New products, campaigns to boost Sun Pharma OTC sales

After tying up with Nykaa, pharma major plans to sell products online

Sun Pharmaceuticals is strengthening its over-the-counter (OTC) business through new marketing campaigns, product enhancements and online sales.

As a first step, the company has tied up with online beauty portal Nykaa.com to sell its sunscreen cream Suncros, and soon plans to sell its other OTC products on e-commerce platforms.

Sun Pharmaceuticals' OTC segment includes top-selling brands such as health supplement Revital and painkiller Volini. These products became a part of Sun Pharmaceuticals' portfolio after it acquired Ranbaxy two years ago.

"The OTC segment is an integral part of our strategy and we plan to grow the business by strengthening our existing brands and adding new products to our portfolio," said Subodh Marwah, business head, global consumer healthcare, Sun Pharmaceuticals.

He added the segment was growing in double digits.

Last November, the drugmaker launched the enhanced version of Volini. In June, it re-launched Suncros as an OTC brand. Till then, Suncros was only sold as a prescription product.

Sun Pharma launched Pepmelt, a granule-based antacid, its novel OTC offering.

On Monday, Sun Pharma launched a marketing campaign with in actor Sonali Bendre to promote Revital H among women. This includes an online platform for women to get information on nutritional requirements.

"We are evaluating opportunities," Marwah said, when asked about new product launches.

While the OTC business contributed about 20 per cent to Ranbaxy's sales, the segment's share in Sun Pharma's overall sales was low.

According to an analyst, pharma companies see OTC as an important growth segment as these products do not come under price caps.

"Pharma companies are facing pricing pressure and domestic growth is impacted as more drugs come under price caps," an analyst said.

Also OTC products have lower distribution costs compared to prescription drugs.

Sun Pharma's peers, too, are expanding their OTC portfolio.

Last year, Cipla spun off its consumer health business to Cipla Health, its joint venture subsidiary with private equity (PE) firm Eight Roads Ventures India (formerly Fidelity Growth Partners).

The company is looking to build five Rs 100-crore brands in five years by tapping into the growing health and wellness consciousness among the urban population.

Piramal Enterprises is taking the inorganic route to grow its OTC business and its most recent acquisitions include brands from Merck and Pfizer.