cubex-otc newsline issue no. xxi ()cubex.co.in/issue pdf/otc newsline issue no.xxi.pdf · in fact...
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CubeX-OTC Newsline Issue No. XXI (www.cubex.co.in)
INDIA HIGHLIGHTS
ABBOTT, DABUR, GSK EYE JAGDALE’S ENERGY DRINKS BIZ
Several Indian companies and MNCs ‐‐ including GSK, Abbott, Zydus Cadila, Wipro and Dabur ‐‐ are in
contention to acquire the energy drinks business of Jagdale Healthcare. The business, valued at Rs5bn
(US$95.4 mn), includes the brand ORS‐L, a fruit‐based electrolyte drink. ORS‐L, which started off as a
prescription‐based product until it was moved to the nutritional OTC segment, is expected to end the
fiscal year with revenues of around Rs1bn (US$19 mn).
(http://timesofindia.indiatimes.com/business/india‐business/Abbott‐Dabur‐GSK‐eye‐Jagdales‐energy‐
drinks‐biz/articleshow/10837078.cms)
Comment: Oral rehydration salts (ORS) is an important category in India, where diarrhoea‐induced
dehydration is a widespread issue. ORS‐L is among the top 10 brands in India’s OTC antidiarrhoeals
category, according to Nicholas Hall’s DB6 2011. This is one more example of the real ROI when
investing in OTC brands and it is surely encouraging many healthcare companies in India to adopt the
OTC route. In fact there are bigger brands like Electral in the ORS market, which enjoy greater consumer
equity and are indeed excellent targets for companies on the OTC prowl. But it looks like the acquisition
price is only going to get higher in the future.
EMAMI, MARICO, WIPRO IN FINAL STAGE OF BIDDING FOR PARAS PHARMA'S RS 100‐CRORE
PERSONAL CARE BUSINESS FROM RECKITT BENCKISER
Emami, Marico and Wipro have entered the final stage of bidding for Paras Pharma’s personal care
business, inherited by RB with its acquisition of Paras Pharmaceuticals in December 2010. The Economic
Times reports that Dabur and Godrej have dropped out of the race owing to the high valuation of the
deal, rumoured to be Rs8 bn‐9 bn (US$152.7 mn‐171.8 mn). The personal care market in India is
estimated at Rs300bn (US$6.7 bn). Rising consumer income, awareness and aspirations are driving
growth, as well as the extending the reach of FMCG players.
(http://economictimes.indiatimes.com/news/news‐by‐industry/cons‐products/fashion‐/‐cosmetics‐/‐
jewellery/emami‐marico‐wipro‐eye‐paras‐pharmas‐rs‐100‐crore‐personal‐care‐business‐from‐reckitt‐
benckiser/articleshow/10836593.cms)
FDI CURBS IN PHARMA COULD DETER MNCS
India's attempts to check foreign investment in pharma and expand drug pricing control could force
multinationals to exit the country. Multinational pharma companies are upset over new government
rules which they say are designed to delay or prevent investments in India. Foreign firms say that the
government is killing the booming domestic market as companies are not compensated for doing drug
development in India. http://articles.economictimes.indiatimes.com/2011‐11‐
17/news/30410377_1_price‐control‐pharma‐companies‐indian‐pharmaceutical‐alliance)
Comment: The attractiveness of domestic business depends on various conducive factors such as
government policies in the local country. India has now emerged as one of the key growth drivers for
global pharma companies. Amid recent acquisitions of Indian companies by some of the global giants,
the Centre plans to introduce restrictive policies, aimed at protecting the welfare of Indian companies
and the Indian consumers from the high pricing strategy of MNCs. However this move may not only
hamper India’s FDI attractiveness but will also dampen the spirit for providing quality products at
competitive prices. Moreover, multinationals have turned their focus to China, promising dollars of
investment. In 2010, India recorded 27 acquisitions while China saw 57 acquisitions. Thus it is very
important to keep MNCs engaged in India.
INVIDA ACQUIRES SHALAKS
Menarini’s acquisition of Invida came one day after the Asia‐Pacific company acquired a primary care
portfolio of seven brands from India’s Shalaks Pharmaceuticals. Upon acquisition, those products will be
marketed under the Invida brand. Invida will focus its sales and marketing efforts on high‐volume
dermatology brands in key growth segments, including topical anti‐acne, anti‐fungal, sunscreens, anti‐
scar, anti‐pigmentation and moisturizers.( http://www.bioportfolio.com/news/article/863252/Invida‐
Announces‐Acquisition‐Of‐Dermatology‐And‐Primary‐Care‐Product‐Portfolios‐In‐India.html)
Comment: Menarini sees this as a gateway to the Asia Pacific region which represents 10% of the
world’s pharmaceutical market with 20% annual growth rate.
CHEMIST ATTACKED FOR NOT SELLING COUGH SYRUP
A 61‐year‐old chemist was attacked by three unidentified men with a knife, after he refused to give
them a bottle of cough syrup. Chemists across the city are demanding that strict action be taken against
the offenders. Many chemists do not keep Corex syrup, because people often use it to get high.
(http://www.mumbaimirror.com/index.aspx?page=article§id=2&contentid=2011112620111126021
534794edbfcdaf)
Comment: The refusal to dispense Corex to a wrong customer shows the level of maturity with which a
chemist dispenses the medicines. One of the highlights from the COMPASS study conducted by CubeX
was that chemists are quite careful when it comes to giving advice though he strongly believes that he is
capable enough to recommend them to consumers. It was also inferred that chemists can be made
responsible dispensers if trained professionally by taking them through advocacy programs. It is critical
to keep them in the loop as they become the face of any healthcare brand for the consumer.
CubeX had undertaken a chemist monitor study’ COMPASS’ on pan‐India level. This report,
entitled Chemist’s OTC Market Probe & Assessment Study, explores the attitudes and behaviour of
Indian pharmacists towards OTCs, with coverage of over 1,100 pharmacists across India. This study
answers all of the questions you have ever wanted to ask a pharmacist in this developing OTC market.
To know more about the extensive study please visit our website http://www.cubex.co.in
BRITANNIA NUTRICHOICE CAMPAIGN GETS PEOPLE IN SHAPE FOR THE NEW YEAR
Britannia Industries' NutriChoice launched a new campaign called 'Game for Health' under ‘IHealthU’
drive. This online campaign is to motivate people to drop unhealthy habits and pick up good ones.
‘IHealthU’ was launched as India's first health social network and claimed to give
a platform to discuss, choose and suggest healthy eating options. At the end of
the campaign i.e. after five weeks, Britannia NutriChoice will award 52 members
of IHealthU as the health superstars of 2012. These members will be the face of
the brand, and will be awarded 'Game For Health' kits.
(http://www.afaqs.com/news/story.html?sid=32288_Britannia+NutriChoice+cam
paign+gets+people+in+shape+for+the+New+Year)
Comment: Britannia products are available across the country in over 35 lakh (3.5
million) retail outlets, at consumer‐accessible price points starting at as little as Rs
2 and reaching out to over 40% of Indian homes. It is interesting to know how a
consumer goods company is predominately using the health platform and online
media to connect, engage and most importantly to study what consumers are
looking for.Its time that OTC companies also leverage these opportunities of
connecting with their consumers beyond the typical ATl/BTL route.
GLOBAL HIGHLIGHTS
POMEGRANATE JUICE HELPS TO MANAGE BLOOD PRESSURE
A study presented at the recent American Society of Nephrology’s Annual Kidney Week investigated the
long‐term effects of pomegranate juice consumption on cardiovascular risk factors. Western Galilee
Hospital researchers gave 101 dialysis patients 100ml of pomegranate juice or placebo 3x weekly for one
year. At the end of the study, 22% of patients in the juice group were taking fewer blood pressure drugs
vs 7.7% in the placebo group. Those given juice also had improved systolic blood pressure and reduced
cholesterol and triglyceride levels.
PAIN‐FREE GLUCOSE TESTING WITH TEARS
According to Analytical Chemistry, the journal of the American Chemical Society, University of Michigan
researchers are seeking a pain‐free method of determining blood glucose levels. In the trials the team
found that glucose levels can be measured from the tears of rabbits. The researchers note that the
strong correlation between blood glucose levels and tear glucose may lead to the development of a
device that allows frequent glucose testing without pain
NEW LAUNCHES
Otrivin Cold Tab which fights against 7 signs of cold is launched as an extension to Otrivin Nasal Spray
CubeX is ready to launch Indian OTC Brand Case Studies Ver. 2.0. – ‘A Biography of India’s Successful
OTC Launches and Promotional Switches’. This version covers an exhaustive case study of Otrivin and
Facebook page of 'IHealthU' campaign
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