The Over-The-Counter Drug Industry

The worldwide market for over-the-counter (OTC) drugs could exceed $70 billion by 2015, according to a report by Visiongain, a British research company. The U.S. market for OTC drugs was $17.4 billion in 2011, according to the Consumer Healthcare Products Association (CHPA), an OTC industry trade group. That's a steady, though not radical increase from 1964 when OTC sales were recorded at $1.9 billion.

1. PIYUSH TRIPATHI [email protected] OTC MEDICINES MARKET

2. INTRODUCTION Non-Prescription Drugs No Legal Recognition in India Same Standards as Prescription Drugs Not Included in Schedules H and X of the Drug and Cosmetics Rules Legally Allowed to be Sold by Pharmacists or Medical Stores without Prescription from a RMP

3. Importance of Self-Care TRUSTED First Line of Treatment Provide ACCESS 24/7 AFFORDABLE Treatment EMPOWER Individuals & Families Your Health at Hand

4. Ma j or Com p anies Dr.Reddy's, Wockhardt, Cadista, Cipla & Zydus Cadila are examples of Indian companies that have done well in the OTC segment. The attractiveness of the Indian OTC market has extended to MNCs as well. Novartis, Sanofi, GSK, Pfizer and Johnson & Johnson are examples of MNCs that have a strong presence in the Indian OTC segment. Perrigo - A classic example of OTC focused company

5. Total OTC Medication Sales in the U.S. 37.2* 38.4* 40.1* 42.1* 44.3* * Sales in billion U.S. dollars # # Statista 2015

6. Mega Categories within OTC Contribute (70% of total) Nutritionals ($9.7) Respiratory ($7.5) Analgesics ($4.4) Gastrointestinal ($4.3) First Aid ($3.0) U.S.

7. Study Findings 1 The availability of OTC medicines provides $102 billion in value to the U.S. healthcare system annually. Each dollar spent on OTC medicines saves $6-7 for the U.S. healthcare system. If OTC medicines did not exist, an additional 56,000 medical practitioners would need to work full-time to prescribe medicines for self-treatable conditions.

8. Study Findings 2

9. Study Findings 3

10. Globally, Western Europe and the U.S. remain the largest OTC regions representing 43% of the sector’s sales, but the real driving forces behind its recent performance are the developing markets of South East Asia, Latin America (LA) and Central & Eastern Europe (CEE).

11. Effectiveness of Marketin g Campai g ns

12. OTC Recommendation

13. OTC Market in India Ranks 3rd in terms of Volume 14th in terms of Value India ranks 11th in terms of the OTC Market Size 

14. OTC Products in India Analgesic or Cold Tablet (Crocin, Disprin) Antiseptic Cream (Boroplus) Balm or Rubs (Himani Fast Relief, Moov) Cough Lozenges (Strepsils) Digestives (Dabur Hingoli, Eno) Health Supplements (Boost, Horlicks) Skin Treatment (Itchguard) etc….

15. OTC Market Growth Drivers WIDER DISTRIBUTION CHANNEL DIRECT TO CONSUMER ADVERTISEMENTS INCREASED CONSUMER AWARENESS LOW PRICE CONTROLS

16. Growth drivers of OTC Market in India  RISING AWARENESS AMONGST CONSUMERS SELF MEDICATION TENDENCY LIFESTYLE FACTORS RISING PURCHASING POWER PARITY OF CONSUMERS PSYCHOLOGICAL FACTORS/ MINDSET CHANGE

17. Continued ... PRODUCT INNOVATION PROMOTION CHANNELS DEVELOPMENT RISING AWARENESS   ABOUT SAFETY RURAL PENETRATION PRODUCT INNOVATIONS EXPLORING NEW POSITIONING EVOLUTION OF DIGITAL MEDIA

18. OTC Medicine Market Forecast INDIA

19. REFERENCES BMI Research www.equitymaster.com ( Pharma OTC: A step beyond generic drugs) Statista 2015 IRI Dolcera IMS CHPA