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Bulletin Publishing Group is a division of OTC Publications Ltd Registered Office: 4 Poplar Road, Dorridge, Solihull B93 8DB, UK. Registered in England No 2765878 OTC28-03-14p1. FINAL_OTC15/11/2005 p1&24 25/03/2014 17:26 Page 1

28 March 2014

COMPANY NEWS 3 Genomma takesstake 3 Arkopharmaagrees to in localcompany DSMstartsmanufacturingJV 3 Herbalifefaces 4 private-equity takeover US investigation Stada cuts 2014 4 forecastovercrisis rivately-owned French natural med- Celesiotopushits 5 Picines specialist Arkopharma is set to be European network acquired by private-equity firm Montagu Aspen performs well in a 6 foranundisclosed sum. difficultdomesticmarket Philippe Rombi, Arkopharma’schief execu- Bionoricatakes 7 tive officer,said the deal would enable the ‘Phytotheks’ to Russia firm to make“significant investments” in prod- Symrisefails to take Probi 8 uct innovation and in its production capacity. Montagu’s“deep expertise in the healthcare Arkopharma’s portfolio of natural products includes GENERAL NEWS 9 sector” would be amajor asset for the company, the 4.3.2.1 weight-loss brand Rombi insisted. Funds will not pay for NRT 9 Arkopharma generated turnoverof C187 Describing the French firm as a“major ASMI defends 9 million in 2012 from its portfolio of dietary player in the natural medicines sector”, Sylvain vitaminEuse supplements and plant-based medicines, which Berger-Duquene, adirector at Montagu, said Speersplans fresh 10 it markets in over80countries worldwide. that Arkopharma operated in markets “offering approachatPAGB Established by Dr Max Rombi in 1980, both long-term growth prospects and resilience” CHMP issues 11 Arkopharma is based in Carros, France and has and would receive significant investment. Alli warning sevensubsidiariesinmajor European markets “Weare delightedtobepartnering with the German pharmacyvalues 12 including Germanyand Italy. management team of Arkopharma and sup- generic partners Arkopharma develops, manufactures and porting them in their growth strategy,both in PRAC restricts medicines 13 distributes aportfolio of over40brands, in- France and internationally,” Berger-Duquene containing domperidone cluding the ArkoRoyal and Bakol dietary pointed out. EMAconsults on 13 supplement lines and the 4.3.2.1 range of Completion of the deal, Montagu noted, excipientsuse weight-loss products. would be subject to consultation with the MARKETING NEWS 14 Montagu noted that Arkopharma wasa French Works Councils employee group and leader in several dietary supplement categories, satisfactory clearance from all the relevant Nelsons targetsUKwomen 14 including dermatology and rheumatology. competition authorities. with Rescue Remedy push Orbitaloffersbrands 15 leading onlinevoice Omegadoubles spend for 16 Merck promotes Consumer CEO Lyclear television campaign erck KGaA has promoted the head of brands in keycategories and at least 3% market Line extensions expand 17 MitsConsumer Health division Udit Batra share” across the company’stop 15-20 markets. PregnacareinSouthAfrica to president and chief executive officer of its Batra also revealed Consumer Health’s GSKwill spend £1mn on 17 Merck Millipore life sciences division. Batra plans for its twonew strategic brands –Neu- UK lotion launch will be replaced on 15 May by the current head robion and Floratil –which have been trans- of the German firm’sAllergopharma allergy ferred to the business from the Merck Serono FEATURES 20 business, Uta Kemmerich-Keil. prescription unit. Batra has asimple 20 Batra’spromotion comes after he suc- “There is alot Consumer Health can do plan for Merck cessfully turned around the fortunes of Merck with both brands by bringing them out from Consumer Health via awide-ranging restruc- behind the counter,” Batra said. “Wecan REGULARS turing programme he instigated in 2011. harness the reputation theyhaveboth gained Speaking exclusively to OTC bulletin, as healthcare professional-recommended brands Events – Our regularlisting 19 Batra said that Consumer Health wasnow back to increase consumer awareness and expand People – Url nominated to 23 on track and focused on achieving its new their reach.” lead EFSA strategic ‘3x3’ aim of developing “three leading Forthe full article, turntopage 20. GB A4House Ad for OTC 2014_New Gb 4colour Advert 07 06/01/2014 10:38 Page 1

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COMPANY NEWS OTC

Mergers&Acquisitions/Annual Results Genomma takesstake in localcompany

exico’sGenomma Lab is set to strength- generated by prescription medicines. brands, from MXN287 million in 2012 to Men its domestic operations by taking a The move grows Genomma’sdomestic busi- MXN1.10 billion in 2013. 50% stakeinlocal medicines and personal-care ness at atime when the firm has been focusing Bolstered further by a35% jump in inter- products distributor Grupo ComercialeIndus- on expanding its reach across Latin America. national sales at the firm’sPersonal Care unit trial Marzam for MXN600 million (C32.5 mil- Most recently,the companyannounced that to MXN3.17 billion, total international turnover lion). Genomma has also taken an option to buy it wasset to acquire agroup of OTCbrands had improvedby62.5% to MXN4.27 billion the remaining 50% share in the future. in Brazil from an unnamed firm, along with in the 12 months, Genomma noted. Rodrigo Herrera, Genomma’schief execu- anumber of OTClines available in various This offset a1.2% drop in domestic sales to tive officer,said that acquiring Marzam would countriesinthe region from Johnson &John- MXN7.09 billion, pushing up total group “increase the penetration and presence” of the son (OTC bulletin,7February 2014, page 3). turnoverby15.9% to MXN11.4 billion. firm’sproducts in Mexico and give it “better This came after the firm acquired the Tafirol The fall in domestic sales had been caus- vertical integration” in the domestic OTCand analgesics brand in Argentina in January 2013 ed by a25% decline in Personal Care turnover personal-care categories. (OTC bulletin,18December 2012, page 4). to MXN2.88 billion, Genomma noted, which Noting that the initial deal wasexpected to had wiped out the 27% gain posted by the be completed in the second quarter of 2014, Big rise in international sales Pharma division –which in Mexico includes its Genomma said that Marzam’soperations would Implementingits international acquisition generics business as well as OTCbrands –to notbeconsolidated into the group until it took strategy –focused primarily on OTCbrands – MXN4.21 billion. abigger stake. coupled with “positive results” from its initia- Operating income had improvedby17.8% Marzam distributed approximately MXN10 tivesinthe US and an expanded presence in to MXN2.94 billion, Genomma pointed out, billion-worth of products annually,the com- Brazil, lifted the company’sInternational with operating margin growing by 0.5 percent- panypointed out, of which close to 70% was Pharma sales, which consist solely of its OTC age points to 25.9%. OTC

BusinessStrategy IN BRIEF DSM starts contract manufacturing JV ■ RECORDATI has reported sales up by 13.7% to C942 million in 2013, with turnover oyal DSM and private-equity firm JLL pointed out, adding that the newly-formed busi- from OTCproducts accountingfor 16.1% of RPartners have established aglobal contract ness would be led by Patheon chief executive the total. The Italian firm added to its OTC development and manufacturing firm called officer Jim Mullen. business in the 12 months with the C93 million DPx Holdings. DPx would provide a“unique breadth of acquisition of Laboratorios Casen Fleet in Consisting of DSM’sPharmaceutical Prod- offerings from finished dosage forms to active September and the purchase of a67% stake ucts business and the JLL-owned pharmaceu- substances”, the twocompanies noted, and in Tunisian firm Opalia Pharma for C22.6 tical contract manufacturers Patheon and Ban- would be the leader in “proprietary soft-gel million (OTC bulletin,29November 2013, ner Life Sciences, DPx would generate sales formulationsfor OTC, prescription and nutri- page 8). Buying Casen Fleet, Recordati said, of around US$2.0 billion (C1.4 billion), the two tional consumer products”. had presented an “excellent opportunity” for it companies noted. Headquartered in North Carolina, US, DPx to acquire aportfolio of global products JLL had taken a51% stakeinDPX, with had 24 locations worldwide, the firms said. (OTC bulletin,27September 2013, page 3). DSM holding the remaining 49%, the firms OTC OTC

28 March 2014 Number 419 Advertising enquiries: [email protected] Terms &Conditions: No part of this publication may be copied, reproduced, stored in aretrievalsystem, distributed or Individual subscriptions: Editor: Matt Stewart transmitted by anymeans, including electronic, mechanical, Asubscription to OTC bulletin includes this hard-copynews- photocopying or recording, without the prior written permission Editor-in-Chief: Aidan Fry letter published 20 times ayear –twice monthly,except of the publisher,orunder the terms and conditions of aGlobal Production Editor: Jenna Meredith monthly in July,August, December and January,and de- Site Licence or of alicence issued by the Copyright Licensing livered by air mail –and afree weekly email newsflash Agency(CLA) in London, UK, or rights bodies in other countries Assistant Editor: Marie McEvoy news@OTCbulletin published 45 times ayear.Annual sub- that have reciprocal agreements with the CLA. Neither may this Business Reporter: TomGallen scriptions in Europe cost £715.00 (additional copies at the publication be exported, distributed or circulated by anymeans Contributing Editor: David Wallace same address £415.00); outside Europe £745 (£445). Single outside the staffwho work at the address to which it is sent by copies cost £50 each. Subscription rates may be adjusted the publisher without the prior written permission of the publisher. Advertising Controller: Debi Minal to coverany period and can be backdated. Subscriptions may While due care has been taken to ensure the accuracyofinform- Director of Sales &Marketing: ValDavis only be cancelled at expiry. ation contained in this publication, the publisher makes no claim Corporate subscriptions: that it is free of error and disclaims anyliability whatsoever Awards Manager: Natalie Cornwell for anydecisions or actions taken as aresult of its contents. Managing Director: MikeRice Global Site Licences are available to companies. These pro- vide in-house electronic access for staffto OTC bulletin ©OTC Publications Ltd. All rights reserved. OTC bulletin® is OTC bulletin is published by OTCPublications Ltd, and [email protected] ask for aquotation. Such registered as atrademark in the European Community. 4Poplar Road, Dorridge, Solihull B93 8DB, UK. licences are supplied strictly on the condition that both pub- ISSN 1350–1097. Tel: +44 1564 777550. Fax: +44 1564 777524. lications are the intellectual property of the copyright holder, Companyregistered in England No 2765878. Email: [email protected] OTCPublications Ltd, and are protected by copyright, trade- Printed by Warwick Printing CompanyLimited, Website: www.otc-bulletin.com mark and other laws. Leamington Spa CV31 1QD, UK.

28 March 2014 OTC bulletin 3 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 4

OTC COMPANY NEWS

HerbalifeLegal Cases/Annual Results facesUSFTC investigation

erbalife has revealed it is under investi- said, and produced “high-quality products” Region Annual sales Change Hgation by the US government following that catered for consumer needs. (US$ millions) (%) numerous accusations that the firm operates Meanwhile, Herbalife has defended its Chi- likeapyramid scheme. nese business in response to claims made by Asia-Pacific 1,175 +3.0 The US-based direct seller of nutritional Ackman that the companyhas violated China’s South and Central 973 +41 products has been served with aCivil Inves- direct-selling and pyramid-sales laws. America tigative Demand (CID) by the Federal Trade Insisting that Ackman had failed to “fun- North America 908 +7.9 Commission (FTC). damentally understand Herbalife’sbusiness EMEA* 735 +17 Responding to the FTC’smove,the com- model”, Herbalife said its operation in China Mexico 562 +13 panysaid it remained “confident” that Herbal- was“in compliance with Chinese direct-sell- China 472 +69 ife was“in compliance with all applicable laws ing and anti-pyramid regulations”. and regulations”. Herbalife would “continue to invest in this Total Herbalife 4,825 +19 Herbalife would “cooperate fully with the important market”, the firm stated, and work *Europe, Middle East and Africa FTC”, the firm said, adding that it welcomed in collaboration with the Chinese government Figure1:Herbalife’s sales in 2013 broken down by the enquiry “giventhe tremendous amount of to deliverits products to consumers through region (Source –Herbalife) misinformation in the marketplace”. “lawful direct-selling practices”. The investigation comes just overayear Turning to Herbalife’sfinancial results for Herbalife’sweight-management category of after Herbalife denied accusations by hedge- 2013, the companypointed out that improved products –including protein shakes and healthy fund manager William Ackman that the firm sales in all six of its business regions had push- snacks –accounted for 64% of the company’s operated likeapyramid scheme as it made more ed up turnoverby19% to US$4.83 billion total sales in the 12 months. moneyfrom recruitment than selling products (C3.48 billion) in the 12 months. The targeted nutrition category –which (OTC bulletin,18January 2013, page 5). Sales had grown quickest in China, the com- includes dietary supplements –made up 23% of At the time, Michael Johnson, Herbalife’s panynoted, where turnoverhad jumped by sales, with the outer nutrition and energy,sports chairman and chief executive officer,hit back 69% to US$472 million (see Figure 1). and fitness units accounting for the remainder. at Ackman’sclaims, insisting that the firm’s In Asia-Pacific –Herbalife’slargest region As of 31 December 2013, Herbalife’sprod- business model was“legitimate and compli- in terms of sales –turnoverincreased by 3% to ucts were available in 91 countries worldwide ant”. Herbalife operated to the highest level US$1.17 billion, drivenbyimprovedperform- via its network of around 3.7 million inde- of “financial integrity and transparency”, he ances in Indonesia, South Korea and Vietnam. pendent distributors. OTC

Trading Update Trading Update Adcock Ingram Stada cuts 2014 forecast over crisis faces ‘bumpy road’ tada Arzneimittel has cut its sales and 2013, as the firm paid £221 million (C264 Searnings forecast for 2014 due to negative million) for the UK OTCcompanyThornton & dcock Ingram said its sales during its cur- currencyeffects linked to the crisis in Ukraine. Ross (OTC bulletin,23August 2013, page Arent financial quarter ending 31 March The German firm said that “against the 1) and C131 million for the Aqualor range of 2014 had “shown no improvement” overthe backdrop of the strong devaluation of the seawater-based sprays and drops in Russia prior-year period as of the end of February, Russian rouble and the Ukrainian hryvnia”, (OTC bulletin,25October 2013, page 1). while its generic and OTCportfolio sales re- as well as the “uncertainties regarding future Stada also dropped the Hemopharm brand mained “of concern” and were “significantly business development” in the region, it no name in Germanyaspart of ashake-up of its behind those of the corresponding period”. longer expected to reach its sales target of sales operations in its home market (OTC “Gross profit as apercentage of sales re- C2.15 billion in the current financial year. bulletin,11October 2013, page 4). mains under extreme pressure,”the South Stada also said the crisis would most The rapid expansion of the Branded African firm added, blaming an “unfavourable likely prevent it from meeting its 2014 earnings Products division is part of adrive to reduce revenue mix, rand depreciation …and certain before interest, tax, depreciation and amorti- the company’sexposure to hard-pressed facilities running significantly belowcapacity”. sation (EBITDA) goal of C430 million. national healthcareservices. Stada’sdominant “The road ahead is likely to be bumpy,” Despite this, the companysaid it still ex- Generics business wasparticularly exposed to predictedAdcock, which revealed costs as- pected aslight rise in turnoverand adjusted “regulatory intervention”, Stada pointed out. sociated with its failed takeoverbyChile’s EBITDAinthe year above the figures of It had therefore decided to focus on CFR Pharmaceuticals –called offearlier this C2.01 billion in sales and C384 million in growing its better protected and higher-mar- year (OTC bulletin,21February 2014, page 3) EBITDAachievedin2013. gin Branded Products business and taking it –were expected to reach ZAR140 million Sales at the company’sBranded Products into newterritories, particularly “high-growth (C9.34 million). division improvedby19% to C504 million in emerging markets”. OTC OTC

4 OTC bulletin 28 March 2014 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 5

COMPANY NEWS OTC

Annual Results Celesio to push its European network

he pilot phase during 2013 of Celesio’spro- Tposed European pharmacynetwork under Business Annual sales Change EBITDAChange the ‘Lloyds’ banner has “provedasuccess” and (C millions) 2012/2013 (%) (C millions) 2012/2013 (%) will be expanded further this year,according PharmacySolutions 17,996 -4.3 354 +0.7 to the pan-European wholesaler and retailer’s Consumer Solutions 3,412 -1.5 264 -3.9 chief financial officer Dr Marion Helmes. Other ––-85 – Having launched the pilot phase in four stores in December 2012, the concept had now Total Celesio 21,408-3.9 533 -1.8

been rolled out to over100 pharmaciesacross Figure1:Celesio’s sales and earnings beforeinterest, tax, depreciation and amortisation (EBITDA) from the firm’sEuropean network, Helmes noted, and continuing operations in 2013, broken down by business (Source –Celesio) hadreceivedapositive responsefrom the public. Focused on offering patients and consumers Celesio noted. This had been due to negative ucts and expanded opening hours had offset “newand comprehensive advisory and other currencyeffects and the sale of the com- adrop in prescriptionrevenues, pushing up sales healthcareservices”, the concept had helped pany’sunderperforming Czech retail business. by 1.5% to C206 million, Celesio noted, while “strengthen the role” of pharmacists as both Adjusted for portfolio and currencyeffects, turn- earnings had also grown “significantly” thanks “competent healthcare advisors” and as service overhad grown by 3.2%, the firm pointed out. to cost-saving measures. providers for national healthcare systems. Sales at the Lloydspharmacychain in the Celesio’sIrish pharmacychain continued to Celesio would nowstart rolling out the key UK –which accounts for 66% of Consumer struggle in the face of adifficult economic en- elements of the concept in the rest of its 2,175 Solutions’ turnover–had been held back, Cele- vironment, which had impacted OTCvolumes pharmacies, the companynoted, and would sio said, by negative currencyeffects, with sales in particular,the firm said, driving sales down start to invite partner pharmacies in France falling by 0.1% to C2.25 billion. Excluding neg- by 7.0% to C124 million. andGermanytoadopt the concept in line with ativecurrencyeffects, turnoverrose by 4.6% Although earnings had advanced in Belgium national regulations. (see Figure 2). thanks to better cost controls, turnoveratits 96 Launched in late 2012, the newEurope- Thecompanynoted that the closer connec- pharmacies had fallen back by 3.5% to C125 wide Lloyds concept featured “innovative tionbetween the Lloydspharmacychain and million, Celesio pointed out. service formats, high-quality products and the the firm’sUKwholesaler AAH fostered by re- Celesio’sfledgling Swedish pharmacychain latest technologies”, the companyexplained, cent restructuring measures had started to pay had developed “very well” in the 12 months, and had been based on “comprehensive”market offinthe form of improvedefficiencyand with sales up by 11.0% –10.4% excluding studies, best practice at its existing pharmacies, strong synergies. currencyeffects –to C136 million, the firm said, and completely newdevelopments (OTC Across the rest of Europe, sales at the com- thanks to abetter product mix and price in- bulletin,18December 2012, page 1). pany’s Norwegian pharmacychain –its second creases. Rebranding the Swedish stores to The aim of the concept, Celesio said, was biggest after the UK –had developed well, Lloydspharmacywas nowcomplete, it added. to develop a“competitive pan-Europeanphar- Celesio pointed out, with turnoverfrom OTC Consumer Solutions’ earnings before interest, macynetwork” that unified the company’sown products growing strongly.However,this was tax, depreciation and amortisation (EBITDA) pharmacies and its partner pharmacies to “offer notenough to offset the negative impact of ris- fell back by 3.9% to C264 million. Adjusted for comprehensive patient services”. ingcosts on earnings, the companyadded. special effects, EBITDAdeclined by 4.1%. Meanwhile, Celesio reported a1.5% drop in TurnoverinNorway fell back by 0.6% to The Consumer Solutions division account- 2013 sales at the firm’sConsumer Solutions div- C570 million, due entirelytonegative currency ed for 16% of Celesio’ssales in 2013, which ision, which houses its retail pharmacybusiness. effects. Excluding the currencyissues, sales im- dropped by 3.9% to C21.4 billion. EBITDA Consumer Solutions’ turnoverhad slipped provedby3.7%. slipped back by 1.8% to C533 million. back to C3.41 billion in the period (see Figure 1), In Italy,anincrease in sales of OTCprod- Celesio’sdominant PharmacySolutions wholesale division posted a4.3% fall in sales Business Annual sales Change 2012/2013 (%) Number of to C18.0 billion in the period. EBITDAatthe (C millions) (C)(Local currencies) pharmacies PharmacySolutions business edged up by 0.7% to C354 million. UK 2,249 -0.1 +4.6 1,570 The results were announced as Celesio began Norway 570 -0.6 +3.7 195 integrating itself into the Distribution Solutions Italy 206 +1.5 +1.5 163 division of McKesson, after the US pharmaceu- Sweden 136 +11.0 +10.4 78 tical wholesaler acquired over75% of Celesio’s Belgium 125 -3.5 -3.5 96 shares following aprotracted takeoverprocess Ireland 124 -7.0 -7.0 73 (OTC bulletin,7February 2014, page 1). Germany2-38.4 -38.4 – The combined entity will have annual sales in excess of US$150 billion (C110 billion), ap- Total Consumer Solutions 3,412 -1.5 +2.3 2,175 proximately 81,500 employees worldwide and

Figure2:Celesio’s sales and earnings beforeinterest, tax, depreciation and amortisation (EBITDA) from operations in 20 countries. continuing operations in 2013, broken down by country(Source –Celesio) OTC

28 March 2014 OTC bulletin 5 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 6

OTC COMPANY NEWS

Annual Results First-HalfResults Galenica posts Aspenperforms well in a strong increase difficult domestic market witzerland’sGalenica said adouble-digit Srise in sales at its Consumer Healthcare outh Africa’sAspen Pharmacare said that Away from South Africa, Aspen’sAsia- business in 2013 wasevidence that achange Sdomestic sales of its non-prescription health Pacific business posted sales up by 24% to of strategy at the division was“paying off”. and nutrition products had improvedby14% ZAR4.30 billion, while turnoverinLatin Amer- Initiated in 2012, the strategy had in the six months ended 31 December 2013, de- icaraced ahead by 60% to ZAR1.20 billion. focused on improving efficiency, consumer- spite achallenging retail environment. Aspen does not break down its Consumer or oriented marketing and the roll-out of a Turnoveratthe firm’sSouth African Con- OTCsales outside of South Africa, butnoted “customised medical training programme” sumer division had advanced to ZAR634 mil- that in Australia, unit sales of the Cartia brand to pharmacies, Galenica revealed. lion (C42.2 million),Aspen pointed out, reflect- had improvedsignificantly since the company This strategic approach had nowstarted to inga“strong performance” in the “private mar- acquired the aspirin-based heart-health range showresults, the companypointed out, with ket” for pharmaceutical and consumer products. as part of basket of OTCbrands it snapped up Consumer Healthcaresales at the firm’sVifor The South African Consumer unit would be from GlaxoSmithKline Consumer Healthcare Pharma unit advancing by 11.6% to CHF87.4 boosted further in the near future, Aspen noted, in 2012 (OTC bulletin,30April 2012, page 1). million (C71.6 million) in the 12 months. with the launch of the S-26 infant-milk range. Similarly in Brazil, sales of the Phillips The stand-out brands had been the Anti- Looking at the ‘private’ Southern African Milk of Magnesia brand –which Aspen also Brumm insect repellent and the Algifor anal- OTCmarket, Aspen said that turnoverhad acquired from GlaxoSmithKline –had shown gesic range, with both posting double-digit risen by 5.5% in 2013, with IMS valuing the strong growth, the companypointed out, while gains, Galenica said, while the Triofan de- market at ZAR7.9 billion in the 12 months. the Calman insomnia and anxiety brand had congestant had also “developed well”. Aspen had taken a12.7% share of that mar- also performed well. In addition,the Magnesium Vital Sport and ketinvalue terms, the companynoted, with Following the close of the period, Aspen Magnesium Vital One dietary supplements had sales of its OTCproducts advancing by 5.4%, sold its Herron range of OTCproducts in Aus- “outperformed the market”, Galenica noted. slightly slower than the market overall. tralia to US-based store-brand specialist Per- Consumer Healthcare’sdomestic sales The Consumer unit –which consists of eye rigo for an undisclosed sum (OTC bulletin, improvedby12.7% to CHF59.7 million, while drops, infant formulae,laxativesand vitamins – 17 March 2014, page 3). export sales also movedforward by 9.1% to accounted for 17% of Aspen’stotal sales in Aspen’stotal sales –including Sub-Saharan CHF27.7 million. South Africa, which grewby8%toZAR3.84 Africa and other markets, as well as South Turnoverfrom third-party manufacturing billion in the six months. Aspen’sSouth African Africa, Asia-Pacific and Latin America –in- had also boosted sales at Vifor Pharma Con- Pharma division generated the remainder,with creased by athird to ZAR12.0 billion. Operat- sumer Healthcare, Galenica said, with revenues turnoverupby7%toZAR3.20 billion. ing profit grewby16% to ZAR2.88 billion. increasing by 22.1% to CHF36.0 million. OTC Vifor Pharma Consumer Healthcare ac- counted for 13% of sales at Galenica’sPharma Third-QuarterResults division, which advanced by 4.6% to CHF663 million in the 12 months. Hi-Tech reports OTC sales decline Galenica’stotal group sales for 2013 moved forward by 2.0% to CHF3.36billion, exclud- i-Tech Pharmacal said poor performances Multibetic multivitamin supplement. ing intra-companysales of CHF707 million. Hby twokey OTCproducts had led sales Health Care Products represented 7% of Turnoveratthe firm’sdominant Logistics to drop by afifth at the firm’sHealth Care Hi-Tech’stotal sales for the quarter,which division edged up by 0.8% to CHF2.12 billion. Products division in its third quarter ended dropped by 7% to US$59.9 million. Opening newstores and increased consumer 31 January 2014. The company’sgeneric pharmaceutical traffic had drivenupsales at the Retail division Turnoveratthe division –which markets the business generated 80% of the total, with turn- by 4.8% to CHF1.25 billion, Galenicasaid. US-based company’sbranded OTCproducts – overdownby12% to US$47.8 million. OTC fell by 20% to US$4.11 million (C2.95 million) The ECR pharmaceuticals division ac- in the three months. counted for the remainder,with sales jumping IN BRIEF Lower sales of Zostrix diabetic pain-relief by 58% to US$8.04 million. ■ DKSH –the Swiss-based market services cream and Sinus Buster homoeopathic nasal Hi-Tech is set to be acquired by Akorn for provider –has expanded its reach in China spray had been responsible for the decline in US$640 million. The deal –which wasan- by acquiring Macau’s The Glory Medicine sales, Hi-Tech explained. nounced in August last year (OTC bulletin, Limited for an undisclosed sum. Described In addition,Hi-Tech reported that aweaker 13 September 2013, page 5) –isexpected to as one of Macau’s“leading healthcare dis- cough, cold and flu season had led to lower be completed by the end of April. tributors”, Glory gave DKSH adirect presence sales of its Diabetic Tussin line. Akorn said Hi-Tech’sOTC portfolio would in Macau, the companynoted, and reinforced Hi-Tech’sOTC portfolio also includes the complement the Thera Tears eye-care brand its position in Asia. Diabeti-Derm skin- and foot-care range, the it acquired in mid-2011. OTC Mag-Ox magnesium supplement and the OTC

6 OTC bulletin 28 March 2014 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 7

COMPANY NEWS OTC

BusinessStrategy/Annual Results Bionorica takes‘Phytotheks’ to Russia

erman herbal medicines specialist Bio- medicines supplier to Germany’steams for the Gnorica is transferring its ‘Phytothek’ phar- recent Winter Olympics in Sochi, Russia. macydisplay and marketing concept from its In its home market, Bionoricaclaims to be domestic market into Russia and the Common- “clearly the most dynamic top-15 company wealth of Independent States (CIS). in the German self-medication arena”. Pilot projects in international markets have Citing Insight Health ex-factory data, the convinced the German group that its Phytothek German firm said its domestic sales growth of concept –ofdedicated areas within pharmacies 23.4% wasfour-times the market average. for displaying herbal remedies, supported by “A keyreason for this, among other factors, science-based stafftraining –will succeed out- wasthe sales growth rates of our respiratory and sideofits domestic market (OTC bulletin,12 immune-system products,”Bionorica stated. April 2013, page 6). Turnoverfrom the firm’sImupret combi- LaunchingSinupret Extract lifted sales of Bionorica’s “Just in Russia and Ukraine –where Bio- nation herbal product for boosting the im- Sinupret brand by morethan aquarter norica is the market leader for phytopharma- mune system improvedbyalmost athird, while ceuticals –more than 100 Phytotheks should be sales of its thyme-based Bronchipret cough and come what it claims is Europe’sfastest-grow- set up during 2014,”the companypledged. cold remedy increased by 18.5% last year. ing herbal medicines supplier. Having by the end of last year signed con- Group turnoverincreased by 15.2% to C233 tracts for 525 Phytothek display areas in Ger- Sinupret Extract boost million last year. manpharmacies, Bionorica intends to add an- And introducing in October 2012 its Sinu- The companyintends to broaden the extent other 400 during the course of 2014. pret Extract respiratory line extension –said to of the operation in China that it established More than 1,000 pharmacyassistants had offer afour-times stronger concentration than last year.“Furthermore,”Bionorica added, passed courses on herbal medicines that were the firm’spopular Sinupret Forte variant (OTC “marketing authorisation procedures at aEuro- certified by local pharmacyboards, Bionorica bulletin,26October 2012, page 15) –was re- pean levelare running for several products.” pointed out, adding that it wasextending its flected in sales of the Sinupret brand as a By expanding its international presence and training programme with acourse intended whole rising by 25.7%. turnover, the German group expects to raise its for pharmacists. Meanwhile, German turnoverfrom the com- investment in research and development. Focusing on communication with, and en- pany’sCanephron Nrosemary and lovage-based In addition, Bionorica has an exclusive part- dorsement from, pharmacystaffiscentral to treatment for urinary tract infections leapt for- nership for herbals with the Austrian Drug Bionorica’smarketing strategy,which largely ward by 51.3%. Screening Institute (ADSI) in Innsbruck, which eschews classical consumer advertising. Canephron Nhas been one of Bionorica’s is analysing more than 100 plants to identify However, the companyacted as the official lead brands as it expands internationally to be- potential newmedicines. OTC

BusinessStrategy DistributionAgreements Moberglaunches Navamedic adds to women’s healthrange Kerasal Nail product orway’sNavamedic has signed adeal to Ingrid Atteryd Heiman, acting chief executive Ndistribute, market and sell the entire port- officer of Ellen, said Navamedic’s“smoothly weden’sMobergPharma is seeking to folio of women’s-health specialist Ellen in functioning cooperation” with pharmacychains Sincrease its share of the OTCfungal-nail the Nordic region. in the Nordic region would be keytoexpand- market in the US with the launch of anew Under the terms of the deal, Navamedic ing Ellen’spresence in pharmacies. formulation of its Kerasal Nail product. said it would distribute Sweden-based Ellen’s Ellen pointed out that the deal with Noting that Kerasal Nail –indicated to probiotic tampons, intimatecream and Navamedic replaced its previous agreement treat discoloured and damaged nails –had a dietary supplementsinDenmark, Norway with BaltexNatural for the distribution of its 20% market share in its category in the US, and Sweden. products in the Nordic region. Mobergsaid that the newformulation would Ellen’sprobiotic intimate cream could be Navamedic’sConsumer Care business benefit consumers with improvednail pene- used by women of all ages to treat vaginal markets OTCproducts in the dermatology, tration and stability.Inaddition, Mobergsaid, dryness, the companysaid, while its probiotic oral-health and female-care categories across the product wasmore “user-friendly”. tampon wasindicated for women who suffered the Nordic and Belelux markets. Peter Wolpert, Moberg’schief executive from vaginal flora imbalance. Consumer Care generated 8% of Nava- officer,pointed out that the patent application Navamedic said that Ellen’sproduct line medic’stotal 2013 sales, which improvedby submitted for the product would provide would be a“significant addition” to its offering 71% to NOK152 million. The firm’sPharma “long-term intellectual property protection” in the women’s-health market, noting that the and Medical Nutrition units accounted for for the Kerasal Nail range. company’sfemale-care portfolio generated sales the remainder. OTC of NOK12 million (C1.4 million) in 2013. OTC

28 March 2014 OTC bulletin 7 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 8

OTC COMPANY NEWS

LicencingAgreements Mergers&Acquisitions BioGaiaexpands Symrise fails to takeProbi

Nestlé agreement robi’slargest shareholder Symrise has with Probi’sclosing share price of SEK40.30 Pfallen short in its attempt to acquire a on 5February,the day before Symrise made robiotics specialist BioGaia has signed an controlling stakeinthe Swedish probiotics its official bid. Pagreement with Nestlé to carry out clinical and biotechnology specialist. The move came after Symrise increased studies and develop newproducts for the Swiss The German fragrances, flavours and in- in January its shareholding in Probi to more food and drinks giant. gredients manufacturer launched an obligatory than 30%. This meant the firm wasrequired to Under the terms of the deal, the Swedish offer for all of the shares it did not ownin launch an obligatory offer for the remaining firm said that it would undertake“specific clin- Probi on 6February,but had only managed to shares by 7February (OTC bulletin,7Febru- ical studies in the paediatric area” for Nestlé. boost its holding to 46.63% by the acceptance ary 2014, page 10). In addition,BioGaia revealed that it would deadline of 13 March. Meanwhile, Probi said it had secured a also develop products for Nestlé in newareas. Symrise added to its original 30.03% stake “major order” worth SEK3.6 million for its If the development work wassuccessful, the by snapping up more than 1.5 million shares dietary supplement Probi Digestis from its companyadded, BioGaia would makethe during the offer period. US distributor Pharmavite. products for Nestlé. The bid failed to receive the backing of Describing the order as “one of the largest Nestlé would pay BioGaia royalties of Probi’sboard of directors, with the company ever received” by its Consumer Health busi- SEK92 million (C10 million) overathree-year unanimously recommending in February that ness, Probi said it had been based on “strong period, starting during the current quarter of its shareholders not accept the offer (OTC demand” for its digestive-health capsules in 2014, the firm noted. bulletin,21February 2014, page 3). US pharmacies and retail stores. The deal is asupplementaryagreement to Rejecting the SEK40.10 (C4.53) per share Noting that Pharmavite had distributed its the perpetual licence granted by BioGaia to offer worth SEK376 million, the board said gut-health capsules in North America since Nestlé in February 2012 to use the company’s that Symrise’sbid was“not considered fair 2012 (OTC bulletin,14September 2011, page Lactobacillus reuteri probiotic in its infant- from afinancial perspective”. 11), Peter Nählstedt, Probi’schief executive formula products(OTC bulletin,29February Symrise’soffer represented adiscount of officer,said that there wasanopportunity for 2012, page 6). 0.5% per share, the board noted, compared “continued strong development” in the region. As part of the newagreement, BioGaia said OTC it would immediately receive the remaining milestone payments totalling C7.2 million from Research the 2012 deal. Peter Rothschild, BioGaia’spresident, said Multivitamins can reduce cataract risk that the agreement gave the companya“great ong-term daily multivitamin supplementa- for a14-year period. Half of the participants opportunity” to develop anumber of interest- Ltion could potentially decrease the risk of took acommon daily multivitamin, as well as ing products for Nestlé. In addition, it would men developing cataracts, according to astudy vitamin Eand beta carotene supplements, while give the firm increased financial resources published in the journal of the AmericanAc- the other half took aplacebo. and help to lift profits, he noted. ademy of Ophthalmology. In the placebo group, 945 cases of cataracts OTC However, the researchers also found aslight had developed, the study’sauthors said, com- increase in age-related macular degeneration pared to 872 cases in the multivitamin group. Mergers&Acquisitions (AMD) among multivitamin users. However, 152 cases of AMD had been re- Noting that the study recorded a9%drop corded in the multivitamin group, while in the Sanofi linked with in cataract development among participants, placebo group there had been 129 cases. the study’sauthors say in Ophthalmology that While the difference wasnot statistically Merck OTC unit “evenamodest reduction” in the risk of cata- significant, the study’sauthors say that the ractdevelopment has the potential to “improve increase of AMD in the multivitamin group anofihas joined the bidding to acquire public health outcomes”. raises “some concerns”. The findings need to SMerck &Co’sglobal Consumer Care Conducted at Brigham and Women’sHospi- be “examined further”,theynote, in trials of division, according to media reports. tal and Harvard Medical School, the study fol- multivitamin supplements including both Bloomberg reported that final bids for the lowed 14,641 male doctors aged over50years men and women. business –which is led by the Claritinallergy OTC brand –were expected by the end of March, and that the French firm had nowconfirmed IN BRIEF its interest. The report claimed that Reckitt ■ TERRA-MEDICA has voluntarily recalled able in avariety of delivery formats, the Benckiser wasthe current frontrunner. 56 lots of its Pleo-branded homoeopathic FDApointed out, including liquids, ointments In January,the US-based firm said it wasin products,after the US Food and Drug Admin- and suppositories. The brand wasdistributed the process of “exploring strategic options” for istration (FDA) warned that theycould po- nationwide through healthcare practitioners, both its Animal Health and Consumer Care divi- tentially contain penicillin or derivativesof the agencyadded, who may have sold the sions (OTC bulletin,7February 2014, page 11). penicillin as aresult of fermentation during products through websites. OTC production. The affected products were avail- OTC

8 OTC bulletin 28 March 2014 OTC28-03-14p3-9 FINAL_Layout 1 25/03/2014 17:23 Page 9

GENERAL NEWS OTC

Research Pricing&Reimbursement/SmokingCessation ASMI defends Funds will not pay for NRT

vitamin Euse icotine-replacement therapies (NRTs) will expert committeeonprescription to switch the Nnot be reimbursed by German statutory emergencycontraceptive levonorgestrel to study that suggests high doses of selenium health insurance funds, the country’sMinistry non-prescription status. Aand vitamin Ecan increase prostate cancer of Health has stated in awritten answer to Pointing out that it wasnot obliged to follow risk has a“number of limitations”, according to parliamentary questions posed by members the expert committee’smajority vote (OTC the Australian Self-Medication Industry (ASMI). of the left-wing Die Linkeparty. bulletin,7February 2014, page 16), the min- Commenting on the findings published in Under Article 34 of Germany’sfifth social istry said it wasstill “considering its future the Journal of the National Cancer Institute, lawbook, the SBG V, aseries of ‘lifestyle conduct” in light of astatutory order passed Steve Scarff, the ASMI’sregulatory and scien- medicines’ such as NRTs, appetite suppres- by Germany’supper house of parliament, the tific affairs director,said that the association’s sants, hair-loss treatments and erectile-dys- Bundesrat,topush through aswitch. “primary concern” wasthat selected data from function drugs are specifically excluded “Due to their training,”the ministry said, aprevious trial had been reexamined to com- from reimbursement. “doctors are generally able to advise compre- pile the study.This could have resulted in a “The constitutionality of Article 34 of the hensively women and girls in emergencysitua- “number of statistical errors”, he insisted. SGB Vhas been confirmed by the courts several tions, and to explain methods of contraception Thestudy had investigated the effects of vita- times,”the ministry pointed out. as well as the danger of sexually-transmitted min Eand selenium supplementation on reduc- “The daily therapycosts for smoking-ces- diseases from unprotectedsex.” ing prostate cancer risk, buttypically supple- sation medicines,”itadded, “are of an order Observing that the European Medicines ments were used to fill anutritionaldeficit, that insurees can finance themselves through Agency(EMA) wascurrently weighing up acen- Scarffpointed out. It wasimportant for sup- the moneytheysaveoncigarettes.” tralised switch application for the EllaOne plements to be consumed in recommended In another written response, the ministry (ulipristal acetate) emergencycontraceptive,the amounts, Scarffsaid, not at the high doses failed to shed much light on whyithas not yet ministry said it expected the agencytomakea used in the trial. Participants were givenvita- acted on arecommendation from Germany’s decision “in the summer of 2014 at the earliest”. min Eatadose of 400 international units OTC (IU)/day or selenium at adose of 200µg/day. Reviewing the results of the study,the re- searchers found that selenium supplements dou- bled the risk of prostate cancer among men with high pre-existing levels of selenium. They also noted that men with lowlevels of selenium doubled their risk of prostate cancer by taking vitamin E. Other studies with selenium and vitamin E did not support the findings, Scarffsaid, noting that research published in Biomedical and En- vironmental Sciences found that selenium sup- plementation could reduce prostate cancer risk. Dietary supplements continued to be regu- lated by the Australian Therapeutic Goods Ad- ministration (TGA), Scarffpointed out, and re- mained useful for those with vitamin or min- eral deficiencies. OTC IN BRIEF

■ EUROPE’S UNITARYPATENT COURT will not be operational until “the end of 2015 at the earliest”, according to Alexander Ramsay, vice-chairman of the court’spreparatory com- mittee. Ramsay –who also works for Sweden’s MinistryofJustice –said last week that his committee’sprevious prediction of the court starting work in early 2015 “cannot be ac- complished”. Nevertheless, Ramsay insisted, substantial progress wasbeing made. OTC

28 March 2014 OTC bulletin 9 OTC28-03-14p10-13_Layout 1 25/03/2014 17:03 Page 2

OTC GENERAL NEWS

Industr yAssociations Speers plansfresh approach at PAGB

ot better,not worse, butdifferent,” forces to try and facilitate change.” industry that has got some value to add,”Speers “Nis howMatthewSpeers, newchief ex- “From the PAGB’sperspective,Shelia Kelly noted. “We must have visible and clear policy ecutive officer of the Proprietary Association of had been amajor force in the industry and it positions on the keyissues which impact the Great Britain (PAGB), describes his approach is impossible to replace her directly,” Speers industry,whether we end up lobbying on to running the UK industry trade association. noted, “so while Shelia had that broad-based them or not.” “Fundamental changes at the PAGB are pharmacist background, I’m coming at it from “Advocacyisthe final pillar.We need to be not needed,”Speers told OTC bulletin.“The amuch more focused, business-like direction.” much more vocal on the subjects where we organisation is not abasket case in need of “I think the PAGB wanted something that think we have avoice to be heard,”Speers resurrecting. Iwill be improving on what is wasdifferent, to take itinadifferent direc- pointed out. “Where we have the facts and data already pretty good and bringing adifferent tion, something that wasmore focused on to support our position, we will go out and be focus and slant to the job.” the business and making the agenda work more vocal than we may have been in the past.” “I want to use my 35 years experience of for the industry,” he added. the pharmaceutical industry to make the PAGB Commenting on the environment for self- Ensuring regulatorysupport more business-like, more transparent,”Speers care in the UK, Speers said that there already Delving into the details behind the three said, “with abetter idea of what impact the existed a“good alignment between the key core areas, Speers said that his immediate measures we take are having.” players that self-care is agood thing”. focus would be on the regulatory support the “I also want us to be amore vocal industry,” “The National Health Service (NHS) rea- PAGB offers and ensuring that these pro- Speers insisted, “and although we might get lises it can’tdoeverything and recognises that grammes ran smoothly. knocked down occasionally, we should not be self-care helps reduce general practitioners’ “We will spend alot of time overthe next afraid to fight our corner on keyissues.” workloads,”Speers pointed out, “while phar- fewmonths figuring out the membershipser- macists like that it drivessales.” vices,”he revealed. “We don’treally understand Took over from Sheila Kelly “Asself-care becomes more entrenched, what members want, who should be using Speers joined the PAGB on 6January and at some point the OTCindustry will benefit our services and what theyare doing.” took overaschief executive officer on 1 more,”Speers said, “but right nowitisabout “I believe that the keytoasuccessful trade February,replacing Sheila Kelly,who stepped translating that general win in the policyenvi- association is not just the services it provides, down after 23 years at the helm of the asso- ronment into more positive tangible wins for butits engagement with the membership,” ciation. Kelly has stayed on at the PAGB to consumers and their ability to self-care and Speers added. “I knoweveryone’sbusy,but I ensure asmooth transition and is set to leave self-treat, and that is not so easy.” will be strongly urging firms to get involved.” at the end of March. “It sounds easy,but there still exists no Rebuilding the membership database Prior to joining the PAGB, Speers was consistent message at aconsumer levelwhen would serve asthe foundation for other things, general manager for UK and Ireland at Bel- it comes to self-care,”Speers pointed out, “and such as tailored membership packages, Speers gian biopharmaceutical firm UCB Pharma, we want members more engaged on the com- said. Amembers’ survey would be launched, having previously served as the company’s mercial side as well as the regulatory side.” he added, to find out the levelofawareness of general manager for its smaller European “For example, on cold and flu remedies, the services the PAGB offered and howmem- markets. Earlier in his career,he held anum- while we have alignment among the key bers used them so it could set benchmarks ber of roles at GlaxoSmithKline and its pre- healthcare professionals about what the normal and improve its offer. decessors Beecham and SmithKlineBeecham, duration of acold is –uptothree weeks if you including director of strategic operations. have acough –onthe packs of OTCmedicines Addressing key challenges As UCB wasasignificant investor in phar- that people use to self-treat, it tells them that if Turning to howhe would address keychal- maceutical research and development in the UK, theyare not feeling better after three days to lenges facing the industry,Speers said that Speers wasactive at the Association of the go to see their doctor,” Speers explained. although the PAGB would not lobby on every- British PharmaceuticalIndustry,where he co- “That is not consistent information, it is thing that came up, there were some impor- chaired the Medicines Access Group with the misleading to the consumer and it is not help- tant issues “coming down the road” that it Department of Health, and became aguest ful to the system,”he insisted. needed to have aclear position on, including of the Ministerial Industry Strategy Group, So howcan the PAGB help the consumer e-cigarettes, self-selection of medicines and the which brought together government and the better to self-care? Speers said he believedit European Union’sfalsified medicines directive. research-based biopharmaceutical industry. wasabout applying a“business mind to a “We have totry and shape the regulatory Having left UCB after the companyrestruc- policyconundrum”. environment to make iteasier for our members tured in April 2013, Speers said he wanted arole “My ambition for the PAGB is for it to be a to work in,”Speers insisted, “and on those key where he felt he could makeareal difference, world-class trade association,” Speers revealed, issues we will go out and be an advocate for and taking charge of PAGB fitted the bill. adding: “Within that objective there are three the industry.” “We picked each other,” Speers insisted. areas where we need to be great.” Furthermore, while maintaining the positive “The role plays to my business background, “The first one is around member services atmosphere around self-care, the PAGB would my strong policybackground in ahighly regu- and support,”he pointed out, “and that is the continue to work closely with the UK’sMed- lated environment and an understanding of foundation stone of what we do.” icines and Healthcare products Regulatory howtobring together coalitions of differing “Second, we are atrade associationofan Agency(MHRA) on the switch agenda, he

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GENERAL NEWS OTC

added, and on improving consistencywithin Regulatory Af fairs the regulatory environment. Looking at the UK OTCmarket currently, CHMP issues Speers said that the opportunity was“flat” and that part of his mission at the PAGB would be on improving the “dynamic of the self-care Alli warning agenda to make the market more receptive to innovative products”. laxoSmithKline Consumer Health- “We need to facilitate behaviour change in Gcare’sAlli weight-loss medicine should consumers, we need to make the self-care policy not be used concomitantly with anyantiretro- come alive for consumers,” Speers explained. viral medications, Europe’sCommittee for “The default for the consumer is still the Medicinal Products for Human Use (CHMP) general practitioner,” Speers pointed out. “This has recommended. is asignificant barrier.” The CHMP concluded that the summary “Finding mechanisms to break this barrier of product characteristics for Alli (60mg down is something Iwill be tackling strate- orlistat)should be updated to introduce awarn- gically,and it won’tbeaquick win, butthat ing against its use with antiretroviral medicines is the mission,”he insisted. Matthew Speers, the new chief executive of the “due to apotential interaction”. PAGB, wants the UK industryassociation to become Doctors had alegitimate role in the self-care aworld-class advocate for self-careand morevocal Endorsing the recommendation of the Phar- process, butindustry needed to make them on key issues macovigilance Risk Assessment Committee comfortable so theywould “let go” abit more, (PRAC), the CHMP revealed that anumber Speers said, adding that pharmacists had a comes back to that consistencyofmessage.” of case reports pointed to the potential for crucial role in taking oversome of the services Within Europe, the UK remained “one of the orlistat-containing weight-loss medicines – that doctors offered when it came to advice better OTCmarkets to operate in”, Speers including Alli and Roche’sprescription drug and care. agreed, butthere was“still room to make it Xenical –toreduce the efficacyofantiretro- “Fundamentally,however,itcomes back to even better”. viral medications. empowering the consumer,” Speers said. “It OTC OTC Cutting through the Smoke: The Way Forward for E-cigarettes Le Méridien Hotel, London, 15th May 2014

utting through the Smoke: The WayForward forE-cigarettes is the first conference Caimed at bringing claritytothe commercial and regulatory questionsposed by the dynamic and rapidly-developing e-cigarette market. Bringing together the e-cigarette industry and manufacturersofthe leading nicotine-replacement therapybrands –together with regulators, retailers, healthcare professionals and public-health bodies –this one-day conference will explain whye-cigarettes are successfully disrupting widely-held views on smoking, tobacco and nicotine use. Expert speakers from manufacturers, retailers, regulators and market researchers will provide insights and stimulate debate on one the most important public-health topics of the moment. Organised by OTC bulletin –the business newsletter for the consumer healthcare industry – Cutting through the Smoke: The WayForward forE-cigarettes is aunique opportunity for all stakeholders and interested partiestocut through the miasma surrounding e-cigarettes, gain aclear understanding of the market and help shape the future of this growing market segment. Conference fee: £250 +VAT per delegate to include presentations, lunch and refreshments. To register,visit www.otc-bulletin.com Organisedby or contact Natalie Cornwell on +44 1564 777 550 or [email protected]

28 March 2014 OTC bulletin 11 OTC28-03-14p10-13_Layout 1 25/03/2014 17:03 Page 4

OTC GENERAL NEWS

Market Research German pharmacy valuesgeneric partners

erman generics firms Hexal and Ratio- of all German pharmacies being enrolled in Meine MVDA Gpharm are perceivedbyGerman pharma- such ascheme. However, the consultancy 6.0% Apotheke LINDA cists to be farbetter partners than mainstream pointed out, the percentagesofparticipants in 5.3% 17.5% OTCand prescription players such as Bayer and the major co-operativeswas largely similar to Noweda 4.6% Johnson &Johnson, according to astudy of figures for the total market. pharmacyco-operativesinGermanyconducted When givenachoice of naming anyof by management consultants Sempora Consulting. the co-operativeswith which theycollaborated, Gesund Leben Having collected surveyscompleted online 24.0% of pharmacists identified Gehe’sGesund 15.6% by 376 pharmacists between November 2013 Leben Apotheken programme. Just overthree- Others and January 2014, Sempora invited participants quarters of the respondents were members of 22.9% to respond to the statement: “The best industry more than one pharmacyco-operative,and phar- Vivesco partner for my co-operative isthe company....” macists could name more than one co-operative. A-Plus/ 10.3% E-Plus Gesund ist bunt Guten Tag “In the eyes of the pharmacists questioned, This Celesio-backed scheme wasfollowed 4.6% 7.6% Hexal and Ratiopharm are by adistance the closely by the pharmacists’ marketing al- 5.6% best industry partners,”the management con- liance, Marketing Verein DeutscherApotheker Figure1:The names of the main pharmacy co-operatives sultancyobserved. (MVDA), on 23.7%, and the MVDA’sLinda with which apanel of 376 German pharmacists works Novartis’ Hexal generics label ranked first, umbrella brand with 22.4%. most closely currently (Source –Sempora Consulting) named by 33% of respondents, ahead of Teva’s Some waydistant in fourth came Alliance Pharma Privat’sA-Plus/E-Plusprogramme Ratiopharm in second with 30%. But while Healthcare’sVivesco concept with 14.1%, came ninth as the main co-operative for 4.6% the twogenerics players –both of which followed by Pharma Privat’sA-Plus/E-Plus of the participating pharmacists, the same pro- have considerable OTCportfolios –easily co-operative on 11.2%. Wholesaler Noweda’s portion that identified Noweda as their main retained their top-twoplacings, their shares scheme ranked fifth with 10.9%, ahead of partner.The remaining 22.9% named adif- slipped from 39% and 32% respectively from Elac’sGuten TagApotheken and Phoenix’ ferent pharmacyco-operative. the prior year’ssurvey. Midas programme. Pharmacists’ motivations for signing up to The proportion of pharmacists who named But when Sempora asked the participating co-operativeswere largely financial. third-placed Bayer also declined slightly pharmacists to identify the main co-operative When asked to name the main reason for from 8% to 7% this year.But Johnson & with which theyworked most closely,the joining aco-operative,54% cited advantageous Johnson shot up from anegligible share to take MVDA’sLinda came top with 17.5% of votes purchasing terms and rebates. The next most 5% of votes, putting the US firm equal with cast, slightly ahead of Gehe’sGesund Leben popular response wasmarketing and advertising another major generics supplier,Stada. (see Figure 1). support, identified by 28% of participants. Novartis –apart from Hexal’sperformance – Alliance Healthcare’sVivesco wasthe main More than four-fifths said the co-operative doubled its share to 4%. co-operative for just overatenth of respondents, helped their pharmacytogenerate greater Nearly nine-tenths –88% –ofthe 376 phar- followed by Elac’sGuten Tagwith 7.6% and profits, with just 8% disagreeing (see Figure 2). macists who took part in the ‘Coop-Study 2014’ MVDAwith 6.0%. The vast majority of pharmacists –93% – were amember of at least one co-operative. Parmapharm’sGesund ist bunt concept were either ‘very satisfied’ or ‘satisfied’ with This, Sempora acknowledged, wasslightly ranked sixth with 5.6% of votes, just ahead their principal co-operative (see Figure 3). higher than the industry average of around 78% of wholesaler Sanacorp’sMeine Apotheke. This wasanincrease of six percentage points compared to 2013. And the proportion of ‘very satisfied’ participants had increased by Disagree 14 points, Sempora pointed out. strongly Less Dissatisfied Disagree satisfied Agree In general, at least nine out of 10 co- strongly Very operative members would rejoin willingly, Neutral satisfied although Alliance Healthcare’sVivesco and Phoenix’ Midas slipped slightly belowthe 90% endorsement mark. When questioned about the wider impli- cations of belonging to aco-operative,55% of pharmacists believedconsumers noticed

Satisfied that theywere part of aco-operative,with 22% believing theydid not. Another 23% Agree were unsure of customers’ perceptions. “One can, however, assume that pharmacists viewtoo positively the effects on their cus- Figure2:Responses of apanel of 376 German Figure3:The degree of satisfaction with their pharmacists to the statement ‘A co-operative helps principal pharmacy co-operative expressed by apanel tomers of their participation in co-operatives,” my pharmacy to achieve agreater profit’ (Source – of 376 German pharmacists (Source –Sempora Sempora commented. Sempora Consulting) Consulting) OTC

12 OTC bulletin 28 March 2014 OTC28-03-14p10-13_Layout 1 25/03/2014 17:03 Page 5

GENERAL NEWS OTC

Regulatory Af fairs Regulatory Af fairs PRAC restricts medicines EMA consults on containing domperidone excipients use hree draft ‘Question and Answer’ docu- urope’sPharmacovigilance Risk Assessment and may continue to be used in the European Tments about the use of ethanol, benzoic ECommittee (PRAC) has recommended re- Union (EU) for the management of the symp- acid and benzyl alcohol as medicinal excipients strictions on medicines containing domperidone toms of nausea and vomiting, it has recommend- have been releasedfor consultation by the overconcerns of adverse heart effects. ed reducing the dose depending on the weight European Medicines Agency(EMA) as it seeks The PRAChas recommended that domperi- and age of the patient. to update the guideline on excipients in the done-based medicines no longer be used to treat The PRACalso called for further studies to labels and package leaflets of medicines. bloating or heartburn; by patients with moder- be carried out to determine the effectiveness of Regarding ethanol, the EMA says the up- ate or severe impairment of liverfunction; and domperidone-based suppositoriesinchildren. date of the package leaflet will “adjust the by people who have existing abnormalities of The committee noted that while use had been thresholds in relation to different age groups”. electrical activity in the heart or heart rhythm, long-established,data supporting the efficacy “Currently,” the EMA notes, “no European or who are at increasedrisk of such effects. of domperidone in children and data supporting guidelines proposing ethanol labelling thresh- In addition,domperidone “must not be used the effectiveness of suppositorieswere limited. olds in the paediatric population are available.” with other medicines” that had similar effects The PRAC’srecommendations will nowbe Meanwhile, information in the leaflet for on the heart or reduced the breakdown of dom- sent to the Coordination Group for Mutual Rec- benzyl alcohol is currently“incomplete and too peridone in the body,the committee noted. ognition and Decentralised Procedures –hu- strict”, the EMA states, adding that the thresh- Meanwhile, products which supplied adose of man (CMDh) for consideration at its meeting old also needs to be revised. 20mg by mouth, and suppositories of 10mg or on 22-24 April. Forbenzoic acid and benzoates, the EMA 60mg were no longer recommended for use and The PRACinitiated the reviewayear ago proposes that the leaflet should be “further should be withdrawn, the PRACsaid, as should after reports of heart risks associated with dom- expanded regarding the risk to neonates and cinnarizine and domperidone combinations. peridone products were receivedinBelgium the route of administration”. Although the PRACsaid that domperidone- (OTC bulletin,29March 2013, page 11). The deadline for comments is 31 May.

containing medicines should remain available OTC OTC

28 March 2014 OTC bulletin 13 OTC28-03-14p14-17N_Layout 1 25/03/2014 17:28 Page 2

OTC MARKETING NEWS

AdvertisingComplaints MarketingCampaigns TenMotives’ Nelsonstargets UK women claims banned with Rescue Remedypush laims that TenMotives’ eponymous elec- Ctronic cigarette –e-cigarette –was less elsons claims its “I can do this” print and harmful than smoking and did not have anyneg- Nonline campaign for its Bach’sRescue ative effects on auser’shealth were misleading Remedy flower-essence line will reach overfive and unsubstantiated, the UK’sAdvertising Stan- million people in the UK. dards Authority (ASA) has ruled. The claims Targeted at busy women “wishing to get the must not appear again in their current form. most from their day”, the campaign would run Aprint leaflet for the product stated that for eight weeks from 31 March, the natural it was“the healthier alternative to smoking”. health firm noted, with afocus on “communi- “Because it contains no tar or cancerous tox- cating the benefit of howRescue makes you ins, you can still enjoysmoking without worry- feel”. The companyalso plans to launch the ing about the effects on your health,”the leaf- campaign in Ireland at the beginning of May. let added. Nelsons pointed out that print advertisements The firm argued in its responsetothe watch- for the Rescue Remedy dropper and Rescue dogthat its e-cigarette contained “none of the pastillesvariants in publications such as Grazia, 4,000 or so harmful toxins and carcinogens Marie Claire and New would highlight that the found in normal tobacco-based cigarettes”. It products could help UK consumers “make also provided quotes and presentations from UK everyday hurdles into positive situations”. authorities such as the Medicines and Health- Claiming that 97% of people would buy care productsRegulatory Agency(MHRA) and Rescue Remedy again –according to an online Print advertisements for the Rescue dropper and pastilles highlight that the products can help consumers Action on Smoking and Health (ASH). survey –the print advertisement for the drop- “make everyday hurdles into positive situations” However, the watchdog pointed out that it per product also advises consumers not to let had not receivedany studies detailing the ef- “life’sobstacles get in the wayofagood day”, promotional activity in Boots and Holland & fects of the TenMotivesproduct featured in before signing offwith: “Be cool, calm and col- Barrett outlets, as well as in major grocery the advertisement, or which had considered the lected with Rescue dropper by your side”. This stores and independentretailers. This would effects of the product compared to smoking or message would be adapted for the pastillesprod- include on-shelf discounts and loyalty-card on the user’shealth. uct, Nelsons noted. initiatives, Nelsons noted, although promo- As there wasalack of evidence to support Although the social and digital elements of tional activity would vary by store. the claims for the TenMotivesproduct specifi- thecampaign were still being finalised, the com- The other products in the range –which in- cally, the ASA found the claims “the health- pany said it planned to engage women via such cludes Rescue Chewing Gum, Rescue Liquid ier smoking alternative”and “you can still en- platformsasFacebook. Melts and Rescue Cream –would feature in joysmoking without worrying about the effects There would also be in-store support through these promotions, the firm added. on your health” to be misleading. It warned OTC TenMotivesnot to makesuch statements for the product in the future if it did not hold supporting evidence for its efficacyclaims. OTC

IN BRIEF ■ RECKITT BENCKISER (RB) is support- ing its Clearasil skin-care brand with its ‘Show Your Face’ campaign offering UK teenagers the Stada Arzneimittel’s Grippostad Ccold and flu remedy in Germany is now available in stick-packs chance to win music festivaltickets. Noting of soluble granules. that 15 to 19 year olds could feel self-conscious Each stick-pack contains 400mg of paracetamol, when suffering from spots, RB said the cam- 300mg of ascorbic acid, 50mg of caffeine and 5mg of chlorphenamine maleate. Johnson &Johnson has launched its Nicorette paign would promote the role Clearasil could “Unlike many other soluble granules, the new BucoMist nicotine spray in Spain. play in giving teenagersthe “confidence of Grippostad Cgranules dissolve completely without Boasting an “instant spray that relieves anxiety clear skin”. By visiting adedicated website – stirring within afew moments,” Stada claimed, quickly to help you quit smoking”, pharmacy-press adding that the lemon-flavoured drink offered an advertising for the product also highlights its “pleasant clearasil.co.uk/showyourface –and entering alternative to its Grippostad Ccapsules. mint flavour”. Each spray delivers 1mg of nicotine. the barcode found on “special packs” of Clear- Apack of 12 stick-packs has arecommended Television advertising for the product shows a asil, consumers will be entered into aprize draw retail price of C11.96. Stada is supporting the line series of people in everyday situations–such as in an extension through an add-on to its penguin-based office, in acar,oratarestaurant –growing frustrated to win tickets to one of three UK festivals. television commercials for the brand. beforeusing Nicorette BucoMist. OTC OTC OTC

14 OTC bulletin 28 March 2014 OTC28-03-14p14-17N_Layout 1 25/03/2014 17:28 Page 3

MARKETING NEWS OTC

DigitalMarketing Orbital offers brands leadingonline voice

TC social media marketing specialist Orb- dressed, Allen-Vercoe pointed out. Oital Media is offering OTCcompanies the “Wethen produce the short video answers opportunity for their brands to become the with ahost of your choosing. The platform is “leading online voice” in their categories with branded to your requirements, then implement- its newbespokevideo question-and-answer ed within your ownwebsite or hosted on asep- web platform VirtTuri. arate microsite,”headded. Speaking to OTC bulletin,Hayden Allen- Orbital had already successfully rolled out Vercoe, director at Orbital, pointed out that theplatform for Forest Laboratories’ Infacol around 41% of the UK’sactive internet pop- colic brand in the UK, Allen-Vercoe pointed ulation –16million people –visited health in- out, using it to create the “world’sfirst virtual formation websites every month, and the num- colic clinic” at ColicHelp.co.uk (OTC bulletin, ber of people accessing the National Health Orbital Media created the “world’s first virtual colic 17 March 2014, page 16). Service’s(NHS’) symptom-checker websites clinic” for Forest Laboratories’ Infacol brand By using VirtTuri, Forest nowhad away of had doubled in 2011-2012 to 10.7 million. “What’smore, the content it hosts is per- “helping parents 24/7 with their often distressed “People likethe convenience of the inter- fectly aligned with Google’snew algorithm and and urgent queries” on colic, Allen-Vercoe said. netwhen theyare worried about their health,” therefore performs incredibly well in search,” The Infacol-branded VirtTuri platform pro- Allen-Vercoe said, “but there is no doubt that he added, “while you also get to integrate it into vided interactive responses to over50ofthe self-diagnosis often leads to misdiagnosis and your brand website, keeping it under one roof, mostcommon queries relating to colic, he said, can create panic.” so to speak.” using filmed responses from one of the UK’s What VirtTuri did, he explained, wasallow “In essence, VirtTuri allows you to become leading expert midwives. abrand to communicate directly with the aleading voice within your specific market,” Orbital waskeen to roll out the VirtTuri plat- consumer and provide the correct information Allen-Vercoe claimed, “presenting instant per- formfor other health and beauty brands, Allen- in the best waypossible. sonality, providing massive convenience to the Vercoe revealed, adding that the firm would “VirtTuri can host an unlimited amount of userand up-weighting your online exposure.” continue to improve the software further to search-optimised short video answers presented Orbital undertook each VirtTuri project ac- uncovermore commercial uses. by abrand ambassadororhealthcare profes- cording to the client’sbrand values, research- sional, along with supporting documentation ingthe most commonly ‘Googled’ questions ■ Email [email protected] for more if required,”Allen-Vercoe noted. around the product as well as the ailment it ad- information on VirtTuri. OTC

Marketingcampaigns Vitabiotics signs Kirsty Gallacher Ktelevision sports broadcaster Kirsty UGallacher has been signed up by Vitabi- otics as brand ambassador for its Wellwoman multivitamins range for the next twoyears. Commenting on the partnership, the UK- based supplementscompanysaid Gallacher personified the Wellwoman brand, which in- cludes the Wellwoman Sport &Fitness, Well- woman Boost, and Wellwoman Plus products. “She embodies the qualities that manybusy Polish firmUSP Health is airing the first television campaign for its Pelavo cold and flu syrup line in its Reckitt Benckiser (RB) is launching anine-week women can relate to,”the firm explained, “by domestic market. television campaign to supportits Nurofen Rhume juggling ademanding work and family life with Launched in November last year,the range cold treatment in France. adesire to lead ahealthyand active life.” contains an extract of the African Cape Pelargonium Noting that the product contains “three targeted (pelargonium sidoides) plant as its active ingredient. actions to act quickly against colds”, pharmacy-press Thepartnership, which Vitabiotics says will The 30-second spot for the Pelavo Kids product advertising for the brand indicates that it helps to start in early summer, will include advertise- shows amother reading to achild who has apersistent reduce fever,clear blocked nose, and soothe headaches. ments in women’shealth and lifestyle maga- cough, beforeshe administers acapful of the liquid. The product also does not cause drowsiness, the The child is then shown running and playing in afield. advertisement maintains. zines, as well as national busadvertisements Highlighting that the syrup is a“natural and highly Nurofen Rhume tablets –containing 200mg of and billboards. There will also be advertising efficient” way of relieving cold and flu symptoms in ibuprofen and 30mg of pseudoephedrine –are panels on the London Underground. children aged over three years, the creative also available in packs of 20 tablets and can be used by points out that thereisanadult variant available. adults and children over 15 years old. OTC OTC OTC

28 March 2014 OTC bulletin 15 OTC28-03-14p14-17N_Layout 1 25/03/2014 17:28 Page 4

OTC MARKETING NEWS

MarketingCampaigns MarketingCampaigns Nelsonsboosts Omega doubles spend for ArnicareinUK Lycleartelevision campaign atural health companyNelsons has enlisted Ntennis players Martina Hingis and Belinda mega Pharma will double its investment Bencic to ramp up its promotional support for Oin television advertising for its Lyclear its Arnicare pain-relief line. range to £2 million (C2.4 million) from April, Marketing activity for the firm’sArnicare as it looks to growfurther its share of the UK Arnica Cooling Gel –for which Hingis and head-lice treatment category. world junior number one Bencic have been sign- Following a£1million television campaign ed as ambassadors –would gather pace between last summer as part of a£2million overall Mayand June to coincide with the French Open marketing spend –claimed to be the highest in and Wimbledon tennis tournaments, brand man- the category during the back-to-school season ager Alessandra Godio told OTC bulletin. in the past five years (OTC bulletin, 26July Both players would mention the brand in 2013, page 19) –Lyclear’smarket share in- Omega Pharma will again air its television advertise- Twitter posts and during interviews, Godio out- creased to 19%, according to IRI data, the ment featuring ‘Larry the head louse’ lined, while Hingis would wear Arnicare-brand- Belgian firm’sUKbusiness pointed out. This figure wasmore than one-and-a-half The spot highlights howthe permethrin- times the brand’sprevious share of 12%, containing Lyclear Treatment Shampoo and Omega noted, and ranked the brand second Lyclear Treatment Sensitive variants suffocate in the head-lice category. head lice and their eggs. However, as head lice were “not just con- The Lyclear brand –which also includes a fined to the return to school in September”, the dimethicone Treatment Spray –will also part- firm said it would again air its 30-second tele- ner with parenting website Netmums as part of vision creative featuring its ‘Larry the head- the campaign, sponsoring head-lice forums and louse’ character for five weeks from April. ‘back-to-school’ pages. OTC

Productlaunches Rottapharm launches range for women Martina Hingis will wear Arnicare-branded clothing yBellence is the name that Rottapharm- other three are intended for women at specific as partofthe partnership with Nelsons MMadaus has chosen for the range of six phases of their life. ed clothing during both tournaments, where nutritional supplements designed specifically The three general products are: Dynamik & she will compete in ‘legends’ events with other for women that it has introduced in Germany. Aktivität with vitamins B6 and Ctocombat former champions. The pharmacy-exclusive range –which was everyday tiredness; Lebenskraft &Nerven- The companywas also working to adapt “developed with nutritional scientists” –isin- stärkecontaining magnesium, Bvitamins and its campaign for emerging markets to “maxi- tended to help women achieve abalanced diet vitamin Etohelp women maintain their nerve mise the worldwide coverage” of the sponsor- “in every phase of life”. and psychic wellbeing in testing times; and ship, Godio added. Three of the one-a-day My Bellence supple- Schönheit &Fitness, which provides biotin, Meanwhile, the gel will also be supported by ments are for general use by women, while the calcium and zinc to strengthen hair, nails and apredominantly outdoor campaign. This would muscles in “active and sporty women”. include advertising at Fitness First gyms nation- Among the more specific supplements, the wide and product sampling at Wimbledon, Go- Kinderwunsch &Schwangerschaft variant pro- dio noted, adding that marketing materials would vides 12 nutrients for women trying to get preg- also be supplied to independent pharmacies. nant or in the first three months of pregnancy. Furthermore, the Arnicare Bath &Massage Women in the later stages of pregnancyorwhile Balm will be promoted in trade and women’s breastfeeding are served by the Schwanger- consumer titles at keytimes of the year such as schaft &Stillzeit blend of 13 nutrients. Mothers’ Day and Christmas, while the Arnicare Forwomen aged 40 years and above, the Kids Stick will be asponsor at the two-day Stoffwechsel-Balance &Vitalität option delivers BritMums Live event in June. 15 nutrients and is intended to help women Theentire range –which contains the alpine cope with the effects of the menopause. plant arnica montana –will also be supported Launch trade-press advertising for My Bel- on social media with arecently-launched Arni- lence tablets and capsules uses the image of

care UK Twitter page and arefreshed website. Aballerina features in trade-press advertising for the aballerina balancing on the tips of her toes. OTC My Bellence range in Germany OTC

16 OTC bulletin 28 March 2014 OTC28-03-14p14-17N_Layout 1 25/03/2014 17:28 Page 5

MARKETING NEWS OTC

ProductLaunches/LineExtensions Line extensionsexpand Pregnacare in South Africa

Ksupplement firm Vitabiotics’ South Afri- Ucan arm has added three line extensions to its Pregnacare range in abid to become the number-one prenatal pregnancysupplement in Long-lastingrelief from sensitive teeth is the promise behind Johnson &Johnson’s latest addition to its the country. Listerine range of mouthwashesinGermany. The companyislooking to emulate the Apharmacy-exclusive medical device, Listerine success of the brand in the UK –where it is Professional Sensitiv-Therapie uses “patented crystal technology” to offer relief from painful teeth within days. said to hold overa75% share of the pregnancy Potassium oxalate in the mouthwash binds with supplement sector –with the addition of the calcium in saliva to formcrystals that block Pregnacare Plus with Omega-3 and Pregnacare microscopic dentine tubules in teeth. “After just nine rinses, the new Listerine Professional Sensitiv-Therapie Conceptionfolic-acid supplements, as well as closes up to 100% of open dentine tubules,” the aherbal stretch-mark cream. company claimed, adding that the newcomer was Vitabiotics also aims to become the num- “four-times moreeffective than the leading sensitive mouthwash” in this regard. ber-one supplement company“for specific life Like other Listerine products, the line extension stages and health requirements” in the South –known as Listerine Advance Defence Sensitive in African market overall, which the firm noted other markets –contains fluoride. It is free from alcohol and has a“mild” fresh-mint flavour. wasestimated by the Healthcare Products Available from April, a500ml bottle will have a Association of Southern Africa to be worth at Print advertising for the Pregnacarebrand in South recommended retail price of C7.85. Africa claims its is most trusted by mothers and most OTC least ZAR2.5 billion (C1.7 billion) annually. Available in other markets including India, recommended by midwives Russia and the United Arab Emirates(UAE), for pregnancywill do,”the advertisement states. the original Pregnacare supplement wasfirst Highlighting that Pregnacare is the “UK’snum- launched in South Africa in 2010. ber-one pregnancysupplement brand”, it also Scheduled to run for 12 months, aprimarily claims that the brand is the most recommended print-basedcampaign would support the by midwivesand most trusted by mothers. launch of the line extensions, the firm noted, Apublic relations campaign would further through advertisements in such publications support the advertisements, Vitabiotics pointed as Baba &Kleuter and Women’sHealth. out, and include targeted magazine features and “When it comes to your baby, only the best articles in health, parenting and women’stitles. OTC

MarketingCampaigns GSK will spend £1mn on UK lotion launch Pfizer Santé Familiale is changing the name of its Advil brand of ibuprofen medicines to AdvilMed in France. laxoSmithKline (GSK) is spending £1 the cosmetic lotion –containing mineral oils Children’s presentations of the product Gmillion (C1.2 million) on the launch of a and moisturisers such as shea butter –provided –including a20mg/ml suspension for infants older than three months and a100mg tablet for children daily lotion addition to its Oilatum Junior “everyday protection” for children aged up aged between six and 12 years –will adopt the new emollient-therapyline, as it looks to drive pene- to three years. brand name, along with adult versions available as tration in the UK skin flare-up category. It could also be used alongside the paraffin- 400mg tablets and a5%gel. Pharmacy-press advertising for the products Noting that Oilatum represented just overa based Junior cream and bath additive products indicates that “nothing is changing except the tenth of the category –which wasvalued at to hydrate eczema-prone skin and to “prevent name”, emphasising that the formulations will remain £200 million by market researchfirm Nielsen – future drying”, noted the company, which ac- identical to the previous Advil range. OTC the companysaid that apromotional campaign quired the Oilatum brand with Stiefel Labo- would begin in June to support the launch of ratories for US$3.6 billion in 2009 (OTC the Oilatum Daily Junior Lotion, which bulletin, 19June 2009, page 6). IN BRIEF would start to be rolled out in April. The product would be positioned in both the ■ RECKITT BENCKISER (RB) has recalled Set to run until the end of the year, the baby and healthcareaisles of large retailers to twobatches of its Fybogel Orange (ispaghula campaign will target parenting and lifestyle growthe category further, the firm added, and husk) fibre drink in the UK at pharmacylevel, print titles and websites.Itwill also include would also be stocked in pharmacies. due to apotential risk of contamination with public relations activity and sampling. A200ml bottle of Oilatum Daily Junior metal particles. Claiming dry skin affected one in five babies Lotion has arecommended retail price of £5.99. OTC and children in the UK, GlaxoSmithKline said OTC

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ToolboxA4generaladvert2014.indd 1 06/01/2014 12:03 OTC28-03-14p19Events_Layout 1 25/03/2014 17:46 Page 2

EVENTS OTC

APRIL 13-14 May Tel: +44 1483 730071. Email: registrations@management- ■ 2014 Regulatory Fax: +44 1483 730008. forum.co.uk. 28-29 April Scientific and Quality Email: registrations@management- Website: www.management-forum.co.uk. ■ Pharmaceutical Conference forum.co.uk. RegulatoryAffairs Website: www.management-forum.co.uk. 13 June Washington DC, US Marketing Authorisation in Africa ‘Delivering self-care: From con- ■ 22 May in Japan London, UK cept to consumer use’ is the theme ■ Basics of Countries to be discussed at this of this two-day conference run by Frankfurt, Germany Pharmaceutical Aone-day event focusing on drug two-day meeting will include the US Consumer Healthcare Prod- RegulatoryAffairs development in Japan. Ghana, Morocco, Nigeria, South ucts Association (CHPA). London, UK Contact:DrHenriette Wolf-Klein, Africa, Tanzania and Tunisia. Contact:CHPA. This one-day course is run by The Forum Institut für Management. Contact:Management Forum. Tel: +1 202 429 9260. Organisation for Professionals in Tel: +49 6221 500 680. Tel: +44 1483 730071. Fax: +1 202 223 6835. Regulatory Affairs (TOPRA). Fax: +49 6221 500 555. Fax: +44 1483 730008. Email: [email protected]. Contact:TOPRA. Email: [email protected]. Email: registrations@management- Website: www.chpa.org. Tel: +44 20 7510 2560. Website: www.forum-institut.com. forum.co.uk. 14-15 May Fax: +44 20 7537 2003. Website: www.management- ExpertFORUM Email: [email protected]. 17-19 June forum.co.uk. ■ Labelling Website: www.topra.org. ■ Russian Pharmaceutical Forum Frankfurt, Germany 23 May MAY St.Petersburg, Russia Topics to be covered at this two- Entering ASEAN 6-8May ■ Speakers from Janssen Pharma- day meeting will include Summary Singapore ceutica, Pfizer,Stada and Takeda ■ Vitafoods Europe of Product Characteristics (SmPC) ‘Navigating health supplement reg- Geneva, Switzerland will attend this three-day event. and package leaflets. There will ulations and successfully engag- Athree-day exhibition and confer- Contact: Victoria Iljash, also be apractical workshop on ing with stakeholders’ is the theme ence focusing on nutraceuticals, Adam Smith Conferences. safety labelling. of this one-day event. and functional foods and drinks. Tel: +44 20 7017 7444. Contact:DrHenriette Wolf-Klein, Contact: EAS. Contact: Maria Sidiropoulou, Fax: +44 20 7017 7447. Forum Institut für Management. Tel: +65 6838 1270. Informa Exhibitions. Email: victoria@adamsmith Tel: +49 6221 500 680. Fax: +65 6835 9536. Tel: +44 20 3377 3616. conferences.com. Fax: +49 6221 500 555. Email: [email protected]. Fax: +44 20 7017 7818. Website: www.adamsmithconferences. Email: [email protected]. Website: www.eas.asia/events. Email: maria.sidiropoulou@ Website: www.forum-institut.com. com/event/pharma-industry-russia. informa.com. JUNE Website: www.vitafoods.eu.com. 19-20 May 23-24 June ■ Pharmaceutical 9-11 June ■ EuroPLX 55 9May Vienna, Austria RegulatoryAffairs ■ Pharmacovigilance ■ Marketing Authorisation in the Middle East London, UK This two-day conference will pro- in Turkey and the London, UK Drug safety monitoring in Europe, vide aforum for business devel- CAC Countries Atwo-day meeting covering reg- Japan and the US will be covered opment decision makers for dis- Frankfurt, Germany ulatory affairs in countries such as at this three-day course. cussing and negotiating collabor- Countries to be covered at this Bahrain, Egypt, Israel, Kuwait, Contact: Management Forum. ative agreements in licensing, mar- one-day conferencewill include Saudi Arabia, Syriaand Yemen. Tel: +44 1483 730071. keting, and distribution of patented Georgia, Kazakhstan, Turkey and Contact:Management Forum. Fax: +44 1483 730008. medicines, generics, biosimilars, Uzbekistan. OTCproducts, medical devices Contact:DrHenriette Wolf-Klein, and food supplements. Forum Institut für Management. 3-5June Contact:RauCon. Tel: +49 6222 9807 0. Tel: +49 6221 500 680. ■ 50th AESGP Annual Meeting Fax: +49 6221 500 555. London, UK Fax: +49 6222 9807 77. Email: h.wolf-klein@forum- ‘Self-Care –the Gold Standard in Healthcare’ is the theme of this three- Email: [email protected]. institut.de. day event run by the Association of the European Self-Medication In- Website: www.europlx.com. Website: www.forum-institut.com. dustry,the AESGP.The meeting will be held alongside the 18th World Self-Medication Industry (WSMI) General Assembly. JULY 12 May Variations to Marketing There will be sessions on: ‘50 years supporting self-care –setting the 1-3July ■ scene’; and ‘A global agenda for self-care’. ■ Strategic Pharma Authorisations in the EU Speakers will include: Zhenyu Guo and Gerald Dziekan of the WSMI; Marketing Asia London, UK Basil Mathioudakis of the European Commission; Guido Rasi of the Euro- This one-day seminar will pro- pean Medicines Agency(EMA); Bernhard Url of the European Food Safety Singapore vide an update on mutual recog- Authority (EFSA); Dagmar Roth-Behrendt, member of European Parlia- Athree-day event that claims to be nition, decentralised, centralised ment; John Chave of the Pharmaceutical Group of the European Union the region’sonly gathering to pro- and national variations in the Euro- (PGEU); June Raine of the UK Medicines and Healthcare products Reg- vide an in-depth understanding of pean Union (EU). ulatory Agency(MHRA); Scott Melville of the US Consumer Healthcare each market, the challenges and Contact:Management Forum. Products Association (CHPA); Briain de Buitleir of PGT Healthcare; further opportunities. Tel: +44 1483 730071. Rakesh Kapoor of Reckitt Benckiser; Roger Scarlett-Smith of Glaxo- Contact: IBC Life Sciences. Fax: +44 1483 730008. SmithKline Consumer Healthcare Europe; Sandra Peterson of Johnson Tel: +65 6508 2401. Email: registrations@management- &Johnson; and Vincent Warnery of Sanofi. Fax: +65 6508 2407. forum.co.uk. Contact:Ornella Bua, AESGP.Tel: +32 2735 51 30. Fax: +32 2735 52 22. Email: [email protected]. Website: www.management- Email: [email protected]. Website: www.aesgp.eu/50. Website: www.pharmamarketing forum.co.uk. asia.com.

28 March 2014 OTC bulletin 19 OTC28-03-14p20-23N_Layout 1 25/03/2014 17:58 Page 2

OTC BUSINESS STRATEGY Batra has asimple plan for Merck

Just 18 months ago the future of MerckKGaA’s Consumer Health business need an exposure to emerging markets.” wasinthe balance. Now, under the leadership of departing chief Udit Batra, “That is what defines agood consumer health business,”Batra insisted. profits are up, confidence is backand the future looks bright. Matt Stewart With the underlying root causes of Consumer spoketohim before news of his promotion. Health’slow profitabilityexposed, the decision wastaken to strip the business back to allowit e have simple convic- and tightly-managed expenses”. Sales moved to focus in strategic countries on its eight strat- tions. We want leading forward by just 0.9% to C480 million, as nega- egic brands –Bion, Cebion, Femibion, Kytta and brands, we want a tive currencyeffects offset strong organic growth Nasivin, Sangobion, Sedalmerck and Seven “Wminimum market share of 5.6% (see Figure 1). Seas. Afocus wasalso placed on costs. so we can sustain an infrastructure, and we want Appointed in September 2011, Batra took “We movedtoget the costs under control exposure to emerging markets. It’savery sim- charge of abusiness that had been described by first and then released the extra resources to ple plan,”sosays Merck Consumer Health’s Merck’sthen chief financial officer Matthias the areas that would makeadifference,”Batra president and chief executive officer Udit Batra. Zachert as “somewhat the stepchild of Merck” pointed out. “That wasour first intervention.” Speaking exclusively to OTC bulletin, (OTC bulletin,18August 2011, page 7). “We then had to infuse newtalent into the Batra cut an energised and enthusiasticfigure Although Consumer Health had a“very business,”he continued. “We now have ady- as he laid out his vision for the future of healthygross margin” of “around 69-70%”, namic newteam: virtually all the leadership Consumer Health, afuture that just 18 months the division’soperating margin had only team and the people who report directly to ago looked decidedly bleak. been in the single digits, Zachert remarked. me are new. And roughly 50% of the people Consumer Health had gone “back to belowthem are newaswell. This has created basics”, Batra said, concentrating on its key Room for improvement adifferent energy,adifferent direction –avery brands and biggest markets and nowthe However, there wasroom for improvement, fast-moving consumer-focused direction – companywas starting to see the results. he insisted at the time, and in the next one- while maintaining our heritage,”he claimed. “Profitability has got better and the growth to-twoyears Merck would make the changes “Thirdly,we said we would simplify our has come back. What is more satisfying to me needed to yield results. operating model. We would make itmore fo- and the team is that, where we have focused Batra –who joined Merck from Novartis, cused on our markets and we would regionalise our energy,the results we have achievedare where he had been head of global public health it,”Batra pointed out. “These were the big clear to see,”Batra pointed out. and market access at the Swiss company’s fundamental interventions that have led to the Afew days later,chairman of Merck’sexec- Vaccines and Diagnostics division –has met evolution of our results.” utive board, Karl-Ludwig Kley, announced the challenge head on. Sales had risen by roughly 5.6% in 2013, but that Consumer Health had successfully turned “When Iarrivedthe business wasnot fo- profitabilityhad improvedbyaround 8.5% itself around in 2013, increasing sales and cused on costs,”Batra said, “and wasnot oper- in the 12 months. Over athree-yearperiod, profits and positioning itself for future growth ationally excellent. Basically,its resources Batra added, profitabilityhad almost doubled. (OTC bulletin,17March 2014, page 2). were not allocated as theyshould have been The business had made a“disproportionate Recognising the progress that had been to the big brands and big markets.” investment” in its eight strategic brands, Batra made, Merck had decided to bolster Consumer “So we said: ‘Look, in order to correct this, said, allocating 70% of its promotional spend Health’sportfolio with twobrands –Neurobion where should we go?’.”“We took astep back to these lines, despite them only accounting and Floratil –from its Merck Serono prescrip- and had alook generally at the success factors for 60% of total sales. tion business, Kleyadded (OTC bulletin,17 in consumer health generally in anymarket This had started to pay offinthe company’s March 2014, page 1). and we came up with three core fundamen- mature markets, he noted. Sales in Germany, Consumer Health’s2013 earnings before tals,”Batra explained. for example, had grown by 11% in 2013. interest and tax –before one-time items –surged “We said you need to have leading brands in “Meanwhile, we spent 70% of our research to C62 million. Earnings were up from just keymarkets whereveryou are present,”he noted. and development investment in emerging C14.0 million in 2010 before Batra arrivedin “Second, you need to have aminimum market markets. This wasupfrom less than 5% acou- 2011, thanks to “improvedresource allocation share to afford an infrastructure; and third, you ple ofyears ago,”Batra pointed out. “This has produced a38% gain in Russia and double- Business Annual sales Change EBIT Change digit increasesinBrazil, India and Indonesia.” (C millions) (%) (C millions) (%) Consumer Health had also been made more resilient, Batra said, enabling it to offset un- Merck Serono 6,326 -1.2 893 +63.1 foreseen issues, such as the currencycrisis in Merck Millipore 2,645 +1.1 262 +4.1 Venezuela, where it has arelatively large and Performance Materials 1,644 -1.9 653 +7.2 profitable business. Consumer Health 480 +0.9 62 – Asked whether all of the company’skey Corporate and others ––-260 – brands and keymarkets had performed well, giventhe extra focus and investment theyhad Total Merck 11,095 -0.7 1,611 +67.2 received, Batra offered an honest appraisal, Figure1:Merck KGaA’s sales and EBIT in 2013 (Source –Merck KGaA) admitting that it wasamixed bag. Growth had

20 OTC bulletin 28 March 2014 OTC28-03-14p20-23N_Layout 1 25/03/2014 17:58 Page 3

BUSINESS STRATEGY OTC

been drivenbyacombination of good country of developing “three leading brands in key performances and astrong showing from categories and at least 3% market share” across most of the brands, butnot from all of them. the company’stop 15-20 markets. “Four of the eight strategic brands globally “If you look at our top 15-20 markets, grewbydouble-digit amounts,”Batra said. there are only three or four that reach the 3% “Three of the others grewbymid-to-high market share threshold. About the same num- single-digits. The remaining one that didn’t ber have three leading brands, so there is acan- growwas SevenSeas, which has suffered vastobe worked on,”he maintained, promising from anumber of issues of late.” that “markets where this goal is almost met Highlighting acouple of the more positive will not be neglected.” examples, Batra singled out the Sangobion Expanding on howthis would be achieved, anaemia brand. Batra said there wasalready arenewed focus “Sangobion is one of our strategic brands. on the “Sangobions and the Femibions” to

It’svery popular in the ASEAN region, includ- build their market share and establish leader- Udit Batra, Merck Consumer Health’s president and chief ingIndonesia, Malaysia and Singapore,”he ship positions. executive officer,said his aim was to build asustainable noted. “In Indonesia, the brand has had a50% Geographic expansion would be promoted, and profitable global consumer healthcarebusiness market share in its category for along time, he added, by taking leading brands and moving butwe had neverfocused on it.” them into newmarkets, “very systematically, asimple framework with 80% of promotional “So last year,we decided to really drive step-by-step”. spend per country allocated to the top three it. We started to focus on pharmacydetailing “For example, we are looking at launch- brands and the tail brands taking the remainder. with the result that the brand –which had had ing Bion in Brazil,”Batra revealed. “We are From an innovation perspective,70% of dev- a50% share –grewits sales by 13%.” currently looking at the business case. We elopment spend would be restricted to emerging “It’snot just astory of emerging markets are scrutinising it, establishing howmuch markets for the time being, Batra continued. either,” he said. “In Germany, for instance, we investment and howmuch time and energy it ManyofMerck’sbrands were largely region- have the Femibion brand. This too has amarket will take. And we will scrutinise it until we al, he pointed out, so for those brands, Consumer share of over50%. We decided to focus on are sure we knowall those things, one mar- Health had set up aregional structure with the it, and with no significant newcampaigns or ketatatime.” power to roll out the framework. products –just simple execution –we grew Looking at Consumer Health’s sales by 21% in 2013, and 2014 has started in “It goes to show,ifyou have agood brand product pipeline, Batra admitted that the same vein,”he added. with good equity,ifyou take careofitand it would takeawhile for results to be “It goes to show, if you have agood brand seen. “What we have been busy with focus on it, it will grow” with good equity,ifyou take care of it and for the past twoyears is the clean up. focus on it, it will grow,”Batra said. The pipeline will start to showinthe next few The turnaround at Consumer Health was “The third step,”Batra said, “is to look for years,”Batra said, adding that there were some due to “simply focusing on what makes the dif- brands or brand carriers that are consistent with early examples, such as an odourless version ference”, Batra insisted. the categories in which we are interested. We of Kytta that had been launched in Germany. “We took moneyawayfrom places where will then buysmall, meaningful brands and The approach to innovation had also we were losing it, like Canada –which the build our position that way.” changed, Batra said, with afocus on keeping in- companyexited last year –and put it elsewhere, Asked howlong this process would take novation relevant to the market and the insights while embedding the fundamentals within the and when he felt the 3x3 goal would be the companyhad gained. “It’snolonger a culture of the company,”he explained. reached, Batra remained coy, adding that it scattered approach, we’ve started to clean that In terms of internal targets, Consumer wasnot something he could predict. up,”he added. Health had performedahead of expectations “But we will be systematic. We will be fo- Revitalising strategic brands would also in 2013, Batra revealed, noting that Merck’s cused and disciplined, and followthe path we play apart, Batra insisted, pointing out that board –and Stefan Oschmann, chief executive have created,”he insisted. SevenSeas –the only strategic brand not to officer of Merck’sPharmaceuticals subgroup, Batra maintainedthat under no circum- showyear-on-year growth –had suffered in in particular –had shown great trust and stances would Merck “lose sight of the bottom its core UK market due to weak vitamins de- confidence in the division’splans. line”. “We will not go crazy trying to growthis. mand and adecision to cut products that “Oschmann and the board have givenusa We will make sure we are in line with industry were not making anyprofit. lot of freedom,”Batra revealed. “We set ambi- profitability benchmarks and try to exceed “This year will we be rolling out agreat tious targets for the turnaround programme industry growth,”Batra pointed out. campaign for SevenSeas in the UK,”Batra re- and theyhave been more than achieved.” “We will not be trying to meet an artificial vealed, “that will serve torevitalise the brand So, while Batra said he felt “comfortable” timeline,”he cautioned. “It depends on many in its home market.” with the base that had nowbeen established, factors other than just intent.” SevenSeas had recently been relaunched this did not mean that the work wasdone. “Nothing is more reassuring than confidence, in India, Batra said, with sales growing by “There is alot more to do and lot more and we have the complete confidence of the 70% and the brand taking a45% share of the potential in our brands,”Batra pointed out. “But board and we have an experiencedteam to cod-liveroil market. we are not in aposition of real challenge that build our business,”Batra added. “We are “Again it is down to getting the basics right,” we were afew years ago.” doing it systematically and we are not in arush.” Batra insisted. “We look for places where The focus now, Batra said, had turned to Expanding on Consumer Health’sorganic these brands have equity and we step-by-step Consumer Health’snew strategic ‘3x3’ aim growth plans, Batra said the firm had rolled out start focusing on them within our financial

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OTC BUSINESS STRATEGY

framework and without losing sight of their would turn Consumer Health into a“US$1 prescription sales tended to rise as well. “It’s overall global profitability.” billion (C750 million) business”. really about access,”he added. “I think our eight strategic brands have Explaining the rationale behind the move, The Neurobion range featured avitamin B very solid positionsinmanycountries around Batra said that anumber of Neurobion and Flo- complexindicated for relieving muscle sore- the world and it’sjust acase of revitalising ratil products were already available without a ness, Batra said. It existed in low-dose OTC them,”Batra pointed out. “It sounds very sim- prescription in some markets, and would benefit formats, higher-dose prescriptionvariants and ple, because it is.” from more consumer-focused promotions. injectable versions for acute needs. Asked whether going into entirely newprod- Furthermore, both products were well-estab- Neurobion wasthe more global of the two uct categories or countries would form part of lished and successful in anumber of Consumer brands, Batra pointed out, having an OTCpres- the plan, Batra said anyambitions in this area Health’sEmerging Markets, he added, including ence in Europe. It wasavailable OTCfrom would be for “much further down the line”. those in Asia and Latin America. pharmaciesinsome European markets, buthad “There is still so much existing potential little brand equity. that Idon’tsee us looking at entirely new Harness the equity of Neurobion and Floratil Meanwhile, Floratil –aprobiotic product for opportunitiesatthis time,”he commented. “There is alot we can do with both brands upset stomach and diarrhoea –fitted neatly “We havealot of white space in our exist- by bringing them out from behind the counter,” alongside the company’sprobiotic-based Bion ing markets and categories. It is only in three Batra said. “We can harness the reputation they multivitamin range, Batra noted, butalso gave to four countries that we have 3% market share have both gained as healthcare professional- the companyentry into the gastrointestinal and three leading brands,”he noted. recommendedbrands to increase consumer category in Latin America. Acquisitions would come sooner,Batra awareness and expand their reach.” Merck licensed the brand in anumber of pointed out, butwould be “bolt-on rather The twobrands were predominantly present Latin American markets from BioCodex, Batra than transformational”. in Asia and Latin America and to some extent said, noting that the firm wasfocused on Anybolt-on acquisitions would be designed the Middle East, Batra noted. “Theywill sig- building the brand in Brazil by bringing the to bolster Consumer Health’sposition in nificantly improve our market position in Brazil, product out from behind the counter. markets or categories where it already had a India, Indonesia and Mexico,”he insisted. Asked whether Merck intended to expand presence, Batra pointed out. “Adding these brands makes us the third- its relationship with BioCodextoinclude other “Again, we are systematically looking at largest consumer healthcare player in Mexico,” markets, Batra said that Merck wastalking to this,”he stressed. “We have just come out of Batra pointed out, “while in Brazil and Indone- its partner,but it was“too early to say” what abig strategic restructure, so we have not really sia, we move into the top-15. These twobrands the outcome would be. started to look at building our portfolio.” will give us areal presence in these markets.” “For now, we like what we have with Flora- However, one consequence of Consumer The brands had “great equity with physicians til,”Batra said, “and we think we can do alot Health’sremarkable turnaround is the transfer and also consumers wherevertheyhave already with the brand in the Latin American markets of Neurobion and Floratil from Merck Serono gone OTC”, he added, and Merck intended to where it already has strong brand equity.” to the consumer unit (OTC bulletin,17March boost the brands by continuing with the med- With Floratil and Neurobion onboard, 2014, page 1). ical detailing, butalso by working with pharma- Consumer Health has boosted its number of Adding the Neurobion vitamin Bbrand cists and by promoting them to consumers. strategic brands to 10. Asked about more, and the Floratil probiotic antidiarrhoeal range Currently up to 40% of the twobrands’ Batra said: “We are not averse to prescrip- to Merck Consumer Health would bring an sales were generated by their OTCvariants, tion-to-OTC switches, butitisnot apractical extra C250 million in annual turnovertothe Batra pointed out. ambition to have at this moment in time.” business, Batra noted, and make Emerging “If it makes sense, we will want to see this “You look at the assets you have and how Markets its biggest region in terms of sales. number switch around. OTCsales have more you maximise them,”Batra explained. “We Batra said that both brands had “great potential, so we expect to see them growmore.” have strong supplement brands, which are potential” in the non-prescription arena and He added, however, that when OTCsales grew, iconic brands that have great brand equity with room to invest. We also knowthere are places where consumption is lowand where we can growthese brands,”Batra said. Commenting on what he expected Con- sumer Health to look like infive years time, Batra repeated the 3x3 mantra of “three leading brands in keycategories and at least 3% market share” across the company’stop 15-20 markets. “It might seem like the boring answer,” Batra admitted, “but really it comes back to building asustainable business.” “Whether it’slarger or smaller in five years’ time, Idon’tknow,”he commented. “I just want to go market-by-market with my team so we growinthe Brazils, the Indias, the Mexi- cos and the Indonesias, building asustain- Merck Consumer Health has expanded its portfolio of strategic brands by adding the Floratil probiotic and Neurobion able business for along, long time,”he insisted. vitamin Blines from Merck Serono. Floratil and Neurobion join the Bion multivitamin line, Cebion vitamin Crange, Femibion women’s health supplement, Kytta natural pain reliever,Nasivin nasal sprays, Sangobion anaemia “That is the ambition. It is that simple.” supplement, Sedalmerck analgesics and Seven Seas cod liver oil products OTC

22 OTC bulletin 28 March 2014 OTC28-03-14p20-23N_Layout 1 25/03/2014 17:58 Page 5

PEOPLE OTC

DigitalServices Regulators M3 Europe hires Url nominatedtolead EFSA Googleexecutive ernhard Url has been nominated as BernhardUrl Bexecutive director of the European Food nteractive healthcare marketing specialist Safety Authority’s(EFSA’s)management IM3 –owner of Doctors.net.uk –has hired board. Url had been nominated after an open Jenny Cowderoy –former industry head of recruitment process, EFSA noted. healthcare atGoogle –asmanaging director of Url took overthe role last September and communications at its newEuropean division. wasappointed acting executive director in The Japan-based firm –which claims to October.This followed the resignation of reach more than 2.5 million physicians Catherine Geslain-Lanéelle,who had stepped worldwide through its network of websites – down after sevenyears in charge (OTC bulletin, said Cowderoybrought to the role “consider- 23 August 2013, page 31). able experience” in helping healthcare com- Having previously led EFSA’s Risk Asses- panies to “drive innovation and growth” through sment and Scientific Assistance Directorate, EFSA’s management board, Sue Davies. The digital communication. Url will nowmakeastatement before mem- Parliament’sopinion is taken into considera- Cowderoyhad managed aportfolio of bers of the European Parliament’sEnvironment, tion before the board makes its final decision healthcare clients at Google including Glax- Public Health and Food Safety (ENVI) Com- on the appointment. oSmithKline and Novartis, M3 pointed out, mittee on 14 April as part of the lengthy EFSA also appointed 40 independent sci- having previously served as director of global appointment procedure. entific experts to the Panel on Food Additives marketing for GlaxoSmithKline. The European Parliament will subsequently and Nutrient Sources added to Food (ANS M3’sEuropean division would operate submit an opinion on the appointment to the Panel) and the Panel on Food Contact Materials, websites including Doctors.net.uk, MDLinx European Commissioner for Health and Con- Enzymes, Flavourings and Processing Aids and medeConnect, the companynoted, and sumer Policy, Tonio Borg, and to the chair of (CEF Panel) for athree year term. offer digital services such as market research OTC and promotional programmes. Since acquiring Doctors.net.uk in 2011 Manufacturers the companyhad expanded rapidly to become “the world’slargest network of physicians”, M3 Takeda shakes up management structure said, noting that the newdivision reflected the firm’sambitious growth plans (OTC bulletin, akeda is shaking up its management Christophe Weber 14 September 2011, page 10). Tstructure to coincide with the recent ap- OTC pointment of Christophe Weber as chief operating officer. Retailers The Japanese firm said that responsibility for its global commercial operationswould Sutherland resigns pass on 1April from its chief commercial officer Dr Frank Morich to Weber when as CEO of Co-op Morich retires.

uan Sutherland has resigned as group Weber offers vast experience Echief executive officer of the Co-operative Commenting on Weber’sappointment, Group –owner of the Co-operative Pharmacy Takeda said that he had “vast experience in Platford to run commercial operations in its chain –following adisagreement overthe commercial operations across avariety of Emerging Markets region. management of the UK company. geographies and pharmaceutical product areas”. Currently head of Takeda’sMiddle East, Sutherland’sresignation comes shortly Weber joins Takeda from GlaxoSmithK- Turkey and Africa (META) region, Platford will after the group –which is run and owned by line (GSK), where he served concurrently as lead the “continued expansion” of Takeda’s its members –revealed that it wasconsidering president and general manager at GSK Vac- commercial activities in its Emerging Markets selling its 774-strong UK pharmacychain as cines and chief executive officer of GSK region –comprising Latin America,Middle part of awider strategic reviewofall of its Biologicalsfrom 2011. East/Africa, Russia/Commonwealth of Inde- business divisions (OTC bulletin,17March Meanwhile, Takeda has promoted Giles pendent States (CIS) and South Africa. 2014, page 3). OTC Richard Pennycook,the company’schief financial officer,has been appointed as IN BRIEF interim group chief executive officer until a ■ OXFORD PHARMASCIENCE –the UK- executing the company’sreformulation pro- permanent replacement for Sutherland has based development firm –has appointed Dr Liz grammes, Oxford said, focused on non-steroidal been recruited. King as director of research and development. anti-inflammatories and statins. OTC King would be responsible for leading and OTC

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