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COMPANY NEWS 3 Procter & Gamble teams Walgreens to acquire 3 drugstore.com Novartis UK plans 3 to move Consumer with Teva in OTC market OTC turnover disappoints 4 at Celesio Germany’s Bionorica 6 rocter & Gamble has signed a ‘master ledge, plus a network of mass-retail partners. pushes into the UK Pagreement’with Teva Pharmaceutical Yanai’s counterpart at Procter & Gamble, Galenica’s Vifor OTC unit 7 Industries to create a consumer healthcare Bob McDonald, pointed out that Teva’s exten- reports gains partnership, including a joint venture that sive portfolio in categories such as allergy,gas- NBTY reports loss 8 will bring together each firm’s OTC port- trointestinal and respiratory would provide a in wake of takeover folio. However, Procter & Gamble will re- pipeline of potential prescription-to-non-pre- Linola and Vagisan lift 9 tain full control of its North American OTC scription switches that could either become new sales at Dr Wolff operations. lines or extensions to Procter & Gamble brands Alliance Pharma poised 10 The joint venture – in which Procter & such as Metamucil, Pepto-Bismol and Vicks. to acquire Anbesol brand Gamble will hold 51% and Teva 49% – will Details of the collaboration are currently be- SEEK to auction 10 combine the two companies’ OTC operations ing finalised. Subject to regulatory approval, the cough-drug rights in all markets outside of North America and two firms expect to close the deal this autumn. will have annual sales of more than US$1 bil- The chief executive officer of the joint ven- GENERAL NEWS 11 lion (C700 million) on formation. ture will be Procter & Gamble’s Briain de Buit- Teva believes it could become a US$4 bil- leir. The joint venture’s chief financial officer Germany’s BfArM reveals 11 plan to compare triptans lion business within a few years. The Israeli will also be recruited from Procter & Gamble, firm will assume global manufacturing respon- but the chief operating officer role will be filled EFSA has plan to 11 be more like EMA sibility for both the joint venture and Procter by a Teva employee. & Gamble’s existing North American business. Expanding on the rationale behind the tie- MARKETING NEWS 13 Shlomo Yanai, Teva’s president and chief up, Yanai said the partnership enabled “two executive officer,insisted the partnership had global leaders” not only to combine their busi- Ratiopharm returns to 13 the “potential to reshape the entire global OTC nesses and research and development portfolios, twin-based advertising market”. Teva would bring the world’s largest but also a set of “complementary capabilities” Manx takes on Cyklo-F 14 portfolio of medicines as well as extensive ex- he believed were “unmatchable in the health- with Femstrual launch pertise in developing, registering and making care industry”. Omega claims Prevalin 15 those drugs in more than 60 markets, he said. Yanai noted the joint venture’s annual sales protects from hayfever Procter & Gamble,on the other hand, would of US$1 billion would include leading market Novartis takes Otriven 16 contribute brand-building and marketing know- ■ Continued on page 11 into the hayfever arena FEATURES 18 French market falters 18 Hornby quits as Alliance Boots’ chief despite ‘free-access’ A look at the 2010 market trends ndy Hornby has stepped down as group sion “in amicable mutual agreement” with the German firms foresee 20 Achief executive of Alliance Boots. firm’s supervisory board. He has been Cele- a price fall Hornby said that he had decided to “take sio’s chief executive officer for 12 years. Findings of a survey of consumers, a few months break” following an “intense last Alliance Boots recruited Hornby two years pharmacists and industry five years as chief executive officer of two maj- ago from UK banking group HBOS, where he REGULARS or companies”. had led the retail division before becoming The news comes soon after rival pan-Euro- chief executive officer. He had previously work- Events – Our regular listing 17 pean retailer and wholesaler Celesio announc- ed at the supermarket chain Asda (OTC bul- People – Celesio recruits Borchert 22 ed that its chairman and chief executive offi- letin, 19 June 2009, page 1). from Douglas retail chain cer,Fritz Oesterle, would retire earlier than The company said it would “undertake an People – Germany’s BAH names 23 expected on 30 June 2011 (OTC bulletin,17 internal and external search for a successor to new replacement for Seidscheck March 2011, page 19). lead the next phase of its international growth Celesio said Oesterle had reached the deci- and development”.

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COMPANY NEWS OTC

WaMergers & Acquisitionslgreens to acquire drugstore.com

S drugstore giant Walgreens is set to ac- more than three million ‘savvy’, loyal online Uquire online retailer drugstore.com in a customers,”Wasson pointed out, “and will allow deal with a total enterprise value of approxi- us to move even closer to our existing custom- mately US$409 million (C322 million). ers through relationships with new vendors and Greg Wasson, Walgreen’s president and chief partners, adding approximately 60,000 products executive officer,said the deal “significantly” to our already strong online offering.” Drugstore.com was ranked the eighth-largest accelerated the firm’s online strategy. Moreover, With sales of more than US$456 million in “e-tailer” in the US by Internet Retailer magazine it complemented the activities of Walgreens’ 2010, drugstore.com was ranked as the eighth- 7,689-strong drugstore chain, and was another largest “e-tailer” in the US by Internet Retailer beauty and skincare websites and add the firm’s step towards the company’s goal of becoming magazine, Walgreens pointed out. “talented team” to Walgreen’s “strong and grow- the “most convenient multi-channel retailer of As a result of the deal, Walgreens will gain ing” e-commerce organisation. health and daily living needs in America”. the drugstore.com website, along with other Drugstore.com stockholders will get US$3.80 “This acquisition offers a unique opportunity websites operated by the firm including Beauty. per share from the deal. Subject to approval by that will provide us with immediate access to com, SkinStore.com and VisionDirect.com. drugstore.com’s stockholders and regulatory Walgreens said it would maintain separate authorities, the deal is expected to close by the branding of drugstore.com’s websites. end of June 2011. OTC bulletin Sona Chawla, Walgreen’s president of e- Meanwhile, Walgreens is set to sell its phar- commerce, said the deal enabled the company macy-benefit management business to Catalyst 31 March 2011 Number 359 to expand its product offering, acquire new cap- Health Solutions in a cash transaction worth abilities through drugstore.com’s well-known US$525 million, subject to certain adjustments. Editor & Publisher: Deborah Wilkes OTC Associate Editors: Aidan Fry Mike Rice Business Strategy Business Strategy/Annual Results Business Editor: Matt Stewart Assistant Editors: Jenna Lawrence Novartis UK plans Germany’s Hevert David Wallace Advertising Controller: Debi Minal to move Consumer looks towards east Marketing Manager: Val Davis ovartis is set to relocate some of its Con- erman homoeopathic specialist Hevert Editorial, Subscription and Advertising Nsumer Health operations in the UK, after G Arzneimittel intends to expand eastwards enquiries should be addressed to: OTC bulletin, OTC Publications Ltd, 54 Creynolds Lane, Solihull, drawing up proposals to reduce activities at as it aims to continue its recent growth trend. West Midlands B90 4ER, UK. its site in Horsham, West Sussex. “We have high hopes of entering Russia Tel: +44 1564 777550. Fax: +44 1564 777524. A spokesperson for Novartis told OTC bul- and selected Commonwealth of Independent E-mail: [email protected]. letin that the proposal envisaged moving the States (CIS) markets with two of our homoeo- Subscriptions Consumer Health operations carried out at Hor- pathic products,”stated the family-owned firm’s Annual subscriptions to OTC bulletin in Europe are £625.00 for single copies and £355.00 for additional copies to the same ad- sham to Frimley in Surrey, where the comp- managing director,Mathias Hevert. dress, including delivery. Subscriptions to addresses outside Eur- any’s Animal Health business and Sandoz gen- To cope with the expected increase in de- ope are subject to an additional charge of £30.00 to cover postage. Subscription enquiries in Korea should be directed to Pharma erics unit are already based. mand, Hevert will this year expand production Koreana Ltd, 14th Floor,KTB Network Building, 826-14 Yeoksam- About 80 Novartis Consumer Health staff capacity at its headquarters in Nussbaum, near dong, Kangnam-gu, Seoul 135-080, Korea (Tel: +82 2 554 9591; Fax: +82 2 563 8289; E-mail: [email protected]). currently work at Horsham, the spokesperson Frankfurt. “While other companies rely on con- Advertising noted, covering a variety of functions, the largest tract manufacturing, we are building strongly Advertising rates and data are available on request from the ad- of which were sales and marketing, research on our identity as a natural remedies producer,” dress above or at www.otc-bulletin.com. About OTC bulletin and development and global manufacturing commented Hevert. OTC bulletin is published 20 times a year by OTC Publications and supply. In its domestic market, the German com- Limited: twice monthly in February,March, April, May,June, Sep- tember,October and November; and monthly in December,Jan- The spokesperson would not comment on pany has just started a television campaign for uary,July and August. A subscription to OTC bulletin includes whether the proposed move would lead to any its homoeopathic anxiety remedy,Calmvalera the weekly electronic newsflash, news@OTCbulletin,which is published around 45 times a year. OTC bulletin is printed by the job losses at Novartis Consumer Health. Hevert. To appeal to its target group of women Warwick Printing Company Limited, Caswell Road, Leamington Explaining the thinking behind the proposed aged over 35 years, Hevert has recruited Ger- Spa CV31 1QD, UK. move,Novartis said it would “strengthen” the man actress Sandra Speichert to appear in 28- No part of this publication may be copied, reproduced, stored in a retrieval system or transmitted in any form without prior company’s “cross-divisional collaboration and second commercials that run during afternoons permission from OTCPublications Ltd. synergies, lead to more talent exchange within on the SAT1 channel. ©OTC Publications Ltd. All rights reserved. Company registered in England No 2765878. Registered Office: Novartis and help recruitment of sales and mar- Last year,Hevert’s range of homoeopathic 54 Creynolds Lane, Solihull, West Midlands B90 4ER, UK. keting professionals”. remedies, herbal medicines and high-dose vita- OTC bulletin® is registered as a trademark in the European The proposals are subject to an employee mins generated sales 12.9% higher at C15.6 Community. consultation and Novartis UK board approval. million, despite a flat domestic OTC market. ISSN 1350–1097 www.OTC-bulletin.com OTC OTC

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OTC COMPANY NEWS OTCAnnual Results turnover disappoints at Celesio

TC sales at Celesio’s Retail Pharmacies part of Brocacef Holdings at the end of Nov- Morris pharmacy franchise model in Italy had Obusiness had been disappointing in 2010, ember through a cooperation deal with fellow produced “very promising” results so far. according to the pan-European wholesaler and wholesaler and retailer Phoenix Pharmahandel The company’s Dutch pharmacies had seen retailer,as the tough economic environment hit (OTC bulletin,30 June 2010, page 5). Mean- their earning power reduced by the government, home in a number of markets. while, 50 stores had been opened in Sweden which had introduced generics tendering in all The “increasingly tense economic situation, during the year,Celesio noted. but name, Celesio said. This had led to a 10.2% particularly in the UK and Ireland”, had directly The Lloydspharmacy chain in the UK ac- sales fall to C156 million in the 11 months be- impacted demand for OTC products, Celesio counted for 62.9% of Retail Pharmacies’ total fore the company’s Dutch pharmacies became noted, leading the company to introduce a num- sales in 2010, with the business benefitting from part of the Brocacef Holdings business. ber of measures during the year to try and boost a “significant rise” in the number of prescrip- Drastic cuts to reimbursement prices and OTC sales. tions handled by its pharmacies. This offset the the impact of the economic recession led to a These measures included expanding its own- impact of cuts in reimbursement prices for ge- fall in sales at the company’s Irish pharmacies, brand range, the company said, and increasing neric medicines. Celesio noted, with the weak economic environ- browsing space for customers in its stores. Total retail sales in the UK increased by ment hitting the OTC sector hard. Turnover in Despite this, OTC sales growth had not met 4.8% – 0.9% in local currencies – to C2.09 bil- Ireland declined by 6.3% to C143 million. expectations, Celesio noted. This was in con- lion in the 12 months (see Figure 2). On a brighter note, the two DocMorris trast to prescription sales, which had “develop- Turnover in Norway grew even quicker,with branded trial stores opening in Dublin and Lim- ed well” in Italy,Norway and the UK, and to sales rising by 10.5% – 1.4% in local currencies erick had developed “extremely well”, Celesio growth in turnover from patient services. – to C514 million as prescription turnover dev- said, noting that all of its Irish pharmacies would Overall, sales at the Retail Pharmacies busi- eloped “extremely well”. OTC sales had fall- be converted into DocMorris stores by 2012. ness grew by 4.5% to C3.32 billion in 2010 (see en short of expectations, Celesio noted, but were The financial crisis had also hit turnover at Figure 1). However, the bulk of the gain came consistent with the general development of the the company’s Belgian pharmacies, where sales from positive currency effects. The rise in local Norwegian market. edged up by just 0.6% to C137 million, as high- currencies was a more modest 0.6%. Italian pharmacies had reported growth in er fees meant patients made fewer doctor visits. As of 31 December 2010, Retail Pharmacies both the prescription and non-prescription parts On a positive note, turnover from OTC products was operating 2,276 stores, 20 down from the of their business, Celesio said, helping to lift had risen slightly,Celesio said. same time a year earlier. The slight fall was due turnover by 2.1% to C209 million. The company Price cuts by the government were blamed to the business’ Dutch pharmacies becoming added that a pilot scheme to test the Doc- for a reduction in prescription sales at the com- pany’s Czech pharmacies, which led to overall Business Annual sales Change 2009/2010 (%) sales dropping by 1.8% – 6.0% in local curren- (E millions) E Local currencies cies – to C54.2 million. In contrast to prescrip- Retail Pharmacies 3,323 +4.5 +0.6 tion sales, non-prescription turnover performed Mail-order Pharmacies 291 +13.4 +13.3 well as a result of increased marketing activities. Other Business Areas 4-11.5 -11.5 Meanwhile, Celesio established itself in the Patient and Consumer Solutions 3,618 +5.1 +1.5 newly-liberalised Swedish pharmacy market Pharmacy Solutions 19,020 +8.4 +6.2 by opening 50 DocMorris Apotek stores during Other 639 ––2010. This was half-way to its medium-term target of a Swedish chain of more than 100 Total Celesio 23,278 +8.3 5.8 pharmacies, the company noted. Figure 1: Celesio’s sales in 2010 broken down by business (Source – Celesio) The fledgling Swedish pharmacy chain con- tributed C21.6 million to Retail Pharmacies’ CountryAnnual sales Change 2009/2010 (%) Number of sales during the year,Celesio said, and had al- (E millions) C Local currencies pharmacies ready become “well established with patients UK 2,089 +4.8 +0.9 1,657 and consumers”. Norway 514 +10.5 +1.4 176 Establishing the Swedish chain had a neg- ative effect on Retail Pharmacies’ earnings be- Italy 209 +2.1 +2.1 162 fore interest, tax, depreciation and amortisation Netherlands 156 -10.2 -10.2 64 (EBITDA), which slipped backed by 0.6%. In Ireland 143 -6.3 -6.3 72 local currencies, the fall was 4.1% to C305 mil- Belgium 137 +0.6 +0.6 110 lion (see Figure 3). Czech Republic 54 -1.8 -6.0 49 Government measures in a number of mar- Sweden* 22 >100.0 >100.0 50 kets had also squeezed earnings, Celesio said, Total 3,323 +4.5 +0.6 2,340** along with the expenses related to setting up DocMorris Apotek chain in Sweden. * Since February 2010 ** Including Celesio’s Dutch pharmacies, which were divested at the end of November 2010 Retail Pharmacies forms the largest part of Figure 2: Celesio’s Retail Pharmacies’ sales in 2010 and number of branches on 31 December (Source – Celesio) Celesio’s Patient and Consumer Solutions di-

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COMPANY NEWS OTC

vision, ahead of the Mail-order Pharmacies Business Annual EBITDAChange 2009/2010 business and Other Business Areas segment. (E millions) C Local currencies Celesio noted that as of 1 January 2011 it had changed its reporting structure, with the Retail Pharmacies 304.7 -0.6 -4.1 Patient and Consumer Solutions division now Mail-order Pharmacies 12.8 >100.0 >100.0 consisting of two units – Pharmacies and Other Other Business Areas -0.8 +71.2 +71.2 business areas. Patient and Consumer Solutions 316.7 +5.5 +2.0 The Pharmacies unit covers retail pharma- Pharmacy Solutions 456.1 +19.3 +16.0 cies, franchise operations and mail-order oper- Other -73.6 –– ations in the UK and Norway,while the Other business areas unit reports the company’s in- Total Celesio 699.2 +11.4 +7.7 vestment in Brocacef Holdings. Figure 3: Celesio’s earnings before interest, tax, depreciation and amortisation (EBITDA) in 2010 broken down The DocMorris mail-order business in Ger- by business (Source – Celesio) many has become part of the Medco Celesio joint venture (OTC bulletin,30 June 2010, in the areas of product range, marketing and going chairman of Celesio’s management board page 5), which will be reported in the Manu- service”, the company maintained. (see front page), said that the division would facturer Solutions division. Celesio admitted last year that a C71 mil- look to expand its activities in what he describ- Celesio’s mail-order operations enjoyed a lion loss of goodwill at its DocMorris franchise ed as the more profitable “secondary healthcare positive 2010, with sales growing by 13.4% business had been due to operating failures market” where patients and consumers paid for – 13.3% in local currencies – to C291 million. (OTC bulletin,31 March 2010, page 4). It had healthcare “out of their own pocket”. The increase was driven by the growth of the intended to sign up 500 pharmacies to the vir- In this market, purchase decisions were Apotheke DocMorris business in Germany, tual pharmacy chain by 2011, but this would aligned to strong trade and product brands, where sales of both prescription and OTC prod- now not happen until 2015 at the earliest. Oesterle continued, which was why the com- ucts improved during the year. As of 31 December 2010, 159 German phar- pany was in the process of rebranding all of its The smaller Lloydspharmacy mail-order macies had signed up as brand partners, an in- non-UK pharmacies as DocMorris stores (OTC business in the UK was developing at a “sat- crease of 152 from a year earlier,Celesio said, bulletin,30 November 2010, page 6). isfactory rate”, Celesio said, while the Vitus- adding that where possible it was looking to in- This would give the company two recog- apotek mail-order operation in Norway was troduce the DocMorris brand franchise scheme nisable pharmacy brands, Lloydspharmacy in still in the start-up phase. into other European countries. the UK and DocMorris in the rest of Europe, In the Other Business Areas segment – Total 2010 sales at Celesio’s Patient and Oesterle pointed out, noting that the transition where 2010 sales fell by 11.5% to C4.3 million Consumer Solutions division grew by 5.1% would keep the company occupied for “some – Celesio said it had started to roll-out the “im- – 1.5% in local currencies – to C3.62 billion. years to come”. However, the rebranding exer- proved version” of its DocMorris franchise EBITDA advanced by 5.5% to C317 million. In cise would “create the foundation” for the fu- business in Germany. The new version offer- local currencies, the EBITDA gain was 2.0%. ture success of Celesio’s pharmacies business, ed a “redesigned, significantly wider offering Commenting on this, Fritz Oesterle, out- he added. OTC

Annual Results Nepstar benefits from shift in focus hina Nepstar’s turnover grew by 6.3% to C CNY2.36 billion (C255 million) in 2010, as the Chinese drugstore chain moved into the convenience sector to offset the negative im- pact of government policies. The company said its “product and market- ing innovations” had appealed to customers and had driven higher spending per visit. This had created a steady sales flow, Nepstar point- ed out, enabling the company to withstand the difficult trading environment. Sales of OTC drugs generated 36.8% of Nepstar’s turnover in 2010, while prescription drugs accounted for a further 21.4%. Nutri- tional products contributed 19.2%, herbal prod- ucts 3.7% and other products the remaining 18.9% of sales. OTC

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OTC COMPANY NEWS

Business Strategy/Annual Results Germany’s Bionorica pushes into the UK

erbal medicines specialist Bionorica has herbal medicines” to team up with the College of just 1.5% in the overall OTC market, and a H entered the UK market by introducing four of Medicine to provide online training modules. 3.3% decline in sales of herbal medicines. products, and the German company is preparing The German company, which has a presence Bionorica said it had benefitted from intro- to enter other markets in the European Union. in 49 countries, said it had become market lead- ducing the Allergopret Protect allergy remedy In the UK, Bionorica has launched four tradi- er for herbal medicines in Belarus,Russia and and the Allunapret sleeping aid in Germany tional herbal medicines. Cyclopret is an agnus Uzbekistan. In Poland – where Bionorica set up last year (OTC bulletin,30 July 2010, page 22). castus product for relieving premenstrual symp- an operation two years ago – the company said Furthermore, “the first three-dimensional toms that is currently the subject of trials at the it was outperforming the local market. seal of originality in the German OTC market” Royal London Hospital. Group turnover advanced by 6.2% to C149 had strengthened Bionorica’s brand identity. Cystipret tablets are for urinary tract infec- million last year,driven by the herbal respira- “Even more consumers are turning to the com- tions such as cystitis and contain a combination tory medicine Sinupret and the Canephron treat- bination of natural wellness and proven qual- of centuary,lovage root and rosemary. ment for urinary tract infections. ity,” commented managing director Professor Containing black cohosh root extract, Meno- Bionorica said its volume share of Germany’s Michael Popp. pret tablets are for relieving symptoms of the herbal medicines market had reached 10.4%. Bionorica is currently testing in selected Ger- menopause such as hot flushes; while the Neu- This was achieved in large part by selling 8.2 man pharmacies its ‘Phytothek’ store-in-store ropret anxiety remedy is based on St John’s wort. million packs of Sinupret, which captured an concept. Phytothek is a dedicated area of a phar- All four traditional medicines are available 18.3% value share of Germany’s OTC cold rem- macy in which herbal medicines are exclusively from larger Boots stores,certain independent edies market, according to IMS Health data. presented by indication. pharmacies and health food shops. Recom- Quoting Insight Health data for sales into “The goal is to make Germany’s many users mended retail prices for 30-tablet packs range pharmacies, the company said it had increased of herbal remedies aware that high-quality phy- between £8.25 (C9.39) and £14.99. Bionorica its domestic turnover by 5.7% last year. This topharmaceuticals and expert advice are avail- said it would become “the first UK brand of performance compared favourably with growth able solely from pharmacies,”explained Popp. OTC

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COMPANY NEWS OTC

Business Strategy/Annual Results Galenica’s Vifor OTC unit reports gains

etter sales both in Switzerland and inter- ProductAnnual sales Change Bnational markets pushed forward turnover (SFr millions) (%) in 2010 at Galenica’s Vifor Pharma Consumer Healthcare division by 2.0% to SFr110 million Perskindol 16.4 +20.9 (C85.6 million). Equazen eye q13.9 -9.3 Consumer Healthcare’s sales in Switzerland Algifor 11.2 +7.1 had increased by 1.9% to SFr81.4 million, Gal- Triofan 9.4 -3.2 enica pointed out, adding this was much quick- Otalgan 5.1 +14.9 er than the overall Swiss consumer healthcare Antibrumm 5.0 +60.1 market, which had dropped back by 2.0%. Other brands 49.0 – Specific marketing campaigns had contri- buted to the growth, the Swiss company noted, Total 110.0 +2.0 along with various line extensions, including three additions to its leading Perskindol topi- Figure 1: Sales in 2010 by Galenica’s Vifor Pharma Consumer Healthcare business (Source – Galenica) cal pain-relief and joint-care brand. A new ‘sports spray’ will be added to the Perskindol Export sales of SFr28.6 million, represent- 2010 (see Figure 1). The company noted the range in 2011 ed a 2.1% rise compared to the prior year,de- brand had also been expanded in Switzerland spite unfavourable currency effects, Galenica in the second half of 2010 with the Perskindol to SFr5.1 million, the company continued, while said. Excluding currency effects, export turnover Actiflex joint-care food supplement and the Per- the Algifor analgesics brand had posted turnover had grown by 7.5%. skindol Dolo Hot Patch. up by 7.1% to SFr11.2 million. The Triofen al- The rise in export sales had been driven by A liquid form of Consumer Healthcare’s lergy and cold brand,however,had reported double-digit growth from the Equazen eye q Equazen IQ product had been “successfully” sales down by 3.2% to SFr9.4 million. line, the Otalgan earcare product and Perskin- launched in Switzerland during 2010, the com- Outside of the top six, the Revalid N hair dol, the company added, noting that Consumer pany said, but it had not been enough to pre- care range had been relaunched in 2010, Gal- Healthcare’s products were now available on vent a 9.3% fall in the brand’s total sales to enica pointed out, as a “fortifying and restor- six continents. SFr13.9 million. ing product line for hair”, which included am- Although international sales had risen, the poules, capsules and a shampoo. difficult economic situation in the UK had led Equazen line extension Looking forward, Perskindol would be ex- the Consumer Healthcare division to restructure Equazen had already been expanded further panded further in 2011, Galenica said, with the its Potters OTC business and employ Ceuta this year,Galenica pointed out, with the Equ- launch of a “sports spray for warming up mus- Healthcare to handle the UK subsidiary’s sales azen IQ Mum line extension for pregnant and cles with crackling effect”, while the Equazen and marketing operations. breast-feeding women entering the Swiss mar- range would be launched in Portugal, Russia Turning to Consumer Healthcare’s six big- ket in January. and the Slovak Republic. The Algifor ibupro- gest-selling OTC brands, Galenica said sales of Meanwhile, Antibrumm insect repellents had fen range is also set to be strengthened, with the Perskindol Active Patch launched in March posted 2010 sales up by 60.1% to SFr5.0 mil- the launch of an Algifor Dolo Junior product last year (OTC bulletin,31 March 2010, page lion, as they benefitted from the launch of a pro- suitable for babies. 7) had been strong, helping to lift the brand’s duct designed for tick bites, Galenica said. Vifor Pharma Consumer Healthcare generat- total sales by over a fifth to SFr16.4 million in Otalgan had delivered a 14.9% rise in sales ed 19% of sales at Galenica’s Pharma unit, which were up by 30.1% to SFr579 million. On a con- stant-currency basis, the rise was 34.3%. Annual Results Galenica’s total group turnover in 2010 in- creased by 6.6% to SFr3.10 billion. Turnover at Boiron posts drop in operating income the dominant Logistics division fell by 2.3% to SFr2.02 billion, while acquiring the Sun Store rench homoeopathy specialist Boiron said (OTC bulletin,11 February 2011, page 13). pharmacy chain and other pharmacy businesses F its operating income had declined by 26.3% A 7.0% drop in the fourth quarter of the pushed up Retail sales by 30.1% to SFr1.02 in 2010, as the company faced a difficult com- year,coupled with a 1.1% setback in the open- billion. Adjusted earnings before interest, tax, parison with 2009 when its earnings had been ing three months, had been enough to wipe out depreciation and amortisation (EBITDA) ad- boosted by the H1N1 swine flu outbreak. the 1.3% and 4.0% gains made in the second vanced by 11.3% to SFr445 million. Operating income dropped to C66.7 million and third quarters respectively. Meanwhile, David Ebsworth, Vifor Pharma’s in the 12 months, Boiron noted, compared to Turnover of non-proprietary homoeopathic chief executive officer,will step up to chief ex- C90.4 million in 2009. However, in compari- medicines had slipped back by 1.9% to C267 ecutive officer of the Galenica Group on 1 Jan- son to 2008, operating income had increased million over the 12 months, Boiron said, while uary 2012. Ebsworth will take over from Eti- by 13.9%, the company pointed out. turnover from OTC specialities had declined enne Jornod, who will become full-time exec- The fall in operating income followed a by 0.2% to C252 million. utive chairman of Galenica’s board of directors. 1.1% decline in 2010 sales to C520 million OTC OTC

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OTC COMPANY NEWS

First-Quarter Results NBTY reports loss in wake of takeover

erger expenses and inventory write-downs allocation of shelf space among its brands to by online sales, NBTY said, noting that cata- Mled NBTY to report an operating loss of provide the best overall product mix. logue sales had also increased. Online sales ac- US$38.8 million (C27.5 million) in the com- Negative exchange-rate effects were blam- counted for 52% of turnover, the company said, pany’s first quarter ended 31 December 2010, ed for the drop in sales at the European Retail up from 49% in the same quarter a year earlier. as it returned to life under private ownership. business, which posted turnover down by 3% to Operating income fell by 9.1% to US$14.9 Private-equity company The Carlyle Group’s US$172 million. In local currency terms, net million, due primarily to higher advertising and US$3.8 billion acquisition of NBTY at the start sales had increased by 0.8%, NBTY said, while amortisation costs. of October (OTC bulletin,15 October 2010, same-store sales fell by less than one percent. Opening a number of new Vitamin World page 2) and the associated costs added US$38.8 A 17.6% drop in operating income to US$28.5 stores boosted turnover at the North American million to the US-based supplements manufac- million was blamed on lower gross profits. Retail division, with sales rising by 4.0% to turer and retailer’s corporate expenses for the As of 31 December 2010, the European Re- US$53.5 million. Same-store sales improved by three months. tail business unit was operating 1,071 stores, of 1.9%. However, increased advertising and amor- This had been compounded by a US$122 which 1,048 were company-owned and a fur- tisation costs had caused a 9.5% drop in oper- million loss on the goodwill valuation of ac- ther 23 were franchise stores. ating profit to US$1.88 million, NBTY said. quired inventory,NBTY said, which had been At the Direct Response/E-Commerce divi- As of 31 December 2010, North American sold during the quarter. sion, net sales grew by 14.3% to US$60.1 mil- Retail was operating 457 Vitamin World stores Sales also declined, falling back by 1.2% to lion. The majority of the rise had been driven in the US and 81 Le Naturiste outlets in Canada. US$742 million (see Figure 1), as turnover at the company’s two biggest divisions dropped. Business First-quarterChange Operating profit Change Wholesale/US Nutrition’s turnover slipped sales (US$ millions) (%) (US$ millions) (%) back by 3.0% to US$457 million, which NBTY Wholesale/US Nutrition 457 -3 94 +9 blamed on lower sales of private-label products caused by a “highly competitive environment” European Retail 172 -3 29 -18 in the private-label market. This decline had Direct Response/E-Commerce 60 +14 15 -9 been partially offset, the firm noted, by better North American Retail 54 +4 2-10 sales of sports nutrition brands, such as World- Corporate/Others ––-178 – wide Sport Nutrition, Pure Protein and Met-Rx. Total NBTY 742 -1.2 -39 – NBTY said it was responding to “changing market conditions” by continuing to adjust the Figure 1: NBTY’s sales and pre-tax profit in the firm’s first quarter ended 31 December 2010 (Source – NBTY) OTC

Business Strategy Annual Results Boehringer signs Avicenna makes plans as sales rise

vicenna said that enhancing member ser- sumers, which was successfully trialled last Young & Rubicam A vices, acquiring pharmacies and expand- year,would also be made available to all mem- ing its brand portfolio would all play a part in bers, Avicenna said. Furthermore, the comp- oehringer Ingelheim has awarded global growing the UK-based virtual pharmacy chain any was looking into acquiring pharmacies, Badvertising accounts for its Bisolvon and in the coming years, as it reported a double- and was carrying out due diligence on a few Mucosolvan cough remedies – as well as for digit rise in 2010 sales. opportunities, it pointed out. its Buscopan gastrointestinal brand – to the Turnover had grown by 22% to £10.0 mil- Explaining the move,the company said ac- Young & Rubicam communications agency lion in 2010, Avicenna said, while pre-tax prof- quiring its own pharmacies would not only following a recent pitch. its had jumped from £0.8 million (C0.9 million) boost sales, but also enable it to test services to £1.8 million. Avicenna claimed that with over before rolling them out. Germany will take the lead 1,000 members it now represented a quarter However, Avicenna warned that any acqui- Young & Rubicam Frankfurt will take the of all independent pharmacies in the UK. sition would be made on a purely commercial lead role on the accounts, supported by Milan’s basis, and that pharmacies with low turnover Red Cell business. “Work in Europe, Asia and Expanding member services would not be considered. Latin America will get underway shortly,” the Looking ahead, the company said that it Expanding the company’s small portfolio agency stated. planned to roll out a number of member ser- of brands was also on the agenda, Avicenna “We will unleash the full power of our net- vices during 2011. These included a smoking- stated, adding that it was currently evaluating work to expand these important brands around cessation project in collaboration with McNeil potential brand acquisitions. the world,”promised David Sable, global chief Products and a new back office support func- The company owns the Balmosa topical pain executive officer of Young & Rubicam. tion called Ace+. reliever and the Moltex ecological nappy range. OTC A fall-prevention programme for older con- OTC

8 OTC bulletin 31 March 2011 OTC31-03-11p8-9FIN.qxd 30/3/11 12:43 Page 3

COMPANY NEWS OTC

Annual Results Linola and Vagisan lift sales at Dr Wolff

ouble-digit growth from its Linola med- more than a tenth of its turnover in research Product Annual sales Change Dicated skincare and Vagisan feminine care and development. (C millions) (%) ranges helped Germany’s Dr Wolff group to in- Turnover growth of 7% to C121 million by crease its pharmaceutical sales by 14% to C61 the Dr Kurt Wolff cosmetics division included Cosmetics 121 +7 million in 2010. C47 million from the Alpecin shampoo range Linola 31 +19 Including sales of cosmetic products,group that the company is currently rolling out in the Other dermatology 10 – turnover rose by a tenth to C181 million in the UK. The professional haircare line Alcina con- Gynaecology 16 +18 12 months (see Figure 1). tributed C34 million. Others4– Dr Wolff said its Linola range of dry-skin Dr Wolff said that strong sales in the Baltic Pharmaceuticals 61 +14 treatments had “picked up speed” with 19% States, the Czech Republic and Hungary – as Total Dr Wolff 181 +10 sales growth to C31 million. “Unlike its com- well as securing new partners in Qatar,Por- petitors, the line is growing dynamically and tugal and South Africa – had increased its ex- Figure 1: Breakdown by division and product type of Dr Wolff’s turnover in 2010 (Source – Dr Wolff) winning market share,”the firm commented. port turnover by 8% to around C20 million, or The Linola Gesicht variant for dry facial 11% of total group sales. “Bureaucratic setbacks Dr Wolff is supporting Acne Attack with skin had become market leader,the German in Italy and the UK held back our advance,”the television advertising on channels including company said, as had the Linola Hautmilch German company noted. RTL and SAT1, as well as through a campaign body milk. The core Linola Fett product reg- For 2011, managing director Eduard Dörren- in women’s magazines such as Brigitte, Bunte istered sales of C22 million, contributing just berg expects 5% group sales growth to about and Freundin. Packs of the oil-free cream – over half of Dr Wolff’s total dermatology turn- C190 million. A key growth driver, he forecast- which is available from pharmacies and select- over of C41 million. ed, would be the recently-launched Acne Attack, ed drugstores with a recommended retail price A 37% rise in sales of the hormone-free lub- which was the “first medical device that inhibits of C11.95 – carry the strapline “Raus aus der ricant Vagisan Feuchtcreme raised total gynae- bacteria developing on the skin” in Germany. Pickelspirale”, or “Escape the spot spiral”. cology turnover by 18% to C16 million. “We OTC see more potential for this product, as we are just starting to educate women of its benefits,” Dr Wolff pointed out. A proof-of-concept study for an anti-inflam- matory peptide as a treatment for ulcerative col- itis is scheduled to start in the second half of this year. Initial in vitro and in vivo work on an anti- inflammatory skincare compound that Dr Wolff had licensed from university partners was “very promising”, added the company, which invested

Annual Results Reliv International hit by sales decline

utritional supplement and direct-sales spe- Ncialist Reliv International said turnover had declined by 7.8% to US$78.7 million (C55.7 million) in 2010, as US sales were hit by the impact of the recession. The US-based firm said domestic sales had dropped by a tenth over the 12 months, due to the “lingering impact of the recession”. In contrast to the company’s domestic per- formance, international sales had increased by 14.4% in 2010, Reliv pointed out. Reliv’s operating income for 2010 dropped by 23.6% to US$2.91 million. OTC

31 March 2011 OTC bulletin 9 OTC31-03-11p10-11FIN.qxd 31/3/11 07:14 Page 2

OTC COMPANY NEWS

Mergers & Acquisitions Regulatory Affairs Alliance Pharma poised FDA reverses to acquire Anbesol brand on PPIs in US

lliance Pharma is set to acquire the UK he Food and Drug Administration (FDA) Aand Irish rights to Reckitt Benckiser’s An- T in the US has decided that labelling for besol and Ashton & Parsons mouth-pain relief OTCproton-pump inhibitors (PPIs) does not brands for £2.55 million (C2.90 million) in cash. have to warn users about a possible increas- Used to treat mouth ulcers, teething pains ed risk of fractures. and denture irritations, Anbesol generated sales Last year,the regulatory agency issued a of £1.3 million in 2010, Alliance Pharma said, Drug Safety Communication on PPIs citing a while Ashton & Parsons, which is used in in- possible increased risk of fractures of the hip, fants to relieve pain and stomach upsets caus- wrist and spine with their use. It said labelling ed by teething, posted sales of £0.8 million. for both prescription and non-prescription med- However, Ashton & Parsons’ sales had been icines containing PPIs should be changed to re- Alliance Pharma pointed out that the Anbesol brand “somewhat lower than normal” in the past few had sales of £1.3 million in 2010 flect the new safety information (OTC bulletin, months due to certain production problems, 31 May 2010, page 1). Alliance Pharma pointed out, a situation the the European Commission for its £2.54 billion Following a thorough review of the avail- company would be seeking to resolve. acquisition of SSL International last year (OTC able safety data, the FDA has now concluded Based on the contribution of Anbesol alone, bulletin,15 October 2010, page 3). The sale of that the fracture risk with short-term use of low- the proposed acquisition would be earnings en- the two brands to Alliance Pharma is conditional dose PPIs is “unlikely”. The available data show hancing in the current financial year,the com- on the approval of the European Commission. that patients at highest risk of fractures receiv- pany noted, adding that the gross margin rates Alliance Pharma generated sales up by 60% ed high doses of prescription PPIs and/or used of both brands were in line with the company’s to £49.9 million in 2010 from a portfolio of a PPI for one year or more. existing portfolio. products focused on dermatology,nutrition and The FDA acknowledged that OTCPPIs, Reckitt Benckiser agreed to sell Anbesol oncology. Operating profit grew even faster,ris- such as Procter & Gamble’s Prilosec OTCand and Ashton & Parsons to gain approval from ing by 66% to £18.7 million. Novartis Consumer Health’s Prevacid 24HR, OTC were marketed at low doses and were only in- tended for a 14-day course of treatment up to Business Opportunities three times a year. SEEK to auction cough-drug rights OTC Business Strategy he joint venture formed by UK-based drug- set” and would be the “first new treatment for Tdiscovery firm SEEK and speciality phar- cough in over 50 years”. Sinclair expands maceutical company Pernix Therapeutics has Furthermore, the drug had “substantial pot- put the rights to its theobromine cough suppres- ential” as a prescription medicine, Scheske in- sant up for auction. sisted, and might also become “one of the most in Indian market Administered by JP Morgan, the auction significant global OTC switch opportunities for would be for global commercialisation rights a long time”. inclair Pharma is set to grow its presence to theobromine, excluding Korea, SEEK said, “Given the prevalence of the condition and S in India after signing up biopharmaceutical adding the decision to hold the auction had the need for a non-opioid, non-codeine cough company Invida Holdings Private to commer- been taken due to the interest shown within product,theobromine will be an important new cialise its dermatology and wound-care ranges the pharmaceutical industry for the drug. treatment option for physicians and patients,” in the country. A “first-in-class” antitussive drug candi- he commented. The deal expands on the UK-based firm’s date in late-stage development, theobromine SEEK’s portfolio of potential consumer existing agreement with Invida, which currently addressed the “significant need” for a non- healthcare products also includes a small-mol- covers 11 markets in the Asia-Pacific region. opioid, non-codeine treatment for persistent ecule drug for inflammatory flare which has Initially,Invida would focus on launching cough, SEEK claimed. a clinically-proven analgesic safety profile and Sinclair’s atopic dermatitis, seborrhoeic der- In South Korea, theobromine had already is entering Phase III trials (OTC bulletin,15 matitis and acne products, the firm said, adding shown efficacy and non-inferiority versus co- October 2010, page 1). that Invida would be supported by Sinclair’s deine in a phase III study,the company point- Scheske insisted SEEK’s consumer health- own locally-based regional business director. ed out, adding that a marketing authorisation care unit was “uniquely positioned” to bring Meanwhile, Sinclair reported sales up by had been granted to local firm Ahngook. breakthrough products to the two largest con- 28% to £14.1 million (C16.0 million) in the six Manfred Scheske, chief executive officer of sumer health markets “which have not seen months ended 31 December 2010. In constant- the SEEK/Pernix joint venture, said the com- substantial innovation in decades”. currency terms, the rise was 37%. pany believed theobromine was a “low-risk as- OTC OTC

10 OTC bulletin 31 March 2011 OTC31-03-11p10-11FIN.qxd 31/3/11 07:14 Page 3

GENERAL NEWS OTC

Regulatory Affairs Switches EFSA has plan to Germany’s BfArM reveals be more like EMA plan to compare triptans mproved efficiency and a better service to I applicants should be the outcome of the Euro- ermany’s federal institute for drugs and triptan to avoid liver and kidney problems. pean Food Safety Authority’s (EFSA’s) e3 pro- Gmedical devices, BfArM, is to conduct a Having agreed that it lacked the data to as- gramme, intended to prepare the agency for comparative analysis of all triptans after the sess the safety profile of rizatriptan, the com- introducing application fees. country’s Expert Committee for Prescription vot- mittee asked BfArM to compare the efficacy “We are making these changes to provide ed earlier this year to postpone a decision on and side-effect profile of triptans before mak- a service similar to the one given in other Euro- whether rizatriptan could be safely sold with- ing any switch recommendations for migraine pean agencies such as the European Medicines out a prescription. treatments. Agency (EMA),”EFSA’s executive director Documents just released by BfArM show the Naratriptan was switched to non-prescrip- Catherine Geslain-Lanéelle said when pre- expert committee was unhappy with the level of tion status in Germany over four years ago. The senting the changes to EFSA’s management evidence supplied with an application to switch move was in part on the grounds that it had the board earlier this month. rizatriptan, the active ingredient in Merck, Sharp weakest efficacy of all triptans, so patients that Starting on 1 May 2011, the changes should & Dohme’s Maxalt migraine treatment (OTC found it ineffective would seek advice from a be fully implemented by the end of this year. bulletin,21 January 2011, page 15). doctor (OTC bulletin,14 April 2006, page 15). Most apparent to users will be a new applica- One committee member could not under- Almotriptan and sumatriptan have also been tion desk within the directorate responsible for stand why the applicant had sought to switch proposed for a switch to non-prescription sta- the scientific evaluation of regulated products. a 10mg form of rizatriptan to non-prescription tus in Germany, but the reclassifications have Not only would this new unit strengthen status while the 5mg version would remain pre- been held up by legal concerns about labelling client focus and prepare EFSA for a fee-bas- scription-only. A representative of BfArM in- raised by BfArM. ed system, Geslain-Lanéelle said, it would also sisted on the need to reduce the dose of riza- OTC provide a help-desk service to applicants. Inter- nal processes would benefit from better co-ordi- nation and streamlining, she added. Welcoming the changes, the Association of the European Self-Medication Industry,the AESGP,said they were in line with its own rec- ommendations on how the agency should deal with its applicants. Geslain-Lanéelle said EFSA aimed at pro- cessing between 700 and 1,000 applications a year while maintaining its ability to deliver general scientific opinions on major public health risks. OTC

Strategic Alliances Procter & Gamble teams with Teva

■ Continued from front page positions in Brazil, Germany, India and Russia. In Russia, where OTC products were sold in pharmacies, Teva’s relationship with phar- macy had made it a leading OTC player,Yanai pointed out, enabling it to market Procter & Gamble’s product portfolio in the country. Meanwhile in Brazil and India, Procter & Gamble had established strong brand recog- nition and consumer loyalty,Yanai said, which could be used to boost Teva’s presence. OTC

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MARKETING NEWS OTC RatiopharmMarketing Campaigns returns to twin-based advertising

atiopharm has returned to German televi- Rsion screens with an umbrella campaign that once again uses pairs of twins to convey the equivalence of its generic OTC products to branded versions. From 28 March, an initial commercial foc- uses on the company’s broad range of head- ache treatments. The campaign created by Stutt- gart’s Die Crew agency will cover other indica- tions in future. Advertising featuring twins helped to make

MSD Consumer Care has relaunched its Diprobase Ratiopharm into Germany’s most widely-recog- range of emollients in the UK with new packaging. nised pharmaceutical brand. However, after Phil- The company described the colour-coded designs ipp Merckle replaced Claudio Albrecht as the – blue for the bath formulation, yellow for the cream, generics specialist’s managing director,Ratio- and green for the ointment – as “patient-friendly A pair of female twins star in Ratiopharm’s new packaging”. It stressed that the product formulations pharm abandoned the twins in favour of a cor- television commercial in Germany remained the same. porate responsibility message under the “World Advertising in the pharmacy press (pictured above) points out that “The UK’s No.1 emollient has in Balance” strapline (OTC bulletin,15 June the “Gute Preise. Gute Besserung” – or “Good a brand new look”. 2007, page 3). prices. Good recovery” – slogan, but also the MSD Consumer Care is also supporting Diprobase Dr Sven Dethlefs – who has headed Ratio- familiar message that “Dafür gibt’s doch Ratio- with a website for people with eczema at www.EczemaZones.co.uk. Zones within the website pharm since its C3.63 billion takeover by Israeli pharm” or “For that, there’s Ratiopharm”. provide information for different types of eczema generics firm Teva last year (OTC bulletin,13 The twins appear after a series of other peo- sufferer. The Eczema Jungle is aimed at children August 2010, page 3) – said twins spoke to ple explain how Ratiopharm helps them deal under five years of age, the Eczema Robots section provides information for the under 12s, the Confident the German public on an emotional level. “Their with their headaches. Living zone gives support for adults with eczema, and identification with Ratiopharm is high, because All the characters are presented sitting in a the Happy Days area is for parents and carers. who doesn’t know the slogan of Germany’s best- revolving ball chair. “The soft interior of the OTC known medicines brand – Gute Preise. Gute ball chair symbolises wellbeing and security,” Besserung,”commented Dethlefs. Ratiopharm explained, adding: “The chair’s Line Extensions During the current 24-second headache com- hard exterior denotes a defence against pain, mercial, a pair of female twins deliver not only stress and illness.” Dolormin expands OTC

with ibuprofen gel Launches cNeil has expanded its ibuprofen-based Magnesium Diasporal M Dolormin analgesic brand in Germany with a topical gel for reducing pain and swell- arrives in Switzerland ing around joints. Dolormin Mobil Gel contains 5% ibupro- oetsch Grether has introduced Magnesium fen and is indicated for adults and children aged DDiasporal in Switzerland as the local mar- from 14 years. keting partner for Germany’s Protina. A 50g tube of the pharmacy-only gel – man- Sanofi-Aventis has expanded its Bronchoforton Launch trade-press advertising created by ufactured by Bonn-based Dolorgiet – has a re- respiratory brand in Germany by launching lozenges the Schmittgall agency uses the headline “Leis- containing 26mg of dried ivy-leaf extract. commended retail price of C6.96, while a 100g Current trade-press advertising (pictured above) tung, die ankommt”, which translates as “Per- pack retails at C12.65. claims that the line extension is Germany’s “first formance that delivers”. It also highlights that McNeil markets a wide range of Dolormin herbal lozenge based on ivy”. It also points out that the 300mg sachets deliver 12.4 millimoles of the two-a-day, blackcurrant-flavoured lozenges are tablets for various indications and target groups, ideal for relieving catarrh whilst travelling. magnesium. as well as granules and a liquid. Naproxen tab- A pack of 20 pharmacy-only lozenges has a Doetsch Grether already has a presence in lets for joint pain are available under the brand recommended retail selling price of C6.32. Switzerland’s magnesium market through its The Bronchoforton brand, which Sanofi-Aventis name Dolormin GS. The brand had previously markets under its Winthrop label, also includes Activ Magnesium effervescent tablets and sol- also included a 2.5% ketoprofen topical gel. capsules, ointments, an instant tea and a vaporiser. uble granule sachets. OTC OTC OTC

31 March 2011 OTC bulletin 13 OTC31-03-11p14-15FIN.qxd 30/3/11 12:54 Page 2

OTC MARKETING NEWS ManxSwitches takes on Cyklo-F with Femstrual launch

anx Healthcare is offering 500mg tranex- Mamic acid tablets as a pharmacy medicine in the UK under the Femstrual brand. The move comes soon after Meda Pharma- Actavis has extended its Gastrocote indigestion and heartburn remedy in the UK with two smaller ceuticals launched 500mg tranexamic acid tab- “consumer-friendly” pack sizes. lets as Cyklo-F Heavy Period Flow Relief und- The company noted that large-volume packs er the Boots Pharmaceuticals umbrella brand. of Gastrocote had been available to general practitioners for prescribing and dispensing The exclusive arrangement with retailer Boots for many years. was criticised by The Royal Pharmaceutical Soci- Gastrocote Liquid is now available in a 150ml ety (OTC bulletin,11 February 2011, page 17). bottle, while Gastrocote Tablets now come in a pack Manx said Femstrual would be available from both of 20. Actavis pointed out that the packs had a “new By contrast, Femstrual will be available from chain and independent pharmacies in the UK modern design”, incorporating a wave visual that a wide range of pharmacy retailers, including reflected the “soothing and relieving” properties of chains and independents. macy training has been distributed with Phar- the general-sales list medicines. Both packs carry the strapline “Eases the Femstrual comes in a pack of 18 tablets with macy magazine. discomfort of indigestion and heartburn”. a recommended retail selling price of £7.95 The two launches come nearly a year after Recommended retail selling prices for (C9.05). This compares with £8.99 for Meda’s the UK’s Medicines and Healthcare products Gastrocote Liquid are £2.99 (C3.39) for 150ml and £4.70 for 500ml, while the tablets are priced £1.99 Cyklo-F. Regulatory Agency (MHRA) gave Meda Phar- for 20 and £6.15 for 100. The predominantly yellow packaging carries maceuticals the go-ahead for tranexamic acid OTC a strapline advising consumers that Femstrual tablets to be switched from prescription-only is indicated “For the reduction of heavy men- to pharmacy (POM-to-P) status (OTC bulletin, strual bleeding over several cycles for women 16 April 2010, page 15). with regular cycles”. The MHRA started consulting on Meda’s Manx Healthcare is backing the launch with switch application four years ago (OTC bul- trade and consumer advertising this year. Phar- letin,27 February 2007, page 9). OTC

Advertising Complaints UK’s ASA raps Passion for Life

omplaints about Passion for Life Health- “Proven and effective – without the risks” and C care’s advertising for Femarelle have been “Femarelle has no effect on the breast or uterus upheld by the Advertising Standards Author- tissue or blood clotting” implied Femarelle was ity (ASA) in the UK. an alternative to hormone replacement therapy.

A hiker who is having difficulty breathing is the The Proprietary Association of Great Brit- In a separate ruling, the ASA rejected a com- central character in a new television advertising ain (PAGB) raised four objections to a maga- plaint about Healthspan’s mail-order catalogue campaign for Klosterfrau’s Soledum herbal cold zine advertisement for the food supplement for nutritional supplements. The complainant remedy in Germany. As the 30-second commercial devised by the aimed at menopausal women. The advertise- believed that product names featured in the agency Performance Factory begins, the hiker is ment had appeared in Menopause Matters. catalogue – Brain Synergex, Heart Synergex, suffering from a cough, runny nose and pressure in The PAGB said that the advertisement made Joint Synergex and Optiflex Glucosamine – his head. As he looks towards a nearby mountain, the hiker takes a Soledum capsule. medicinal claims, such as alleviation of “hot misleadingly implied product efficacy that could Against the backdrop of the mountain, a flushes, mood swings, crushing fatigue and not be substantiated. Furthermore, the adver- computer-generated image shows how the eucalyptus sleepless nights”, and “90% of menopausal tising for Brain Synergex and Heart Synergex extract in Soledum frees up mucus, relieves pressure and makes breathing easier. A softgel capsule then women report an improvement in their health might discourage essential treatment for con- passes over the summit of the mountain as a and wellbeing”. The industry association also ditions where medical supervision might be voiceover signs off with the brand slogan “Kleine maintained the claim “endorsed & recommend- sought, insisted the complainant. Kapsel. Grosse Wirkung”, or “Small capsule. Big effect”. This final image also appears in current ed by leading doctors and gynaecologists” mis- The Authority has also upheld a complaint trade-press advertising (pictured above), which leadingly implied a medical benefit. about Metabolics’ leaflet for the Bright Eyes, features the headline “So kommen Ihre Kunden Furthermore, the PAGB felt the advertise- Colon Cleanse and Memory Recall food sup- schneller über den Erkältungsberg”. This translates as “So your customers get over the cold mountain ment misleadingly implied that Femarelle was plements, as well as one about an e-mail from more quickly”. “clinically proven” as a medicine to help with Natures Naturals. OTC the menopause. In addition, it said the claims OTC

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MARKETING NEWS OTC OmegaLaunches claims Prevalin protects from hayfever A combination of 11g collagen hydrolysate and 100mg chondroitin sulphate is the latest addition to Queisser Pharma’s pharmacy-exclusive Doppelherz ut pollen out with Prevalin” is Omega System range of supplements in Germany. “PPharma’s promise to Britons for its new Current trade-press advertising claims that the supplement offers the “ingenious combination” hayfever remedy. of Doppelherz quality and a “delicious fruits of The company is backing the launch of Pre- the forest flavour”. valin with a national television advertising cam- Each 25ml drinkable ampoule also provides 60mg vitamin C and 5µg vitamin D3, as well as paign, which gets underway on 21 April, as well 300µg of copper and 16.5µg of selenium. as public relations targeting consumers. Claims on the packs state that collagen Developed for international use, Omega’s hydrolysate “contributes to the function and movement of joints” and “supports the regeneration consumer advertising positions Prevalin as a of joint cartilage”. “next-generation” hayfever treatment. “You know A pack of 30 ampoules of Doppelherz System how it feels when your hayfever symptoms are Kollagen 11.000 Plus has a recommended retail selling price of C36.95. about to explode,”states the advertising, which OTC features an image of a female jogger with a lighted fuse attached to her head, adding: “Put pollen out with Prevalin.” In addition to the UK, Prevalin has recently been launched in Australia, the Czech Republic, Greece and Portugal. It was already available in France, the Netherlands and Switzerland. Straplines on the packaging of new Prevalin Allergy A medical device, Prevalin is claimed by nasal spray in the UK point out that the product does Omega to provide “immediate and effective not contain antihistamines or steroids relief from both nasal and eye symptoms with- out the side-effects often experienced with oth- er treatments”. The company noted that the product was a thixotropic nasal spray that was a gel at rest and a fluid when shaken. “The fine mist de-activates pollen already in the nose, forms a microgel bar- rier that prevents further pollen from irritating

the nasal mucosa, and stimulates the clearance Omega Pharma has developed an international of allergens from the nose,”explained the com- consumer advertising campaign for Prevalin Allergy pany. “The patented technology ensures that the long-lasting microgel layer is stable and Straplines on the packaging point out that the A fire-breathing dragon symbolises a pleasant warming evenly spread.” product is for “Relief and protection from symp- feeling in German television advertising for Boehringer Ingelheim’s Finalgon Wärmecreme analgesic. Prevalin was not absorbed by the body,add- toms of hayfever and other common allergies”, A 20-second commercial created by the Hamburg ed Omega,so “pharmacists now have a safe, and that it is “non-drowsy” and “antihistamine agency Lukas Lindemann Rosinski is based around an drug-free alternative they can recommend to all and steroid-free”. animated man suffering from a sore back. However, when the man applies Finalgon cream, the dragon their customers, including pregnant and breast- A version for children is also available. appears and breathes fire onto his back. The man feeding women”. Omega said that Prevalin would initially be finds that he can move freely. Prevalin Allergy nasal spray is supplied in a available exclusively from pharmacies,but there The sign-off message is “Heizt ein. Tut gut”, which translates as “Heats up. Does you good”. 20ml pack lasting one month, which has a rec- were plans to extend distribution to other re- Current trade-press advertising (pictured above) ommended retail selling price of £9.99 (C11.35). tail outlets. uses images from the television commercial and OTC highlights a study by Cologne’s sports college, which shows that Finalgon’s active ingredients – 1.08% nicoboxil and 0.17% nonivamide – have a synergistic effect. IN BRIEF The pharmacy-only medicine – which is indicated for promoting circulation to muscles and joints – has ■ NELSONS is backing its Rescue Remedy happen. Instead of sending the e-mail to the a recommended retail price of C9.45 for a 50g tube. in the UK with a national support service for rightful recipient,says Nelsons, the worker can Meanwhile, Boehringer Ingelheim has received stressed workers who want to let off steam. The send it to [email protected]. E-mail send- approval to introduce a capsaicin-based cream in Germany under the brand name Finalgon CPD company is encouraging disgruntled workers ers will receive advice from the Nelsons team, Wärmecreme. to draft an e-mail outlining their situation, why including free samples of Rescue Remedy. OTC they feel it is unfair and what they think should OTC

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OTC MARKETING NEWS NovartisLine Extensions takes Otriven into the hayfever arena

ovartis Consumer Health is taking its Otri- lergie Aktiv would experience “a notable im- Nven cold remedy into Germany’s hayfever provement in symptoms within 24 hours at arena by introducing a beclometasone dipro- the latest”. pionate nasal spray under the Otriven Allergie A 10ml bottle of the pharmacy-only med- Aktiv brand name. icine – which comes in bright yellow packag- According to Novartis, the beclometasone ing – has a recommended retail selling price spray is particularly suitable for hayfever suf- of C9.25. ferers who have a blocked nose or who suffer Beclometasone dipropionate nasal sprays from recurring symptoms. have been available without a prescription in “Unlike many other products,”claimed Nov- Germany since 1997. artis, “Otriven Allergie Aktiv has a dual effect in tackling allergies and reducing inflamma- Previously positioned as cold remedy tion.”Furthermore, the company asserted, the Previously,Otriven was positioned as a cold Novartis Consumer Health’s new Otriven Allergie Aktiv is a hayfever remedy containing newcomer – which is indicated for the short- remedy in Germany. The brand comprised a beclometasone dipropionate term treatment of seasonal allergic rhinitis in range of nasal sprays, nasal gels and eye drops adults and children aged from 12 years old – based on xylometazoline, as well as a spray Two years ago, Novartis applied to switch did not cause drowsiness and could be used for infants that contained phenylephrine. a combination nasal spray containing 0.06% “for several weeks”. In addition, a dexpanthenol spray to help ipratropium and 0.05% xylometazoline under By delivering two sprays in each nostril twice heal nasal membranes is marketed under the the brand name Otriven Duo (OTC bulletin, a day,Novartis said people using Otriven Al- Otriven Pflege label. 30 October 2009, page 13). OTC

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EVENTS OTC

APRIL speak at this one-day seminar foc- using on switches. 8-10 June 13 April Contact: Zain Philbey, SMi Group. ■ 47th AESGP Annual Meeting Rome, Italy ■ Health Supplements Tel: +44 20 7827 6722. ‘A new treaty for self-care’ will be the theme of the 47th Annual Meeting and Functional Foods Fax: +44 20 7827 6001. of the Association of the European Self-Medication Industry,the AESGP. Singapore E-mail: [email protected]. Website: www.smi-online.co.uk. The three-day meeting will include a session entitled ‘Self-medication Subtitled the ‘Secrets of success- industry quo vadis?’, featuring presentations from Cavan Redmond, pre- fulregulatory strategies in Europe, 10-12 May sident of Pfizer Diversified Businesses, and Emma Walmsley, world- Latin America and Asia’, this one- ■ Vitafoods wide president designate of GlaxoSmithKline Consumer Healthcare. day workshop will provide an over- Speakers at the meeting will also include: John Dalli, European com- view of different regulations and Geneva, Switzerland A three-day exhibition and confer- missioner for health and consumer policy; Ferruccio Fazio, Italian min- practices. ence focusing on nutraceuticals, ister of health; Dagmar Roth-Behrendt, vice-president of the European Contact:EAS. cosmeceuticals, functional foods Parliament; Andreas Pott of the European Medicines Agency (EMA); Tel: +65 68 38 12 70. and functional drinks. Vittorio Silano of the European Food Safety Authority (EFSA); Basil Fax: +65 68 35 95 36. Contact: Chris Lee,IIR Exhibitions. Mathioudakis of the European Commission; June Raine from the UK’s E-mail: [email protected]. Tel: +44 20 7017 7036. Medicines and Healthcare products Regulatory Agency (MHRA); Andy Website: www.eas.eu. Fax: +44 20 7017 7818. Tisman, senior principal, Consumer Health at IMS Management Con- MAY E-mail: [email protected]. sulting; and Stefano Maruzzi, country manager at Google Italy. Website: www.vitafoods.eu.com. Contact:Association of the European Self-Medication Industry,the AESGP. 5 May Tel: +32 2 735 51 30. Fax: +32 2 735 52 22. ■ Basics of 17-19 May E-mail: [email protected]. Website: www.aesgp.be. Regulatory Affairs ■ Russian Pharmaceutical Forum London, UK 21 June A one-day course from The Org- St. Petersburg, Russia JUNE Speakers from the Association of ■ Marketing Authorisation anisation for Professionals in Reg- 6-7 June in South Africa, ulatory Affairs (TOPRA). the European Self-Medication In- ■ DIA European Regulatory Contact:TOPRA. dustry,the AESGP,Merck Ser- Australia and Affairs Forum 2011 Tel: +44 20 7510 2560. ono, Novartis Group Russia, Pfiz- New Zealand Fax: +44 20 7537 2003. er and Sanofi-Aventis will take London, UK Frankfurt, Germany Pharmacovigilance and the cen- E-mail: [email protected]. part in this three-day event. This one-day conference will look tralised procedure will be discuss- Website: www.topra.org. Contact: Adam Smith Conferences. at the pharmaceutical markets and Tel: +44 20 7017 7444. ed at this two-day conference. marketing authorisation proced- 5-6 May Fax: +44 20 7017 7447. Contact:DIA Europe. ures in Australia, New Zealand and ■ 2011 Regulatory & E-mail: events@adamsmith Tel: +41 61 225 5151. South Africa. Scientific Conference conferences.com. Fax: +41 61 225 5152. Contact:Dr Henriette Wolf-Klein, Bethesda, Maryland, US Website: www.russianpharma.com. E-mail: [email protected]. Forum Institut für Management. A two-day regulatory and scien- Website: www.diahome.org. Tel: +49 6221 500 680. tific conference organised by the 25-27 May Fax: +49 6221 500 555. 9 June US Consumer Healthcare Prod- ■ Pharmaceutical E-mail: [email protected]. ucts Association (CHPA). Regulatory Affairs ■ The Nutrition and Health Website: www.forum-institut.com. Contact:Maria Sarabia, CHPA. in Asia – including India Claims Regulation 27-28 June Tel: +1 202 429 3545. London, UK Brussels, Belgium Fax: +1 202 223 6835. Day one of this three-day seminar Subtitled ‘Dealing with the present ■ Regulatory Affairs E-mail: [email protected]. will discuss regulatory affairs in – planning for the future’, this one- in Africa – including Website: www.chpa-info.org. China, while day two will focus day conference will coverapply- South Africa on India and day three will cover ing to the European Food Safety London, UK 6 May Korea and Taiwan. Authority (EFSA) for authorisa- Countries that will be covered at ■ Marketing Authorisation Contact: Management Forum. tion of claims. this two-day conference include in the CIS Countries Tel: +44 1483 730071. Contact:EAS. Algeria, Ghana, Morocco, Nige- Frankfurt, Germany Fax: +44 1483 730008. Tel: +32 2 218 1470. ria, Tanzania and Uganda. Belarus, Kazakhstan, Russia and E-mail: registrations@management- E-mail: [email protected]. Contact: Management Forum. Ukraine will be the main focus of forum.co.uk. Website: www.eas.eu. Tel: +44 1483 730071. this one-day seminar. Website: www.management- Fax: +44 1483 730008. 19-23 June Contact:Dr Henriette Wolf-Klein, forum.co.uk. E-mail: registrations@management- Forum Institut für Management. ■ 47th DIA Annual forum.co.uk. Tel: +49 6221 500 680. 30-31 May Meeting Website: www.management-forum.co.uk. Fax: +49 6221 500 555. ■ EuroPLX 46 Chicago, Illinois, US E-mail: [email protected]. Vienna, Austria ‘Convergence of science, medi- 27-29 June Website: www.forum-institut.com. A two-day partnering and licens- cine and health’ is the theme of ■ Stepping It Up ing forum focusing on OTC medi- this five-day event, which is the Basel, Switzerland 10 May cines, nutraceuticals, branded pre- annual meeting of the Drug In- A three-day pharmaceutical mar- ■ Molecule Life Cycle scription drugs and generics. formation Association (DIA). ket research conference. Management Contact:RauCon. Contact: Vicki Adkinson, DIA. Contact: EphMRA. London, UK Tel: +49 6222 9807 0. Tel: +1 215 442 6162. Tel: +41 22 33 99 596. Representatives of the UK’s Med- Fax: +49 6222 9807 77. Fax: +1 215 442 6199. Fax: +41 22 33 99 631. icines and Healthcare products E-mail: [email protected]. E-mail: [email protected]. E-mail: [email protected]. Regulatory Agency (MHRA) will Website: www.europlx.com. Website: www.diahome.org. Website: www.ephmra.org.

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OTC MARKETS

0.8% to C1.9 billion in 2010. Most of this total French market falters came from the country’s ‘strict’ OTC market – self-medication sales of non-reimbursable, non-prescription medicines – which fell by 0.7% to C1.59 billion, while sales of C345 million for despite ‘free-access’ ‘semi-ethical’ products – reimbursable, non- prescription medicines – represented a 1.3% de- cline on the previous year. France’s total mar- France’s ‘free-access’ initiative failed to prevent the country’s ket for non-prescription medicines dropped back self-medication market from declining in 2010, whilst pricing and by 3.9% to C5.3 billion (see Figure 1). distribution rules continued to be fiercely debated. David Wallace reports. Lower spending power AFIPA’s president, Vincent Cotard, acknowl- rance’s ‘free-access’ initiative,which Furthermore, more than 350 medicines are edged that the figures for 2010 were “lacklus- permits self-selection displays of par- now covered by the initiative,which represents tre”. The association said the decline in sales ticular non-prescription medicines in an increase of over 100 since it was introduc- across the board for non-prescription medicines Fpharmacies, has steadily increased in ed on 1 July 2008 (OTC bulletin,31 July 2008, could be explained by the lack of any significant scale and scope since it was introduced in mid- page 17). illness trends, such as the concerns about flu 2008. According to the French OTC industry This progress, however, has failed to stop that had driven up demand for winter remedies association, AFIPA, the number of pharmacies the French OTCmarket from faltering. in 2009 (OTC bulletin,16 April 2010, page 18). with free-access displays of non-prescription According to figures from market research- Lower spending power due to the financial cri- medicines increased from one in three in 2009 er IMS Consumer Health, total self-medication sis had also curbed the amount that people spent to almost one in two in 2010. sales of non-prescription medicines dropped by on healthcare, AFIPA added. As Figure 2 shows, 2010’s list of the top 10 companies in France, ranked by total self-med- Value sales Change Volume sales Change ication sales, was largely unchanged compared (C billions) (%) (millions) (%) with that of 2009. Sanofi-Aventis retained the Self-medication sales of 1.6 -0.7 281.9 -1.1 top position with more than a tenth of the coun- non-reimbursable, try’s OTC sales, whilst GlaxoSmithKline’s fall non-prescription medicines from seventh to tenth place constituted the only Self-medication sales of 0.3 -1.3 137.9 -1.3 difference in the rankings. reimbursable, non-prescription Although the overall turnover of the top nine medicines product categories in the strict OTC market in- Total self-medication sales 1.9 -0.8 419.9 -1.2 creased in 2010 (see Figure 3), the market lost of non-prescription medicines C11.4 million as the declines suffered by less Prescription-generated sales 3.4 –––significant categories more than offset the gains of non-prescription medicines made by the larger categories. Total non-prescription 5.3 -3.9 ––Nevertheless, Cotard maintained there were medicines market encouraging signs for France’s OTC market. Prices were relatively stable, with the aver- Figure 1: Breakdown of France’s non-prescription medicines market in 2010. Value sales are at retail selling prices (Source – IMS Consumer Health/AFIPA) age for the strict OTC market rising by just 0.4%

Product category Value change Value change Proportion Company Rank Proportion (C millions) (%) of total (%) 2010 2009 of sales (%) Respiratory Tract -10.8 -2.3 29.0 Sanofi Aventis 11 11 Gastrointestinal +2.7 +1.3 13.5 UPSA 22 7 Analgesics+11.0 +5.8 12.7 McNeil Sante 33 7 Skin treatments +9.6 +6.8 9.5 Boiron 44 6 Circulatory products -0.6 -0.5 7.7 Pierre Fabre 55 6 Nicotine-replacement therapies +2.4 +3.2 4.8 Bayer 66 5 Mood enhancers -0.8 -1.0 4.8 Reckitt Benckiser 78 4 Vitamins, minerals and supplements -1.21 -1.6 4.7 Cooper 89 4 Oral-care products -1.59 -4.4 2.2 Merck KGaA 9103 Top nine +10.7 –88.9 GlaxoSmithKline 10 73 Others (25) -22.1 -11.2 11.1 Others (230) –– 44

Self-medication sales -11.4 -0.7 100.0 Figure 2: Top 10 companies ranked by self-medication sales of non-reimbursable and reimbursable, Figure 3: Breakdown of France’s ‘strict’ OTC market – self-medication sales of non-reimbursable, non-prescription medicines by value at retail non-prescription medicines – in 2010. Value sales are at retail selling prices selling prices in France in 2010 (Source – IMS Consumer Health/AFIPA) (Source – IMS Consumer Health/AFIPA)

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MARKETS OTC

Nevertheless, six out of ten respondents said

7070 they appreciated the opportunity to choose their own medicines, whilst almost the same propor- 59% 6060 tion – 54% – said that being able to select from

5050 free-access displays saved time. However, con- 40% sultation with a pharmacist was still seen as im- 4040 Series12010 33% portant by almost 90% of those surveyed, with seven out of ten agreeing that the pharmacist’s 3030 Series22011 22% 20% role was now just as important as – or even more 2020 important than – before. Proportion of consumers (%) 10% 11% Pricing and distribution also remained high 1010 5% on the agenda in 2010. In September,French 00 health insurer Mutualité Française described Ne123verOnce 2-5 times More than 4five times the state of free-access pricing as a “jungle” and Figure 6: Response of French consumers when they were asked: “How many times have you bought ‘free access’ claimed the prices of self-selection medicines medicines?” (Source – AFIPA/UPMC) seemed to be getting completely out of control (OTC bulletin,29 September 2010, page 10). Meanwhile, the French supermarket giant 6060 55% 54% Leclerc recently reprised its publicity campaign 5050 opposing the country’s pharmacy monopoly on the sale of non-prescription medicines (OTC 4040 bulletin,21 January 2011, page 15). However, 33% 29% Series12010 this soon provoked a backlash from pharmacy 3030 Series22011 groups including Univers Pharmacie and Glo- bal Pharmacie, which launched a rival campaign 2020 16% and a website parodying that of Leclerc (OTC 9% Proportion10 of consumers (%) 10 bulletin,28 February 2011, page 10). 1% 2% 00 Findings of pricing survey Not12 at all Not well Quite34 well Very well In support of its campaign, Leclerc commis- informed informed informed informed sioned a pricing survey of pharmacies across Figure 7: Response of French consumers when they were asked how well informed they felt about ‘free access’ France. It found that the prices of certain free- medicines (Source – AFIPA/UPMC) access medicines could vary by as much as three times from one pharmacy to another. But Univers to C5.63. The average for semi-ethical prod- This “rapid acceptance” of free-access “gives Pharmacie said Leclerc’s survey merely proved ucts was unchanged at C2.50 (see Figure 4). us hope for the future”, Cotard said. that there was already effective price competi- AFIPA also noted that 2010 had been “a However, the findings of the survey also sug- tion between pharmacies, adding that its own strong year for switches”. As Figure 5 shows, gested that more could be done to inform con- survey indicated that Leclerc’s parapharmacies notable switches of medicines from prescrip- sumers about free-access. As Figure 7 shows, were more expensive than pharmacies. tion to non-prescription status included Glaxo- a smaller proportion than in the previous year ■ Continued on page 22 SmithKline’s anti-acne treatment Brevoxyl in of those who responded January,Novartis’ Pantoloc Control in May,and felt well-informed about Medicine Month of Sales Galderma’s Curanail and Curaspot in February free-access, with nine out switch (C millions) and June respectively. Recent switches also in- of ten people surveyed Brevoxyl 4% cream, 40g January 0.29 cluded Bayer’s Mopralpro (OTC bulletin,30 saying they felt poorly Curanail 5% nail polish, 2.5ml February 2.16 June 2010, page 15) and Pfizer’s Débricalm informed about the ini- (OTC bulletin,15 October 2010, page 17). tiative. AFIPA said that Pantoloc Control 20mg tablets May 1.25 Furthermore, a survey of French consumers it would continue to try Curaspot 5% cream, 100g June 0.17 carried out by UPMC – with AFIPA’s support to inform French con- Mopralpro 20mg tablets June 1.85 – provided some good news. Conducted in Jan- sumers about the issues Debricalm GE 100mg tablets September 0.12 uary and February of this year,the survey in- surrounding free-access Figure 5: Significant switches of medicines from prescription to non-prescription volved 468 consumers, who appeared to have via the country’s health- status in France during 2010, together with sales at retail selling prices warmed to free-access since a year ago. care professionals. (Source – IMS Consumer Health/AFIPA) The proportion of people who claimed nev- er to have bought a free-access medicine de- Average retail prices of medicines Change clined from 59% in 2010 to 40% in 2011. More in 2010 (C per pack) (%) than half of those surveyed had bought free- Non-reimbursable, non-prescription medicines 5.63 +0.4 access products more than once, and the per- Reimbursable, non-prescription medicines 2.50 ±0.0 centage of consumers who had bought free- Total self-medication market 4.60 +0.4 access products more than five times had trebled to a third of all those surveyed (see Figure 6). Figure 4: Average retail prices in French self-medication market in 2010 (Source – IMS Consumer Health/AFIPA)

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OTC MARKET RESEARCH German firms foresee a price fall

Manufacturers in Germany are steeling themselves for an expected decline in OTC prices and a rise in the importance of retailers’ own-label products, Fall Rise 6% 59% according to a survey from Sempora Consulting. Aidan Fry reports.

f Germany’s non-prescription medicines mail-order OTC prices would decline. industry has been disappointed by the mar- When questioned about their own pricing ket’s stagnation in recent years, it appears policies in recent years, nearly half – 46% – of Ithat local companies expect little respite the 136 community pharmacists said they had through future price increases. reduced prices for non-prescription products on Stay the same When management consultancy Sempora a permanent basis. And almost three out of five 35% Consulting asked representatives of 42 German said they regularly ran special deals within their OTC, prescription drugs and diagnostics manu- OTC offering. Figure 3: Proportion of a panel of 42 executives from facturers about their expectations for prices of Brodtkorb pointed out that the proportion of pharmaceutical manufacturers in Germany who think OTC products in community pharmacies, around pharmacists who ran special offers had tumbled the importance of own-label healthcare products will rise, stay the same or fall (Source – Sempora) three-fifths said prices would fall. by 21 percentage points from the 80% who had Just 12% thought OTC prices would rise, done so last year. By contrast, the proportion importance, and just 6% thought their rele- while another 29% foresaw pricing stability in that had cut prices on a permanent basis had vance would decline (see Figure 3). the non-prescription market (see Figure 1). risen by 12 percentage points. Community pharmacists were slightly less By contrast, nearly one in three of the 136 Of those community pharmacists who were sure, although half of them predicted an in- community pharmacists Sempora interviewed part of a co-operative or grouping, only half said creasing role for own-label healthcare ranges. in January of this year thought they would be they received any support on their OTC pricing Looking on a longer-term basis, seven out charging more for OTC products in future. Two strategies. The same proportion said they ben- of 10 industry executives thought it probable out of five pharmacists believed prices would efited from better purchasing conditions. that pharmacy groups would stock just the two stabilise, while 29% expected prices to decline However, almost four-fifths could draw on leading brands and an own-label alternative in (see Figure 2). the group to help their marketing activities, and each category. Four-fifths of the industry exec- Manufacturers were slightly more optimistic seven out of 10 received support on category utives thought it likely,or very likely,that the about trends in the mail-order pharmacy sector, management, display optimisation and own- number of brands in each category would fall. with 47% expecting lower OTC prices and 41% label product ranges. However, when they were asked to complete forecasting pricing stability. Pharmacists believ- Revealing their plans for the future, 17% of the statement “The range of non-prescription ed the mail-order pricing trend would largely pharmacists said they planned to adapt or re- medicines available will.....”, just 29% said mirror that of the community pharmacy sector. duce their OTC prices. This was a lower propor- “fall”. Around 24% chose “rise”, and the re- Toby Brodtkorb, managing partner at Sem- tion than the one in four who said they would maining 47% predicted no significant change pora, observed that manufacturers had become do the same last year. (see Figure 4). more pessimistic on OTC pricing since the con- Sempora’s research suggests there is still sultancy had conducted a similar survey last limited pricing sensitivity on medicines among Could be a risky strategy year (OTC bulletin,11 June 2010, page 20). the German public. Of the 308 consumers ques- For OTC firms looking to diversify their in- At that time, 39% of the 48 industry executives tioned, only a third said they were increasingly come base beyond their core brands, manufac- had predicted a fall in OTC prices in commu- asking about offers for non-prescription medi- turing own-label products for retailers could be nity pharmacies, while a third of them thought cines, while just 15% checked prices online, a risky strategy. Two-thirds of the community and a mere 2% tried to negotiate with their phar- pharmacists interviewed said they would not macist to obtain a lower price. recommend products from firms that produced

Rise Stay the same Indeed, when the participating consumers own-label products for franchise groups. 24% 47% were asked to estimate the retail prices of com- More than two-thirds of pharmacists – 69% monly-used OTC medicines, they on average – said the same of companies that co-operated gave double the recommended retail prices. with mail-order pharmacies. Fewer than one out of five German con- However, two-thirds of the industry execu- sumers believed the price of a medicine reflect- tives said their companies already advertised in ed its quality,while just 29% said they only the catalogues or on the websites of mail-order trusted branded medicines. Consumers’ loyalty pharmacies, and just 23% said they had no form to brands had eroded sharply since last year’s of tie-up with a mail-order retailer. Fall 29% survey,Sempora observed. Meanwhile, 74% of the pharmacists insisted Perhaps with the erosion of brand confidence that they would not recommend products from Figure 4: Proportion of a panel of 42 executives in mind, almost three-fifths, 59%, of the indus- firms that worked closely with franchise phar- from pharmaceutical manufacturers in Germany try executives believed “the importance of own- macies. Nevertheless, 88% of them thought it who think the range of non-prescription medicines label products” was set to rise. Just over a third was probable, or very probable, that pharmacy available in the country will rise, stay the same or fall (Source – Sempora) thought own-labels would retain their current co-operatives would keep growing, and 28%

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MARKET RESEARCH OTC

of pharmacists said they planned to join some mail-order pharmacies’ share would at best eral-sale move,as they would keep recommend- form of pharmacy group. stagnate, but 7% thought it would exceed 15%. ing the product in question. In the 2010 survey, The industry executives agreed. Around In each case, shares of between 10%-12% or one out of six, or 17%, had been prepared to three-quarters of them felt pharmacy co-oper- 12%-15% were favoured by just over a third advise customers to use such a brand. atives and franchises would rise in importance. of pharmacists. Nevertheless, four out of five consumers When Sempora prompted consumers with While industry executives saw mail-order were able to imagine picking up medicines a list of pharmacy groups or brands, the only pharmacies becoming slightly more important from a drugstore such as dm-drogeriemarkt or ones recognised by more than a tenth of Ger- at the cost of community outlets, they perceiv- Schlecker,while 93% of Germans could con- mans were Celesio’s DocMorris with 70% and ed a more significant shift within the next three ceive of a model whereby local partners deliver- the Linda concept run by the marketing asso- years towards having to serve pharmacies in ed medicines ordered online or by telephone. ciation of German pharmacists, the MVDA, co-operatives and franchise programmes. Fur- “Despite the legal discussion on the pick-up with 38%. thermore, the executives expected, drugstores concept, 71% of industry executives questioned The industry representatives perceived Doc- and supermarkets would play a more promi- think further co-operation between mail-order Morris as the most effective group in terms of nent role in Germany’s OTC market. and bricks-and-mortar retailers is probable or category management, while Linda led on ad- Only 6% of executives did not think it like- very probable,”Sempora observed. vice. The two came joint top for brand presen- ly that pharmacy-exclusive products would in- Furthermore, the vast majority of the in- tation,while the EasyApotheke franchise was creasingly be sold through supermarkets and dustry executives believed other mail-order re- seen to be the most aggressive group on pricing. drugstores. tailers and players from other countries would Similarly,two-thirds of customers – once However, any move to diversify the distri- push into Germany’s medicines market. prompted – could identify DocMorris as a mail- bution base for products that had previously The degree of external influence on Ger- order pharmacy, although Sempora noted this been exclusively sold through pharmacies – many’s medicines market will depend in large represented a slide of three percentage points whether by choice or due to the product’s legal part on whether Germany relaxes its rules on since last year’s survey. status – would seem to be a high-risk strategy. pharmacy ownership. On an unprompted basis, DocMorris’ re- Even though the European Court of Justice cognition rate of 34% was four-times the 8% Ready to boycott products two years ago upheld the country’s right to limit of consumers that could name its closest chal- Sempora’s research found that many com- ownership to community pharmacists, exactly lenger,Sanicare. munity pharmacists in Germany were ready to half of the industry executives surveyed – and Nearly one quarter of the 308 consumers replicate the infamous example of the boycott 46% of the community pharmacists – believed questioned said they had bought a product from of Lichtwer’s whole portfolio after the herbals that “the ban on third-party pharmacy owner- a mail-order pharmacy. specialist decided in 1998 to sell its Kwai gar- ship will fall within the next five years”. More than three-quarters of the community lic medicine through general-sale outlets. With- In the meantime, the growing influence of pharmacists that participated in the survey ex- in a year,Lichtwer was forced to backtrack with pharmacy co-operatives and mail-order retail- pected pharmaceutical companies to work more its reputation and balance sheet in tatters (OTC ers is already having a telling effect. closely with mail-order retailers, and 57% said bulletin,14 October 1999, page 1). Four-fifths of industry executives said the mail-order pharmacies would open their own Asked how they would react if a manufac- changing market conditions were forcing them franchise stores,as DocMorris has done. turer supplied a formerly pharmacy-exclusive to reassess how they segmented the pharmacy The vast majority of pharmacists believed product to drugstores and supermarkets, a third market. And just over half said they had already there would be further consolidation in the of pharmacists said they would stop stocking cut the size of their salesforce and turned more mail-order arena, as other retailers such as drug- the product. to a key-account management model. stores and supermarkets looked to grab a slice As in the previous year’s survey,just over of the action. Indeed, one in five pharmacists half of pharmacists said they would react to ■ Contact Tobias Brodtkorb, Managing Partner,Sem- said they were looking into options to sell their such a general-sale move by boycotting the pora Consulting, Siemensstrasse 27, 61352 Bad Hom- store, and 12% were adamant that they intend- manufacturer in question’s entire portfolio. burg,Germany (Tel: +49 6172 45349 30; Fax: +49 6172 ed to divest their business. Sempora noted that just 6% of pharmacists 45349 49; E-mail: t.brodtkorb @sempora.com). Both industry and community pharmacists appeared to have no problem with such a gen- OTC foresaw a decline in the number of community pharmacies in Germany, from around 21,550 Fall at present to approximately 18,000 in 2016. Rise Fall 29% When Sempora asked industry executives 12% 59% about how they foresaw the future importance of mail-order pharmacies, 88% thought it would rise and none believed it would decline. Pointing out that mail-order pharmacies ac- counted for 9% to 10% of Germany’s non-pre- Rise scription medicines market last year,Sempora 31% asked: “How high will that share be in 2013?” Stay the same Stay the same Most of the industry executives – 55% – 29% 40% thought 10% to 12%, while two out of five said it would be between 12% and 15%. Another Figure 1: Proportion of a panel of 42 executives from Figure 2: Proportion of a panel of 136 community pharmaceutical manufacturers in Germany who think pharmacists in Germany who think prices for OTC 5% thought the share would be above 15%. prices for OTC products in community pharmacies will products in community pharmacies will rise, stay the One in five community pharmacists thought rise, stay the same or fall (Source – Sempora) same or fall (Source – Sempora)

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OTC PEOPLE

Retailers Retailers & Wholesalers China Nepstar Celesio recruits Borchert fills top posts from Douglas retail chain

hina Nepstar has named Jason Xinghua C Wu as chief executive officer and Fuxi- elesio has recruited Stephan Borchert from Stephan ang Zhang as chief operating officer with im- Cperfume retailer Douglas to head up its in- Borchert mediate effect. ternational pharmacy business. The drugstore chain had promoted Wu to Borchert replaces Stefan Meister,who left the position of acting chief executive officer Celesio in August 2009 after more than 10 years in June of last year,following the resignation as a member of the management board (OTC of Ian Wade (OTC bulletin,11 June 2010, bulletin,31 August 2009, page 31). page 23). The pan-European retailer and wholesaler After joining China Nepstar in July 2008, said that 41 year-old Borchert, who was pre- Wu served as vice general manager of the com- viously managing director and general manag- pany’s Guangzhou branch and regional gen- er international at Douglas, would become the eral manager of its North China region. He management board member with responsibil- was promoted to vice-president of operations ityfor its Patient and Consumer Solutions divi- in March 2009 due to his “outstanding per- sion by 1 September 2011 at the latest. The divi- where he rose to the position of partner with formance”, and was made chief operating of- sion is responsible for over 2,300 pharmacies, responsibility for the retail, fashion and life- ficer three months later. including the Lloydspharmacy chain in the UK style divisions. Zhang, who replaces Wu as chief operating and Apotheke DocMorris. At the end of last year,Celesio set up the officer,has spent more than 14 years with the Celesio’s chief executive officer Fritz Oest- DocMorris International Retail unit to manage company. He has held various senior manage- erle described Borchert as an “exceptionally its pharmacy business outside of the UK and ment positions, including general manager of experienced expert” in international retailing. the DocMorris franchise operation in Germany. the Shenzhen Nepstar Group as well as Nep- “This underlines our aim of significantly ex- The company said the unit would be respon- star Dalian. He was most recently the com- panding the business over the coming years sible for rebranding all of Celesio’s existing pany’s vice-president. with non-price-regulated health, beauty and pharmacies in Belgium, the Czech Republic, OTC wellness products,”said Oesterle. Ireland, Italy,Norway and Sweden as DocMor- As managing director and general manager ris stores, as well as developing an internation- international of Douglas, Borchert was respon- al DocMorris franchise business (OTC bullet- French market falters sible for 750 perfume shops in 20 countries. in,30 November 2010, page 6). Before that, he worked for the fashion group In a separate development, Lloydspharmacy despite ‘free-access’ Esprit, where he managed its Asian cosmetics has appointed Jeff Wemyss – former trading business Red Earth in Hong Kong. He had pre- director at the drugstore chain Superdrug – as ■ Continued from page 19 viously spent seven years at Roland Berger, its head of retail. When consumers surveyed by UPMC were Lloydspharmacy said Wemyss, who would asked about pricing, less than a quarter said Jeff Wemyss lead a 26-strong retail team, would focus on they compared prices between pharmacies when “developing and enhancing the proposition de- buying free-access medicines, despite prices hav- livered to customers in the pharmacy chain’s ing to be clearly indicated under the initiative. 1,600-plus UK stores”. And just 24% said they would be in favour of Wemyss said that although Lloydspharmacy medicines being sold in supermarkets, although was a healthcare company there was “a lot of this was a percentage-point higher than in 2009. scope to build on developing the OTC health AFIPA also noted that 85% of those survey- and beauty product ranges”. ed said they wanted a clear separation between Lloydspharmacy recently named Tony Page medicines and non-medicines sold in pharm- as managing director (OTC bulletin,11 Febru- acies, including food supplements and prod- ary 2011, page 27). ucts eligible to be sold in parapharmacies such OTC as those operated by Leclerc. Interestingly,consumers had become even more sceptical of buying medicines over the IN BRIEF internet. More than a tenth said they were con- ■ CATALENT PHARMA SOLUTIONS has cialist at the end of March. McFadden was pre- cerned by online sales, compared with just 4% named Tim McFadden as vice-president and viously executive vice-president of sales and in 2010, and only 1% said they would be com- general manager of its Consumer Health Soft- marketing at Cardinal Health’s pharmaceuti- pletely confident buying medicines online. gel business. He replaces Jorge Castro,who is cal distribution business. OTC retiring from the US-based drug-delivery spe- OTC

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PEOPLE OTC

Industry Associations Industry Associations US CHPA elects Germany’s BAH names new Sturman as chair replacement for Seidscheck aul Sturman – global president and gen- P eral manager of Pfizer Consumer Health- oehringer Ingelheim’s Dr Martin Weiser Dr Martin Weiser care – has been elected chair of the board of Bis set to replace Dr Mark Seidscheck as the US Consumer Healthcare Products Asso- chief executive of the German medicines man- ciation (CHPA). ufacturers’ association, the BAH, on 1 July. Sturman takes over from Christopher De- Weiser is the second person to be lined up Wolf,president and chief executive officer of by the BAH to replace Seidscheck. Lil’ Drug Store Products. The first – Professor Gudrun Neises – left Scott Melville, president and chief execu- the BAH just a few months after joining the tive officer of the CHPA, described Sturman industry association as its next chief executive as a “thoughtful and experienced industry lead- (OTC bulletin,21 January 2011, page 25). The er” with a “keen strategic vision”. BAH said Neises had left because of “differ- “As our nation seeks cost-effective health- ing views on the strategic and organisational care options, the CHPA is committed to dem- direction of the association”. onstrating the role, value and accessibility that An expert in metabolic diseases, Neises had OTC medicines and dietary supplements pro- joined the BAH on 1 September last year. She and pharmacoeconomics. vide in our healthcare delivery system,”com- held the Stada Foundation’s professorship for A 44 year-old pharmacist, Weiser moves to mented Melville. healthcare management at Europa University the BAH from Boehringer Ingelheim, where Seven new members were elected to the in- of Applied Sciences Fresenius in Idstein, Ger- he was head of market access and healthcare dustry association’s board, including Christo- many. She oversaw courses including a Bach- affairs. He has been a member of committees pher Combe of Combe, and Colin Macken- elor of Arts in healthcare business and a Mas- at the BAH and the originator pharmaceutical zie of GlaxoSmithKline. ter of Science in international health economics industry association, the VFA. OTC OTC

31 March 2011 OTC bulletin 23