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16 November 2011

COMPANY NEWS 3 PGT Healthcare created by Alliance Boots extends 3 P&G agreement Sanofi keen to expand 4 US OTC division Procter & Gamble and Teva Merck not switching 5 Singulair for hayfever GT Healthcare is the name chosen by lios and geographic footprints in the industry”. Currency effects hit 6 PProcter & Gamble and Teva Pharmaceu- “Each company’s leading brands will experience Bayer’s OTC sales tical Industries for their 51%/49% OTC joint tremendous growth by combining our strengths. Pfizer confirms Lipitor 7 venture, which has just been launched. We will be better together,” he said. switch attempt Headquartered in Geneva,Switzerland, PGT As the world’s leading generics player with Weather dampens 8 will operate in essentially all markets outside an annual turnover of over US$16 billion, Teva OTC sales at Taisho of North America. Meanwhile, the two firms’ has a direct presence in about 60 countries and Vicks shipments 9 partnership – first announced in March (OTC a product portfolio of more than 1,300 mole- drive up OTC at P&G bulletin,31 March 2011, page 1) – will also dev- cules, including potential prescription-to-OTC Decline in Arbidol demand 10 elop new brands for the North American market. switch candidates. Procter & Gamble also has hits Pharmstandard’s sales Described by Procter & Gamble as a “new a broad geographical reach with OTC brands Akorn sets sights on 11 model in the industry”, PGT will bring togeth- like Vicks, Metamucil and Pepto-Bismol, and OTC acquisitions er the two firms’ existing OTC medicines and experience of switching the omeprazole indi- Perrigo plans four launches 12 “compete for leadership in the fast-growing gestion remedy Prilosec OTC in the US. It also a month US$200 billion (C150 billion) consumer health- brings marketing clout to the partnership as the Invida acquisition grows 13 care industry”. world’s leading advertiser. Menarini in Asia-Pacific Starting from a “solid base” said to be about The two firms pointed out that among the Hypermarcas posts 14 US$1.3 billion in annual sales, PGT’s aim is to world’s “largest, fastest-growing” OTC markets, solid Pharma gain achieve an annual turnover of US$4 billion “to- Procter & Gamble was strong in the US, Can- Lloydspharmacy falls 15 wards the end of the decade”. It expects to re- ada, Brazil, Mexico, India, Indonesia, Australia, in tough climate cord double-digit sales growth “ahead of the Italy,France and the UK. Teva,meanwhile, was market and beyond what each company alone described as strong in Russia, Poland, Ukraine, GENERAL NEWS 16 was expecting to deliver”. Germany, Japan, the Scandinavian countries, Pharmacy groupings spread 16 Shlomo Yanai, Teva’s president and chief ex- Venezuela, Chile, Peru and Israel. across Europe ecutive officer,remarked that PGT had “one of PGT would “leverage [our] combined cap- E-learning gives doctors 18 the broadest and deepest OTC product portfo- ■ Continued on page 13 self-care skills Oral zolmitriptan switch 19 is on agenda in Germany Benefit-risk framework is published MARKETING NEWS 21 tailored framework for assessing the ben- tured, transparent tools for regulatory decision- Don’t miss the 21 Aefits and risks of non-prescription medi- making for non-prescription medicines. OTC Awards deadline cines has been published online by the jour- Earlier this year,Pfizer’s Cavan Redmond, Colgate-Palmolive recalls 22 nal Clinical Pharmacology & Therapeutics. who is chairman of the WSMI’s Taskforce on mouthrinse in 11 countries The framework was produced by Professor OTC Modernization, said the tailored frame- FEATURES 24 Eric Brass from UCLA in the US; Professor work would be published in a peer-reviewed Ragnar Löfstedt from King’s College London journal before the end of the year. Finding a Emerging markets look 24 in the UK; and Professor Ortwin Renn from better way to value and measure the benefits better and better the University of Stuttgart in Germany. Their of OTC medicines was a “central challenge” work was supported by the World Self-Medi- for the global OTC industry,he told the annual REGULARS cation Industry (WSMI). meeting of the Association of the European Events – Our regular listing 23 Self-Medication Industry,the AESGP (OTC People – Futura Medical appoints 27 Transparent tools for decision-making bulletin,20 June 2011, page 1). Clarke as next chairman The paper sets out a value-tree method that The paper can be accessed at http://www. People – Becht to be Coty chairman 27 defines important benefit and risk domains rele- nature.com/clpt/journal/vaop/ncurrent/full/cl vant to non-prescription drugs. It provides struc- pt2011231a.html.

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COMPANY NEWS OTC

First-Half Results Alliance Boots extends P&G agreement

lliance Boots has extended its agreement in Italy last year (OTC bulletin,14 May 2010, the UK in the six months, Alliance Boots said, Awith Procter & Gamble for the Boots Lab- page 23). The range had previously been intro- of which nine were in Thailand, where the com- oratories range of beauty products to cover three duced in France and Portugal. pany expected to open its 200th store later in more countries. Meanwhile, Alliance Boots stated its retail its financial year. The pan-European wholesaler and retailer sales had risen in the six months ended 30 Sept- Expansion of the “Boots apotheek” phar- said the Boots Laboratories range would be ember 2011, despite the pressure on both con- macy concept – which is said by the company available from pharmacies in Austria, Germany sumer and government spending. to offer a broader range of products than most and Switzerland from January 2012. The company’s Health & Beauty retail divi- Dutch pharmacies, and includes Boots-branded Following these introductions, continued sion reported turnover up by 0.4% to £3.65 bil- health and beauty products – had continued in Alliance Boots, the Boots Laboratories range lion (C4.28 billion), with sales in both the UK the period, the company pointed out, with 16 would be available from pharmacies across sev- and international markets increasing on a like- stores having now been rebranded and others en European countries. for-like basis. scheduled to be converted to the new format Alliance Boots teamed up with Procter & Health & Beauty’s Boots UK business saw in the coming months. Gamble to launch the Boots Laboratories range its retail sales increase by 0.7% on a like-for-like Turnover at the Pharmaceutical Wholesale basis, the company said, noting that growth had division had grown by 49.5% – 47.7% at con- been curbed by “reduced footfall on high streets, stant exchange rates – to £8.84 billion, Alliance OTC bulletin which was more significant outside of London Boots said. and the south of England”. Acquiring a majority stake in Turkish whole- 16 November 2011 Number 372 Key product categories had performed well, saler Hedef Alliance last year (OTC bulletin, Alliance Boots pointed out, including “positive 13 August 2010, page 3) and the remainder of Editor & Publisher: Deborah Wilkes healthcare” products such as vitamins, as well wholesaler Anzag had driven the growth. Associate Editors: Aidan Fry as premium beauty lines, self-selection cosmet- Alliance Boots noted that it was still in dis- Mike Rice ics, fragrances, indulgent bathing ranges, hair cussions to take a stake in Chinese pharmaceu- Business Editor: Matt Stewart products and baby products. tical wholesaler Nanjing Pharmaceutical Com- Assistant Editors: Jenna Lawrence The Boots Pharmaceuticals brand had also pany. The company announced in July that it David Wallace performed well, the company added, noting that was in talks with Nanjing’s largest shareholder Advertising Controller: Debi Minal it now offered the “widest range of healthcare over taking a stake in the firm (OTC bulletin, products of any brand in the UK”. Launched in 29 July 2011, page 2). Marketing Manager: Val Davis October 2010 (OTC bulletin,29 October 2010, Alliance Boots’ total group sales – com- Editorial, Subscription and Advertising page 13), the Boots Pharmaceuticals brand in- prising the Health & Beauty,Pharmaceutical enquiries should be addressed to: OTC bulletin, OTC Publications Ltd, 54 Creynolds Lane, Solihull, cludes therapeutically-proven medicines, natural Wholesale and Contract Manufacturing busi- West Midlands B90 4ER, UK. alternatives, vitamins and first-aid products. nesses – improved by 31.3% to £11.7 billion Tel: +44 1564 777550. Fax: +44 1564 777524. Dispensing volumes at Boots UK had risen (see Figure 1). E-mail: [email protected]. by 1.8% on a like-for-like basis, the firm said, Business First-half Change Subscriptions with growth having been particularly strong in Annual subscriptions to OTC bulletin in Europe are £625.00 for sales (£ millions) (%) single copies and £355.00 for additional copies to the same ad- the patient specific packs category and from dress, including delivery. Subscriptions to addresses outside Eur- prescriptions collected on behalf of patients Pharmaceutical 8,841 +49.5 ope are subject to an additional charge of £30.00 to cover postage. Wholesale Subscription enquiries in Korea should be directed to Pharma from doctors’ practices. Koreana Ltd, 14th Floor,KTB Network Building, 826-14 Yeoksam- Sales at Health & Beauty’s international re- Health & Beauty 3,652 +0.4 dong, Kangnam-gu, Seoul 135-080, Korea (Tel: +82 2 554 9591; Fax: +82 2 563 8289; E-mail: [email protected]). tail operation increased by 8.6% – 3.9% on a Contract Manufacturing 133 +10.8 Advertising constant currency basis – compared to the same Intra-group -882 – Advertising rates and data are available on request from the ad- period a year earlier, Alliance Boots noted, but dress above or at www.otc-bulletin.com. Total Alliance Boots 11,744 +31.3 About OTC bulletin like-for-like revenue had declined by 0.3% due OTC bulletin is published 20 times a year by OTC Publications to the weak Irish economy. Limited: twice monthly in February,March, April, May,June, Sep- Figure 1: Breakdown of Alliance Boots’ sales in the tember,October and November; and monthly in December,Jan- A net 20 stores had been added outside of first half of 2011 (Source – Alliance Boots) uary,July and August. A subscription to OTC bulletin includes OTC the weekly electronic newsflash, news@OTCbulletin,which is published around 45 times a year. OTC bulletin is printed by the Warwick Printing Company Limited, Caswell Road, Leamington Spa CV31 1QD, UK. IN BRIEF No part of this publication may be copied, reproduced, stored in a retrieval system or transmitted in any form without prior ■ PROTEK GROUP said sales at its Rigla as Retail – edged up by 3.4% to RUB27.3 bil- permission from OTCPublications Ltd. pharmacy chain had increased by 12.9% to lion. In July,Protek expanded its Production ©OTC Publications Ltd. All rights reserved. Company registered in England No 2765878. Registered Office: RUB3.20 billion (C 76.8 million) in the third division by acquiring AnviLab in a deal worth 54 Creynolds Lane, Solihull, West Midlands B90 4ER, UK. quarter of 2011. As of 30 September 2011, US$60 million (C 44 million). The company OTC bulletin® is registered as a trademark in the European the Russian company said it was operating 663 said the deal would enable its Production divi- Community. pharmacies. Protek’s total sales – including the sion to establish an OTC operation. ISSN 1350–1097 www.OTC-bulletin.com Distribution and Production divisions as well OTC

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OTC COMPANY NEWS

Third-Quarter Results Sanofi keen to expand US OTC division

anofi is “eager” to expand its Consumer Business Third-quarter sales Change 2010/2011 (%) SHealth Care division in the US, but is strug- (C millions) C CER* gling to find suitable acquisition candidates, according to the French company’s president of Diabetes brands 1,161 +5.8 +12.4 global operations Hanspeter Spek. Other pharmaceutical brands 2,544 –– Spek said the firm was keen to grow its US Other products 1,392 -7.8 -2.7 Consumer Health Care division following the Genzyme 768 –– successful launch of the OTC version of its al- Consumer Health Care665 +15.5 +20.3 lergy medicine Allegra (fexofenadine), but there Generics 410 +5.1 +9.2 were fewer acquisition opportunities in the US Pharmaceuticals 6,940 +5.2 +10.0 than in other parts of the world. Vaccines 1,343 +9.5 +16.7 Sanofi had secured “a really outstandingly Animal Health 470 -9.3 -5.2 good deal” when it acquired Chattem at the Total Sanofi8,753 +5.0 +10.1 start of 2010 (OTC bulletin,20 January 2010, page 1), Spek remarked, but this success would * CER is constant exchange rates not be easily repeated. Figure 1: Sanofi’s sales in the third quarter of 2011 broken down by business (Source – Sanofi) Away from the US, Sanofi was working on bolt-on acquisitions across all its growth plat- Business Third-quarter sales Change (%) Proportion forms including Consumer Health Care, Spek (C millions) CER* of sales (%) pointed out, especially in areas of the world Emerging Markets 317 +21.3 48 where the firm felt it should become stronger, Western Europe 152 +2.0 23 such as South America, Africa and the Far East. US 128 +59.1 19 The company noted its Indian subsidiary, Rest of World 68 +4.8 10 Aventis Pharma, was set to create a “consumer healthcare and wellness platform” in India by Total Consumer Health Care665 +20.3 100 acquiring the branded nutraceutical business of * CER is constant exchange rates Universal Medicare for an undisclosed sum Figure 2: Sanofi’s Consumer Health Care sales in the third quarter of 2011 by region (Source – Sanofi) (OTC bulletin,14 September 2011, page 1). Meanwhile, Spek said Sanofi was “content” 2011, page 1) and the end of September. Allergy,was Consumer Health Care’s fastest with the development of Consumer Health Care, However, he warned, Sanofi expected “much growing region, with sales moving forward by as the division reported sales up by 20.3% at lower sales” from Allegra Allergy in the final 59.1% at constant exchange rates to C128 mil- constant exchange rates to C665 million in the quarter after the end of the allergy season. lion (see Figure 2). third quarter of 2011 (see Figure 1). Spek said some of Consumer Health Care’s Emerging Markets remained the division’s The rise had been driven by the launch of other major OTC brands had reported “strong biggest region in terms of sales, with turnover Allegra Allergy in the US, the company noted, organic growth” in the third quarter. Sales of growing by 21.3% to C317 million. along with a positive impact from acquisitions, the Lactacyd feminine hygiene range had risen Sales in the Rest of World edged up by 4.8% primarily BMP Sunstone in China (OTC bul- by 25.8% at constant exchange rates, Sanofi to C68 million, and sales in Western Europe letin,17 March 2011, page 7). Allegra Allergy pointed out, and the Essentiale vitamin and sup- rose by 2.0% to C152 million. had performed “extremely well”, Spek noted, plement brand had posted sales up by 8.1%. Consumer Health Care accounted for 7.6% posting sales of C43 million in the quarter. The NoSpa and Dorflex painkiller lines had of Sanofi’s total third-quarter sales, which in- The brand was “performing above expecta- also performed well, the company said, with creased by 10.1% at constant exchange rates tions for the full year 2011”, he added, with turnover growing at constant exchange rates to C8.75 billion. In actual terms, the improve- sales of C186 million in the period between its by 28.1% and 11.3% respectively. ment was a more modest 5.0%. Operating in- launch in February (OTC bulletin,17 March Unsurprisingly,the US, driven by Allegra come fell back by 4.0% to C3.34 billion. OTC

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COMPANY NEWS OTC

Business Strategy/Third-Quarter Results Claritin (loratadine) posted sales down by 2% in the third quarter to US$118 million. Claritin has faced intense competition from Sanofi’s Allegra Merck not switching Allergy (fexofenadine),which was launched in- to the US OTC market in February (OTC bul- letin,17 March 2011, page 1). In the first nine months of 2011, Consumer Singulair for hayfever Care’s sales also increased by 3% to US$1.48 billion. Claritin posted a 1% drop in turnover to US$419 million. erck & Co is not working on switching and Drug Administration’s Orange Book, but Consumer Care accounted for 4% of Merck Mits blockbuster asthma medicine Singu- there is another patent stretching out to 2022. & Co’s total third-quarter sales, which advanced lair (montelukast sodium) from prescription- Meanwhile, turnover at Merck & Co’s Con- by 8% to US$12.0 billion. to-OTC status for treating hayfever, according sumer Care business – which is one of the com- The company’s pre-tax profit jumped from to the company’s president of global human pany’s five “primary divisions”, along with Ani- US$498 million in the third quarter of 2010 to health Adam Schechter. mal Health, Human Health, Merck Manufact- US$2.35 billion this time. Schechter’s comments came soon after the uring and Merck Research Laboratories – in- US-based company sold its 50% stake in the creased by 3% in the third quarter of 2011 to Four-part growth strategy OTC joint venture with Johnson & Johnson in US$421 million (see Figure 1). Extending opportunities in its Consumer the US and Canada, claiming the move would Merck & Co said positive currency effects Care and Animal Health businesses is part of enable the firm to “fully exploit its pipeline of had accounted for 2% of the gain, while better Merck & Co’s four-part growth strategy. The prescription-to-OTC switches” (OTC bulletin, sales of the MiraLAX laxative brand and Zeg- company also aims to optimise its core Pharma- 14 October 2011, page 1). erid OTC heartburn medicine had accounted ceuticals business; grow in key markets around Asked whether the end of the joint venture for the majority of the remainder. the world, especially emerging markets; and with Johnson & Johnson meant Merck & Co However, Consumer Care’s leading brand, manage costs more effectively. would now look into switching Singulair to OTC status for allergic rhinitis, Schechter said Business Third-quarter sales Change Proportion the company was “not presently pursuing that (US$ millions) 2010/2011 (%) of total (%) opportunity”. He did not comment any further. Pharmaceutical 10,354 +9 86 Speaking to OTC bulletin,aspokesperson Animal Health 826 +20 7 for Merck & Co did not rule out switching Singulair and said the company was “evaluat- Claritin OTC118 -2 1 ing our options for the future”. Consumer Care 421 +3 4 The main substance patent for Singulair – Other 421 -17 4 which generated global sales of US$5.0 billion Total Merck & Co 12,022 +8 100 (C3.7 billion) in 2010 – has a US expiry date of February 2012, according to the US Food Figure 1: Merck & Co’s sales in the third quarter of 2011 broken down by business (Source – Merck & Co)

Business Strategy Oxford Pharmascience raises more than £1.0 million

xford Pharmascience has raised £1.08 mil- ed £1.13 million, the company noted. ( OTC bulletin,30 September 2011, page 8). O lion (C 1.26 million) through a placing of Oxford Pharmascience explained that the Oxford Pharmascience said at the time that new shares. The UK-based company will use money would be used in two ways: firstly to it had already begun testing several concepts in the money to help develop its business in Brazil develop its exclusive licensing and distribution Brazil that could expand the Inellare range fol- and advance its pipeline of technologies. deal with Aché Laboratórios Farmacêuticos in lowing the launch of the first product. Nigel Theobold, Oxford Pharmascience’s Brazil; and secondly, to advance its portfolio Meanwhile, the new funds would also help chief executive officer,said that raising the of technologies designed to add value to exist- “progress and commercialise” the company’s money in what he described as “difficult mar- ing pharmaceutical brands. portfolio of technologies designed to “reposi- ket conditions” had underlined the “strength” Under the terms of the deal with Aché, Ox- tion and add value to off-patent non-steroidal of the company’s technology and business plan. ford Pharmascience is using its own intellec- anti-inflammatory drugs (NSAIDs) and statins”, “The fundraising will enable us to take full tual property to develop and supply a number Oxford Pharmascience pointed out. advantage of the opportunities that are avail- of consumer healthcare products to Aché, which The company was using its proprietary NH- able to us,”Theobold noted, “and accelerate the will then be marketed as part of the Brazilian Tech taste-masking technology to develop a port- scale of our business.” company’s Inellare line of products in the folio of taste-masking pharmaceutical ingre- The company said it had placed 113 million women’s health field. dients, Oxford Pharmascience commented, add- new ordinary shares at a placing price of £0.01 In September,the company announced that ing that interest in its taste-masking technol- per share with certain institutional and other the first product to be sold under the agreement ogy for ibuprofen had been considerable. investors. Before expenses, the placing had rais- would be a calcium and vitamin D soft chew OTC

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OTC COMPANY NEWS

Third-Quarter Results Currency effects hit Bayer’s OTC sales

ales at Bayer’s Consumer Care business Region Third-quarter sales Change 2010/2011 (%) Sedged up by just 0.6% to C885 million in (E millions) C CER* the third quarter of 2011, as currency and port- folio changes hit turnover growth. Adjusted for Europe 588 +2.1 +2.4 these factors, the rise was a more solid 5.5%. North America 526 -6.1 +2.3 Only one of Consumer Care’s six best-sell- Latin America/Africa/Middle East 241 +2.1 +11.4 ing brands – the Bepanthen/Bepanthol skincare Asia/Pacific 182 +9.0 +9.6 range – posted an increase in sales over the three Total Consumer Health 1,537 -0.1 +3.8 months. However, when adjusted for currency effects,three more reported gains (see Figure 1). * CER is constant exchange rates Bepanthen/Bepanthol had recorded sales up Figure 3: Breakdown of Bayer Consumer Health’s sales in the third quarter of 2011 by region (Source – Bayer) by 3.9% – 5.2% adjusted for currency effects – to C53 million, Bayer said, adding that the suffered the same fate as Aspirin in the third posting turnover down by 12.5% to C42 million. brand’s sales had “expanded in all regions”. quarter,as operational gains of 1.9% and 2.2% It was a similar story for the Canesten anti- Negative currency effects wiped out the oper- respectively were offset by currency effects. fungal brand, which reported sales down by ational gain made by Consumer Care’s biggest- This resulted in Aleve posting sales down 3.5% to C55 million, as a 2.3% operational de- selling brand, Aspirin, with turnover falling by by 5.1% to C74 million and Supradyn reporting cline was made worse by a negative currency 1.8% to C108 million. Excluding the negative a 2.7% turnover drop to C36 million. effect of 1.2 percentage points. currency effect, Aspirin’s sales grew by 3.0%. Meanwhile, the One-A-Day vitamin brand, Consumer Care accounted for 58% of sales Aspirin’s operational gain had been driven faced with increased competition in the US at Bayer’s Consumer Health division. These by the launch of Bayer Advanced Aspirin in the and a difficult comparison with the prior-year slipped back slightly by 0.1% to C1.54 million US (OTC bulletin,30 May 2011, page 17),the quarter,reported an operational sales fall of (see Figure 2). Adjusted for currency and port- company noted. 3.7%. This was compounded by a negative cur- folio effects, the division’s turnover actually The Aleve analgesic and Supradyn vitamins rency impact, which resulted in One-A-Day increased by 3.8%. Europe remained Consumer Health’s biggest Brand (business unit) Third-quarter sales Change 2010/2011 (%) region in terms of sales, with turnover rising by (C millions) C CER* 2.1% – 2.4% adjusted for currency effects – to Contour (Medical Care) 159 +8.2 +11.2 C588 million in the three months (see Figure 3). Aspirin** 108 -1.8 +3.0 The Asia/Pacific region grew quickest in the quarter,with sales increasing by 9.0% to Advantage (Animal Health) 91 -11.7 -6.6 C182 million. Adjusted for currency effects, the Aleve/naproxen 74 -5.1 +1.9 rise was 9.6%. Canesten 55 -3.5 -2.3 Turnover in the Latin America/Africa/Mid- Bepanthen/Bepanthol 53 +3.9 +5.2 dle East region advanced by 2.1% to C241 mil- One-A-Day 42 -12.5 -3.7 lion. Adjusted for currency effects, the rise was Baytril (Animal Health) 40 -9.1 -4.4 a more impressive 11.4%. Supradyn 36 -2.7 +2.2 By contrast, sales in North America dropped Breeze (Medical Care) 27 -12.9 -9.5 by 6.1% to C526 million, as negative currency Top 10 685 -3.0 +1.4 movements offset a 2.3% operational gain. Total Consumer Health 1,537 -0.1 +3.8 Consumer Health’s earnings before interest and tax (EBIT) had fallen back by 4.8% to C300 * CER is constant exchange rates million, Bayer pointed out, due to a restructur- ** Total Aspirin sales – including Aspirin Cardio, which is part of the Pharmaceuticals division – were C210 million ing charge of C9.0 million. Figure 1: Sales of the top 10 best-selling brands in Bayer’s Consumer Health division in the third quarter of Looking ahead, Bayer said it expected the 2011. Brands are part of the Consumer Care business unit unless stated (Source – Bayer) Consumer Health business to achieve “above- Business Third-quarter sales Change EBIT Change market” sales growth after adjusting for cur- (C millions) 2010/2011 (%) (C millions) 2010/2011 (%) rency and portfolio effects. Pharmaceuticals 2,663 -2.5 566 +34.8 Consumer Health accounted for 36.6% of the Bayer HealthCare sub-group’s sales, which Consumer Care885 +0.6 –– declined by 1.7% to C4.20 billion. Adjusted for Medical Care370 -1.3 –– currency and portfolio effects, sales actually Animal Health 282 -0.7 –– improved by 1.6%. Consumer Health 1,537 -0.1 300 -4.8 Bayer HealthCare’s EBIT jumped by 17.8% Total Bayer HealthCare4,200 -1.7 866 +17.8 to C866 million, despite restructuring charges

Figure 2: Breakdown of Bayer HealthCare’s sales and earnings before interest and tax (EBIT) in the third of C43 million. quarter of 2011 from continuing operations (Source – Bayer) OTC

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COMPANY NEWS OTC

Business Strategy/Third-Quarter Results Pfizer confirms Lipitor switch attempt

fizer will attempt to switch Lipitor from pre- Business Third-quarter sales Change Proportion P scription-only to OTC status at some point, (US$ millions) 2010/2011 (%) of sales (%) according to chief executive officer Ian Read, confirming months of speculation that the firm Biopharmaceutical 14,747 +6 86 was planning to switch its blockbuster statin. Animal Health 1,041 +21 6 Speaking as the company released its third- Consumer Healthcare 774 +15 5 quarter results, Read said that “clearly” there Nutrition 577 +31 3 was an “intent at some point to try and have an Other 54 -29 – OTC version of Lipitor on the marketplace”. However, he insisted that the actions Pfiz- Total Pfizer 17,193 +7 100 er was taking to bolster the Lipitor brand as it Figure 1: Pfizer’s sales in the third quarter of 2011 broken down by business (Source – Pfizer) headed towards loss of patent protection were “not specifically directed towards strengthen- rise in Consumer Healthcare sales in the third growth had been 13%, the company noted, with ing any potential OTC brand in the future”. quarter of 2011, thanks to the launch of a new foreign exchange adding the remaining 9%. The comments confirmed the speculation range of Centrum products in the US and a In the US, turnover had improved by 9% that had built up since August over a possible better performance in Europe. to US$408 million, the company said, thanks OTC Lipitor product, when Read admitted to the launch of new dietary supplements under Pfizer was looking at switching some of its pre- Rise in Consumer Healthcare sales the Centrum brand name. scription drugs to OTC status now it had decid- Consumer Healthcare’s turnover increased In September,Pfizer introduced three Cen- ed to keep its Consumer Healthcare unit (OTC by 15% to US$774 million (C562 million) in trum ProNutrients dietary supplements design- bulletin,18 August 2011, page 4). the three months (see Figure 1), with organic ed to complement multivitamins (OTC bulletin, Although Read did not name any potential sales growth of 11% bolstered by a positive cur- 30 September 2011, page 17). switch candidates in August, a number of media rency effect of 4%. Furthermore, the company also launched reports claimed Pfizer wanted to switch Lip- The rise in sales had been primarily driven four Centrum Specialist products in the US itor (atorvastatin calcium) to OTC status. by a better performance in Europe, Pfizer said, market. These were described as a “line of en- Speaking to OTC bulletin at the time, a where turnover had suffered in the prior-year hanced multivitamins”aimed at “specific health spokesperson for Pfizer would not rule out quarter when Centrum products had been tem- priorities adults want to target”. switching Lipitor and would only confirm that porarily withdrawn. Consumer Healthcare accounted for 4.5% the firm had “strategic plans in place for Lipi- This recovery in Europe, Pfizer noted, had of Pfizer’s total group sales, which increased by tor’s loss of exclusivity”. lifted Consumer Healthcare’s International sales 7% to US$17.2 billion, thanks primarily to a Meanwhile, Pfizer reported a double-digit by 22% to US$366 million. Operational sales 6% positive currency effect. OTC

IN BRIEF Third-Quarter Results ■ BEIERSDORF said sales at its Consumer Tempra acquisition lifts Paladin turnover division had slipped back in the opening nine months of 2011, as the company streamlined cquiring the Tempra brand of OTC chil- ping Valeant’s offers on a number of occasions its product portfolio. Consumer sales – led by Adren’s paracetamol products in February (OTC bulletin,14 September 2011, page 3). the Nivea and Eucerin skincare brands – suf- helped push up sales at Canada’s Paladin Labs While the fight for Afexa was going on, Pal- fered a 0.1% shortfall to C 3.57 billion in the by 15% in the third quarter of 2011. adin announced that its chief executive officer, period. At constant exchange rates, sales were Sales had risen to CA$36.7 million (C26.5 Jonathan Ross Goodman, had been seriously essentially flat, the German firm noted. Beiers- million), Paladin said, after the company ac- injured in a cycling accident. Mark Beaudet, dorf announced at the end of last year that it quired the rights from Bristol Myers-Squibb to Paladin’s co-founder,director and vice-presi- intended to streamline its portfolio and realign Tempra syrup and drops in Canada for an un- dent of marketing, has taken temporary charge its regional structures in a move to boost the disclosed sum. as interim president and chief executive officer. performance of the Consumer unit (OTC bul- The rise had also been driven by better sales On a brighter note, Paladin expanded its letin,21 January 2011, page 8). The Consumer of certain “significant promoted” OTC and pre- OTC portfolio and geographic footprint by division accounted for 83.5% of Beiersdorf’s scription products, the company noted, includ- snapping up the rights to two OTC women’s total sales during the nine months, which edged ing the Plan B emergency contraceptive. health products from Israel’s Common Sense up by 1.1% to C 4.28 billion. At constant ex- Although sales increased, Paladin has endur- (OTC bulletin,14 September 2011, page 3). change rates, the improvement was 2.1%. The ed a mixed three months. The company also struck a deal for prescrip- Tesa self-adhesives division generated the re- The company’s hostile takeover bid for fel- tion pharmaceuticals firm Labopharm, which it maining 16.5%, with sales growth of 7.8% to low Canadian firm Afexa Life Sciences was completed at the end of October (OTC bullet- C 705 million. thwarted by a friendly offer from Valeant Phar- in,31 October 2011, page 8). OTC maceuticals International, despite the firm top- OTC

16 November 2011 OTC bulletin 7 OTC16-11-11p8-9FIN.qxd 16/11/11 13:01 Page 2

OTC COMPANY NEWS

First-Half Results Weather dampens OTC sales at Taisho

apan’s largest OTC company, Taisho Phar- Business First-half sales Change Forecast sales Change Jmaceutical said sales of its OTC products (¥ billions) (%) (¥ billions) (%) had slipped back by 1.9% to ¥76.3 billion (C708 million) in the six months ended 30 Septem- Livita brand 1.9 +11.3 4.0 +10.3 ber 2011, as inclement weather dampened con- Overseas drinks 3.3 +1.9 6.5 +3.5 Others1.4 –2.8 – sumer demand. Foods for specified health use 6.6 +6.3 13.3 +6.1 Describing the OTC market as “weak”, Tai- sho pointed out that sales had suffered due to OTC products 76.3 -1.9 152.0 -0.1 the impact of heavy rains and typhoons over Others 1.3 -13.9 2.5 -2.8 the summer months. Total Self-Medication 84.2 -1.5 167.8 +0.4 This slide in OTC turnover resulted in sales Prescription operations 49.0 +2.9 102.7+1.2 at Taisho’s Self-Medication division falling by Total for Taisho 133.2 +0.1 270.5 +0.7 1.5% to ¥84.2 billion in the first half of the com- pany’s financial year (see Figure 1). Operat- Figure 1: Taisho Pharmaceutical’s sales in the first half ended 30 September 2011. Forecasted sales are for the year ending 31 March 2012 compared with actual sales in the previous 12 months (Source – Taisho Pharmaceutical) ing profit dropped by 8.1% to ¥19.2 billion. Against the backdrop of the weak OTC mar- Business First-half sales Change Forecast sales Change ket, its Self-Medication division, Taisho said, (¥ billions) (%) (¥ billions) (%) was working to “energise” the marketplace, both Lipovitan D27.2 -3.9 48.1 -1.7 domestically and abroad, by focusing its efforts Other Lipovitan 11.9 -5.0 21.1 -5.1 on the “growing field of lifestyle diseases”. Total Lipovitan brand 39.1 -4.2 69.1 -2.8 Zena brand 1.5 -2.1 3.3 -1.0 Switch more ingredients Other drinks 1.0 ––– Earlier this year,Taisho said its Self-Med- Total tonics and nutrient drinks 41.6 -3.7 –– ication division would help drive growth in Cold remedies (Pabron brand) 10.1 +1.4 25.9 +0.8 the market by broadening its range of category 1 drugs – OTC medicines deemed to hold the Hair treatments (RiUP brand) 7.1 -4.2 14.9 +0.1 highest degree of risk – by switching more Analgesics (Naron brand) 2.0 -9.5 4.2 -8.9 ingredients from prescription-only to OTC sta- Gastrointestinal treatments 2.0 -0.9 4.3 +1.2 tus, as well as “aggressively developing new Laxatives (Colac brand) 1.9 +1.1 3.9 +1.8 product categories” (OTC bulletin,30 May Cold remedies (Vicks brand) 1.1 +2.3 3.3 +4.5 2011, page 8). Biofermin 3.0 +6.1 5.7 +0.2 The division would also look to strengthen Asia OTC2.7 +25.2 6.7 +43.9 further its product information and in-store sales promotions, the company noted. Other OTC products 4.8 –10.7 – Meanwhile, domestic sales of the company’s Total OTC products 76.3 -1.9 152.0 -0.1 core Lipovitan brand of energy and tonic drinks dropped by 4.2% to ¥39.1 billion (see Figure 2). Figure 2: Breakdown of Taisho Pharmaceutical’s OTC sales in the first half ended 30 September 2011. Forecasted sales are for the year ending 31 March 2012 compared with actual sales in the financial year ended Turnover from Lipovitan D declined by 31 March 2011 (Source – Taisho Pharmaceutical) 3.9% to ¥27.2 billion, while sales of other Lip- ovitan products fell by 5.0% to ¥11.9 billion, primarily to lower sales of the RiUP X5 min- First-half sales Change despite better sales from the low-calorie Lip- oxidil products. These had been boosted by a (¥ billions) (%) ovitan D Super and Lipovitan Fine drinks. positive medical study a year earlier. Sales of Taisho’s tonic and nutrient drinks The Naron analgesics brand posted turnover Food channels 21.8 -3.6 slipped back by 3.6% to ¥21.8 billion through down by 9.5% to ¥2.0 billion, while sales of Drug channels 19.8 -3.9 food channels and by 3.9% to ¥19.8 billion Taisho’s gastrointestinal treatments slipped back Total 41.6 -3.7 through drug channels (see Figure 3). by 0.9% to ¥2.0 billion. The company’s Pabron cold remedies post- In contrast, sales of the Colac brand of lax- Figure 3: Breakdown by distribution channel of Taisho Pharmaceutical’s sales of tonics and nutrient ed sales up by 1.4% to ¥10.1 billion, as better atives moved forward by 1.1% in the six months drinks in Japan in the first half ended 30 September sales of nasal-inflammation products – due to to ¥1.9 billion. 2011 (Source – Taisho Pharmaceutical) higher pollen levels – offset a decline in turn- Outside of Japan, Taisho’s OTC assets in over from mainstay general cold remedies. Asia – excluding China and Japan – contribut- egory,turnover advanced by 6.3% to ¥6.6 bil- Taisho’s other cold remedies brand, Vicks, ed sales up by 25.2% to ¥2.7 billion for the six lion, driven by a double-digit increase in sales also performed well, reporting sales up by 2.3% months. During the period, Taisho completed of the Livita brand. Sales of Livita improved to ¥1.1 billion in the first half. its acquisition of Malaysia’s Hoe Pharmaceu- by 11.3% to ¥1.9 billion, thanks to strong per- Taisho’s RiUP hair-regrowth brand suffer- ticals (OTC bulletin,15 April 2011, page 1). formances from powder products. ed a 4.2% drop in turnover to ¥7.1 billion, due In the “foods for specified health use” cat- OTC

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COMPANY NEWS OTC

First-Quarter Results Vicks shipments drive up OTC at P&G

rocter & Gamble’s Personal Health Care Teva will assume global manufacturing re- Care, Oral Care and Personal Health Care busi- Pbusiness posted a low-single-digit gain in sponsibility for both the joint venture and Procter nesses – increased by a tenth to US$3.3 billion volume sales in the company’s first quarter end- & Gamble’s existing North American business. in the three months ended 30 September 2011. ed 30 September,driven by higher shipments Procter & Gamble pointed out that based on The result had been driven a mixture of a of Vicks cold and flu products. its controlling interest in PGT Healthcare, the 3% rise in volume sales and a 6% positive for- The result marks the fifth consecutive quar- joint venture’s results would be fully consoli- eign exchange impact, Procter & Gamble noted, ter of higher Vicks shipments (OTC bulletin, dated into those of its Health Care division. along with a 3% positive pricing effect. Product 18 August 2011, page 11), helping to mitigate The Health Care business would include mix and other factors offset the growth by 2%. the ongoing decline in sales of the heartburn 100% of the joint venture’s sales and operating Health Care’s EBIT improved by 8% to medicine Prilosec OTC, which has been hit by profit, the company explained, with Teva’s pro- US$800 million, Procter & Gamble said, with the launch of two branded competitors in just fit share deducted as a “non-operating minority net earnings growing by 9% to C542 million. over two years as well as a number of store- interest expense” within Health Care. The Health Care division accounted for 15% brand equivalents. At the total company level, Procter & Gam- of Procter & Gamble’s total first-quarter sales. Vicks had benefitted from “new initiatives” ble said that since it would be reporting 100% Including beauty and grooming products,baby in both North America and Asia, Procter & of sales and operating profit from the joint ven- and family-care brands, fabric and home-care Gamble pointed out. ture, its operating margin would be largely un- lines and snack and pet-care products – as well The results were announced as Procter & affected. However, earnings before interest and as the company’s healthcare offering – these Gamble finalised its consumer healthcare part- tax (EBIT) margin and net margin would be advanced by 9% to US$21.9 billion. nership with generics giant Teva Pharmaceu- lower due to the minority interest charges, the Procter & Gamble’s total EBIT slipped back tical Industries, bringing together each firm’s firm noted. by 4% to US$4.1 billion, while net earnings fell OTC portfolio (see front cover). Procter & Gam- Net first-quarter sales at Procter & Gamble’s by 2% to US$3.0 billion. ble will retain control of its North American Health Care division – including its Feminine OTC OTC operations. Named PGT Healthcare, the joint venture – in which Procter & Gamble will hold 51% and Teva 49% – will combine the two companies’ OTC operations in all markets outside North America and will have initial annual sales of around US$1.3 billion (C0.9 billion). The two companies believe this could rise to US$4.0 billion “towards the end of the decade”. Procter & Gamble noted that forming the joint venture had involved selling to Teva its US OTC plants in Greensboro, North Carolina – where Vicks is produced – and its Metamucil plant in Phoenix, Arizona. Employees of both plants had been transferred to Teva.

IN BRIEF ■ ORION said sales of its Burana OTC ibu- profen brand had increased by 5.6% to C 6.0 million in the third quarter of 2011. The brand helped lift sales at the firm’s Specialty Products division – which includes the Finnish firm’s generic prescription drugs, as well as self-care products – by 3.4% to C 80.5 million. Specialty Products accounted for 38% of Orion’s total sales, which fell by 1.2% to C 211 million.

■ RECORDATI said its sales had increased by 5.8% to C 581 million in the opening nine months of 2011. Operating profit rose by 4.1% to C 129 million. OTC

16 November 2011 OTC bulletin 9 OTC16-11-11p10-11FIN.qxd 16/11/11 09:46 Page 2

OTC COMPANY NEWS

Nine-Month Results Third-Quarter Results OTC turnover up Decline in Arbidol demand by 44% at Meda hits Pharmstandard sales eda said that numerous acquisitions over Mthe past 15 months had driven up its OTC ales of Pharmstandard’s branded OTC prod- face the threat of losing most of their OTC sales by 44% at constant exchange rates in the Sucts fell by 8.9% to RUB3.98 billion (C94.5 sales after the Russian government’s decision opening nine months of 2011. million) in the third quarter of 2011, as turnover to reverse-switch all OTC products containing OTC turnover had increased to SEK1.85 from the Arbidol flu brand slumped by a third. codeine to prescription-only status on 1 June billion (C0.2 billion), the Swedish firm noted, Arbidol’s sales had fallen back by 33.4% to 2012 (OTC bulletin,18 August 2011, page 10). pointing out its investments across the Nordic RUB1.49 billion in the three months (see Figure Pharmstandard pointed out that in the first region had seen its OTC sales to Nordic con- 1), the Russian firm said, as the brand had faced nine months of 2011, codeine-free preparations sumers rise by 11% on a proforma basis in the a tough comparison with the prior-year quarter accounted for just 17.2% of Pentalgin’s sales most recent quarter. when its sales had more than doubled as the and 13.1% of Codelac’s turnover. Terpincod Meda has boosted its presence in the Nordic market prepared for a potential flu pandemic. could disappear from the OTC market altogeth- OTC market twice since September 2010: first- In the third quarter of 2010, wholesalers and er,as all of its sales in the first nine months of ly by acquiring six OTC brands from fellow retailers had made “pro-active and advance pur- the year came from codeine-based products. Swedish firm BioPhausia for SEK190 million chases” of flu products, Pharmstandard point- Meanwhile, third-quarter sales of Complivit (OTC bulletin,29 September 2010, page 1); ed out, in an attempt to prevent the shortages vitamins fell back by 6.7% to RUB247 million, and secondly when it bought Antula and its that had occurred in 2009 during the outbreak in contrast to the Amixin 125 brand’s 14.7% rise portfolio of OTC brands for SEK1.8 billion in of H1N1 swine flu. to RUB218 million. February of this year (OTC bulletin,28 Febru- This year,however,distributors had felt their Turnover from the Flucostat and Afobazol ary 2011, page 1). current stockpiles of flu products were sufficient brands advanced by 26.2% and 35.3% respect- Last year,Meda also established an OTC to meet consumer demand, Pharmstandard said. ively to RUB189 million and RUB135 million. platform in the US by acquiring speciality phar- Turning to the rest of Pharmstandard’s best- Pharmstandard’s unbranded OTC products maceutical company Alaven (OTC bulletin,10 selling OTC brands, Pentalgin – the firm’s sec- fared no better than their branded counterparts, September 2010, page 1), which it then expand- ond-biggest seller after Arbidol – posted third- as sales dropped by 4.2% to RUB597 million ed a few months later by acquiring five brands quarter sales up by 32.1% to RUB659 million. in the three months. from GlaxoSmithKline in two separate deals The Terpincod and Codelac brands also re- OTC products generated 60.0% of Pharm- (OTC bulletin,21 January 2011, page 4). ported better sales, with turnover rising by 28.6% standard’s total third-quarter sales, which slipped Most recently it snapped up the rights to to RUB413 million and by 4.3% to RUB290 back by 4.7% to RUB7.64 billion. This was due Moberg Derma’s Nalox nail-repair product in million respectively. to a decline in turnover from third-party pre- several major European countries in a deal Although Pentalgin, Terpincod and Codelac scription drugs, as well as OTC preparations. worth SEK32.0 million (OTC bulletin,30 enjoyed a successful quarter,all three brands OTC September 2011, page 1). Anders Lönner,Meda’s president and chief Business Third-quarter sales Change Proportion executive officer,said the OTC business would (RUB millions) 2010/2011 (%) of total (%) be boosted in the fourth quarter by the rapid Arbidol 1,493 -33.4 20 rollout into 10 markets of the Nalox product Pentalgin 659 +32.1 9 and the SB12 disinfectant mouthwash. Terpincod 413 +28.6 5 OTC sales accounted for a fifth of Meda’s Codelac 290 +4.3 4 sales in the first nine months, which grew by Complivit 247 -6.7 3 19% at constant exchange rates to SEK9.40 Amixin 125 218 +14.7 3 billion. Meda’s operating profit fell by 9.8% to Flucostat tablets 189 +26.2 3 SEK1.99 billion, due primarily to a one-off gain Afobazol 135 +35.3 2 of SEK429 million recorded a year earlier. Ingalipt 97 +19.0 1 OTC Acipol 67 +24.0 1 Other OTC brands 176 –2 IN BRIEF Unbranded OTC products 597 -4.2 8 Total OTC products 4,581 -8.3 60 ■ GLAXOSMITHKLINE has agreed in prin- Prescription drugs 829 +27.7 11 ciple to pay US$3.0 billion (C 2.2 billion) to re- Third-party prescription drugs 1,984 -8.3 26 solve a number of US government investiga- Medical equipment & disposables 146 +5.8 2 tions into previous marketing and selling prac- Other sales 97 +55.8 1 tices employed by its prescription medicines business. The settlement was expected to be Total Pharmstandard 7,637 -4.7 100

finalised in 2012, the company said. Figure 1: Breakdown of sales by Pharmstandard’s top 10 OTC brands and other businesses in the third quarter OTC of 2011 (Source – Pharmstandard)

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COMPANY NEWS OTC

Business Strategy Akorn sets sights on OTC acquisitions

S generics specialist Akorn plans to expand Tears was available from ophthalmic channels Uits Consumer Health division by acquiring and pharmacies rather than mass-market retail- products that complement its existing business. ers. “If a company came to us with a mass-mar- Dr Bruce Kutinsky – president of Akorn’s ket strategy,then we would be prepared to con- Consumer Health division – told OTC bulletin sider the opportunity,” he remarked. “But all that the company was seeking medicines, med- of our marketing is geared towards healthcare ical devices and other products in eyecare or professionals rather than consumers.” other OTC categories with a “clinically-driven TheraTears was described by Kutinsky as the sell”. Akorn would also consider in-licensing “first complete dry-eye programme”. The brand and other opportunities, he added. comprises preservative-free lubricant eye drops, Akorn was initially focusing on acquisitions a preservative-free liquid gel, an omega-3 food in its home market of the US, where it had a supplement and the SteriLid eyelid cleanser. “mature sales network”, commented Kutinsky, Kutinsky explained that eyes became dry be- but would consider deals involving internation- cause the tear film lost water due to increased al businesses. evaporation or decreased tear production. “Be- Kutinsky also pointed out that Akorn was cause tears are a salt solution, removing water developing private-label OTCeyecare products leaves a build up of salt on the surface of the Dr Bruce Kutinsky, president of Akorn’s Consumer for major retailers in the US. eye,”he added, “which causes the scratchy, Health division, says the company wants to acquire medicines, medical devices and other products Akorn entered the OTC market earlier this gritty,irritation that patients complain about.” in eyecare or other OTC categories with a year by paying US$26.0 million (C19.0 million) “Hypotonic TheraTears Lubricant Eye Drops “clinically-driven sell” for Advanced Vision Research (AVR), a US- melt the salt and return the eye to the proper based company specialising in marketing dry- osmotic balance,”he continued. “The patented dition,”he said, adding there was an “increase eye remedies and other OTC eyecare products electrolyte balance helps to restore conjunctival in patient compliance based on ease of use ver- under the TheraTears and MacuTrition brands goblet cells, increasing the mucin layer and sus Q-Tips and baby shampoo dilutions.” (OTC bulletin,13 May 2011, page 3). helping to relieve dry eye.” The product is currently available in a 48ml Launched in 1995, TheraTears has retail sales A medical device, TheraTears Lubricant Eye foam pump bottle,and an aerosol formulation of around US$25.0 million in the US, where the Drops can be used with contact lenses. will be available in the third quarter of 2012. remedy for dry eyes is available in the vast maj- TheraTears Liquid Gel had the same hypo- Kutinsky claimed TheraTears was known ority of retail stores nationwide including CVS tonic formula and electrolyte balance as the eye internationally because foreign doctors attend- Pharmacy, Meijer,Target and Walgreens. drops, noted Kutinsky, but was a longer-lasting ed major US trade shows. Furthermore, distri- formulation for night-time use or during the bution through professional channels had raised Seeking distributors outside the US day for severe dry eye. “Less blurring and less awareness in international markets. Kutinsky said Akorn was looking to expand crusting was produced than with other gels,”he According to Kutinsky, the key to interna- distribution of TheraTears outside of the US, maintained, “and the product was not too thick, tional success with TheraTears was “deliver- where it is currently available in 20 countries not too thin.” ing the science-driven dry-eye message to physi- including Australia, Canada, Denmark, Greece, Commenting on the TheraTears Nutrition cians”. He said Akorn supported the brand with Holland, Iceland, Kuwait, New Zealand, Singa- omega-3 supplement, Kutinsky said it was the “one-on-one messaging” to doctors via trade- pore, South Korea, Spain, Switzerland, the UK “first supplement specifically for dry eye”. “Fish shows, direct-to-physician sampling of all prod- and Yemen. TheraTears was sold through ophth- oil reduces inflammation,”he explained, “while ucts, and journal advertising. Key opinion-lead- almic distributors and pharmacies, he noted, but flaxseed oil improves meibomian gland func- ers were also used to reinforce the TheraTears no major retail chains. tion, ultimately improving the flow of oils onto message to physicians at tradeshows and in peer- Akorn wanted to strengthen its presence in the surface of the eye.” reviewed journals. “Retail distribution follows those countries where TheraTears was already “TheraTears remains the only major brand growing demand through physicians,”he said. available as well as move into new markets, said to have a nutritional supplement for dry eye that In the third quarter of this year,Akorn re- Kutinsky, adding that the company’s approach is sold in the eyecare section of US retailers,” ported sales up by 69% to US$36.7 million. was “opportunistic”. observed Kutinsky. The company said the rise was due to a full Kutinsky said that Akorn wanted to apply the Meanwhile, the TheraTears SteriLid eyelid quarter of AV R sales totalling US$5.6 million, same business model as in the US, where Thera- cleanser was claimed by Kutinsky to be the continued growth of products launched in 2010, “first broad-spectrum bactericidal foam- and strong organic growth in established inject- ing lid cleanser for the ongoing treat- able and ophthalmic products. Excluding AV R, ment of blepharitis and for presurgical sales moved ahead by 44%. use”. “SteriLid actually kills the bugs Akorn develops, manufactures and markets that are causing the problem, and kill- multisource and branded pharmaceuticals in the time studies show effectiveness against areas of ophthalmology,antidotes, anti-infec- key bacteria that may cause endoph- tives, and pain management and anaesthesia. Akorn says TheraTears offers a complete dry-eye programme thalmitis, a potentially blinding con- OTC

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OTC COMPANY NEWS

PerrigoFirst-Quarter Results plans four launches a month

errigo’s Consumer Healthcare unit would Business First-quarter sales Change Operating income Change Padd over US$190 million (C136 million) to (US$ millions) (%) (US$ millions) (%) its sales in the year ending June 2012 by launch- ing around four products a month, according Consumer Healthcare 412 +4 64 -10 to chief executive officer Joseph Papa. Prescription Pharmaceuticals 128 +84 27 +51 The Consumer Healthcare division would Nutritionals 120 -2 9-50 launch “essentially one product per week in fis- Active Pharmaceutical Ingredients 48 +28 15 +41 cal 2012”, Papa said, including store-brand ver- Other 17 –-13 – sions of Reckitt Benckiser’s Mucinex (guai- Total Perrigo 725 +13 102 -9 fenesin) and Novartis Consumer Health’s Pre- vacid 24HR (lansoprazole). Figure 1: Perrigo’s sales and operating income in its first quarter ended 24 September 2011 (Source – Perrigo) This ambitious launch schedule was expect- ed to help drive up Consumer Healthcare’s sales “a little bit less clear” on that opportunity,Papa sales, Papa said, noting that store-brands had by 12%-14% in the full year,Papa claimed, not- noted, adding that some products for the treat- taken more than a 40% share of the OTC fex- ing that the headline launches,such as Muci- ment of over-active bladder,along with some ofenadine market, with Perrigo holding the ma- nex and Prevacid, were expected in the second non-oral pain-relievers could also be important jority of that store-brand share. half of the company’s year. prescription-to-OTC switches. However, these gains had been offset by a Looking further ahead to potential prescrip- Papa’s comments came as Perrigo reported US$12 million drop in turnover of existing gas- tion-to-OTC switches of which Perrigo planned a 4% increase in Consumer Healthcare sales to trointestinal products due to “competitive pres- to take advantage, Papa forecast that over the US$412 million during the three months ended sures on a key product”, Perrigo noted. Further- next five years there would be US$10 billion 24 September 2011 (see Figure 1). more, a delay in shipping the firm’s new analges- worth of products that could make the move. ic suspension product, which features an im- “The rest of the proton-pump inhibitors – so Growth driven by new products proved bottle design, “slightly depressed” Con- Nexium, Protonix and Aciphex – all represent Growth was driven by US$15 million in new sumer Healthcare’s growth rate in the quarter. great opportunities as they move from prescrip- product sales, and further lifted by a US$9.0 Looking at the major US OTC and vitamins, tion to OTC,”Papa pointed out, “and we know million increase in existing product sales – pri- minerals and supplements (VMS) categories, a number of them are under development as marily in the cough/cold and smoking-cessation Papa pointed out that IRI data for the 52 weeks OTC products, so we are going to continue to categories. A positive currency impact added ended 25 September 2011 showed that while try and be a fast-follower in the category.” around US$3.0 million. sales of national brands had fallen by 0.6%, The largest potential switch would be a statin The “highly successful launch” of its store- store-brands had grown by 9.1% (see Figure 2). – such as Pfizer’s Lipitor (OTC bulletin,14 brand version of Sanofi’s Allegra (fexofenadine) In every category except VMS, store-brands September 2011, page 7) – but the future was allergy medicine had helped drive new product had outperformed national brands and the cat- egory growth overall, Papa pointed out, noting that store-brand analgesics had continued to Series1Store brands Series2National brands Series3Total for category benefit from the manufacturing problems faced

20.020 by Johnson & Johnson’s McNeil business. Asked about the gains Perrigo had made following the withdrawal of a number of Mc- +14.3% 15.015 +13.7% +12.5% Neil’s national-brand products in the US over +11.0% the past 18 months, Papa said that having pro- +9.8% 10.010 +9.1% jected that McNeil’s problems represented a US$100 million opportunity for store-brands, +6.1% +4.6% +4.8% the company had felt that it would be able to th (%) 5.05

ow take at least US$50 million, or half the oppor- +2.1% +1.5% +2.2% +1.5% +1.2% +1.4% tunity,based on its production capacity.

Sales gr 0.00 However, with the incremental capacity Per- 12345678-0.1% -0.6% rigo was now bringing online, the company -2.2% -2.3% -2.4% -2.1% -2.4% -3.0% believed it might take around US$75 million of -5.0-5 those sales, Papa pointed out, which translated -7.1% into US$18 million-US$19 million a quarter. -10-10.0 Perrigo believed McNeil would have its full Analgesics Cough, Gastrointestinal Smoking Infant Total VMS* Total OTC range products back on the market by March, Cold, Allergy,Sinus Cessation Formua OTC&VMS* Papa noted, adding that the company expect- * VMS is vitamins, minerals and supplements ed to retain about half of the business it had

Figure 2: Retail sales growth of major categories in the US OTC medicines and vitamins, minerals and gained from the recalls. supplements markets in the 52 weeks ended 25 September 2011 (Source – Perrigo/IRI) OTC

12 OTC bulletin 16 November 2011 OTC16-11-11p13FIN.qxd 17/11/11 06:40 Page 2

COMPANY NEWS OTC

Third-Quarter Results Mergers & Acquisitions Key markets Invida acquisition grows lift Herbalife Menarini in Asia-Pacific erbalife reported turnover up by 30.0% H to US$895 million (C 658 million) in the enarini is expanding its reach in the Asia- Described by Menarini as one of the lead- third quarter of 2011, as the US-based direct- MPacific region by acquiring Singapore- ing biopharmaceutical sales companies cover- selling specialist achieved double-digit growth based pharmaceutical sales and distribution ing the Asia-Pacific region, Invida has annual in all but one of its key markets. company Invida for an undisclosed sum. sales of more than C160 million. It employs In local currencies, the rise was only slightly The deal grows the Italian pharmaceutical 3,600 people. less impressive at 24.1% in the three months. firm’s presence in a number of markets in the Invida markets several primary and special- Sales growth was led by the South and Cen- region, including China, Hong Kong, India, In- ty care brands, along with a range of OTC and tral America regions, where turnover increas- donesia, Malaysia, South Korea, Taiwan, Thai- dermatology lines. The company’s OTC port- ed by more than half to US$144 million in land and Vietnam. Acquiring Invida will also folio includes the Actal gastrointestinal brand, the quarter,while sales in Mexico advanced by provide access to new markets such as Aus- Breacol cough and cold range, Dermatix scar 35.3% to US$113 million. tralia, New Zealand, and the Philippines. therapy product and OmegaGen Cardio omega- Asia-Pacific – Herbalife’s biggest region in Dr Alberto Aleotti, Menarini’s chairman and 3 supplement. terms of sales – posted turnover up by 40.5% chief executive officer,said the company looked Menarini said that Invida would become its to US$255 million, while in Europe, Middle forward to “gaining first-hand experience of Asian headquarters and the company’s chief East and Africa sales improved by 21.8% to the great vitality this region brings”. executive officer John Graham would stay on. US$148 million. OTC Sales in Herbalife’s home market of North America finished up by 16.2% at US$181 mil- lion, while China was the slowest growing re- Joint Ventures gion in the third quarter,with turnover up by 6.6% to US$55.0 million. PGT created by P&G and Teva Herbalife’s operating profit grew ahead of sales, rising by 49.9% to US$151 million, while ■ Continued from front page net profit rose by 36.9% to US$108 million. abilities to expand into whitespaces such as Commenting on the third-quarter perform- China”, the two companies commented. ance, Michael Johnson, Herbalife’s chairman Promising that PGT also intended to expand and chief executive officer,said the company into new OTCcategories, the two companies had “never been stronger”. noted that Procter & Gamble had a strong cat- OTC egory presence in cough/cold, digestive well- ness and women’s diagnostics, while Teva’s IN BRIEF portfolio included technologies and leading brands in other key OTC categories such as ■ DAIICHI SANKYO said sales of its Jap- vitamins, minerals and supplements, analge- anese OTC products had grown by 6.7% to sics, medicated skin, and potential prescrip- ¥22.4 billion (C 215 million) in the six months tion-to-OTC switches. Several of the existing ended 30 September 2011. The rise was driven Teva brands were local leaders and offered glo- by the recent switch of the analgesic Loxonin bal or regional expansion potential, they added. S from prescription-only to OTC status. The Furthermore, continued the two companies, Procter & Gamble’s Briain de Buitleir is chief Japanese firm’s total domestic turnover drop- some of Teva’s technologies could be used al- executive officer of PGT Healthcare ped by 7.4% to ¥241 billion in the six months. most immediately to expand Procter & Gam- Total group sales, including international oper- ble’s portfolio into new sub-categories around of Global Health Care will chair the board. ations, fell back by 5.6% to ¥378 billion. the world, including in the US. For example, Procter & Gamble noted that forming the Teva’s technology portfolio included most of joint venture had involved selling to Teva its US ■ MHRA – the UK’s Medicines and Health- the world’s leading allergy compounds, they OTC plants in Greensboro, North Carolina – care products Regulatory Agency – has upheld said, adding that this could enable the expan- where Vicks is produced – and its Metamucil a complaint about point-of-sale advertising for sion of Vicks into allergy treatment. plant in Phoenix, Arizona. Employees of both homoeopathic remedies from Boots,which ap- Heading up PGT will be chief executive offi- plants had been transferred to Teva. peared in its stores. A complainant was con- cer Briain de Buitleir from Procter & Gamble, The two firms’ partnership sees Teva as the cerned that the advertisements included indi- with chief operating officer Eli Shani coming manufacturer and supplier both for the PGT cations for use, when the products were not from Teva. PGT will also have a supervisory Healthcare business and Procter & Gamble’s licensed with indications. board with representatives from both compa- North American OTC business. OTC nies. Tom Finn, Procter & Gamble’s president OTC

16 November 2011 OTC bulletin 13 OTC16-11-11p14-15NEWVERSION.qxd 17/11/11 06:46 Page 2

OTC COMPANY NEWS

Third-Quarter Results Hypermarcas posts solid Pharma gain

ypermarcas said that it had seen solid Pharma division’s turnover in the period. Home Care and Food Pharma Hgrowth at its Pharma division and Beauty Although acquisitions had led to a big rise 8.3% 48.0% & Personal Care business in the third quarter in actual third-quarter Pharma sales, Hypermar- BRL75 million BRL436 million of 2011, despite a slow down in the Brazilian cas noted that on a proforma basis, Pharma’s consumer market. turnover had fallen by 11.2%. Although the Brazilian government had re- The company explained that the proforma duced interest rates, the macroeconomic envi- decline had been due to a “new commercial ronment in Brazil had deteriorated and con- policy” that was “stimulating” its customers to sumer confidence had fallen, Hypermarcas said. destock high OTC and prescription inventories. Nevertheless, the firm commented that it had Although this new policy had led to a fall Beauty & “observed only a slight slowdown of sell-out in sales to distributors, Hypermarcas pointed Personal Care levels” in the Brazilian pharmaceutical, beauty out, consumer demand for the company’s Phar- 43.7% and personal-care markets. Indeed, thanks to ac- ma brands had continued to grow. BRL397 million quisitions, both its Pharma division and Beauty Commenting on the progress of the destock- Figure 1: Hypermarcas’ sales in the third quarter of & Personal Care business had reported double- ing initiative,the company said that it aimed 2011 – BRL908 million – broken down by business (Source – Hypermarcas) digit rises in sell-out levels in the third quarter. to have customer inventories down to the target- Sales at Hypermarcas’ Pharma division – ed level by the end of the year. its soap powder and insecticide brands as part which comprises the Dorsay Monange OTC Meanwhile, sales at the Beauty & Personal of its strategy to focus primarily on its Pharma business together with the firm’s prescription in- Care unit grew by 4.8% to BRL397 million in division and the Beauty & Personal Care side terests – increased by 21.5% to BRL436 million the third quarter. On a proforma basis, sales fell of its Consumer division. (C181 million), driven primarily by acquisitions. by 12.6% due to the destocking programme. Turnover from the Pharma and Beauty & In August, Hypermarcas reorganised its op- Personal Care businesses accounted for 48.0% Acquisitions bolstered sales erations into two core divisions, Pharma and and 43.7% respectively of Hypermarcas’ third- Acquiring fellow Brazilian pharmaceutical Consumer. As a result, the Beauty & Person- quarter sales (see Figure 1), which rose by 10.4% company Mantecorp Indústria Química e Far- al Care business is now part of the Consumer to BRL908 million. The Home Care and Food macêutica and its range of OTC and prescrip- division, along with the company’s Home Care business accounted for the remaining 8.3%. tion brands at the start of the year (OTC bul- and Food unit. Total group earnings before interest, tax, de- letin,21 January 2011, page 6) – as well as three Following the close of the quarter,Hyper- preciation and amortisation (EBITDA) fell back prescription brands from Sanofi – bolstered the marcas announced that it had sold a number of by 24.4% to BRL138 million. OTC

First-Quarter Results Trading Update New products Ransom may cut business further illiam Ransom & Son has not ruled out the deals completed following the close of the lift Blackmores W simplifying its operations further,de- year,had enabled the company to keep operat- spite returning to profit in the year ended 31 ing in what had been a “challenging market”, roduct launches and promotional activities March 2011. the board was reviewing the trading outlook for Pin major retailers helped drive up sales at The troubled UK natural healthcare com- the current year,and this might result in “fur- Blackmores – Australia’s leading natural-health pany said it expected to post an underlying ther simplification of the company’s structure”. brand – by a tenth to A$66.6 million (C50.0 operating profit before exceptional costs, non- In July,Ransom agreed to sell its Ransom million) in the company’s first quarter ended recurring items and goodwill impairment of Pharmaceuticals contract manufacturing divi- 30 September 2011. £0.44 million (C 0.52 million) for the year end- sion to OBG Pharmaceuticals (OTC bulletin, Blackmores said the performance had been ed 31 March. This compared to an underly- 29 July 2011, page 3). This was the final piece driven by the launch of “several innovative new ing operating loss of £0.46 million in the prior- in a three-year turnaround plan that had also products”, including the Flexagil topical pain- year period. seen the sale of various brands in an attempt to relief cream, as well as promotional activities Ransom said the improvement had been put the struggling company back on a stable at major retail chains. driven by better performances at its Consum- financial footing (OTC bulletin,29 September Outside of Australia, the company had re- er Healthcare and Natural Extracts divisions, 2008, page 6). ported “strong year-on-year” growth, Black- coupled with cost-reduction initiatives. A few months later,Ransom streamlined its mores pointed out. The rise would have been even greater but operations further by taking full control of Trust Blackmores’ earnings before interest, tax, for increased losses at the now divested contract William, the online retailer it launched in part- depreciation and amortisation (EBITDA) grew manufacturing division, the company noted. nership with MDY Healthcare in 2008 (OTC by 1.6% to A$13.2 million in the three months. However, Sir Roger Jones, Ransom’s chair- bulletin,14 September 2007, page 3). OTC man, said that although the results, coupled with OTC

14 OTC bulletin 16 November 2011 OTC16-11-11p14-15NEWVERSION.qxd 17/11/11 06:46 Page 3

COMPANY NEWS OTC

Nine-Month Results Lloydspharmacy falls in tough climate

elesio’s Lloydspharmacy chain in the UK Business Nine-month sales Change EBITDAChange Creported a slight drop in sales in the open- ( C millions) 2010/2011 (%) (C millions) 2010/2011 (%) ing nine months of 2011, as it faced up to the difficult retail environment and the impact of Pharmacies 2,632 -2.2 159 -31.6 government cost-cutting measures. Other Business Areas ––1– The pan-European wholesaler and retailer Patient and Consumer Solutions 2,632 -2.2 160 -31.2 said Lloydspharmacy had generated sales of Pharmacy Solutions 14,053 -0.9 318 -5.7 C1.55 billion in the nine months, down by 1.5% Manufacturer Solutions ––-2 – compared to the same period a year earlier. Other 478 –62– Celesio commented that Lloydspharmacy’s programme to ensure its OTC offering better Total Celesio 17,163 -1.1 414 -18.7

met consumer needs had managed to “stabilise” Figure 1: Celesio’s sales and earnings before interest, tax, depreciation and amortisation (EBITDA) in the first its OTC business, despite the “poor consumer nine months of 2011, broken down by business (Source – Celesio) climate” that continued to prevail in the UK. Led by Lloydspharmacy’s new managing Meanwhile, in Italy – where the pharmacy earnings before interest, tax, depreciation and director,Tony Page, the programme involves business had developed well during the nine amortisation (EBITDA) at the Pharmacies busi- the chain streamlining its OTC product offering, months – the DocMorris pharmacy brand had ness falling by 31.6% – 26.7% adjusted for cur- launching price initiatives, extending opening been launched in Bologna and Milan (OTC bul- rency and portfolio effects – to C159 million. hours and creating a new mail-order website letin,30 September 2011, page 3) and had now Start-up costs in Sweden and the transfer of (OTC bulletin,18 August 2011, page 13). been rolled out to 19 Italian stores, the firm said. 63 Dutch pharmacies to Brocacef Holdings last A “steady” rise in prescription volumes had In contrast to the positive developments in November (OTC bulletin,30 June 2011, page also kept Lloydspharmacy’s sales from sinking Italy,the company’s fledgling Swedish phar- 5) had also impacted EBITDA, Celesio noted. further,Celesio noted, along with the continued macy chain, Celesio noted, was struggling as All of the sales at Celesio’s Patient and Con- growth in services offered to institutions,such the market “failed to live up to forecasts” and sumer Solutions division – C2.63 billion – were as hospitals and prisons. development was “weaker than expected”. generated by the Pharmacies unit. The Other Lloydspharmacy generated 58.7% of sales Furthermore, market entry had proven more Business Areas unit consists only of Celesio’s at Celesio’s Pharmacies business, which slipped difficult than anticipated, Celesio said, and com- portion of EBITDA from Brocacef Holding, back by 2.2% to C2.63 billion in the nine months petition had been fierce. which was C1.2 million in the period. (see Figure 1). Adjusted for currency and port- These market conditions had led to slower In total, EBITDA at the Patient and Con- folio effects, sales edged up by 0.2%. than anticipated growth at some of its 78 Swed- sumer Solutions division declined by 31.2% Across the rest of Europe,Celesio has con- ish pharmacies, Celesio said, leading to revenue – 26.7% adjusted for currency and portfolio tinued its rebranding exercise that will see all and earnings falling well below expectations. effects – to C160 million. its pharmacies outside of the UK use the Doc- Turning to the DocMorris mail-order busi- Patient and Consumer Solutions accounted Morris brand name. ness, the company said mail-order revenue had for 15% of Celesio’s total nine-month sales, Outside of the UK, Celesio has pharmacies increased by 15.1% in the nine months, thanks which fell by 1.1% to C17.2 billion. Adjusted for in Belgium, Czech Republic, Ireland, Italy,Nor- primarily to new customers,but also due to a currency and portfolio effects,the drop was 0.7%. way and Sweden, all of which are now manag- larger volume of individual orders. The dominant Pharmacy Solutions division ed by the DocMorris International Retail unit As of 30 September 2011, Celesio was run- – which houses Celesio’s wholesale business, set up last year. ning a total of 2,299 pharmacies across Europe. laboratory equipment and property units – post- Celesio noted that as of 30 September 2011, The company opened 33 new pharmacies, in- ed turnover down by 0.9% as reported, and 17 of its Irish pharmacies had been rebranded, cluding 28 in Sweden, during the nine months. 1.0% adjusted for currency and portfolio ef- with the remainder expected to have been con- Government cost cutting measures and the fects, to C14.1 billion. verted by the end of 2012. realignment of the UK OTC business led to Celesio’s total EBITDA for the nine months declined by 18.7% – 14.4% adjusted for cur- rency and portfolio effects – to C414 million. Following the close of the quarter,Celesio’s IN BRIEF new chief executive officer Marcus Pinger vow- ■ ORIOLA-KD reported an operating loss of ■ IPSEN said sales of its Ginkor Fort ginkgo ed to create sustainable profit growth by taking C 26.0 million in the opening nine months of biloba brand had improved by 27.2% to C3.3 Celesio back to its roots in wholesaling and re- 2011 after the firm wrote down the value of its million in the third quarter of 2011. Ipsen sup- tailing (OTC bulletin,31 October 2011, page 1). Stary Lekar pharmacy brand in Russia by C 33.4 plies the non-prescription brand to GTF Group As part of Pinger’s turnaround plan, the com- million in the second quarter of the year. Exclud- – which acquired the rights to the product in pany is considering offloading its Manufactur- ing the write-down and other one-off charges, France, Monaco and Andorra in 2007 (OTC er Solutions division, including its logistics the Finnish wholesaler and retailer posted an bulletin,31 August 2007, page 1) – but still provider Movianto and marketing services busi- operating profit of C 7.4 million. The company’s markets the brand outside this region. ness Pharmexx. total sales increased by 13.2% to C1.59 billion. OTC OTC

16 November 2011 OTC bulletin 15 OTC16-11-11p16-17FIN.qxd 16/11/11 09:51 Page 2

OTC GENERAL NEWS

Distribution Pharmacy groupings spread across Europe

egulatory hurdles in France, Germany and den, Switzerland and the UK – allow compa- Chain 36.6, Rigla, Pharmacor,Implozia and RSpain stand in the way of companies seek- nies to own significant pharmacy chains. Some A5, notes the report, adding the top 10 chains ing to create a truly pan-European pharmacy countries restrict ownership of pharmacies to represent 17% of retail pharmacies in Russia. chain. However, this is not preventing power- pharmacists, and some allow pharmacists them- Commenting on virtual pharmacy chains, ful Europe-wide pharmacy groupings emerg- selves to own chains but restrict the size to two, the Dudley report points out there has been a ing, according to a new report just published three or four branches. “phenomenal” growth in these voluntary group- by James Dudley Management. Since the beginning of this year,notes the ings of pharmacies. Around 46,000 pharmacies OTCmarket strategist James Dudley told Dudley report, Hungary has imposed restric- in the 19 countries – almost one in three of the OTC bulletin that the elements were in place tions to stop third parties forming new chains total – are affiliated in some way, says the study. to allow a major player to create a large Eur- and to restore pharmacists as the majority share- Although significant pharmacy chains are ope-wide entity. “This can be done by integrat- holders of their stores. not permitted in France and Germany, observes ing the different retailing models that have al- The Dudley report points out that more than the Dudley report, the majority of pharmacies ready been developed, including mail-order and a third of the pharmacies in Europe’s chains are in these countries do participate in virtual chains internet channels,”he explained. “We might ex- in Russia, and just under a third are in the UK. (see Figure 4). pect to see a mix of innovative franchise con- A further 14% are located in the Central Euro- cepts, well-run virtual chains and wholly-own- pean countries of the Czech Republic, Hun- Problems with virtual pharmacy chains ed pharmacies – where permitted – built into a gary,Poland and Slovakia, while another 6% One of the problems with virtual chains, ac- powerful international retail brand.” are in the Nordic region. cording to the Dudley report, is that while they According to the Dudley report, only 11% However, Slovenia and Norway have the theoretically combine the flexibility of inde- of the 157,000 pharmacies in the 19 countries highest proportion of their pharmacies in chains pendent pharmacies with the strengths of chain studied are part of major chains comprising of two or more stores at 89.3% and 83.4% re- pharmacies, there are few mechanisms to main- more than 50 pharmacies. The vast majority – spectively (see Figure 2). tain network disciplines. four-fifths – are independent pharmacies that According to the Dudley report, the three “The basic weakness of many of the virtual are owner-managed businesses (see Figure 1). largest pharmacy chains in Europe are owned chains has been the failure on the part of their by Alliance Boots, Celesio and Phoenix (see managements to understand the importance of Chains of five or more pharmacies Figure 3). Four pharmaceutical wholesalers differentiating their retail offer,positioning and There are approximately 23,500 pharma- and retailers – Alliance Boots, Celesio, Mediq branding,”observes the Dudley report. “Indeed, cies in chains of five or more outlets, notes the (OPG) and Phoenix – together have direct own- the development of branding and common for- Dudley report, and a further 7,200 pharmacies ership of 44% of pharmacies in major chains. mats has been very much an afterthought for in chains of two to four outlets. In Russia, adds the report, more than a quar- many networks.” Only a limited number of countries in Eur- ter of pharmacies are owned by large national “While wholesalers have concentrated on ope – including Belgium, the Czech Republic, or multi-regional operators. The majority of retaining pharmacy loyalty through the lead- the Netherlands, Norway,Poland, Russia, Swe- these are local companies, including Pharmacy ershipof groups,”it adds, “the members them- selves are more focused on their own interests and ‘cherry pick’ the available offers rather than Total 19 countries studied17 19.6% supporting a retail brand.” Slovenia* 89.3% The Dudley report stresses that the lack of Norway15 83.4% Sweden 80.1% 13UK 77.0% Minor chains Major chains Small groups of 5-50 stores Switzerland 28.6% of more than of 2-4 stores 50 stores 2% Hungary 28.3% 5% 11 11% State-owned Russia 27.9% Cooperatives 1% Finland9 23.9% 1% Holland 23.3% Denmark7 21.5% Slovakia 21.5% Belgium5 20.1% Germany 16.2% Italy*3 9.9% Poland 8.5% Independent Austria1 1.8% stores * State-controlled 80% 020406080100 or mostly 020406080100 state-controlled Proportion of pharmacies in chains of two or more stores (%) Figure 1: Breakdown of the ownership of 157,000 pharmacies in 19 European countries in 2011 Figure 2: Proportion of pharmacies in chains of two or more stores (Source – James Dudley Management) (Source – James Dudley Management)

16 OTC bulletin 16 November 2011 OTC16-11-11p16-17FIN.qxd 16/11/11 09:51 Page 3

GENERAL NEWS OTC

Retailer Number of Territories Country Pharmacies of origin Alliance Boots 3,280 China, Croatia, Holland, Ireland, Italy,Switzerland Lithuania, Norway,Russia, Switzerland, Thailand, UK Celesio 2,276 Belgium, Czech Republic, Holland, Germany Ireland,Italy,Norway,Sweden, UK Phoenix/Tamro 1,562 Baltic States, Hungary,Italy,Germany Norway,Poland, UK Pharmacy Chain 36.6 989 Russia Russia A5 852 Russia Russia The Co-operative Pharmacy 774 UK UK Implozia 663 Russia Russia Rigla 645 Russia Russia Polska Grupa 512 Baltic States, Poland, UK Poland Farmaceutyczna (PGF) Radug 502 Russia Russia OTC market strategist James Dudley says powerful European retail pharmacy brands are being built out Mediq (OPG) 424 Holland, Poland Holland of a mix of innovative franchise concepts, well-run virtual chains and wholly-owned pharmacies Pharmacor 402 Russia Russia

Figure 3: Europe’s leading retail pharmacy chains in 2010/2011 (Source – James Dudley Management) wholehearted support for organised brand pro- motions by group members is frustrating for manufacturers and undermines the group’s buy- Average 19 countries 29.6% ing strength. Denmark15 86.1%

“However,”continues the Dudley report, Germany 78.0% “this is beginning to change as members are France13 63.0% realising that buying strength, branding, for- Poland 53.0% matting, promotions and innovations such as 11 loyalty cards, are important elements for sur- Switzerland 44.2% vival in a competitive retail sector.” UK 34.8% Moving on to franchising, the Dudley report Hungary9 34.6% notes that this is an established business model Holland 16.0% in other sectors, especially fast food, but is rel- Finland7 11.0% atively new to pharmaceutical retailing. “Fran- Norway 8.8% chising allows the brand owner to control al- Italy5 5.1% most all of the elements that go into the brand- Spain 4.7% ing process, thus largely overcoming the weak- Russia3 4.2% nesses of virtual chains,”it maintains. Belgium 3.9% Advantages of franchising Czech Republic1 2.5% 020406080100 The report stresses that franchising should 020406080100 not be confused with virtual chains. “Whereas Proportion of pharmacies in virtual chains (%) the franchising company may not have a whol- Figure 4: Proportion of pharmacies in virtual chains in 2011 (Source – James Dudley Management) ly-owned chain of stores in terms of the bricks and mortar,it definitely has a wholly-owned chiser,” adds the report. “The franchise concept tion of Sanastera, which represents the merged retail brand,”he says. “You would hardly de- thus provides a useful way of building a wholly- businesses of Sanacorp and CERP Rouen, Eur- scribe McDonald’s as a virtual chain.” controlled retail brand in markets where wholly- ope’s leading pharmaceutical wholesalers are “Behind the principle of the franchise mod- owned chains are not permitted.” also all pharmacy retailers with Europe-wide el is the idea that the franchiser owns the brand The Dudley report points out this is the case groups of wholly-owned pharmacies,virtual and controls the way it is run,”explains the re- in Germany, where franchised pharmacies are chains and emerging franchise brands. port. “When a pharmacy buys into the franchise, permitted, but pharmacy chains are not. Cel- it is basically renting a retail brand and exploit- esio’s DocMorris is cited as an example. ■ For further information on the report, entitled ‘OTC ing the franchiser’s marketing skills and pur- According to the Dudley report, distribu- distribution in Europe – the 2012 edition’, contact James chasing power.” tion channels for consumer healthcare prod- Dudley Management (Tel: +44 1562 747705; Fax: +44 “While the pharmacy owner owns title to ucts in Europe will “continue to become more 1562 750275: E-mail: [email protected]; the business and takes responsibility for the concentrated and more sophisticated”. Website: www.jamesdudley.info). assets, the brand is wholly owned by the fran- The report points out that with the excep- OTC

16 November 2011 OTC bulletin 17 OTC16-11-11p18-19FIN.qxd 16/11/11 12:52 Page 2

OTC GENERAL NEWS

Industry Initiatives E-learning gives doctors self-care skills

n e-learning course designed to equip gen- job had now been passed down to the general Aeral practitioners in the UK with the know- practitioner and the nurse. We now have a cul- ledge and skills to conduct “self-care aware” ture of dependency that this course could help consultations with patients suffering from self- to address, he pointed out. limiting minor ailments has been introduced Delivered through the RCGP’s online learn- by the Royal College of General Practitioners ing environment, the Self Care for Minor Ail- (RCGP) together with the Proprietary Associ- ments e-learning course comprises five steps ation of Great Britain (PAGB). covering why people consult their doctor about Professor Nigel Sparrow, chair of the pro- minor ailments, the principles of managing min- fessional development board of the RCGP,said or ailments, and improving your practice. It also the two-hour online course explored why pat- includes pre- and post-course assessment. ients with minor ailments visited their doctor Once general practitioners had completed and explained how to use a consultation to “en- the course, the RCGP commented, they would The UK’s Royal College of General Practitioners now offers e-learning on Self-Care for Minor Ailments courage, educate and alter future health-seek- be equipped with the knowledge and skills to ing behaviour”. conduct a “self-care aware” consultation for ing them able to look after themselves.” Speaking at the PAGB’s 12th Self Care Con- patients with self-limiting minor ailments. The introduction of the e-learning module ference, Sparrow said the e-learning program- coincided with the launch of the UK Depart- me was about teaching general practitioners and Worries about missing serious illnesses ment of Health’s (DoH) Self Care Week from practice nurses how to develop a sense of shar- The course also addressed general practi- 14-20 November. ed care through the consultation. tioners’ worries about missing a more serious Organised in partnership with the UK’s Self Patient surveys consistently highlighted that illness by educating them on how to identify Care Forum, Self Care Week 2011 focuses on people did not feel able to look after themselves, “red flag symptoms” or signs that indicate a the ways technology can be used to help peo- Sparrow maintained, so in a consultation with potentially-dangerous condition. ple practice self-care, said the DoH. a patient it was “extremely important” to make Strategies for the “whole primary care team” A set of Self Care Week Tip of the Day mes- sure people engaged in the discussion, felt “em- were also included in the course, the RCGP sages had been developed, the DoH noted, with powered” and did not feel “talked-down to”. pointed out, to help improve patient access to one new tip appearing daily throughout the week “The general practitioner’s role is about edu- “evidence-based information about minor ail- on the NHS Choices Twitter account. Tips in- cation,advice and giving people more control ments and to enhance patient confidence”. clude: good information is key to understand- over their own ailments,”Sparrow insisted. If Self-care was important for people, health- ing and managing a condition; having the right general practitioners did this more effectively, care professionals and the UK’s National Health equipment or technology can help you live bet- he added, then people would take much more Service (NHS), Sparrow insisted. “It is vital for ter with a long-term condition; online support notice of their own symptoms and the ways the future of the NHS to make the best use of groups can help you feel less isolated if you that they could deal with those symptoms. the resources we have,” he added. “But it is not have a long-term condition; and you can man- Self-care advice used to be passed down by just about saving money, it is about making age your health and wellbeing via a range of elderly relatives, Sparrow pointed out, but this people feel better about themselves and mak- mobile phone apps. OTC

Market Research seven categories studied for the report sold more outside of pharmacies than within them, General-sale category stagnant in Denmark measured in defined daily doses (DDDs). Non- pharmacy sales accounted for 53.4% of the enmark’s general-sale category is stag- drugs, the agency underlines that Danes prefer smoking-cessation category in 2010. D nant, according to the country’s medicines to buy only one category of OTC medicines Despite recording a sales increase of 13.7% agency. Despite a widening selection of gen- from outlets other than pharmacies,and that over the five-year period – the most of any cat- eral-sale medicines since the category was in- is smoking-cessation products. egory – antihistamines were “nearly all” sold troduced in 2001, the agency says, sales out- Non-pharmacy outlets have a 53% share of by pharmacies last year. side pharmacies were the same in 2010 as they the sales of nicotine chewing gum and patches, And although the 12.6% increase in sales of had been five years earlier. making the product category the largest in terms nasal preparations in 2010 was “primarily dri- Supermarkets and petrol stations still only of sales value on general sale in Denmark. ven by general-sale outlets, the market share account for around 22% of the sales of liber- According to the report, the sales value of of these outlets was still only 44% last year, alised non-prescription medicines, the Danish non-prescription medicines available on gen- up from 38% in 2006. Medicines Agency says in a report covering the eral sale increased by 5.5% from 2006 to 2007, Painkiller availability is limited outside of five-year period 2006-2010. but by only 1.5% from 2007 to 2010. Pharma- pharmacies to packs of 10. This size of pain- Noting that the basket of general-sale med- cies accounted for 78% of the sales of these killer pack accounted for only 2.5% of Den- icines “covers a multitude of products” from non-prescription medicines in 2010. mark’s total sales of mild painkillers in 2010. sore-throat lozenges to painkillers to anti-ulcer Only smoking-cessation products within the OTC

18 OTC bulletin 16 November 2011 OTC16-11-11p18-19FIN.qxd 16/11/11 12:52 Page 3

GENERAL NEWS OTC

Regulatory Affairs Switches Europe’s EFSA Oral zolmitriptan switch offers helpdesk is on agenda in Germany he helpdesk promised by the European T Food Safety Authority (EFSA) has now been launched by the authority with the aim witching an oral form of zolmitriptan – the also discuss an application to reverse-switch of increasing applicants’ understanding of its Sactive ingredient of AstraZeneca’s migraine paracetamol to prescription-only status, having risk-assessment work. medicine Zomig – from prescription-only to deferred deliberations at its previous meeting “More transparency about how EFSA car- non-prescription status is one of the items to (OTC bulletin,29 July 2011, page 16). ries out its risk assessments and further clarifi- be considered by Germany’s Expert Commit- The paracetamol point was removed from cation on how applicants submit information tee for Prescription when it next meets on 10 the committee’s agenda in July last year after can support [European Union] growth and en- January 2012. Germany’s federal institute for drugs and med- hance competitiveness,”commented EFSA. During its meeting in July of this year,the ical devices, BfArM, decided to conduct a thor- Since 2003, it said, the number of annual expert committee voted against recommend- ough review of all analgesic ingredients, in- requests received by EFSA for applications- ing prescription-to-non-prescription switches cluding paracetamol. related evaluations had “increased consider- for rizatriptan 10mg formulations and sumatrip- ably”. “These now account for 40% of the auth- tan 20mg nasal sprays as treatments for mig- Analgesics back up for discussion ority’s resources, twice the 2008 level, and as raines (OTC bulletin,29 July 2011, page 16). Other points on the agenda for the January many as two-thirds of its scientific outputs.” The committee had previously recommend- meeting just released by BfArM include adopt- When releasing its sixth batch of scientific ed switching sumatriptan oral forms, but Ger- ing “an extended position” on a proposal to opinions on general-function health claims to manlegislators have yet to act on that advice. limit the maximum OTC pack size of six an- the European Commission this year (OTC bul- McNeil recently launched 12.5mg almotrip- algesics – acetylsalicylic acid, diclofenac, ibu- letin,18 August 2011, page 1), EFSA pointed tan tablets as a non-prescription migraine med- profen, naproxen, phenazone and propyphen- out that only around one in five of the 2,758 icine under the Dolortriptan brand name, while azone – to four days’ therapy. claims it had assessed had received a favour- GlaxoSmithKline introduced Germany’s first In an extraordinary meeting held at the end able opinion. non-prescription triptan in 2006 with its Formi- of September,the committee rejected the pro- The helpdesk had been announced a few gran (naratriptan) brand. posed pack-size restriction (OTC bulletin,14 months earlier,when EFSA said it aimed to pro- At the January meeting, the committee will October 2011, page 1). cess between 700 and 1,000 applications a year OTC while maintaining its ability to deliver general scientific opinions on major public health risks Trade Agreements ( OTC bulletin,31 March 2011, page 11). EU law contravenes trade agreements says CRN Launching the helpdesk this month, the act- ing director of EFSA’s Scientific Evaluation of he European Union’s law on health claims mission on the basis of several European Food Regulated Products Directorate, Per Bergman, Tfor food supplements and national laws that Safety Authority recommendations is anticipat- said the authority had established the Applica- decide maximum nutrient levels on the basis of ed to violate the European Union’s obligations tions Helpdesk Unit to act as a ‘front office’ recommended daily allowances (RDAs) both under the WTO agreement”. and ‘support desk’, “providing information and contravene international trade agreements, the “[Its application] is more trade-restrictive support for applicants, member states, stake- US Council for Responsible Nutrition (CRN) than necessary to achieve the European Union’s holders and other interested parties”. has claimed. aim of preventing misleading health claims,” Having commissioned two legal analyses asserted the CRN. New service on EFSA’s website from international trade-law specialists, the CRN Noting that the Codex Vitamin and Mineral “Our first major initiative,” said Bergman, said that implementing the European Union’s Food Supplement Guideline, finalised in 2005, “is the launch of a new service on EFSA’s web- health claims regulation would violate several specifies that maximum nutrient levels in food site where users can access information about obligations under the World Trade Organiza- supplements should be based primarily on risk applications and submit specific questions re- tion’s (WTO’s) Agreement on Technical Bar- assessments, and not on RDAs, the CRN insist- lated to the legal and technical requirements riers to Trade (TBT). ed that “many countries still impose RDA-based for evaluations.” Moreover, the relevant WTO agreements on limits” and many more regulated supplements The unit will also be responsible for central- maximum nutrient levels “overtly” require risk as drugs “in the mistaken belief that this practice ising and processing the initial administrative assessment as the basis for restrictions on inter- will exempt them from the Codex guideline”. steps of all applications within EFSA. national trade, and not RDAs. “Both the relevant WTO agreements – the When it was first announced, the helpdesk Making public the findings of law firm Sid- TBT Agreement and the Sanitary and Phyto- was part of a package of measures aimed at leyAustin ahead of a CRN meeting in Germ- sanitary Agreement – overtly require risk assess- making EFSA more like the European Med- any, the industry association said that while the ment as the basis for restrictions on international icines Agency (EMA) and preparing it for in- text of the European Union health claims reg- trade,and thus prohibit these practices,”pointed troducing application fees. ulation did not appear to violate the TBT agree- out the CRN. OTC ment, “its application by the European Com- OTC

16 November 2011 OTC bulletin 19

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MARKETING NEWS OTC

Don’tOTC Marketing Awards 2012 miss the OTC Awards deadline

he deadline for entering OTC bulletin’s ing the OTC Brand of the Year Award. T UK OTCMarketing Awards 2012 is fast Company Chemists’Association, which is approaching. the recognised body for multiple pharmacy in It’s time to start preparing your entries. Our the UK, is sponsoring the Award for Best OTC entry deadline of 2 December 2011 probably Pharmacy Support Package for the eighth time. seems a long way ahead, but you need to start Our thanks also go to Spink for once again thinking about turning your latest campaign sponsoring the Award for OTC Brand Revital- into a prestigious Award winner. isation of the Year. So make sure you visit our website at www. Pegasus has opted once again to sponsor otc-bulletin.com/awards to obtain your Entry the Award for Best OTCConsumer Advertis- Information Pack. ing on Television. Companies of all sizes – from the biggest And Doctors.net.uk is back on board for down to the smallest – have the opportunity to the Award for Best OTCTrade & Professional win one of these prestigious Awards. Advertising. Nineteen categories cover a wide range of Meanwhile, Oxford Pharmascience is a first- disciplines in the OTCindustry,including in- time sponsor for the Award for Most Innova- ternet advertising,out-of-home advertising, trade tive New OTCProduct. The OTC Marketing Awards 2012: advertising, pharmacy training, public relations NetDoctor.co.uk is a first-time sponsor for initiatives and packaging design. And retailers the Award for Best OTCConsumer Advertis- OTC Company of the Year Sponsored by IMS Consumer Health and could win the Award for Best OTC Multiple Re- ing on the Internet. SymphonyIRI Group tailer of the Year. Powermed Plus is sponsoring the Award for OTC Brand of the Year The winners will be announced at a Gala Best OTCPharmacy Training. Sponsored by Euro RSCG Life Dinner & Awards Presentation on Thursday, Medica Packaging is sponsoring the Award OTC Launch of the Year 8 March 2012 at London’s Park Lane Hotel. for Best New OTCPackaging Design. Sponsored by Sudler London OTC bulletin is pleased to announce that Sudler London is sponsoring the Award for OTC Brand Revitalisation of the Year the OTC Marketing Awards 2012 will be joint- OTCLaunch of the Year. Sponsored by Spink ly co-hosted this year by IMS Consumer Health And last – but by no means least – Skills In Most Innovative New OTC Product and SymphonyIRI Group. This will be the tenth Healthcare is sponsoring the Best OTCMar- Sponsored by Oxford Pharmascience year in a row for IMS Consumer Health, while keting Campaign on a Big Budget Award. Best OTC Marketing Campaign on a Big Budget SymphonyIRI Group is a co-host for the fourth Sponsored by Skills In Healthcare consecutive time. ■ Find out how to enter,attend or sponsor the OTC Best OTC Marketing Campaign on a Small Budget The two companies said the joint initiative Marketing Awards 2012 by contacting Jenna Lawrence Best OTC Consumer Advertising on Television built on the global alliance announced in 2007. or Val Davis at OTC bulletin (Tel: +44 1564 777550; Sponsored by Pegasus We are also pleased to welcome back many Fax: +44 1564 777524; E-mail: jenna.lawrence@otc- Best OTC Consumer Advertising in the Press Award sponsors for another year. bulletin.com or [email protected]). Alterna- Best OTC Consumer Advertising Out-of-Home Euro RSCG Life – which has consistently tively,visit the Awards website at www.otc-bulletin. Best OTC Consumer Advertising on the Internet supported the Awards – is once again sponsor- com/awards. Sponsored by NetDoctor.co.uk Best OTC Public Relations Campaign for a Medicine Best OTC Public Relations Campaign for a ENTRY Non-Medicine ENTRY Best New OTC Packaging Design Sponsored by Medica Packaging Best OTC Trade & Professional Advertising Sponsored by Doctors.net.uk DEADLINEDEADLINE Best OTC Pharmacy Training Sponsored by Powermed Plus Best OTC Pharmacy Support Package Sponsored by the Company Chemists’Association Best OTC Pharmacy Salesforce 22 December December 20112011 Sponsored by IMS Consumer Health Best OTC Performer Outside Pharmacy Sponsored by SymphonyIRI Group Visit www.otc-bulletin.com/awards Best OTC Multiple Retailer of the Year Sponsored by the Company Chemists’Association and OTC bulletin OTC

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OTC MARKETING NEWS

Product Recalls Colgate-Palmolive recalls mouthrinse in 11 countries

olgate-Palmolive has recalled a 0.2% chlor- The bacteria concerned was unlikely to cause Chexidine mouthwash in 11 countries within harm to healthy people, stated the MHRA, but Europe and Australasia due to “potential bac- could cause infection in those with a compro- terial contamination”. mised immune system or with chronic lung con- In the UK, where the mouthwash is a gen- ditions such as cystic fibrosis. eral-sales list medicine called Colgate Perio- The MHRA said there had been no reports gard, the Medicines and Healthcare products of adverse reactions or illnesses associated with Regulatory Agency (MHRA) said microbial the problem. contamination with a Burkholderia species had In Australia, the product is called Savacol been detected in some batches. Antiseptic Mouth & Throat Rinse alcohol free. OTC

A flying dragon gently carrying a baby in a towel is the image chosen by Sanofi to promote the new travel-sized 20g tube of its Mitosyl nappy rash cream in France. Accompanied by the slogan “Avec le tube de 20g, bébé voyage léger!” – which translates as “With a 20g tube, baby travels light!” – the image appears in pharmacy-press advertising as well as a consumer-marketing campaign. Consumer-press advertising is running in mother-and-baby magazines from October to December, and shelf-tags and point-of-sale display units will be deployed in pharmacies. The travel-sized product is available in packs containing either two x 20g tubes or two x 150g tubes plus one 20g tube. OTC

GR Lane has extended its Jakemans range of menthol-based confectionery in the UK with a sixth flavour. The company said Jakemans Blackcurrant Menthol provided “stimulating menthol vapours to “Is Man’s Flu Real?” is the question Reckitt help keep the nose clear and ease sore throats”. Benckiser is posing this winter in a new social-media Blackcurrant Menthol joins the existing Jakemans campaign for its Lemsip brand in the UK. range comprising Throat & Chest, Honey & Lemon The best defence is good prevention is Running until the end of March 2012 on Lemsip’s Menthol, Cherry Menthol, Menthol & Eucalyptus, Laboratorios Ordesa’s slogan for the launch of its Facebook page, the campaign allows visitors to send and Blueberry Menthol flavours. Recommended retail Imunoglukan P4H food supplement in Spain. a message to their friends, either backing men’s selling prices start at £0.79 (C 0.92) for the Ordesa claims the product – which contains claims that man flu is real or siding with the female traditional menthol range. vitamin C along with a natural extract of the point of view that man flu does not exist. Jakemans was now the number four brand in the Pleurotus ostreatus fungus, or oyster mushroom Personalised videos of legendary soul singer functional confectionery sector, GR Lane claimed, – strengthens the immune system and enhances the James Brown performing his hit song It’s a Man’s having overtaken Tunes and Fisherman’s Friend. body’s natural defences. It is available as an oral Man’s Man’s World, which has had the lyrics Elizabeth Hughes, product manager for Jakemans, suspension for children and capsules for adults and reworked so he sings “It’s a man’s flu”, can be said the company aimed to increase demand for the children over 12 years of age. attached to messages. It was even possible, brand through targeted public relations activity, Pharmacy-press advertising suggests that Reckitt Benckiser said, to have James Brown which would “drive awareness of Jakemans’ unique Imunoglukan P4H can be used when children are dedicate the song to an individual by name during brand positioning and history of manufacturing introduced to nurseries and kindergartens. It also the song’s introduction. menthol confectionery”. claims the product can be used to prevent repeated Refik Oner, category marketing director, Public relations activity would focused on an respiratory infections. Health & Personal Care at Reckitt Benckiser UK, “extraordinary ‘science of menthol’ programme”, Furthermore, Ordesa says its patented extraction said the Facebook video would make people laugh GR Lane said, and sampling activity at London’s Natu- and production processes “make Imunoglukan P4H a during the tough winter months when most people ral History Museum Ice Rink on 10-11 December and unique and pioneering product in Spain”. suffer from at least one cold or flu virus. 17-18 December. OTC OTC OTC

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EVENTS OTC

1-2 December NOVEMBER 21-22 February ■ Pharmaceutical ■ A New Approach for the Benefit-Risk Assessment 24-25 November Regulatory Affairs of Non-Prescription Medicines ■ Joint TOPRA/EMA in Russia, Belarus Annual Review Copenhagen, Denmark and Ukraine This two-day workshop is organised by the Association of the European London, UK London, UK Self-Medication Industry,the AESGP,in conjunction with the European This two-day conference is organ- A two-day meeting with an update Union’s Heads of Medicines Agencies. ised by the European Medicines on Russian drug legislation. There will be sessions on: ‘Adequate assessment of non-prescription Agency (EMA) and The Organ- Contact:Management Forum. medicines – a new approach’; ‘How to best identify the benefits of non- isation for Professionals in Reg- Tel: +44 1483 730071. prescription medicines’; and ‘How to best assess and communicate the ulatory Affairs (TOPRA). Fax: +44 1483 730008. risks of non-prescription medicines’. Speakers will include: Noël Wathion Contact:TOPRA. E-mail: registrations@management- of the European Medicines Agency (EMA); Werner Knöss of Germany’s Tel: +44 20 7510 2560. forum.co.uk. federal institute for drugs and medical devices, BfArM; Jytte Lyngvig Fax: +44 20 7537 2003. Website: www.management- of the Danish Medicines Agency; Marcus Müllner of Austria’s medicines E-mail: [email protected]. forum.co.uk. and medical devices agency, AGES; and Pat O’Mahony from the Irish Website: www.topra.org. Medicines Board. 2 December Contact:AESGP. Tel: +32 2 735 51 30. Fax: +32 2 735 52 22. 29 November Pharmacovigilance Understanding ■ E-mail: [email protected]. Website: www.aesgp.be. ■ Inspections Symposium Pharmacist Behaviour London, UK London, UK A one-day meeting organised by ulatory Affairs (TOPRA). Tel: +49 6222 9807 0. This half-day masterclass will fo- the UK’s Medicines and Health- Contact:TOPRA. Fax: +49 6222 9807 77. cus on marketing OTC brands to care products Regulatory Agency Tel: +44 20 7510 2560. E-mail: [email protected]. the pharmacy sector in the UK, (MHRA). Fax: +44 20 7537 2003. Website: www.europlx.com. and will cover the findings of new Contact:MHRA. E-mail: [email protected]. pharmacy research. 8-10 March Tel: +44 20 3080 6000. Website: www.topra.org. Contact:Hamell. ■ CHPA Annual E-mail: [email protected]. Tel: +44 20 7801 6244. 13-15 December Executive Conference Website: www.mhra.gov.uk. E-mail: [email protected]. ■ Pharmacovigilance Bonita Springs, Florida, US Website: www.hamell.co.uk. 5 December London, UK The Annual Meeting of the US This three-day training course will Consumer Healthcare Products 29-30 November ■ Labelling Food Supplements look at drug safety monitoring in Association (CHPA) is only open ■ Marketing Authorisation Europe, Japan and the US. London, UK to members. in the CIS and MENA Contact:Management Forum. Topics to be discussed at this one- Contact: Maria Sarabia, CHPA. Countries Tel: +44 1483 730071. day conference, organised by the Tel: +1 202 429 3545. Madrid, Spain Fax: +44 1483 730008. UK’s Health Food Manufacturers’ Fax: +1 202 223 6835. Day one of this two-day seminar E-mail: registrations@management- Association (HFMA), will include E-mail: [email protected]. will cover countries in the Middle forum.co.uk. the foods/medicines borderline, Website: www.chpa-info.org. East and North Africa (MENA), Website: www.management- routes to market and definitions. while day two will focus on the forum.co.uk. 15-17 March Contact:Linda Phillips, HFMA. Commonwealth of Independent ■ 7th Nutra India Summit Tel: +44 20 8481 7100. States (CIS) region. Bangalore, India Fax: +44 20 8481 7101. FEBRUARY Contact: Valeria Belozertsova, A three-day nutraceutical, func- E-mail: [email protected]. QualitecFarma. 9 February tional foods, dietary supplements Website: www.hfma.co.uk. Tel: +34 91 372 8399. ■ The Pharma and ingredients show. Fax: +34 91 372 8404. 8-9 December Summit 2012 Contact: Manjunath Reddy, E-mail: valeria.belozertsova@ London, UK MM Activ. ■ International Tel: +91 80 4113 1912. qualitecfarma.com. Food Supplements ‘Finding new directions’ is the Website: www.qualitecfarma.com. theme of this one-day event org- Fax: +91 80 4113 1914. Conference anised by Economist Conferences. E-mail: enquiry@nutraindia DECEMBER Berlin, Germany Contact:Economist Conferences. summit.in. ‘The regulation of food supple- Tel: +44 20 7576 8118. Website: www.nutraindia 1 December ments in Europe: How much har- Fax: +44 20 7576 8472. summit.in. ■ Marketing Authorisation monisation is needed?’ is the theme E-mail: customerserviceuk@ in Latin America of this two-day meeting. economist.com. 26-28 March Frankfurt, Germany Contact:Bund für Lebensmittelrecht Website: www.economist ■ DIA Annual EuroMeeting National marketing authorisation und Lebensmittelkunde (BLL). conferences.co.uk. Copenhagen, Denmark procedures, dossier requirements Tel: +49 30 206 143-123. This three-day conference is org- and maintenance duties in coun- Fax: +49 30 206 143-223. MARCH anised by the Drug Information tries including Argentina, Brazil E-mail: [email protected]. Association (DIA). Special medi- and Mexico will be covered at this Website: www.bll.de. 5-6 March cinal products, including generics one-day conference. ■ EuroPLX 48 and borderline products, will be Contact: Dr Henriette Wolf-Klein, 12 December Lisbon, Portugal one of 13 themes at the meeting. Forum Institut für Management. ■ Basics of A two-day partnering and licens- Contact: DIA European Office. Tel: +49 6221 500 680. Regulatory Affairs ing forum focusing on OTC medi- Tel: +41 61 225 51 51. Fax: +49 6221 500 555. Milan, Italy cines, nutraceuticals, branded pre- Fax: +41 61 225 51 52. E-mail: [email protected]. A one-day course from The Org- scription drugs and generics. E-mail: [email protected]. Website: www.forum-institut.com. anisation for Professionals in Reg- Contact:RauCon. Website: www.diahome.org.

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OTC MARKETS Emerging markets look better and better

The global economic outlook, OTCmarket trends, outsourcing, and mergers “There was hope that policy would work,”she and acquisitions were some of the topics discussed at the Ceuta International said, “and emerging markets were outperform- ing developed markets.” Alliance’s recent conference in Barcelona. Deborah Wilkes reports. The reality today,observed Amin, was that policy was not working as expected. This had ith developed markets beset by er. “The giants of the East – China and India – resulted in a number of difficulties including economic crises that appear to are more likely to be able to weather the storm,” the “Eurozone problems, Western ‘stagflation’ be going from bad to worse, she maintained. and American debt”, she said, remarking that Wemerging markets seem more Amin pointed out that mutual economic con- developed markets were currently experienc- and more attractive. There is “resilience” in the nections between emerging markets, particu- ing a “permafrost”, defined as “sub-par,yet East, Purvi Amin, associate director of HSBC’s larly in the form of trade, provided market in- positive,growth”. Global Consumer Group, told a recent confer- sulation from problems in developed markets. Amin told the 120 delegates representing 85 ence in Barcelona organised by the Ceuta In- Recent trade patterns for China and India, she markets that HSBC had recently cut its forecasts ternational Alliance,despite problems in the said, showed these countries had significantly for 2012 GDP growth. HSBC’s latest forecast West. “Emerging markets have continued to expanded trade with Russia, Latin America, for GDP growth worldwide – which was releas- grow,”she observed, “and there has been very South-East Asia and Africa. ed in September – was 2.8%. This was down little downward revision of growth forecasts.” HSBC’s chief economist Stephen King de- from a forecast of 3.4% in June of this year. scribed the situation as “the new global cool- HSBC’s 2012 GDP growth forecast for de- Can they remain immune? ing” with “Western permafrost” and “Eastern veloped markets had been cut from 2.3% to On the question of whether emerging mar- promise”, explained Amin. 1.6%. By contrast, the GDP growth forecast kets could remain “immune” to the effects of She recalled that last year the economies in for emerging markets had remained virtually the problems in developed markets, Amin said developed markets had still been on life sup- unchanged, dropping from 6.2% to 6.1%. prospects differed from one country to anoth- port but some green shoots had been visible. Discussing China, Amin said HSBC’s 2012 GDP growth forecast for the country had stay- Acquired Pfizer OTC ed the same at 8.9%. Remarking that China was delivering 50 years of US economic advance 1010.0 9.6 every decade, she said consumer spending was “resilient” and there were more than 100,000 Acquired infrastructure and public housing construction 8.08 Adams Acquired Respiratory Wyeth projects ongoing. Therapeutics 6.06 Acquired Acquired Growth forecast for India 4.7 Chattem Schering 3.8 Plough Meanwhile, HSBC’s 2012 GDP growth fore- 4.04 3.7 2.9 cast for India had only dropped 10 basis points

Sales (US$ billions) 2.6 2.3 2.3 2.1 1.9 from 7.5% to 7.4%. Describing India as partial- 2.02 1.6 1.4 ly insulated, Amin said the country was deliv- 0.9 0.8 0.7 ering “30 years of American economic advance 0.00 every decade”. “Fundamentals remain robust, va the economy is domestically-driven and there 123456789rtis izer 10 11isho 12 13 14 15 va Kraft Te Bayer Sanofi Pf Ta Bristol Rohto No has been a pick-up in the agriculture sector,” JohnsonJohnson & & GambleBoehringer Ingelheim Merck & Co she commented. GlaxoSmithKline Reckitt Benckiser Procter PharmaceuticalMyers-Squibb Summing up the global economy,Amin said Figure 2: Leading players in the global OTC market in 2010, which was worth around US$90 billion. Figures are policy had been much less successful than ex- at manufacturers’ selling prices (Source – Sawaya Segalas/Euromonitor) pected and growth forecasts had been lowered. Tough times lay ahead for developed mar- All Other All Other kets. “The West has huge problems,”Amin com- 66% Top five 60% Top five 21% 28% mented. “Even if recession is avoided, the ab- sence of recovery leads to permafrost.” However, emerging markets could carry on growing. “Productivity catch-up was helping these markets,”Amin stated. “But growth will only be sustained if they can increase their mut- ual economic connections.” Next five Next five Looking ahead to 2050, Amin said HSBC 2005 2010 12% 13% forecasted that world output would treble, dri-

Figure 3: Global OTC market in value terms in 2005 and 2010, showing proportion of sales generated by ven by a five-fold increase for emerging mar- leading players (Source – Sawaya Segalas/Euromonitor) kets. “Nineteen of the largest 30 economies by

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MARKETS OTC

GDP will be countries currently described as emerging,”she said. The winners, according to Amin, would in- clude China and India, which would be the largest and third-largest economies in the world respectively by 2050. “The US and the UK would be relatively successful at maintaining their positions due to better demographic out- looks,”she said. The losers, continued Amin, would be rich economies in Europe with small, ageing pop- ulations. “Switzerland and the Netherlands slip down the grid significantly,” she said. “Swe- den, Belgium, Austria, Norway and Denmark Many leading OTC players remain “underpenetrated” Purvi Amin, associate director of HSBC’s Global drop out altogether.” in the higher-growth emerging markets, says Consumer Group, forecasts that some emerging By 2050, forecasted Amin, emerging mar- Michael Rabin, managing director of investment markets can remain “immune” to the effects of the banking firm Sawaya Segalas problems in developed markets kets would overtake developed markets. Michael Rabin – managing director of Saw- Boehringer Ingelheim, Johnson & Johnson, Pfi- HSBC’s Amin said merger and acquisition aya Segalas, an investment banking firm spe- zer and Procter & Gamble – had “lagged” the activity would be driven by companies seek- cialising in consumer health – highlighted the growth of the overall market. This was in part ing to capture growth in the emerging markets. importance of emerging markets in the global because they were “underpenetrated” in higher- Peter Burrows, director of international busi- OTCmarket. growth emerging markets, Rabin commented. ness development for the Ceuta International Quoting data from Euromonitor,Rabin said Consolidation of the global OTCindustry Alliance, observed that new business models retail sales of OTC products had reached ap- had increased, said Rabin, pointing out that were emerging within the global OTCindustry. proximately US$90 billion (C66 billion) world- there had been a “high” level of mergers and “GlaxoSmithKline and Reckitt Benckiser are wide in 2010, up by 7.0% compared to the pre- acquisitions over the past 18 months. The pro- focusing on a smaller number of powerbrands vious year. The developed markets of Europe portion of sales generated by the top five play- in defined categories with global aspirations,” and the US had generated more than 50% of ers had increased from 21% in 2005 to 28% he said. “Boehringer Ingelheim, Bayer,Novar- global OTCsales, Rabin pointed out, but sales in 2010, he noted (see Figures 2 and 3). tis and Sanofi, by contrast, have broader,div- growth had been driven by emerging markets. erse portfolios with regional and local bias.” “OTC market growth has accelerated mean- Remains highly fragmented “New players are emerging, such as Acta- ingfully as demand for,and access to, OTC Nevertheless, the global OTCindustry re- vis, Perrigo, Ranbaxy,Teva and Valeant,”con- products has expanded in emerging markets,” mained “highly fragmented”, said Rabin, in all tinued Burrows. “Furthermore, private-equity he observed. geographic regions, as well as at a country and groups are getting involved through partner- As can be seen from Figure 1, the emerg- category level. In North America, for example, ships such as that between Blackstone Group ing OTCmarkets of China, India, Brazil and five companies – Johnson & Johnson, Pfizer, and Prestige Brands Holdings to bid for Glaxo- Russia recorded compound annual growth rates Novartis, Procter & Gamble and Merck & Co SmithKline’s non-core OTC brands.” (CAGRs) of 5.8%, 7.1%, 7.3% and 9.1% res- – had accounted for two-fifths of OTCsales According to Rabin, the pendulum for large pectively from 2007 to 2010. This compared last year,he said, and private-label products pharmaceutical firms was shifting towards max- with 0.3% for Japan and Spain, 0.7% for the for another fifth. imising the value of consumer health assets. UK, and 1.5% for the US. Rabin said Sawaya Segalas expected the A few years ago, said Rabin, there had been Rabin highlighted that most of the major pace of merger and acquisition activity to ac- a trend for pharmaceutical companies to focus players in the global OTC market – including celerate over the next few years. on their core prescription business. The pre- scription sector of the pharmaceutical market had been growing faster than the OTCsector 10.010 +9.1% and companies had strong pipelines of prescrip- tion medicines, he explained, adding that gen- 8.08 +7.3% +7.1% eric competition had been minimal. This trend +5.8% had resulted in Bristol-Myers Squibb, Pfizer 6.06 and Roche divesting consumer assets to Nov-

th rate 2007-2010 (%) 4.04 artis, Johnson & Johnson and Bayer respec- ow tively,he said +1.5% +1.7% More recently,however,there had been a 2.02 +1.1% +0.7% +0.3% +0.3% +0.6% trend for pharmaceutical companies to diver- 0.00 sify their businesses with consumer health op- -0.2%123 456 78910 11 12 erations. OTCsales had grown faster than pre- -2 Compound annual gr -2.0 scription sales and companies had weaker pre- y US UK Italy scription pipelines, pointed out Rabin, adding Japan Spain China India Brazil France Canada Russia German that companies faced strong generic competi-

Figure 1: Compound annual growth rates (CAGRs) for selected OTC markets in terms of sales value tion and patent cliffs. Furthermore, prescrip- from 2007-2010 (Source – Sawaya Segalas/Euromonitor) tion-to-OTC switches had proved their value,

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OTC MARKETS

he said. This renewed interest in the OTCmar- page 5). Divesting Monistat came soon after ket, he added, had seen Sanofi make a string of Insight had snapped up Johnson & Johnson’s OTC acquisitions including Chattem in the US; e.p.t pregnancy test brand for an undisclosed while Merck & Co and Pfizer had retained the sum (OTC bulletin,17 March 2011, page 3). consumer assets acquired with Schering-Plough Johnson & Johnson had sold the Dramamine and Wyeth respectively. motion-sickness brand to Prestige Brands Hold- According to Rabin, global consumer health ings (OTC bulletin,21 January 2011, page 7), companies were looking to maximise the value and the St. Joseph low-dose aspirin brand to of their consumer assets in a number of ways. Ilex Consumer Products (OTC bulletin,21 Jan- Divesting sub-scale and non-core brands was uary 2011, page 2). one way, he said, as well as unlocking value Meanwhile, regional consolidators – such through acquisitions, and seeking outsourced as Mexico’s Genomma Lab, Sweden’s Meda, solutions. Belgium’s Omega Pharma, and US-based Pres- GlaxoSmithKline was cited by Rabin as an tige Brands – were unlocking value through Joachim Neukam, vice-president of sales at example of a company that was divesting sub- acquisitions, said Rabin. GlaxoSmithKline Consumer Healthcare Europe, scale and non-core brands. The company an- According to Rabin, there was an increas- said the company outsourced non-core brands to obtain the focus needed to optimise the performance nounced in April that it planned to divest non- ed reliance on outsourced solutions in the glo- of those brands core OTCbrands, including the weight-loss bal OTC market. Sales and marketing outsourc- medicine Alli, with combined annual sales of ing operations like the Ceuta International Al- Silderm anti-stretchmark therapy from Silderm, around £0.50 billion (C0.60 billion), or about liance were in the “right place at the right the TheraTears dry-eye remedy from Akorn, a tenth of the sales generated by the Consum- time”, he maintained, adding the “wind is at and the Woohoo! intimate lubricant from Essen- er Healthcare division (OTC bulletin,29 April your backs”. tial Health. 2011, page 1). GlaxoSmithKline Consumer Healthcare, for Burrows also noted private-equity groups Stressing that Consumer Healthcare was a example, outsourced 95 brands in more than and mid-sized companies required the services “key growth driver” for GlaxoSmithKline, chief 65 countries, pointed out Rabin, noting that of a global network of proven brand-building executive officer Andrew Witty said the divi- Advantage Sales and Marketing was the part- partners. He drew attention to the fact that the sion had to be focused around “product cate- ner in North America while Ceuta was the part- Ceuta International Alliance, which now cov- gories, brands and markets” where it had the ner in Europe and the Rest of World. Similar- ered 88 markets around the world, had been most depth and competitive advantage, and ly,Novartis outsourced a number of brands to named as a potential service provider in the which had the best prospects for strong growth. The Emerson Group in the US. document circulated to potential bidders for Witty noted that 90% of the division’s sales “Demand for outsourced sales and market- GlaxoSmithKline’s non-core brands. came from its top global brands and its emerg- ing solutions is likely to explode as the largest “Outsourcing has become a strategic need ing-markets operations. consumer health companies reconfigure their for leading global organisations and smaller portfolios to maximise growth, reduce their innovation companies alike,”Burrows insisted. Nine brands divested by Johnson & Johnson embedded cost structures and pursue merger Joachim Neukam – vice-president of sales Johnson & Johnson was another company and acquisition growth strategies in emerging with GlaxoSmithKline Consumer Healthcare that had gone down this route. Rabin pointed markets,”commented Rabin, adding that “in Europe, which works with Ceuta on some OTC out that the company had divested nine brands industries with well-developed outsourcing re- brands – explained that the company outsourc- to date, including some very well-known names. lationships, the largest multinational companies ed non-core brands to obtain the focus needed The most recent deal saw Insight Pharma- gravitate to larger multinational partners”. to optimise the performance of those brands. ceuticals purchase the Monistat vaginal thrush Burrows echoed Rabin’s view that consol- Outsourcing could also “improve trade channel treatment in the US and Canada for an undis- idation by the leading manufacturers was cre- reach and geographic footprint in areas where closed sum (OTC bulletin,14 September 2011, ating “giant global players with large and com- GlaxoSmithKline chooses not to focus”, Neu- plex portfolios”. “The challenge for these play- kam added. ers,”he said, was to find ways “to maximise the potential of the total brand portfolio”. This A solid reputation in the industry involved optimising the potential of establish- Commenting on GlaxoSmithKline’s out- ed or non-core brands, maintaining focus on de- sourcing requirements, Neukam said a part- fined core brands or territories, cost-effectively ner should have full coverage across all trade accessing speciality trade channels, reaching channels, a successful salesforce with a proven ‘white space’ markets, and managing conflict- track record, a solid reputation within the in- ing brands in a category,he pointed out. dustry,no conflicting competitor brands, exist- He added that smaller innovation companies ing key-customer relationships, good working needed a cost-effective way to launch products relationships and a flexible contract. globally. This was reflected in the centrepiece Neukam also stressed that partners must of the alliance’s annual conference: the show- abide by GlaxoSmithKline’s values. These in- case session, where companies pitched new volved “consumer and patient focus”, “trans- product opportunities to the alliance partners. parency” and “respect and integrity”, he said, New business models are emerging in the global These included the ActiPatch electronic pulse adding the firm’s goal was to “operate within OTC industry, says Peter Burrows, director of international business development for the Ceuta therapy from BioElectronics, the Pharysol anti- a spirit of mutual trust and understanding”. International Alliance viral sore-throat therapy from VitroBio,the OTC

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PEOPLE OTC

IN BRIEF Manufacturers

■ EFSA – the European Food Safety Author- ity – has named Dr Hubert Deluyker as dir- Futura Medical appoints ector of its new Science Strategy and Coordi- nation Directorate. A qualified veterinarian and a specialist in the field of epidemiology,De- Clarke as next chairman luyker joined EFSA in 2004. Prior to his cur- rent role, he was director of EFSA’s former Scientific Cooperation and Assistance Direc- ohn Clarke,former worldwide president John Clarke torate from 2007 to May 2011 and director of Jof GlaxoSmithKline Consumer Healthcare, its Risk Assessment and Scientific Assistance will become non-executive chairman of Futura Directorate from May to October 2011. Medical on 1 February 2012. Clarke will replace Dr William Potter,who ■ TAKEDA has appointed Jostein Davidsen Futura said would continue to play a key role as head of emerging markets at its recently ac- as chief scientific officer. Potter has been exec- quired Nycomed business with immediate ef- utive chairman of the UK-based company since fect. Davidsen has taken on the new position June 2001. in addition to his existing role as area head of Commenting on his new post, Clarke said Nycomed’s Russia/Commonwealth of Inde- he was “particularly impressed by the level of pendent States business. Davidsen will report innovation at Futura, by the commercial poten- to Frank Morich, the recently appointed chief tial of its late-stage products and by the breadth executive officer of Nycomed (OTC bulletin, of its product pipeline”. James Barder,Futura’s chief executive,said 14 October 2011, page 23). Clarke, 62, spent more than 35 years work- Clarke was recognised as an outstanding leader ing for GlaxoSmithKline. He was appointed in the consumer healthcare industry. ■ VA LEANT Pharmaceuticals International worldwide president of GlaxoSmithKline Con- Clarke was replaced at GlaxoSmithKline said Howard Schiller would become execu- sumer Healthcare in 2006, the position from Consumer Healthcare by Emma Walmsley tive vice-president and chief financial officer which he recently stepped down. (OTC bulletin,31 October 2011, page 7), who on 1 December 2011. Schiller,who retired as Futura pointed out that under Clarke’s lead- was recruited from L’Oreal in 2010 as world- chief operating officer of Goldman Sachs’ In- ership, GlaxoSmithKline Consumer Healthcare wide president designate (OTC bulletin,31 vestment Banking Division in January,will became one of the fastest-growing companies March 2010, page 1). take over from Philip Loberg,Valeant’s inter- in the industry,with sales rising by 60% be- Futura has also appointed David Davies,its im chief financial officer. Loberg will remain tween 2006 and 2010 to more than £5 billion product development director,as chief devel- with the company in a different role. (C5.8 billion). opment director. OTC ■ CEUTA Capability Group – the manage- ment expertise outsourcing specialist – has re- Manufacturers cruited Nanette Kerr as an associate. Kerr was previously director of pharmacy for the UK’s Becht to become Coty chairman National Pharmacy Association (NPA). Before that, she was head of professional services de- art Becht,former chief executive officer Commenting on his new role, Becht said velopment at Boots UK. B of Reckitt Benckiser,has been appointed he was proud to be joining “one of the lead- non-executive chairman of global beauty com- ing and fastest-growing beauty companies in ■ CRN – the US Council for Responsible Nut- pany Coty. the world with a fantastic portfolio of well- rition – has appointed Carl Hyland as direc- Peter Harf,who he has replaced as chair- known brands”. tor of membership development. The associa- man, said Becht’s “long-standing experience Bernd Beetz, Coty’s chief executive officer, tion for the dietary supplements industry said at the head of a global consumer-goods com- said he was looking forward to the opportunity Hyland had over 25 years’ experience in busi- pany” would be an “invaluable asset for Coty”. to “tap Becht’s unparalleled expertise”. ness development, sales, marketing and oper- Becht retired as chief executive officer of ations within the dietary supplement, ingre- Bart Becht Reckitt Benckiser on 1 September 2011, but dients and natural foods industries. He most re- will remain as a part-time advisor until Sep- cently worked in media sales at NewsUSA. tember 2012. Explaining his decision to step down, Becht said he felt that after 16 years ■ CRN – the US Council for Responsible Nut- at the head of Reckitt Benckiser it was “now rition – is seeking a new director of communi- the right time to retire” (OTC bulletin,29 cations. The successful candidate will report April 2011, page 8). to the industry association’s senior vice-pres- Under Becht’s leadership, Reckitt Benck- ident of communications. More details on the iser’s sales doubled between 2000 and 2010. position and on how to apply are available from In 2010, the company reported sales up by 9% the website www.crnusa.org. to £8.45 billion (C 9.88 billion). OTC OTC

16 November 2011 OTC bulletin 27