Vitamins drive new launches in pharma as Cos focus on OTC segment

Past 24 months have seen 648 new initiatives in this area out of a total of 6,828 new drug launches

Drug companies increasing their focus on the over the counter (OTC) segment to offset the impact of price cap and restrictions on fixed dose combinations (FDCs), coupled with lifestyle changes of the urban population has meant a boom for the vitamins and nutritional supplements space. The last 24 months has seen 648 new initiatives (NI) in this space out of the total 6,828 new drug launches during the period.

In fact, while in value terms, the anti-infectives space did better clocking Rs 817 crore in moving annual turnover (MAT), in terms of number of new initiatives, the vitamins segment saw the maximum traction at 648, followed closely by anti-infectives (520) and pain (465). This is as per data collected from the AIOCD-AWACS, the market research wing of All India Organisation of Chemists and Druggists (AIOCD), the association representing over 500,000 medicines sellers across India.

 

Hari Natarajan, vice president, business intelligence, India and global audit, AIOCD Pharmasofttech AWACS private Ltd explained that NI is usually monitored over a period of 24 months in pharmaceutical parlance. He added that as such the share of NI as growth drivers for the Indian pharmaceutical market (IPM) has come down from 4.5 per cent or so around four to five years back to around 3.1 per cent or so at present.

Vitamins, however, have emerged as the largest NI (not in value terms), and the segment has seen good traction in the past six months or so, Natarajan said.

Sun Pharmaceutical's Revital H, in fact, features as the second most top brand in AIOCD's list of Top New Launches with a MAT of Rs 139 crore (as on October 2016). The Revital brand of ginseng based vitamins came into Sun's fold from its acquisition of Ranbaxy around two years back. It may be mentioned here that the contribution of Ranbaxy's portfolio has grown from 32 per cent to 37 per cent in the combined India sales of Sun-Ranbaxy.

Data showed that new initiatives in the vitamins space contributed Rs 615 crore in value terms to the IPM. The overall value of the vitamins market is around Rs 9,231 crore (MAT) which is more than the anti-diabetic market of Rs 8,968 crore. New initiatives in vitamins actually overdid that of new initiatives in the anti-diabetic space (Rs 611 crore), cardiology (Rs 233 crore), gastroenterology (Rs 220 crore), respiratory (Rs 194 crore), pain (Rs 211 crore), neurology (Rs 232 crore), dermatology (Rs 307 crore) and gynaecology (Rs 220 crore) in MAT terms.

D G Shah, secretary general of the Indian Pharmaceutical Alliance (IPA), an umbrella body of domestic drug makers said that with the FDCs and price cap posing uncertainties for future growth of pharmaceutical players, many are turning their focus on the OTC segment, and vitamins and minerals are a key segment here. "It is not that certain vitamins did not come under the purview of the banned FDCs as their combinations were deemed irrational, however, there is an increased focus on the OTC segment by pharma majors. Many also expect that certain prescription drugs may also make it to OTC eventually,"he added.

For example, pure-play prescriptions player Lupin has started to focus on the OTC segment off late and has already done some pilot launches, informed a company official. Lupin's managing director Nilesh Gupta had said earlier during the company's September quarter results that, "This is the first serious foray by the company into the OTC market, despite the few products we have had in the past. The OTC portfolio will be made up of proprietary products."

In its latest strategic blueprint for the next decade released earlier this month, Glenmark said that it aims to grow the OTC business through focus on existing brands like Vwash and Candid Powder and new launches.

Consumption of vitamins and dietary supplements registered value growth of 13% in 2016. A Mumbai-based analyst pointed out that the tendancy among urban doctors to co-prescribe vitamins along with anti-biotics and other drugs has been on the rise. "The growth in the vitamins segment has come also because of increased adoption of vitamins among the urban consumers to improve immunity and complement one's hectic lifestyle. Rise in disposable incomes is also another factor that would continue to drive growth in this segment," he added.

As per Euromonitor, the vitamins segment is likely to clock a 3.6 per cent compounded annual growth rate from 2017 to 2021. Euromonitor data shows that Amway is the market leader in this segment with a 33.8 per cent market share, followed by Pfizer (16.8 per cent). AIOCD, however, clarified that their data does not include Amway's sales.