Alvogen, Omega Bittner has GlaxoSmithKline (GSK) brands, as well as Per- mid-teens” overthe past year, Hendrickson point- aportfolio of “well-established and recog- rigo’sOTC businesses in Australia and Israel. ed out, with the unit’ssecond-quarter operating nised” women’shealth, and cough and cold Thetroubled business hadcontinued to show margin growing to 14.6%. brands that includes Lactacyd, Aflubin, Remens, signs of improvement during the second quar- Meanwhile, Perrigo reported Prescription Pumpan and Gentos. Bittner became apart of ter, insistedPerrigo’schief executive officer salesofUS$240 millioninthe second quarter, Omega when the Belgian companyin2006 John Hendrickson. and ‘other’ sales of US$16 million. acquired Austria’sBittner Pharma, and expand- “The Consumer Healthcare International Following the close of the period, Perrigo ed further Bittner’sportfolio with the Cryop- team’sconcentration on our OTCportfolio, secured an agreement to sell its Israel-based active harma and Paranit brands (OTC bulletin, 31 continued execution of product insourcing, and pharmaceutical ingredients (API) business to October 2006, page 1). disciplined return-on-investment-based approach private-investment companySKCapital for “These products will complement, as well to advertising and promotion,”Hendrickson US$110 million in cash. as significantly strengthen, Alvogen’s existing said, “have resulted in the second consecutive Thedeal, the firmsaid, wouldhelp further its portfolio in the region,”commented Alvogen, quarter of meaningful year-over-year operating strategy of “simplifying our core offerings and which last year acquired a“leading nasal spray margin improvement.” focusing on long-term valueand profitability”. Formerly known as Chemagis and founded in 1987, Perrigo’sAPI business also has sup- Mergers &Acquisitions porting functions in the US and India, and moreoverboasts a“global customer base and Strides’Arrow snaps up Amneal abroadarray of productsthatleverage its spe- tridesShasunhas snappedupthe Austra- anticipates the acquisition to add annual sales cialised manufacturing capabilities and core Slian operations of US-based player Amneal of approximatelyA$25 million. competency in complexchemistries”, accord- Pharmaceuticals for A$17 million (C11 mil- “Wehavebeen fortunate to have experienced ing to the private-investment group. lion)inanefforttoexpandits “marketreach” strong organic growth across our primary cus- “The transaction is expected to close dur- in Australia. tomer base withinboth our [generic]prescrip- ing the fourth quarter of 2017, before which a Struck through theIndianfirm’sArrow Phar- tion medicinesand Chemists’ Own [OTC] port- newtrade name will be selected and announced maceuticalsbusiness, the transaction brings a folio,”commented Arrowchairman Dennis for the business,”SKCapital commented. “As “comprehensiveproductoffering including gen- Bastas. “Bringing Amneal’s customer baseinto part of the transaction, the parties have agreed ericmedicines and branded OTCproducts”, ac- our network of supporting pharmacies further to enter into along-term supply agreement for cording to Strides. accelerates this current growth and strengthens Perrigo API to supply multiple existing com- Amneal’sOTC offering includes the Febridol the offering we bring to all our customers.” mercial and pipeline APIs to Perrigo.” analgesic, LaxaCon laxative,IronMelts dietary Arrowmarkets in Australia over50OTC Perrigo added that it expected to finalise the supplement and the Lanate skin-care line. products under its Chemists’ Own brand, cover- sale within the next six months, “and the sale is Post integration of the business, which Strides ingcategories such as cough and cold, skincare not expected to have amaterial impact on the expects to happen overthe next 12 months, Strides and digestive health. OTC company’soperations”. OTC

8September 2017 OTC bulletin 5 OTC COMPANY NEWS

Annual Results Fourth-QuarterResults Blackmores Cough and cold reports slide ustralian natural health firm Blackmores timing hinders P&G Areported sales down by 3% to A$693 mil- lion (C461 million) in the year ended 30 June nearlier cough andcold seasoninthe Home Care divisions advanced by 2%. 2017, due to adouble-digit dropinits coreAus- AUS compared with the prior year was cited Health Care accounted for 11% of P&G’s tralia and New Zealand region. by Procter &Gamble (P&G) as its Personal total fourth-quarter sales, which were flat at Sales in Australia andNew Zealandslipped Health Careunit posteda“low single-digit” US$16.1 billion. Total group pre-tax profits im- backby23% to A$372million in the 12 months, decline in sales in its fourth quarter ended 30 provedby9%toUS$2.93 billion. accounting for just overhalf of Blackmores’ June 2017. Following thepublication of its fourth-quarter total turnover. “Reductions in trade inventories” had also results,P&G issued aletter urging shareholders “Chinese tourists and exporters changing been to blame for the drop in Personal Health at itsupcoming annual meeting to vote against a their buying patterns”, in combination with in- Care’sturnover, P&Gadded. motiontogrant activistinvestor Trian Fund creased “competitive pressure”inthe Australian While Personal Health Care’ssales had fallen Management aseatonthe company’sboard. retailmarket, had been to blame for the double- in the company’s developed markets in the three In its letter,P&G says it “strongly recom- digit slide, the companyexplained. months, P&Gsaidturnoverhad actually advanc- mends” shareholders vote to reappointthe exist- On amore positive note, Blackmores posted ed in its developing markets. ing personnel on the firm’s11-member board. turnoverinAsiaupby36% to A$216 million. The firm did notve gi areason for the rise Trian is “focused on an out-dated viewofP&G, in developing markets sales. not the P&G of today”, the companyclaims. Strong growth in Asia Personal Health Care is part of P&G’swider Trian –which is seeking to install its chief Malaysia, Thailand and Singapore had de- Health Care business –along with its Oral executive officerNelsonPeltz on P&G’sboard – livered “strong” growth in the 12 months, the Care unit –which reported fourth-quarter sales insists that as one of the consumer products companysaid, thanks to “newproducts and in- down by 4% to US$1.74 billion (C1.47 billion). giant’slargest shareholders, it has a“keen in- creased investments in our brand”. Adrop in Oral Care sales, in combination terest” in helping the firm “address the challenges China –Blackmores’ biggestAsian market – with the problems at Personal Care, had caused it is facing”. had alsoenjoyed agood year, the firm noted, re- the slide in Health Careturnove r, thefirm noted. Over thepast 10 years, P&Ghas “underper- flecting increased investments in the country. Health Care’spre-tax profits also slipped formed relative to its peers”, Trian says, and has Turning to the BioCeuticals business –the back, falling by 16% to US$324 million in the “lost market share acrossmostofits categories”. Australian nutritional supplements firm Black- three months. While it is seeking representation on P&G’s mores acquiredin2012(OTC bulletin, 29June Along with Health Care, the Grooming and board, Trian claims it is not advocating for a 2012, page 1) –the companyreported salesup Baby,Feminine&Family Care divisions post- breakupofthe company or for the removalofits by 42%toA$102 millioninthe period, driven ed drops in fourth-quartersales, with turnover chief executiveDavid Taylor. by launches of “innovative”products. The re- at both unitsdecliningby2%. On amoreposi- Shareholders will vote on the make-up of the mainder of Blackmores’ group saleswere gen- tive note, sales at the Beauty and Fabric & board at the annual meeting on 10 October. OTC erated by its Nutritional Foods division. Prior to the release of its annual results, Second-QuarterResults Blackmores announced the promotionofchief operating officer,RichardHenfrey, to chief ex- Valeant workstoreduce debt ecutive officer with immediate effect. Henfrey–who has heldanumberofsenior ivesting 10 businesses –including Arm- divestiture proceeds and free cash-flowbyFeb- leadership roles at Blackmores since joining Doxindo in Indonesia, Delta in Brazil and ruary 2018, Papa stated. in 2009 –replaces Christine Holgate who has Euvipharm in Vietnam –since the start of 2016 Valeant reported adecline in group sales left the firm to join Australia Post. had brought in US$3.8 billion (C3.2 billion) of of 8% to US$2.23billion in the second-quarter “Henfreyhas beenatthe forefront of Black- proceeds for Valeant Pharmaceuticals Inter- of this year. mores’ strategy development for morethan eight national as it seeks to reduce its debt that stood The group’sBausch &Lomb/Internation- years and has drivenkey business projects that at US$28.8 billion as of 30 June 2017, chair- al division posted turnoverdownby3%to positioneduswellfor the transformation of the man and chiefexecutive officer, Joseph Papa, US$1.24 billion in the period, as Valeant felt business overthat time,”commented Black- told investors. the impact of both divestmentsand negative cur- mores’ chairmanStephen Chapman. “Henfrey Valeant had achievedamultiple on the asset rencyeffects. met all of the board’scriteria to become the sales of greater than 10-times combined earn- The company’sBranded Prescription unit next leader of Blackmores.” ings before interest, tax, depreciation and am- reportedturnoverdownby3%toUS$636 mil- Commenting on his plans for Blackmores, ortisation (EBITDA), Papa said, as the firm lion in thethree months, while its US Diversified Henfreysaidheintended to “expand opera- reported its second-quarter results. Products segment posted a27% drop in sales tions, invest in product development, extend Having reduced total debt by more than to US$356 million. ourresearch and education capabilities and US$4.8 billion since the end of the first quarter Valeant’spre-tax loss of US$242 million showcase Australian health innovation on the of 2016, Valeant expected to exceed its com- wasdue to US$456 million of interest expenses world stage”. OTC mitment to pay down US$5 billionindebtfrom in the quarter. OTC

6 OTC bulletin 8September 2017 COMPANY NEWS OTC

Licensing Agreements Mergers &Acquisitions C&D breaks Mobergoffloads its CSD500 deal hurch &Dwight has broken off alicensing Fiber Choice brand Cdealwith Futura Medical forthe UK devel- opment firm’s CSD500 erection-maintaining oberg Pharma has entered into an agree- condom citinga“change in strategic priorities”. Mment to offload its Fiber Choice diges- The US-based firm –which owns the Trojan tive health brand to US-basedCaret Group, in condom brand –snapped up the rights to CSD500 amove the Swedish firm claims will allow it to in North Americaand certain European markets “furtherfocus resources on its core business”. in 2013 (OTC bulletin, 12April2013, page3), Under the terms of the deal–whichisex- buthas since failed to launch the product. pectedtoclose by the endofSeptember–Caret Following the termination of the deal, Futura will snap up Fiber Choice for US$6.7 million Moberg’sFiber Choice range saidChurch &Dwight would “returnall com- (C5.7 million), plus the inventory value at closing. thebrand –alongwiththe PediaCare and New- mercialisation rights” relating to CSD500 on or Describing FiberChoice as an “innovative” Skin lines –fromPrestige Brands in adeal before 19 November 2017. line of dietary supplements, Caret said the brand worth US$40 million (OTC bulletin, 22July “Our objective, once the rights are returned, would be an “important addition” to its diges- 2016, page 2). In December,Mobergoffloaded will be to seek newcommercial terms with pot- tive health portfolio. Fiber Choice would be PediaCare to India’sStrides Shasun for US$5.0 ential partners who have previously expressed marketed by Caret’sIMHealthScience subsidi- million, claiming that the “primary purpose” strong interestinthe product,”commented Futu- ary, the firm noted. of the Prestige deal had been to gain New-Skin, ra’s chiefexecutive officer James Barder. “Weare pleased to welcome Fiber Choice which it described as a“strategic asset in speci- “Whilst this change of strategic priorities to our family ofcompanies,” commented Caret’s ality skin care” (OTC bulletin,9December is disappointing,”Bardernoted, “we have been founder and chairman Fred Hassan. “Atatime 2016, page 3). advised by Church &Dwight that consumer of consumer empowerment and rising health- Commenting on the decision to divest Fiber researchregarding thein-use performance and care costs, people are taking amore active rolein Choice,Peter Wolpert, Moberg’schief executive safety of the product conducted by the firm is managing their ownhealth and wellness. We officer, saidthe move would enable the firm to not materially different to clinical and market believe Fiber Choice offers these consumersand “increase focus” on its “core” portfolio. research previously carried out by Futura in the theirhealthcareproviders an importantoption.” Wolpert pointed out that offloading the brand Netherlands and UK.” Moberg’smove to divest Fiber Choicecomes wasexpected to result in acapitalgainofaround Noting thatFutura’scommercialisation strat- just overayear after the companyacquired US$1.6 million for Moberg. OTC egyfor CSD500had been on aterritorial basis, Barder said the return of the rights by Church Business Strategy &Dwight was“not expected to have anyimpact on the launch in other geographies”. Nestlécloses Swiss facility WhileCSD500 wasauthorised forsale across Europe and anumber of other countries with estléSkinHealth is to shutdown its manu- waves” overthe next 12 to 18 months, Nestlé said. thegrant of aCEmark in 2013(OTC bulletin, Nfacturing facility in Egerkingen, Switzerland, The decision to closethe site formedpart of 25October 2013, page 7), Futura noted in 2014 as the firm says the plant is being underutilised. Nestlé Skin Health’s“global transformation that its udistrib tion partners–includingChurch The site –which also houses Nestlé Skin programme”, the firm explained, which includ- &Dwight –werereluctanttolaunch until the Health’sSwiss salesofficeand the global head- ed a“reviewofoperations worldwide”. product’sshelf life had been extended to two quarters of its Consumer business –produces “NestléSkinHealth is continuously review- years (OTC bulletin, 26September 2014, page 4). arange of prescription and OTCskin-care brands, ing and adapting its portfolio, simplifying the Futura achievedthe extended shelf life in including the Daylong sun-care line. organisation, reviewing its business models, early 2016 (OTC bulletin, 25March 2016, page “Production volumes at Egerkingen are, and and assessing its geographic footprint.” 9) and earlier this year launched CSD500 have been very low, resultingin underutilisation Nestlé Skin Health wasestablished as afully- through its distributor in Saudi Arabia (OTC of assets and hence additionalpressure on manu- owned subsidiary of the Swiss food and drinks bulletin, 7 April 2017, page 6). OTC facturing cost,”commented the Swiss firm. giant in June2014, after the companyacquired “Nestlé Skin Health doesnot foresee asignifi- from L’Oréal the 50% stakeinGalderma it cantvolume increase over the next years at Eger- did not already own(OTC bulletin, 21Feb- IN BRIEF kingen, even taking into account growth fore- ruary 2014, page 1). casts for markets served by the factory.” Nestlé recently committed to expanding its BIOGAIA reported sales up by 10% to Manufacturing activities at Egerkingen would presence in the globalconsumer healthcare mar- SEK297 million (C31.4 million) in the first half be transferred to “other NestléSkinHealth facili- ketfollowing a“comprehensive review of its of 2017, as turnoveradvanced at its Paediat- ties acrossthe world”, the company explained, business” (OTC bulletin, 21July 2017, page 7). rics and Adult Health businesses. Paediatrics’ whilethe Consumer business’ headquartersand As aresult of the review, Nestlé said it in- sales movedforward by 13% to SEK243mil- Swiss sales officewould be movedto“other loca- tendedto“pursue growth opportunities in con- lion, while Adult Health turnoveradvanced by tions across Switzerland”. sumer healthcare”, in line with its “nutrition, 6% to SEK50 million. OTC The transfers would takeplace in “several health and wellness strategy”. OTC

8September 2017 OTC bulletin 7 OTC COMPANY NEWS

First-Half Results First-Half Results Galenica has OTCPharmenjoys pleasing start alenicasaidithad experienced “pleasing double-digit boost Gdevelopment” in the first half of 2017, posting turnoverupby6.8%to CHF1.59billion igh demand” for cough and cold prep- OTCPharm noted, driving it up one place in (C1.40billion) –after eliminationsofCHF376 “Harations in Russia lifted turnover at the rankings from tenth to ninth position. million –assales advanced at its Health & OTCPharmby13% to RUB12.8 billion(C186 The firm attributed Codelac’ssolid perform- Beauty and Services divisions. million) in the opening six months of 2017, ance to asuccessful redesign of the brand’s Reporting its first set of results following the company reported. packaging, rolled out during the opening three the separation from its Vifor Pharma pharma- Sales of wholly-ownedbrandshad risen by months of the year. ceuticals division –which has seen Galenica 14.1% to RUB10.6 billion in the period, OTC- Pentalgin maintained its position as OTC- list on the SIX Swiss Exchange (OTC bulle- Pharmnoted, drivenbyan increase in turnover Pharm’sbest-selling brand in the first half, with tin, 28April, page 6) –the Switzerland-based of cough and cold lines. sales of the analgesic advancing by 13.3% to companynoted thatits sales growth in the The standout performer in the cough and RUB1.70 billion. opening six months of the year had been “well coldcategoryinthe periodhad beenthe Ri- The Complivit dietary supplement held on above the market as awhole”. nostop nasal spray, the companypointed out, to second place, posting sales up by 8.4% to Health &Beauty sales had risen by 2.9% to posting sales up by 58.8% to RUB700 mil- RUB1.18 billion. CHF730 million, Galenicasaid, thanks to growth lion. This growth pushed up Rinostop from In addition to the overall improvement in in its Retail and Products &Brands segments. ninth to seventh position in the ranking of sales of wholly-owned brands, OTCPharm also OTCPharm’stop-10 brands (see Figure 1). reportedbetter turnoverfromproductsthatthe Pharmacynetworkexpanded Higher incidencesofcolds, in combination companymarkets in Russia on behalf of other Adding three pharmacies to itsSwiss opera- with increased marketing investments, had been manufacturers. Sales from these products increas- tion had helped to push up Retail sales by behind Rinostop’sdouble-digit sales gain, the ed by 8.0%toRUB2.22 billion in the six months. 2.5% to CHF679 million in the first half, the firm explained. OTCPharm wasestablished via aspin-offof firmexplained. Growth hadbeenheld back, Gal- Sales of Codelac cough and cold products Pharmstandard’s brandedOTC businessin2013 enica noted, by ashorter flu season, aswitch had improvedby50.5% to RUB540 million, (OTC bulletin, 17January 2014, page 6). OTC by consumers to online shopping and “ongoing Brands First-half sales Change Proportion shopping tourism in neighbouring countries”. (RUB millions) 2016/2017 (%) of sales (%) As of 30 June 2017, Galenica wasoperating Pentalgin 1,703 +13.3 13.3 332 wholly-owned pharmacies in Switzerland. Complivit 1,177 +8.4 9.2 Including the firm’sAmavita and Winconcept Aphobasolum 909 +38.4 7.1 partner pharmacies, Galenica noted its pharmacy network comprised “nearly 500 points of sale”. Arbidol 826 -13.0 6.4 Turning to its Products&Brands segment, Gal- Magnelis 824 +28.1 6.4 enica posted sales upby6.8% to CHF51.1mil- Mycoderil 729 +48.1 5.7 lion, thanks to productlaunches andacquisitions. Rinostop 700 +58.8 5.5 Line extensions to the Anti-Brumm insect Acipol 564 +10.9 4.4 repellent line and the Excilor antifungal had been Codelac 540 +50.5 4.2 “successfully launched”, the firmcommented. During the six months, Galenica expanded Amixin 441 -53.5 3.4 its productportfolio bysnappingupthe Merfen Other 2,193 –17.1 and Vita-Merfen wound-care brands from Glaxo- Wholly-owned brands 10,606 +14.1 82.7 SmithKline (GSK) for an undisclosed sum (OTC Third-party products 2,218 +8.0 17.3 bulletin,3March 2017, page 3). TotalOTCPharm12,824 +13.0 100 Describing Merfen and Vita-Merfen as “iconic Figure1:OTCPharm’ssales in the first half of 2017 by brand (Source –OTCPharm) Swiss brands”, Galenica said at the time that the acquisition would “further strengthen” its consumer healthcare portfolio. IN BRIEF Meanwhile, Galenicareported sales at itsSer- vices division up by 7.4% to CHF1.23 billion. ADCOCK INGRAM reported sales up OTCturnoveraccounted for 32% of Adcock’s Acquiring physicians’ wholesaler Pharmapool at by 6.8% to ZAR5.94 billion (C384 million) in SouthernAfrica sales –which advanced by 6.8% the startof2017 hadbeen the main driverbehind its financial year ended 30 June 2017, thanks to ZAR5.75 billion –with thefirm’sConsumer, the division’ssingle-digit growth, the firm said. to advances by its Southern African OTCand Hospital and Prescription businesses gen- Group earningsbeforeinterest andtax (EBIT) Prescription businesses.During the period, OTC erating the remainder. SalesinSouthernAfrica had advancedby17.6% to CHF71.5million in sales had improvedby10.8% to ZAR1.85 bil- accounted for97% of Adcock’stotal turnover thefirsthalf, Galenica noted, thanks to sales lion, Adcock pointed out, drivenbyincreased in the12months. Sales in the Rest of Africa growth and acquisitions. OTC demand and “innovationonestablishedbrands”. generatedthe remainder. OTC

8 OTC bulletin 8September 2017

OTC GENERAL NEWS

Market Insight: Ecuador

rom theoutside, Ecuador’sOTC medicines l Difare –which operates the Pharmacys trol the lion’sshare of the market with unit sales Fmarket canbeintimidating forinternational and Cruz Azul chains, along with avirtual phar- of 72% and value sales of 83%,”Trepp ex- players given the government’s policy of en- macychain of over 500 stores. plains. “But local companies have continued couraging localmanufacturers andstrict price l Farmaenlace –which owns the Difarmes, to becomeincreasingly activeinthe marketover controls, according to Dr Gian Trepp, founder El Descuento, Farmacias Econominas and Far- the last fiveyears.” of market access specialists GBT Pharma. macias Medicity chains. “The Ecuadorian government is hugely sup- However, an increasingly healthcare-con- l Quifatex–which operates the Su Far- portiveof‘homegrown’ companies, especial- scious population –especially when it comes macia chain. ly those supporting the economy by manufac- to naturalhealthcareproducts –combinedwith “Each of thesecompanies has successfully set turing goods locally”, he adds. “This is part of a“rapidly-growing” pharmacy-chainmodel, is themselves apart fromcompetitors by catering agradual strategy put in place to provide the generating opportunities, Trepp adds. to specific demographics,”Trepp notes. “For majority of ‘in demand’ drugs in the country Ecuador’spharmaceuticals market is cur- example,Difarmes positions its pharmacies via local brands.” rently valued at just overUS$1 billion (C831 mil- towards an upper middle-class demographic, “With this in mind,”Trepp says, “interna- lion), with the OTCsectoraccounting for 40% whilstCruz Azul caters to lower middle-class/ tionalOTC companies seeking to access this of this total, Trepppoints out, noting that growth working-class demographics.” market need to consider there may be additional acrossthe totalmarkethas beenhit by govern- Foracompanyconsidering entering the hurdles to overcome from organisations such ment price controls. as the Health Ministry seekingtore- “Aswith the majority of Latin Amer- PharmaciesinEcuadornow account duce imports.” ica, the healthcare system in Ecuador “ Furthermore, the Ecuadoriangov- consists of services accessed primar- forthree-quarters of the pharmaceutical ernment has along-held tradition of ily via private hospitals, physicians and marketinthe country introducing price-control polices, Trepp independent practices operating out ” warns. These restrictions, effectively of hospitals,”Trepp explains. “Access to ser- Ecuadorian market it is crucial, Trepp insists, dictating when, where and howcompanies may vices provided by the latter is covered by in- to develop strong ties with the dominant phar- makeprice adjustments to their products, have surance companiesand patientswho self-finance macychains or pick apartnerthatalready has had abig impact on the sector. their healthcare.” agoodrelationship with theseleading players. “Asrecently as 2015, these policies became Meanwhile, the pharmacysectorhas under- “Pharmacychains in Ecuador nowaccount even tighter withthe introduction of price caps goneadramatic shift overthe past 15 years, for three-quarters of the pharmaceutical mar- and tariff surchargesapplied to imports,”Trepp with four big pharmacychains having estab- ketinthe country,”headds, “which is astag- notes, “and this wasparticularly pertinent to lished dominant positions and significantly re- geringrise from the 8% share held in 2001.” original or branded healthcare products com- ducing thenumber of independentpharmacies While the change in pharmacymodel to a peting with generic or branded copies in the in the country,Trepp points out. chain-dominated environment bodes well for same categories.” As aresult, the pharmacymarket is now con- companieslookingtoenter Ecuador, firms need “Asaresult, manycompanieshad no option trolled by four companies: to go intothe market withtheir eyes wideopen buttoreduce their pricing,”hepoints out, “to en- l Farcomed Group –which owns the Fy- when it comes to government policy, Trepp warns. sureitwas in line withthese price caps. Of course, beca and Farmacias Sana Sana chains “Foreignpharmaceutical companiesstill con- for some, a reduction in revenuefollowed.”

10 OTC bulletin 8September 2017 GENERAL NEWS OTC

This has also had an impact on marketing Distribution budgets, Trepp claims, with both local and in- ternational companies reducing marketing spend Newcourseset for to offset lower revenues. “It is important, therefore, to consider the current government pricing policies and build this into your launch strategy,” Trepp advises. tomorrow’s market “Setting asatisfactory gross margin early on is more sustainable and less likely to be im- istributorswillneed adifferent approach to pacted by multiple price adjustments.” Dsucceed in the consumer healthcare market of the future, according to Keith Garrity, director Regulatoryhurdles of international business development at Ceuta Looking at regulatory hurdles, Trepp says International. Bettercollaboration with retailers thatasEcuador followsthe US Food and Drug should be the foundation of this new path. Administration (FDA) framework, obtaining mar- Creating “sustainable growth and reach, and keting authorisations can takeuptotwo years. increasing brand equity for manufacturers and Despite these barriers, there are still plenty retailers”, he insisted, would be keyifthe con- of opportunities in Ecuador,Trepp insists, not sumer healthcare industry wastothrive. least in the natural products sector. Speaking to OTC bulletin ahead of the 12th “Euromonitor forecasts growth of 2.5% or Ceuta International Alliance ConferenceinLis- Keith Garrity more for natural products, allergy and weight bon, Portugal, Garrity pointedout thatthe con- offer redemptions, category management and control categories in the next fiveyears,”he sumer healthcare landscapewas changing and experiential marketing.” points out, “with natural products and ingredi- distributors had to ensure theykept up. “This valuable additional insight empowers ents –especially those originating from Europe “Sustainable business development should suppliers and retailers to determine howtoad- or the US –heldinhigh regard by consumers.” lieatthe heart of allcompanies,”heexplained. just tactics moving forward,”heinsisted. “Brand positioning is vital butprice point “However, as our industry continues to con- Fordistributors and retailers, the time to change is also abig factor driving consumers’ purchas- solidate, this is becoming acore requisite as course is now, Garrity said, giventhe “contin- ing decisions,”headds, “with Ecuadorian health- businesses look to increase scale and develop ued march of the discounters, and retail con- care customers often shopping around for a commercial synergies across their portfolios solidation in both mass market and pharmacy”. high-quality product across various pharmacy and internal structures.” To helpdistributors, manufacturers and re- chains to get the best deal.” “It is therefore imperative for distributors tailers recognise this change and takeadvantage In termsoffinding apartner in Ecuador, to be able to offer acompellingand provensolu- of the opportunities it offered, the theme of the Trepp says there are afew keyskills anypoten- tion to brand owners and retailers alike,”Gar- 12th Ceuta International Alliance Conference tial partner needs to have. rity insisted, “delivering focus, speed, agility was“Delivering anew generation of innova- “Itgoeswithout saying that anyprospective and cost efficiencies butwith the overarching tion and service excellence for tomorrow’smar- partner should be present across the big retail- objective of optimising sales potential and maxi- ketplace,”Garrity said. ers and pharmacychains,”Trepp points out. mising shareholder value.” “This unique international annual event is “Also, it is ahighly competitive market so en- “While it seems collaboration between retail- specifically designed,”heexplained, “to bring sure your local partner hasstrongrelationships ers, suppliers and manufacturers has existed for together manufacturers, retailers, global out- with the keyplayers in OTCproduct distribu- as long as the industry itself,” he pointed out, source sales and marketing serviceprovidersand tion channels across Ecuador.” “it has become pivotal to success as consum- keyopinion leaders from across our industry “Another important factorfor success is ac- ers have become more demanding, spreading to explore how, by working together, business cess to strong medical representation on the their purchasing power across anumber of growth opportunities can be created for all.” ground,”headds. “You shouldask:doesthe part- retailers and becoming more informed.” “Our intention,”Garrity continued, “is to give ner have awell-establishedand well-connected “Therefore the need for collaboration is greater examples of success, strategy, principles, pro- sales representative teamand structure in place?” than ever,” Garrityclaimed. “Retailers look- cesses and trends with the help of our distin- ing to establishsupplier partnerships and develop guished speakers, highlighting specific areas of Keypopulation areas newbusiness must trust their partners when potential opportunities, key learnings and market Anylaunchpartner shouldalso have akeen working together across the entire retail value development initiatives.” focus on keypopulation areas, Trepp says, noting chain by sharinginformation and truly collab- “Our speakers will offer thought leadership that40% of Ecuador’spopulation resides in three orating to exceed customer expectations.” and direction to help identify what changes main cities–Cuenca,Guayaquiland Quito. Themarkethad already begun to shift towards are taking place in the marketplace,”headded. Likeinmost Latin American markets, est- this more consumer-centric approach, Garrity Theywill help delegates to “understand and ablishing astrong presence in Ecudaor is a“long- noted, adding that distributors needed to take utilise these changes and ensure delegates’busi- term project,”Trepp points out, and requires advantage of the plethora of data available to ness offers are fit for purpose and support the “tenacity and the agility to adapt to the evolving provide their retail partners with acomprehen- needs of their clientsand customers in today’s regulatory and legalframeworks”. sive viewofbusiness results. and tomorrow’smarketplace.” “Yet withawell thoughtout, well executed, “With this data, suppliers are able to moni- l The12th Ceuta International Alliance Confer- flexible entry strategy behind”hea you, dds, tor areas such as store-leveldemand, shopper- ence takes place 28-30 November 2017 in Lisbon, “there is no reason not to tap into this promising focused insights, customer segments and pro- Portugal. Formore information about the event visit and potentially lucrative OTCmarket.” OTC motional analytics,”Garrity explained, “and can ceutaalliance.com/2017_conference-lisbon. OTC

8September 2017 OTC bulletin 11 DEVELOP WINNING DISTRIBUTIONSTRATEGIES MARKET REPORTS FROM JAMES DUDLEY MANAGEMENT

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Market Research German volume stagnates

ermany’s non-prescription medicinesmar- VALUE SALES:€16.7bn, +4.4% VOLUME SALES: 800mn packs, ±0.0% Gketthrough community and mail-order Prescription Non-prescription pharmacy “stagnated” in volume terms in the €14.3bn 430mn packs first half of the year, according to data from +4.7% +0.3% market researcher QuintilesIMS. Despite value sales through pharmacyrising Prescription by 2.4% to C2.48 billion at manufacturers’ sell- 369mn packs -0.2% ing prices, volume sales of non-prescription medicines grewbyonly 0.3% to 430 million packs (see Figure 1). Similarly, value sales of prescription medi- Non-prescription €2.48bn cines rose by 4.7% to C14.3 billion, butvolume +2.4% sales fell by 0.2% to 369 million packs. Figure1:Germansales of prescription and non-prescription medicines through community and At the start of the year,astrong cough and cold mail-order pharmacies in the first half of 2017 broken down by value at manufacturers’ selling prices season helpedliftthe non-prescription marketin and by volume in numbers of packs (Source –QuintilesIMS) volume terms, said QuintilesIMS. Unit sales of VALUE SALES: €866mn, +11% VOLUME SALES: 80mn packs, +7% cough and cold medicines grewby8%in the half- Nutrition OTC Unlicensed 2% OTC yearperiod, whilethose of nasalsprays and sore- medicines healthcare Medical medicines throat remediesrose by 4% and3%respectively. 53% products devices 62% 24% 5% Salesofother major OTCcategoriesdeclined in the first half, however, reversing growth else- Cosmetics where. Vo lume sales of immune system boost- &bodycare 14% ers and topical antirheumatics both declined by 5%. Analgesics alsoslid backby3%in terms Cosmetics of unit sales. &body care Salesthrough the mail-order channellifted 16% Unlicensed the OTCpharmacymarketinthe firstsix months. Medical healthcare devices products Value sales of mail-order OTCproducts –of Nutrition 2% 5% 17% which non-prescription medicines made up over Figure2:Germanmail-order pharmacysales of OTCproducts by categoryinthe first half of 2017 half –increased by 11% to C866 million at retail broken down by value at retail prices and by volume in numbers of packs (Source –QuintilesIMS) prices (see Figure 2). Totalmail order +6% Mail-order volume sales of OTCproducts also grewmuch faster than the non-prescription Genitourinary +14% medicines market, risingby 7% to 80 million VMS* +12% packs. Mail-ordervolume sales of OTCmedi- Skin care +11% cines –49.6million packs –represented 11.5% Eyecare of the totalnon-prescription medicinesmarket +9% through pharmacies in the first six months of 2017. Gastrointestinal +7% “The already prolonged upward trend in Cough, cold, respiratory +5% mail-order sales is the result of asignificant Other +5% expansion of the product portfolio of manymail- Sleeping/calming aids +4% order retailers,” QuintilesIMS explained, “along Cardiovascular +2% with shorter delivery times and ashift in con- Analgesics ±0% *Vitamins,minerals and supplements sumer purchasing behaviour.” Figure3:Germanmail-order volume sales of OTCmedicines and unlicensed healthcareproducts “More and more everyday products are be- broken down by categoryinthe first half of 2017 (Source –QuintilesIMS) ingordered online –OTC medicines and unli- censed healthcare products included,”itadded. the mail-order channel grewslightlyslowerat by product category, genitourinary products Aside from the 62% volume share taken by 6% than the 7% overall rise in volume salesof showed a14% improvementinthe first half.Vita- non-prescription medicines of the mail-order allOTC mail-orderproducts (see Figure 3). mins, minerals and supplementsalso produced pharmacymarket, unlicensed healthcare prod- While representing only asmall 21% pro- double-digitvolume growth of12%. ucts were responsible for another 17% of the portion of the mail-order pharmacychannel, the Volume sales of analgesic products were flat volume sales of OTCproducts. Cosmetics and remainingthree segments punched above their through mail-order pharmacies in the period body care contributed 14%, followed by medi- weight in growth terms, with cosmetics and body- –incontrast to the 3% overall sales decline of caldevices at 5% and nutrition at 2%. care growing strongest with rates in “the lower analgesic medicines through all pharmacies – Volume sales of non-prescription medicines double-digitrange”, according to QuintilesIMS. butcough, cold and respiratoryproducts deliv- and unlicensed healthcare products through Turningto mail-order pharmacy sales volume ered mail-order volumegrowth of 5%. OTC

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Sponsored by OTC GENERAL NEWS

Market Research Wake up to sleep-aid potential

naworld where people are becoming in- 2011 2016 2011-2016 CAGR* Icreasingly stressed and sleepless, OTC sleep 900 8 aids have become amore and more popular 800 7 solution, according to KeenaRoberts, consumer 700 6 healthcare analystatEuromonitor International. 600 5 CA Whilethe OTCsleep-aid categoryglobally 500 4 (%) GR* wasstill relatively small –sales at retail sell- 400 3 ing prices hit US$2.2 billion (C1.9 billion) in 300 2 2016, compared to the leading cough/cold cate- 200 1 gory at US$33.6 billion –Roberts pointed out lue sales (US$100 millions) 0 that sleep aids wasone of the fastest-growing Va 0 -1 Asia Australasia Eastern Latin Middle EastNorth Western product groups in the OTCspace. Pacific Europe America &Africa America Europe “Over the 2011-2016 period,” Robertsnoted, *Compoundannual growth rate

“the sleep-aid category achievedacompound Figure2:Sales and compound annual growth ratesfor OTCsleep aids in the 2011-2016 period annual growth rate (CAGR) of 4.4%, second broken down by region (Source –Euromonitor International) only in historical CAGR terms to emergency Supermarkets Chemists/pharmacies Mixed retailers contraception at 6.2%” (see Figure 1). Drugstores/parapharmacies Others “Drivenbyanincreasingly stressedand sleep- 100 less consumer base, particularlyinthe develop- ed world,”she added, “the sleep-aid category 75 is expected to continue to growinthe 2017- 2021 period, with aprojected CAGR of 3.3%, 50 to reach retail sales of US$2.5 billon.” istribution (%) Sales of sleep aids were “heavily affected 25 by demographicand epidemiological factors”, eodd Roberts explained, particularly in the developed worldwhere consumerswere“increasingly re- Shar 0 Asia Australasia Eastern Latin Middle EastNorth Western porting higher levels of work- and family-re- Pacific Europe America &Africa America Europe lated stress, along with adecline in the number Figure3:Shareof OTC sleep-aid sales by channel and region (Source –Euromonitor International) of hours sleep theyare getting at night”. “Stress levels are likely to only increase,”Rob- to an increased negative effectonconsumers’ respectively, overthe 2011-2016 period, faster erts forecast, “so consumers are likely to con- sleep patterns.” even than the world’spopulation overall at ahis- tinue to turn towards OTCsleep aids for relief.” “Similarly, asconsumers growolder, their toricCAGRof1.2% during the same sixyears The growing older population and the trend bodies produce less of the sleep-regulating hor- –thistrend would continuetodrive sleep aid towards urbanisation were also playing arole mone melatonin,”Roberts pointed out, “making sales moving forward, she added. in the increased popularity of thesleep-aidcat- it harder for later-lifers to both fall asleep and Reflecting the growingve le ls of stress in the egory,Roberts added. remain asleep, both ofwhich often cause later- developedworld, it wasunsurprising, Roberts “Greater urbanisation leads to stress from lifers to turn to sleep-aids forrelief.” stated, to discoverthatNorthAmerica andWest- overcrowding, pollution, and crime, as well as Taking intoaccount the rapid growth of both ern Europe were the twobiggest markets for an increase in stresses related to work and fam- the urban and later-lifer populations on aglobal OTCsleep aids (see Figure 2). ily life,”she explained, “all of which contribute scale –athistoric CAGRs of 2.0% and 3.2%, “North America and Western Europe posted

2011 2016 2021 2011-2016 CAGR* 2016-2021CAGR* 40 8 35 7 30 6 CA 25 5 R (%) GR* 20 4 15 3 10 2 lue sales (US$ millions) 5 1 Va 0 Adult Analgesics Sleep Cough, Derma DigestiveEmergency EyeNRT** Wound 0 mouth careaids cold, allergy remedies contraception carecare *Compoundannual growth rate ** Nicotine-replacement therapy Figure1:Sales and compound annual growth ratesof leading OTCcategories globally in the 2011-2021 period (Source –Euromonitor International)

16 OTC bulletin 8September 2017 GENERAL NEWS OTC

RegulatoryAffairs CHMP opens door fordesloratadine

he possibility of acentralised switch of ity for BfArM to engage in adiscussion for Tdesloratadine from prescription to non- apotential EU-wide switch of desloratadine- prescription status in the European Union (EU) containing products authorised through the cen- has been raised by the European Medicines tralised procedure. Agency (EMA). On 16 December 2015, BfArM requested Keena Roberts After arequest from the German medicines ascientific opinion by the CHMP under Arti- regulator,BfArM, for ascientific opinion on cle 5(3) of Regulation (EC) No 726/2004, on healthyhistoric CAGRs of 7.2% and 3.5% to whether acentralised switch of desloratadine whether desloratadine-containing products should reach US$785 million and US$805million, re- would be possible, the EMA’s Committeefor be switched to non-prescription status. spectively, in2016,”Roberts noted, “and are Medicinal Products for Human Use (CHMP) has In August, the CHMP –having considered projected further CAGRs of 3.0% and 2.6%, concluded that achange in legalstatus for products thedataondesloratadine, along with input from respectively, over2016-2021.” containing theallergy drug “may be possible”. theEMA’s Safety Working Party(SWP) and the “Importantly, however, asregions such as The request by BfArM wasmade after the Pharmacovigilance Risk Assessment Commit- Asia-Pacific and the Middle East and Africa prescription statusofdesloratadine-containing tee(PRAC)–concludedthat acentralised switch are expected to growatavery rapid rate over products authorised nationally in Germanywas might be possible. theforecast period, salesin North America and challenged by amarketing authorisation holder. Pointing out that desloratadine wasthe pri- Western Europewill slow slightly,” she caution- BfArM had previously declined aswitch maryactive metabolite of loratadine, the CHMP ed, “as consumers begin to shift towards other of the prescription status of nationally-author- said its reviewhad led it to the conclusion that methods of sleep management such as herbal ised desloratadine-containing products from when administered at standard clinical doses or natural supplements.” prescription-only to OTCstatus in Germany, according to the termsofthe marketing authori- That said, even though the pace of growth was citing regulations that prevent medicinal prod- sations, the safety profile and clinical effects slowing in NorthAmerica and Western Europe, it uctscontaining the same strength, pharmaceuti- of desloratadine were expected to be similar to wasstill very strong compared to other regions, calform, indicationand active substance to hold those of loratadine, which wasalready widely Roberts pointedout, potentially due to the rate different statuses on the German market for available in the EU as anon-prescription product. of adoptioninthose markets andthe “still- safety reasons. Desloratadine wascentrally authorised in strong need of consumers”. In this respect, BfArM ruled at the time, the EU as aprescription medicine in 2001 by Whenitcametowherepeople were buying the existing centrally-authorised products had Merck &Coand Schering-Plough, whichMerck OTCsleep aids, sales were highly concen- set aprecedent as theywere classified as subject &Coacquired in 2009 (OTC bulletin, 17March trated in pharmacies, Roberts said. This was to medical prescription. 2009, page 1). especially true in Eastern Europe, she added, Following an appeal by the switch applicant, Since the product went offpatent, anumber where 95% of sales were made through aphar- an administrative courtinGermanysupported of firms veha also launched centrally-authorised macy(seeFigure 3). the BfArM position, butreferred to the possibil- generics containing the drug. OTC Giventhe moreliberal regulations in North America, consumersshopped for sleepaids more Pricing evenly acrossthe retailchannels,Roberts noted. Once again reflecting the distribution regula- Boots UK cuts morning-after pill price tions in the region, sales in Western Europe were dominated by the pharmacychannel, she ootsUKhas cutthe price of its morning by its rivals Asda, Morrisons, Superdrug and said, adding however, there were asignificant Bafter pill anumberofweeksafteritcaused Tesco. However, theprice cut is likely to put amount of people buying online. controversy by suggesting that making theprod- pressure on its main rivalLloydsPharmacy, The growth in online sales via the internet uct cheaper would incentivise “inappropriate whichhad yet to reduceits prices for emergency or mobile devices could be seen in both North use” by women. contraceptivesas OTC bulletin wenttopress. America and Western Europe, Roberts added, Following pressure from campaign groups, As the price cut wasannounced it wasre- with consumers generally starting to shift to the the retailer –which operates the UK’sbiggest vealed that Boots had threatened legalaction convenience of these channels when it came pharmacychain –announced that it would in- against the British PregnancyAdvisory Ser- to medicines that were not needed urgently. troduce in all its stores by October ageneric vice (BPAS) which had campaigned forBoots One market to keep an eyeon, Roberts point- version of the levonorgestrel emergencycon- to implement thecut. ed out, wasChina. One brand in particular – traceptive priced at £15.99 (C17.37). BPAS said it had receivedalegalwarning Jilin Aodong’sAnShen Bu Nao –dominated Previously the firm only offeredot tw ypes of from Bootsinresponsetoits campaign foraf- the market, she explained, and if the company emergencycontraceptive:Levonelle priced at fordable emergencycontraception, accusing the continued to expand its reach in the country, £28.25 and its own-brand generic priced at £26.75. charityofencouraging the abuse of Boots senior the market for sleep aids there waslikely to Despite the price cut, the newBoots generic executivesafter thousands of people wrote to them continue to expand. OTC is still more expensive than the £13.50 charged asking them to reconsider their position. OTC

8September 2017 OTC bulletin 17 OTC GENERAL NEWS

Switches Legal Cases Dovonexgets RB loses to generics OTCapproval overMucinex patent soriasis sufferers in the UK will soon be Pable to buy Leo Pharma’s Dovonex Psoria- sis Ointment without aprescription after the mneal and Dr Reddy’s have succeeded Medicines and Healthcare products Regulatory Ain US patentlitigation over Reckitt Benck- Agency(MHRA) approved the product’s move iser’s(RB’s) Mucinex (guaifenesin) and Muci- fromprescription-only to pharmacy (P) status. nexD(guaifenesin/pseudoephedrine) extended- The UK regulator approvedthe switch of the release expectorants. 50µg/g calcipotriol ointment followingacon- ANew Jerseydistrict court concluded that sultation period whichended on 20 April 2017 Amneal’sguaifenesin 1,200mg and 600mg ex- (OTC bulletin, 7 April 2017, page 12). tended-releasetablets didnot infringe US pat- DovonexPsoriasis Ointment has been ap- ents 6,988,821 and 7,838,032, while Dr Reddy’s provedfor adults aged 18 years and overfor the guaifenesin/pseudoephedrine 1,200mg/120mg RB has lost apatent case overMucinexD treatmentofmild-to-moderate plaque psoriasis and600mg/60mg extended-releasetablets did ants’tablets, asaresult of hydration, which is a which has been previously diagnosed by adoc- not infringe the ‘032 patent. continuing release, is not equivalent to an im- tor.The once-daily treatmentwill be available mediate-release formulation”. These were“sub- in a60g pack with amaximum duration of use Twodistinct formulations stantially different”, she emphasised. of 12 weeks. At the heartofthe dispute waswhether the “A true immediate-release formulation re- Pharmacists and their staffwould be given firms’ proposedgenerics hadtwo distinct formu- leaseseverything at once,”Bumb noted.“That training materials to help them provide suitable lations: an immediate-release formulation and a some guaifenesin molecules areonthe surface advice, the MHRA said, and help patients de- sustained-release formulation. While RB claimed of the defendants’ tablets and release as are- cide whether the product wassuitable for them. that this wasthe case, Amneal and Dr Reddy’s sult of hydration does not mean that the de- Furthermore, the training would also help countered that their generics were single formu- fendants’ products function the same way.”A pharmacistsidentifypatientsthathad previously lation matrix tablets and therefore did not infringe. finding of equivalence under the theory would used the prescription product, the agencynoted, Ultimately, Judge Renée Marie Bumbcon- “vitiate the claims’ requirement that there be whichwas indicatedfor use twicedaily, unlike cluded that “the initial rapid dissolution of twodistinct formulations”, she concluded in the OTCproduct which is for use once daily. OTC guaifenesin from the surface of the defend- entering ajudgement of non-infringement. OTC

Switches RegulatoryAffairs Warning Letters Finland allows VATincrease for US FDAwarns OTCmelatonin medical devices China company inlandhas approved immediate-release 3mg he Dutch MinistryofFinance haspublished he US Food and Drug Administration Fmelatonin as an OTC dietary supplement. Taproposal that would limit the reduced6% T(FDA) has issuedawarning letter to Chi- The Finnish Medicines Agency–Fimea –said rate of value added tax (VAT) only to products nese OTC medicines and cosmetics manufac- that it had approvedthe product produced by that have been authorised as pharmaceuticals turer Bicooya Cosmetics over poor sanitary Vitabalansy in a10-tablet pack to treat the ef- under the Dutch Medicines Act. conditions and dataintegrity issuesatits Zhe- fects of jetlag. As aresult, products such as medical devices jiang,China facility. An additionalyearofdataexclusivity was that have not been granted amarketing auth- Afour-day inspection of the facilityinMay not granted. orisation, wouldnolongerbeabletobenefitfrom had seen inspectors observerodent faeces In November 2013, Fimea announced that the 6% VATrate and would instead be subject throughout theplant, the letter states, including products containing 0.5mg-1mg of melatonin to the standard 21% rate. near the machine the companyuses to manu- could be sold as dietary supplements and marketed According to the proposal, the Dutch Medi- facture OTCdrugproducts, aswellasnearraw withthe EuropeanUnion- (EU-) approvedhealth cinesAct would serveasthe basis fordetermin- materials and finished drug products. claims for the reduction od sleep-onset latency. ing whether or not aproduct qualified for the Furthermore, inspectors found that the com- The limit of 1mg wasincreased to 2mg in 2016 reduced rate. Only products that had received panyfailedtocleanand maintain some equip- before this recent raise. OTC amarketing authorisation under the act would ment used to produce OTCdrugs, the letter be eligible. adds, while damaged hoses were “held together The move to tighten the rules followed arul- with plastic wrap” and the hinge on the lid of IN BRIEF ing by the Dutch Supreme Court last year that cer- one of the tanks brokewhen an employee at- WALGREENS has launched a research tain products such as toothpastes that contain fluo- tempted to open it. centre on itswebsite which features more than ride and sunscreenscontainingUVA and UVB Bicooya also failed to test some lots of its 50 outcome studies it has published overthe filters were medicines under thedefinition of the products for activeingredientcontent andmicro- past six years. OTC act and should benefit from the reduced rate. OTC organisms, the letter notes. OTC

18 OTC bulletin 8September 2017 MARKETING NEWS OTC

Product Launches Product Launches Solpa-Extra Flonase offers kids hits Ireland better allergy relief ct fast, so you can get back to life” “Ais the message from Perrigo to Irish ore complete relief for children from consumers with the launch of its Solpa-Extra Mallergiescomparedtosyrups or chewable Soluble Tablets in the country. tablets is the promise from GlaxoSmithKline Backed by what the companydescribed as (GSK) Consumer Healthcare with the launch its “largest ever televisioncampaign in Ireland”, of its Children’s Flonase Sensimist in the US. Solpa-Extra contains 500mg paracetamol and Noting that the product wasavailable nowin 65mg caffeine and is indicated for the treat- time for the autumn allergy season, GSK said ment of mild-to-moderate pain such as head- that the nasal spray had been “uniquelydesigned ache –including migraine with and without aura – to redefine your child’sallergy relief”. backache, toothache, muscle ache, neuralgia, The product –whichdelivers 27.5µg of fluti- joint pain, dysmenorrhea and sore throat,aswell casone furoate per spray,the same as the adult Children’sFlonase Sensimist as for the relief of fever, andthe symptoms of Senismist product launched earlier this year cold and flu. (OTC bulletin,17February 2017, page 15) products from their adult counterparts. Holly Turner,seniormarketing director at –helped block “six keyallergic substances” The product joins the Flonase Allergy Re- Perrigo, said the theme of the C1million mar- and clear nasal congestion, the firm pointed lief productlaunchedtwo years ago following keting campaign of “act fast, so you can get out, while most single-ingredient allergy medi- itsswitchto OTCstatus (OTC bulletin,13Feb- back to life” placedanemphasisonhow Solpa- cines only blocked one and did notclear the nose. ruary 2015, page 1) andthe Children’sFlonase Extra’sdual action formula treated pain fast. Furthermore, the productdelivered a“gentle AllergyReliefproduct thatrolled out last March “Our focus is on the reliefofpain that starts scent-free mist” that achildwould barely feel, (OTC bulletin,4March 2016, page 15). Both with aniggle,”Turner pointed out, “but then GSK claimed, along with anon-drip formula of these Flonase products provide 50µg fluti- delivered through aless invasive short nozzle. casone propionate per spray. Childrenaged twoto11yearsshould use one Children’sFlonase Sensimist, like all the spray in eachnostrilonce daily,the company earlierlaunches,issaidtohelpblocksix inflam- said, butwarned that the growth rate of some matory substances: chemokines; cytokines; hista- children might be slower while using the prod- mine; leukotrienes; prostaglandins; and tryptases. uct andadvised that children should use it for The spray is also claimed by GSK to provide the shortest amountoftime necessary to achieve “40% more powerfulrelief” for nasal symptoms symptom relief. than “a leadingnon-drowsyallergy pill” contain- Unlike the adult version, Children’sFlonase ing 180mg fexofenadine. Solpa-Extraisnow avaiable in Ireland Sensimistonlyprovides 60 metered dosescom- GSK said Children’sFlonase Sensimist would builds into something more that can make it pared to the 120 provided by the adult pack. be promoted via website content, social-media difficult to focus or think.” The bottle also carries the orange livery that activity,video assets andmore, all to coincide Based on absorption data,Solpa-Extra got marks out the children’sversions of Flonase with the autumn allergy season. OTC to work “twotimes faster than standard par- acetamol tablets”, Turnersaid,adding that this Product Launches speed of action would be highlighted not only in the television advertising butthrough atrade- press campaignand the “biggestlevel of in-store Galderma extends Excipial support” –including windowactivation, shopper alderma has grown its Excipial global medi- liverthe active ingredient deep into the lower activation and bespoke point-of-sale material – Gcalskin-care range with aproduct designed skin layers, ensuring long-lasting hydration. the firm had ever placed behind aproduct. to tackle very dry, rough and chapped feet. Excipial Foot Ointmentwas ideal as an “in- “In Ireland, pain is the largest category in Described as an “intensive treatment” de- tensive cure”,the company claimed, especially pharmacy,”Turner stated. “In the year ended signed to regenerate dry,rough and cracked feet, when applied before bed and coveredwithsocks. March 2017, the category’ssaleshad increased Excipial Foot Ointment contained 10% urea, Gal- Product residue could be easily washed away by 5.5% to C61 million,”she added,“ andSolpa- derma pointed out,but had beendeveloped to de- in the morning withorwithout soap, it added, Extra is agreat addition to the current OTC noting the product wasfree offrangrances, col- pain relief available on the market.” our and preservatives. Trade advertisingfor the brand began on4 The Excipial range includes avariety of September,Turner noted,with out-of-home sup- treatments for dry and sensitive skin in adults port set to start towards the end of the month. and children. Solpa-Extra Soluble Tablets are available in Excipial is available in anumber of markets pharmacies nowwith arecommended retail around the world, including Austria, Czech price of C5.99. OTC Excipal Foot Ointment is available in various markets Republic, Canada, Slovakia and the US. OTC

8September 2017 OTC bulletin 19 OTC MARKETING NEWS

Product Launches Adcockaims to fill the GAP

outh Africa’s Adcock Ingram has introduced Werner vanRensburg, managing director of Sarange of vitamins, minerals and supple- Adcock’s OTCbusiness, said the company be- ments (VMS) designed specifically to help lievedthat the GAP range wouldtake the “guess people dealing with chronic diseases. work” out of choosingthe appropriate supple- Focused on helping chronic disease sufferers mentation for the relevant condition. in its home market “replenish the vitamins and minerals that have beendepleted” as aresult of Important forwellbeing their condition or the treatment of their illness, “Vitamins and minerals are adiverse group Adcock said that each GAP product had been of substances that play an important role in developed for asingle specific condition. patient wellbeing,”he explained. “A deficiency The GAPwebsitehas aguide to the full range The current GAP range consists of products often occurs overtime and can be caused by to offer help to those suffering from hyperten- anumber of factors including an increased need of necessary vitamins or minerals can often be sion, cancer,depression, high cholesterol, epi- for aparticular vitamin or mineral, difficulty caused by the chronic disease,”he continued, lepsy, gastro-oesophageal reflux disease or for in absorption or adietary deficiency.” “and in addition to the disease itself, treatment those taking oral contraceptives. “In patients fighting chronic diseases, alack very often has afurther depleting effect, leading to the need for supplementation.” All the GAP products were supported by “significant clinical data”, vanRensburgnoted, “and could contribute to overall treatment goals and quality of life”. Awebsite had been designed to give patients more informationaboutthe different products in the range, Adcock pointed out, noting that more information could alsobe obtainedfrom TheGAP line offers supplements forthosewithhigh bloodpressureand thoseusingoralcontraceptives doctors and pharmacists. OTC

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20 OTC bulletin 8September 2017 MARKETING NEWS OTC

Q&A with GSK’s Andy Mahoney Area Marketing Manager, NorthernEuropeRespiratory Nelsons has expanded the range of its “next generation” Rescue Plus homoeopathybrand in the UK and other markets with dropper and spray variants. The natural products firmsaid following the success of the Rescue Plus lozenges and What has been the biggest achieve- has enabled consumers to experience brand effervescent tablets, it had decided to add the Q ment of your OTC marketingcareer? content acrossnew formats such as apps,web- twomost popular formats from the original Rescue sites and social-media channels. This meansa Remedy stable – dropper and spray – tothe Rescue Plus sub-brand. One ofthe biggest achievements in my brand’s bulls-eye target audience will have Rescue Plus products contained the brand’s A OTCmarketing career to date has been multiple distinct digitalpersonasbased on unique fiveflower essence formula, Nelsons to lead and create an empowered, energised consumer behaviour online. Across GSK’s noted, but with added vitamins B5 and B12 along with astronger on-packclaim of “helps and high-performing team across aportfo- cold, flu and allergy portfolios we now look supportnormal mental performance”. lio of cold, flu and allergy brands in the UK. at the digitalpersonasofthe brand’s target audi- Emma Goessen, Nelsons’ marketing manager Duringthis period, I’m really proud thatthe ence and define consumersmore by their be- forthe Rescue brand, said that Rescue Plus lozenges were the company’sbiggest seller in team has not only delivered significant sales haviours, attitudes and geographic location Boots UK stores and were its fastest-growing line increases across cold, flu and allergy, but there rather than just socio-demographics.Thisnew in Whole Foods stores in the US. has also been areal sense of camaraderie de- directionenables the company to target con- “The Rescue Plus products arereally energising the entireRescue range,” sheadded,“delivering spite the challenging marketplace we work in. sumers even more effectively online. higher consumer appeal and bringing newusers to the brand.” Whathas beenthe biggest challenge What has been the most important “The Rescue Plus dropper and spray formats Q of your OTC marketing career? Q lesson of your career? will acceleratethis growth,”Goessen claimed,“in everyregion.” JenKendall, Rescue’sbrand manager in the After spending more thanseven years Nevertake ‘no’ for an answer. Despite UK, pointed out that the original Rescue dropper A of my GlaxoSmithKline (GSK) market- A there being higher levels of regulations and spray products were the brand’sheritage, but nowthose twoformats would benefit from the ing career in the UK across categories such in OTC marketing, sometimes the easy answer Rescue Plus range’sclearer product benefits, as drinks, nutritionand oral care, it hasbeena canbe tosay ‘that willnever happen’.How- premium packaging and easier to understand on-packinformation. OTC big challenge for me to switchtoanarea mar- ever, by working flexibly, creatively and in keting role in the heavily-regulated category partnership, there is quite often asolution which of OTC. Abig part of the challenge was learn- will benefit the firm, patientsand customers. ing aboutthe different regulations across all of ourNorthernEuropean marketsincluding How do you see OTC marketing dev- Belgium, the Netherlands, and the Nordics, Q eloping in the future? andthe implicationsthese have in implement- ingmarketing strategies. Despite these com- Over the comingyears there will be an plexities, it has presented afantastic oppor- A even greater shift towardsself-care for tunity for me to be even more creative in my minorailments as the UK’s NationalHealth thinking to deliver products and communica- Service (NHS) seeks to accelerate cost re- tions of value to patients,customersand GSK. ductions. There will alsobe significantgrowth

DHU is urging German consumers to “get in convenient access for medicines online away from pain”with the launchofthe Rhus How have consumers changed over which will require amindset shift in OTC homoeopathic pain-relief product. Q the course of your career, and how marketing strategies and budgets. As aresult Containing Rhus toxicodendron D6 – anextract of poison ivy whichDHU claims is anatural have you responded? of this increase in non-traditional channels, agent against pain – the product is aimed at there will be agreater challenge to ensure that people who sufferfromjoint and muscle pain. When Ientered marketing in 2008 OTC marketeers educate at every potential Designed to “relieve movement pain”, DHU A consumers were onlytargeted through purchase point about their products to ensure said that as Rhus wasnatural, and could be used forlong periods or in conjunction with the more traditional age and socio-demographic consumers find the right solutions to treat licensed medicines. classifications. However, digital proliferation their symptoms fast and effectively. OTC Trade-press advertising forthe brand features the image of aperson with joints highlighted by yellowand redtargets and the phrase “Raus For the opportunity to feature in the Q&A section, aus den Schmerzen” –“get away from pain” – email [email protected] followedbyDHU’scompanymotto“Mit der Kraft der Natur”, or “with the powerofnature”. The 80-count tablet packs areavailable now. OTC

8September 2017 OTC bulletin 21 OTC MARKETING NEWS

Marketing Campaigns OTCMarketing Awards Mycosan stops OTCAwardsgofrom fungal nails strength to strength nstant relief from fungal nail infection is the Ipromise fromSerrix to fungal nailsufferers in the Netherlands in the latest television spot for ext year’s OTC Marketing Awards prom- its Mycosan Kalknagel product. Nises to be the best yet with more people The creative shows awoman burying her feet than everexpected to be present in the ArtDeco in the sand on the beach, embarrassed to show ballroom of London’s Sheraton Grand Park hertoenails due to afungalnail infection,asa Lane Hotel, Piccadilly. voiceoverstates that Mycosan Kalknagel is 100% Afabulous evening of glamour and celebration effective against fungal nail infections. awaits attendees on Thursday,8March 2018as MARKETING AWARDS An animation then shows howthe prod- atotalof19Awards are presentedtoworthy win- Recognising the best of the BritishOTC Industry uct’sbrush applicator is easy to use, while the ners at the Gala Dinner &Awards Presentation. 2018 Enthused by our newArt Deco-inspired logo, The newOTC Marketing Awards logo is inspired British OTCfirms and theiragencieswillbe sub- by our venue’sArt Deco heritage mitting their mostcreative work before the dead- soring the Award for OTCBrand of the Year. line of Friday,8December 2017 in the belief James DudleyManagement will be welcomed that it will be appreciated as the best in the back for asecond year running to present the British OTCindustry. Award for Best OTCMarketing Campaign on Awards for campaigns using the different aSmall Budget. Our thanks also go to PAGB forms of media and applying the various market- for its continued support of both the Awards Mycosan is 100% effective ing communications techniques will be bestowed and the Awards Presentation. voiceoveradds that sufferers who use Mycosan on the night in aceremonyco-presented by Other firms voin lved in the British OTCin- Kalknagel cansee results in justtwo weeks. IRI and OTC bulletin.IRI’s involvement will dustry should be aware that sponsorship pack- The advertisement then returnstothe beach mark the 10th year that the provider of consumer, ages are nowavailable to suit all budgets. showing the woman confidentlyusing her toes shopper,and retail market intelligence andan- There is no better wayto present your name, to drawasunin the sand, before finishing with alysis has been associated with the Awards. your business and your contribution to the Brit- ashot of the entire Mycosan range. Adetailed breakdown of the criteria for each ishOTC industrythan to sponsor an OTCMar- First launched in the Netherlands last year, Award may be found in the Entry Information keting Award. Mycosan Kalknagel has enjoyed strong sales Pack,whichisavailable todownloadfrom OTC In the months before, during and after the overthe past 12 months, Serrix said, and had bulletin’s website, otc-bulletin.com/awards. Gala Dinner &Awards Presentation, sponsors’ since been launched in the Baltics, Poland, Portu- Nowintheir 23rdyear,the OTCMarketing brands enjoythe highest of profilesthrough promo- galand the UK. Awards have once again attracted some major tional activities, including coverage in OTC In the Netherlands, the Mycosan line includes sponsors. Apart from co-presenterIRI –which bulletin,and direct involvement on the night. ashoe and foot powder,anantifungal protec- willbe sponsoring the Awards for OTCCompany l Find out more about the OTCMarketing Awards tion spray andagel for treating footfungus. OTC of the Year and Best OTCAudio-Visual Ad- 2018 by contacting Natalie Cornwell at OTC bulletin.Call vertising –AsdaPharmacywillbe sponsoring +44 1564 777 550 or email [email protected]. and presenting theAward forBestOTC Perform- Alternatively,visit the OTCMarketing Awards website er Outside Pharmacy, and C+D Data will be spon- at otc-bulletin.com/awards. OTC

Product Launches Olbas gets nasal-spray option fast-acting nasal spray thatworksinjust capsules –would be backed by aheavyweight Atwo minutes is the latest addition to Lanes marketing campaign, Lanes said, including tele- Health’s Olbas decongestants range in the UK. vision, print and digital advertising. Olbas Nasal Spray would “bolster” the brand’s “cold fighting credentials”, the companyclaimed, Easy relief

West Michigan, US-based non-profit healthcare by delivering “fastand impactful on-the-gorelief Nikki Banwell, Olbas’ brandmanager,said provider Spectrum Health has launched arange for blocked noses”. that Olbas Nasal Spray would provide con- of OTCproducts in partnership with the Midwest The addition to the range –which is led by sumers with“quickand easy relief fromblocked retail chain Meijer. Noting that it wasthe first healthcareprovider in the classic Olbas Oil menthol-based variants noses during their everyday busy lives”. the US to launcharange of branded OTCmedicines, for adults and children, along with Olbas Bath, “Manyconsumers will continue their every- Spectrum said the aim wastomakeiteasier for Inhaler and Pastilles products and the paraceta- day commitments while fighting acold,”she consumers in the Midwest to navigatethe wide- range of OTCmedicines and vitamins, minerals mol, phenylephrine and guaifenesin-based Ol- added, “Olbas Nasal Spray provides an on-the- and supplements (VMS) on the market. OTC bas Max Strength All-In-One Cold and Flu move solution.” OTC

22 OTC bulletin 8September 2017 EVENTS OTC

SEPTEMBER 10-11 October 28 September AESGP Conference 3rdEuropean Brussels,Belgium ‘Finding the right balance for consumer health products’ is the theme of this two-day event org- Consumer HealthcareForum anised by the Association of the European Self-Medication Industry,the AESGP. Munich, Germany There will be sessions on: ‘Food products and health’; ‘The real implications of the new ‘Successfully managing consumer healthcare medical device legislation’; and ‘Creating aconsistent regulatory environment for herbal in viewofchanging sales channels, online and (medicinal) products’. offline’ is the theme of this one-day forum. Contact: AESGP.Tel:+32 273 55130. Contact: Simon Kucher &Partners. Email: [email protected]. Website: aesgp.eu/events/brussels2017. Tel: +49 89 544793 10. Email: [email protected]. 18-20 October Website: simon-kucher.com/en/events/. Email: [email protected]. Herbals Summit Website: inspirato-zukunft-apotheke.de. Osaka, Japan 21 November OCTOBER ‘Unwinding nature’srecipes for health’ is the Advertising of subject of this three-day meeting. 2-3 October Contact:Conference Series. Medicinal Products Pharmaceutical Regulatory Tel: +1 650 889 4686. Bonn, Germany Affairs in Africa Email: [email protected]. Aone-day seminar run by Germany’smedi- London, UK Website: herbal.global-summit.com/. cines manufacturers’ association, the BAH. Countries to be covered at this two-day meet- Contact:BAH. inginclude Kenya, South Africa and Tanzania. 18-21 October Tel: +49 228 957 4556. Contact:Management Forum. CRN’sAnnual Symposium forthe Email: [email protected]. Tel: +44 20 7749 4730. Dietary Supplement Industry Website: bah-bonn.de/widi-services/ Email: [email protected]. Arizona, US fachseminare. Website: management-forum.co.uk. Afour-day event organised by the US Council 21-22 November for Responsible Nutrition (CRN). 2-4 October DIA Middle-East Contact:CRN. Regulatory Conference TOPRA Annual Symposium Tel: +1 202 204 7674. London, UK Kuwait City,Kuwait Email: [email protected]. Atwo-day event organised by the Drug In- Athree-day event run by The Organisation for Website: crnusa.org/2017events. Professionals in Regulatory Affairs (TOPRA). formation Association (DIA). Contact:TOPRA. 24 October Contact:DIA. Tel: +44 20 7510 2560. Global Generics & Tel: +41 61 255 51 51. Email: [email protected]. Email: [email protected]. Biosimilars Awards Website: diaglobal.org. Website: toprasymposium.org. Frankfurt, Germany 4-6 October Organised by Generics bulletin,these awards 27-28 November Health Ingredients Japan reward business development initiatives, clever EuroPLX 65 Tokyo, Japan licensing deals and smart legalmanoeuvres. London, UK Health ingredients and services will be covered Contact: Generics bulletin. This two-day meeting will provide aforum at this three-day exhibition and conference. Tel: +44 1564 777550. for business development decision makers Contact:UBM Media. Email: [email protected]. for discussing and negotiating collaborative Tel: +81 35296 1017. Website: generics-bulletin.com. agreements in licensing, marketing, and dis- Email: [email protected]. tribution of patented medicines, generics, bio- Website: hijapan.info. NOVEMBER similars, OTCproducts, medical devices and food supplements. 5October Contact:RauCon. Pharmacovigilance 13-14 November Tel: +49 6221 426 2960. London, UK The FutureofPharmacy Email: [email protected]. This one-day course will look at pharmaco- Frankfurt, Germany Website: europlx.com. vigilance and regulatory requirements. ‘Pharmacyofthe future’ and‘When Amazon Contact:Management Forum. becomes apharmacy’will be among sessions 29-30 November Tel: +44 20 7749 4730. at this two-day conference. CeutaHealthcare Email: [email protected]. Contact:Inspirato. International Website: management-forum.co.uk. Tel: +49 151 624 179 41. Lisbon, Portugal ‘Delivering anew generation of innovation and 17-19 October service excellence for tomorrow’smarket place’ WSMI General Assembly is the theme of this two-day conference, which Sydney, Australia will bring together manufacturers, retailers, ‘The Economics of Self Care’ is the theme of the World Self-Medication Industry’s(WSMI’s) brand owners, global outsource solutions pro- three-day conference, which will be jointly hosted by the Australian Self Medication Industry viders and keyopinion leaders in the health (ASMI) and the NewZealand Self Medication Industry (NZSMI). and beauty industries. Topics to be covered will include: ‘Self-care in global health policy’; ‘Consumer self-care trends Contact:Ceuta Healthcare. and insights’; ‘Optimising self-care through switch’; and ‘Newself-care models’. Tel: +44 1202 780 558. Contact: Arinex. Tel: +61 29265 0700. Email: [email protected]. Email: [email protected]. Website: wsmiga2017.com. Website: ceutaalliance.com/2017 _conference-lisbon.

8September 2017 OTC bulletin 23 OTC BUSINESS STRATEGY

Netherlands-basedonline retailer DocMorris has beenupsetting German pharmacists forthe past fewyears through its strategy of digital disruption. David Ridleytalks to Walter Oberhänsli,chief executiveofficer of DocMorris’ parent company Zur RoseGroup,about his firm’sonline strategies.

Zur Rose breaks the rules

’m not afraid of lawsuits,” mark-ups for each element of the supply chain, he adds. “Wewantto open up discussions about boastsZur RoseGroup’s chief the European Court of Justice (ECJ) ruled. different solutions.” executive officer, Walter Ober- DocMorris’ discounts give thefirm acom- Oneofthe keyarguments putforward by “Ihänsli. “We have had them petitive advantage that is unfair to domestic the Germanpharmacylobby is that communi- for the last 20 years.” online and‘bricks-and-mortar’ operatorsthat ty pharmacies offerexpertadvicefromtrained Lawsuitshavefollowed closely on the Swiss- are limited by AMPreisV,Germanpharmacists pharmacists that is crucial in ensuring patient based supply-chain disruptor’severy move.Along claim. This will eventually lead to “pharmacy safety and compliance. the way, it has fought offaseries of legalchal- death”, theysay,with manyrural community However, in April this year, DocMorrisopen- lenges from pharmacylobbies in Switzerland pharmacies disappearingasaresult(OTC bul- ed a“video consultation with medicinal delivery” and Germany. letin ,21July 2017, page 20). serviceinthe small German town of Hüffenhardt Oberhänsli insists to OTC bulletin that far The pharmacylobby is nowtrying to get to showthat the convenience of online retail could frombeing disruptivefor the sakeofit, Zur Rose all mail-order salesofprescription drugs banned be combined with professional consultation. wantstofind solutionstoproblems causedby in Germany,and has managedtoenlistthe sup- Hüffenhardt customerswentinto the Doc- changestotraditionalmedicinal supplysystems. port of the largest party in the German Bun- Morris store and receivedadvice from atrained He cannot see the point in “saying no to every- destag,the ‘union party’of theChristian Demo- pharmacistinthe Netherlandsvia avideo screen. thing” in the wayofpharmacypressure groups. cratic Union (CDU) and the Christian Social Theythen purchased recommended OTCmedi- “The pharmacists want to defend their eco- Union (CSU). cines directly in the outlet. nomic interests,”heargues, “but we believe Theban is nowfirmly on the agenda for the Originally Hüffenhardt had also dispensed that patients and consumers should have the upcoming federal elections on 24 September, prescription drugs. However, it wasfirstlylimited choice to buyinwhateverchannel theywant.” with the main parties taking aposition on the to OTCsalesbythe regional council,before the Last year,the German pharmacylobby tried future of pharmacysupply in Germany. Mosbach district court eventually shut the service and failed to stop DocMorris –Zur Rose’sDutch Oberhänsli doesn’tbelieve aban willhappen, down altogether.Withinamatter of weeks,Doc- online retail brand –fromoffering discounts as it would be “unconstitutional and contrary Morris’ bricks-and-mortar experiment wasfin- on mail-order sales of prescription medicines to European law”. “You cannot establish that ished, despite being popular with customers. (OTC bulletin,4November 2016, page 15). mail-order sales of prescription medicines is “For the moment Hüffenhardtisclosedbe- As DocMorris is based in the Netherlands, okay in 2004 and then close it down 13 years causeofattacks from the pharmacylobby and it is not bound by the German AMPreisV price- later,” he maintains. lawsuits from pharmacists, butfor ashort time control system, which imposes aseriesoffixed “I think this is just the wrongway to do it,” while it wasopen, it clearly showed that this

24 OTC bulletin 8September 2017 BUSINESS STRATEGY OTC

Switzerland Wholesale Other Prescription CHF470mn CHF346mn CHF70mn CHF237mn 53% 74% 17% 58%

Germany* OTC CHF409mn Online retail CHF102mn 47% *Including Austria CHF125mn 25% 26% Figure1:Breakdown of Zur Rose’sturnoverin2016 Figure3:Zur Rose’s2016 turnoverbycategoryin –CHF880 million –bycountryunder theDocMorris Figure2:Breakdown of Zur Rose’sSwiss turnoverin Austria and Germany–CHF409 million –under the and Zur Rose brands (Source –Zur Rose) 2016 –CHF470 million (Source –Zur Rose) DocMorris and Zur Rose brands (Source–ZurRose) solution wasaccepted by local people,”Ober- cians. Wholesaling continues to provide the granted adispensing licence. hänsli comments. firm with its core business in Switzerland, With the company’sSwiss experience, when Whenasked if DocMorris plans to open any making up three-quarters of Zur Rose’stotal the German government opened up the German more “video consultation with medicinal de- Swiss sales of CHF470million (C413 million) pharmaceuticalsmarkettoonline retail in 2004, livery” services in Germany, Oberhänsli says last year (see Figure 2). Oberhänsli sawanopportunity for Zur Rose, it “doesn’tmakeany sense” for the moment. In this part of the business, Zur Rose re- “because we had already learned howtorun “Hüffenhardt wasacontribution to the political cently announced an “exclusive”supply deal an online retail business in Switzerland”. discussion. With thee-health solution in Hüffen- with Medbase Group, aSwiss outpatient medical After operating in Germanyfor eight years hardt, where the local pharmacywas closed, care provider currently looking after 450,000 under Zur Rose’sown online brand, the firm we were able to supply people and patients with patients in Switzerland, engaging in atotal of bought DocMorris, the Dutch-based online re- medicines in structurally weak regions,”headds. 1.8 million consultations per year. tailer,fromCelesio in 2012 (OTC bulletin,9 Meanwhile, Zur Rose has also turned towards But even with this deal, the potential for November 2012, page 15). bricks-and-mortar as partofits new“omnichan- growth in the Swisswholesale marketis“limit- Despite inheriting the conflicts with the Ger- nel” strategy in itslargerhome market(see Fig- ed”, Oberhänsli admits. manpharmacylobby that had led Celesio to sell ure 1). This strategy beganwith the first Zur “Throughthiscollaboration we will provide the business, Zur Rose has made asuccess of Rose ‘flagship’ pharmacyinthe Swiss capital allpharmaceuticalsfor Medbase, so this gives its acquisition. Last year,DocMorris’ revenue of Bern. The firm has since added a“shop-in- us some growth potential in the wholesale grewby12% to CHF361 million in Germany. shop” pharmacycollaboration with Swiss super- market in Switzerland butin general we do not ForOberhänsli, such conflicts are not aprob- marketchain Migros to its retail offering (OTC see growth of more than let’ssay 5%.” lem, and come with the territory of being Europe’s bulletin,11August 2017, page 11). The other quarter of Zur Rose’sSwiss turn- leading pharmaceutical supply-chain disruptor. With the Migros shop-in-shop, customers overcomes from mail-order sales directly to “Some people get bothered by lawsuits, can order prescription and OTCmedicines on- customers, with the firm wcno ornering 39% of butIdon’t,”Oberhänsli claims. “I used to be a lineand pick them up in store, or buyOTC the Swiss online retail market since entering practising lawyerand Ithink thathelpsalot.” drugs and have prescriptions dispensed while it just over15years ago. However, the firm has not always beensuc- doing their ordinary shopping. Although in principle all mail-order pharma- cessful in the courts. Aside from the recent Oberhänsli explains that the move towards ceutical sales are banned in Switzerland, under Hüffenhardt setback in Germany, ZurRose has omnichannelretailingisthe culmination of a certain conditions ‘direct dispatch’ ofprescrip- also hit alegal brick wall with its online retail long-term strategy to diversify Zur Rose’sbusi- tiondrugs is allowed upon receipt of aprescrip- business in Switzerland. ness andovercomethe limitations of the com- tion. This is as long as the supplier has been Followingcomplaints by theSwiss pharmacy pany’shome market. Zur Rose started out in Switzerland as a pharmaceutical wholesaler “selling pharmaceu- German OTCboosts Zur Rose ticals to self-dispensing doctors, some of whom ocMorris’ success in the German OTC had put in a“solid performance”,the firm re- at the same time were shareholders,”Ober- Dmarket drove up Zur Rose Group’s sales ported, with turnoverimproving by 2% to hänslipoints out. in the opening six months of 2017, with the CHF238 million. Zur Rose’swholesale operations “The Swissmarket led us to theomnichannel Swiss firm posting a7.2%increase in turn- were the keydriver, the firm said, thanks to solution,”Oberhänsli insists. “In self-dispens- over to CHF466 million (C408 million). an “increased number of newcustomers”. ing cantons we had awholesale business, but The wholesaler and online retailer –which Despite the rise in sales, Zur Rose said that in other parts of Switzerland we had nothing. operates principally under the Zur Rose and doubling its marketing expenditure, as well as We enteredthe business-to-consumer market DocMorris brands –posted German sales up costsrelatedtoits recentinitial publicoffering to have business all overSwitzerland.” by 12.9% to CHF226million,primarily thanks (OTC bulletin,16June2017, page1), had led In some Swiss cantons, doctors are allowed to a42.5%growth in OTCsalesto C61.5 mil- to aloss before interest, tax, depreciation and to dispense prescribed medicines directly to lion, compared to the same period last year. amortisation (EBITDA) of CHF11.6 million patients. ZurRose is one of theleading whole- Meanwhile in Switzerland, the company in the first half. OTC sale suppliers to these self-dispensing physi-

8September 2017 OTC bulletin 25 OTC BUSINESS STRATEGY

lobby,the Swiss Federal Court banned online mail-order pharmacy,”headds. He confirms the acquisitionofthe business sales of OTCmedicines in 2015. These OTC Patient feedback from e-prescriptions, as operations of an unidentifiedGerman e-com- sales also need aprescription “based on per- well as from the newDocMorris app –which mercepharmacy “with afocusonnon-pre- sonal contact with aphysician”, the court ruled. allowscustomerstoplan their medicineregimes, scriptionproducts”isgoing ahead, butrefuses When asked whether the move to bricks- as well as check for interactions between medi- saywhich company it is. and-mortar wasadirect response to the ban, cines –generates large quantities of personal “Wecan only say that negotiations are going Oberhänsli says “not really”. “The ban on OTC data. This can be used to create newcustom- on,”hecomments. mail order just strengthened our plans to pro- er-oriented services that in turn would further Aside from acquisitions, the moneyraised ceed with our omnichannel strategy,which was improve patient health, he adds. will also be put into furthermarketing campaigns the first of its kind in Switzerland,”heconfirms. “I personally think that big data will make in Germany, especially with OTCproducts. “The idea with the omnichannel strategy is health processesmore foreseeable –and thepre- “Atthe moment we have atelevision and to offer customers the choice to buyin what- ventionand prediction of illnesses easier –for the print campaign in Germany. We will continue ever channeltheywant,”headds. “Itisalsomuch benefit of the patient,”Oberhänsli comments. to invest in marketing in Germanyinorder to easier to showoff abrand in aflagship store than “Weare continuously working on the big increase the brand awareness of DocMorris on the internet, and others are doing the same.” data issue butwehaven’t come up with anynew and keep the growth in OTCsales that we saw Turning to Germany, Oberhänsli is nowlook- models yet,”hereveals.“It will takesome time in the first quarter.” ing at newtechnologiestoopenupthe German before we launch anew product with this.” As well as DocMorris, Zur Rose also oper- pharmaceuticals market to further disruption. “However, ourdigital services–suchasthe ates through twoother online pharmacyweb- E-prescriptions, already introduced in Switz- DocMorrisApp –already enable our customers sites in Austria – vfg-apotheke.at and zurrose. erland, could “empower” patients in Germany, to takeadvantageofdatafor self-determinaton at – as well as providing apharmacyin-store Oberhänsli argues. within their owndrugtherapy,”headds. service with the druggist chain dm. Currently,mail-order customers in Germany The German OTCmarket is the primary LookingbeyondGerman-speaking countries, have to post their paper prescriptions to online focus of Zur Rose Group’sambitious expansion thefirm has itseyes on the restofEurope, seeing pharmacies beforemedicines can be dispensed. plans, funded by its recent initial public offering a“large addressable market ripe for disruption”. “Ifyou askphysicianswho prescribe elec- (IPO) announced in Junethis year. (OTC bul- “Wehavenot taken anydecisions as to what tronically in Switzerland, theywill tell youthat letin,16June2017,page 1). “Wethink it makes markets we will invest in next, butthe discus- thisbrings much morequalityfrom theperspec- sense to invest further in the German OTCmar- sion is taking place,”Oberhänsli reveals. “I tive of compliance,because the physician gets ket,”Oberhänsli insists, noting OTCsales are think an opportunity exists and we intend to feedback when the drugs are ordered from the only asmall part of the business (see Figure 3). go for it.” OTC

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26 OTC bulletin 8September 2017 PEOPLE OTC

RegulatoryAgencies Manufacturers Rawlins stays Almirall signs up MHRA chair ir Michael Rawlins hasbeen re-appointed Guenter as chief Sas chair of the UK’s Medicines and Health- care products Regulatory Agency (MHRA) for panish pharmaceuticalscompany Almirall afurther three years. Shas named Sanofi’s Peter Guenter as its Commenting on the extension of his tenure, chief executive officer. Rawlins said he waslooking forward to the chal- Guenter–who most recently led Sanofi’s lenge ofguiding the MHRAthrough the Brexit global diabetes and cardiovascular business – process and helping the agencyto continue to will takeoverfrom Eduardo Sanchiz on 1 play a“leading role both in Europe and the October 2017. world” when it came to promoting public health. Commenting on the appointment, Guenter Ian Hudson, the MHRA’s chief executive,said said that Almirall had a“clearly defined and that Rawlins had “overseen avery successful sound strategy” whichhad the ability to “fully period” in the agency’shistory since he was unlock the value” of the firm. elected to the post in 2014. Jorge Gallardo, chairman of Almirall’sboard, PeterGuenter Rawlins, Hudsonpointed out,had “beenat said Guenter wasa“truly global leader” who In a22-year career at Sanofi, Guenter held theforefront of innovation, development and would bring a“wealthofexperienceinthe US, anumber of senior positions, including vice leadership in the public health sector for more Europe and emerging markets” to the company. president of Eastern and Northern Europe, ex- thanthree decades”. OTC “I am convinced he will bring whatisneed- ecutive vice president of global commercial oper- ed to develop Almirall to the next level,”Gal- ations and executive vice president of general lardo insisted. medicines and emerging markets. OTC RegulatoryAgencies

Swissmedic gets Mergers &Acquisitions new Institutelead Stada goes at second attempt

téphane Rossini has been elected as presi- Continued from front page chairman Ferdinand Oetker,aswell as Rolf Sdent of the Institute Council of the Swiss Stada’sshare capital hadbeentendered. But by Hoffmann, Birgit Kudlek,Tina Müller and Gun- medicines agency Swissmedic. midnight, the deal had edged overthe line, with narRiemann. “With this decision, the super- Rossini –who will takeupthe role at the 63.85% of shares tendered. visory board enables the newmajority share- beginning of next year –isaprofessor at the “All other offer conditions have beenfulfilled,” holderstohaveawell-regulatedsuccession in Universities of Geneva and Neuchatel. He was announcedBainand Cinven, which launched theappointment of the supervisory board,”Stada previously amember of the National Council, the offerthrough their Nidda Healthcare Hold- said, noting that Eric Cornut would continue aposition he held for 16 years. ing acquisition vehicle. On 17 August, the Euro- to serveonthe board. “The appointment of suc- “Asformer president of the Commission pean Commission announced that it had ap- cessors to the supervisory board is expected to on Social Security and Health, Rossini has exten- provedthe transaction as raising “no competition be madebyacourtdecision in atimely manner.” concerns, as there are no horizontal overlaps Bain Capital and Civennow hope to name and onlyverylimited verticalrelationships be- Albrecht –head of Actavis until its takeover tween the activitiesofStadaand thoseofother by Watson in 2012 (OTC bulletin,9November companies controlled by Bain and Cinven”. 2012, page 14)–as Stada’s chiefexecutive of- Bain and Cinven’sinitial bid for Stada failed ficer,replacing interim chief Engelbert Willink, due to alack of shareholder support (OTC whohas announcedhis decision to step down. bulletin,30June 2017, page 1). The private-equity firms veha also nominated Cinvenpartners Supraj Rajagopalan and Mark Keatley–also formerly of Actavis –aschief Bruno Schick commented: “Following the suc- financial officer,replacing Bernhard Düttmann. cessful closing of the transaction, we look for- In line with German corporate governance, ward to strengthening further Stada’sexisting the appointment of Albrecht and Keatleywill operations,aswell as growingthe firm’sposi- be decided on Stada’ssupervisory board once Stéphane Rossini tion as aglobal pharmaceutical business. Bain its newmembers have been appointed. sive knowledge of the health sector,” Swiss- and Cinvenare committed to adding significant Albrecht –who advised Bain and Cinven medic commented. value to Stada, including investment in organic on the takeover–was expected to serveaschief Rossini will serveon the seven-member coun- growth and expansion through acquisitions.” executive foraninterim period, thefirms noted, cil –which is responsible for supervising the One week after shareholders approvedthe “to lead the process of transition to aprivately- strategic orientation of Swissmedic –until 31 deal, Stada announcedfive membersofits super- heldcompany”. Bain and Cinvensaidtheyhoped December2021. He will replace ChristineBeerli, visory board would step down on 25 September. to recruit apermanentchiefexecutive who would whohas held the position since 2006. OTC The fivedirectors include supervisory board “lead Stada in the long run”. OTC

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