girp the european association of pharmaceutical … michael...europe can be a key source of growth 3...

54th Annual General Meeting 2 – 4 June 2013

Michael Wheeldon Head of Sales Europe & Head Global Sales Excellence

“Any views or opinions expressed in this presentation represent my own and not necessarily those of my employer Novartis.”

GIRP – The European Association of Pharmaceutical Full-Line Wholesalers

OTC: $28b Global Market with opportunity for Growth

2

Better Informed

Consumers through digital information

Self Care Principle Increasingly taking place

Greying Europe Increasing trend 2020 onwards

Spend in Public Health Under continued pressure

People want

quality in life and aim to overcome

health impairments

| Novartis OTC | 2013 | Business Use Only

Europe can be a Key Source of Growth

3

15 17.6

29.5

54.3

72

82

92

0

10

20

30

40

50

60

70

80

90

100

Global Avg Latam Eastern Europe Western Europe USA Japan Australasia

20 20

17 17

14 13 13

8 7

5

0

5

10

15

20

25

Germany Italy Spain France Poland USA Russia China Brazil India

OTC Capita $(1)

% of population 65+(2)

Source: 1. N Hall (2010); 2. W.Bank (2010)


Four Key Influencers to Unlock Growth in OTC

4

• Route to Market

• Pharmacists

• Brands • Consumer

1 2

3 4


5

Relentless Focus on a Holistic Consumer Understanding

Traditional Approach

Segmenting Consumers

Health Condition

Symptoms

Socio-Demographics

Holistic Consumer

Approach

•Consumer

1 2 3 4


6

Brands talking insightful

to target and therefore

create “bonding”

Delivers Consumer

Relevant Innovation

360 °Consumer

Activation

Building Strong Consumer Brands •Brands

1 2 3 4


Pharmacy Remains the Critical Trade Channel to drive OTC

7

17% 14% 15%

73% 83% 85%

10% 3%

Consumer HealthCare

(Euromonitor)

OTC(Euromonitor)

OTC (N. Hall)

2010 $ Sales Split by Channel

Grocery Pharmacy/Drugstore Internet

Key data sources show Pharmacy has

73-85% sales revenues

with circa 80% Independent/Virtual

However significant variations by

Country

OTC $ Sales Split by Channel,

by Country

Source: N. Hall

•Route to Market

1 2 3 4

Source: N Hall (2010)


8

Pharmacists – Unique and Vital Role

52% expect further topline decrease from RX

83% worry about the future

63% rate OTC as being a strategic category

Source: Pan European Pharmacy Owner Quantitative Study April 2012

However,

•Pharmacist

1 2 3 4


9

Pharmacist Owner do not feel satisfied with Manufacturers’ deliveries

Listen to Pharmacist Owners in

Europe2.mp4

•Pharmacist

1 2 3 4


Listen to Pharmacist Owners in Europe2.mp4

Listen to Pharmacist Owners in Europe2.mp4

Healthcare Suppliers need to better understand Pharmacies and Pharmacists

10

• Holistic Business

• Role of OTC

• Adding Value through tailored

Activities including important

Wholesaler led Services

•Pharmacist

1 2 3 4


Leading market position

One of 35 largest companies by market capitalization

Among most respected companies globally

Novartis is a World-leading Healthcare Company

2012 USD billion

Net sales: 56.7

Net income: 9.6

R&D investment: 9.1

Key figures

35%

33%

23%

9%

Canada/

Latin America

US

Europe

Asia/Africa/

Australasia

Sales by region – 2012

11 | Novartis OTC | 2013 | Business Use Only

57%

18%

15%

7% 3%

Our Broad Portfolio spans High-growth Segments of Healthcare

Innovative patent-protected medicines

Vaccines and diagnostic tools to protect against life-threatening diseases

Affordable, high-quality generic medicines and biosimilars

Strong, trustworthy brands for knowledgeable consumers: OTC (Over-the-Counter), Animal Health

Sandoz

Pharmaceuticals

Alcon

Consumer

Health

2012 Net Sales by Segment

V&D

Global leader in eye care with surgical, ophthalmology and vision care

Pharmaceuticals

Vaccines and

Diagnostics

Sandoz

Alcon

Consumer Health


Expertise in uncovering

key consumer insights and unmet needs

Novartis is a World-leading Healthcare Company with proven track record in OTC

13

Strength in partnering

with retail customers

Cutting-edge

communications to consumers

New product forms and packaging

to meet consumer needs


We have true Leading OTC Brands in our Portfolio

#1 topical pain

relief brand worldwide

14

Global

Leaders

Strong

Top

Brands

World’s #1 nasal

decongestant

#1 global hot liquid

cough/cold brand


Our purpose is to

help people take

care of themselves

and their families to

live healthy lives.


girp the european association of pharmaceutical … michael...europe can be a key source of growth 3...

Documents