PIYUSH TRIPATHIpiyushtripathi1992@rediffmail.com

OTC MEDICINESMARKET

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

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

Major CompaniesDr.Reddy's, Wockhardt, Cadista, Cipla & Zydus Cadila are

examples of Indian companies that havedone well in the OTC segment. The

attractiveness of the Indian OTC markethas extended to MNCs as well. Novartis, Sanofi, GSK,

Pfizer and Johnson & Johnson areexamples of MNCs that have a strongpresence in the Indian OTC segment.

Perrigo - A classic example of OTC focused company

Total OTC Medication Sales in the U.S.

2010 2011 2012 2013 201432

34

36

38

40

42

44

46

37.2*38.4*

40.1*

42.1*

44.3*

* Sales in billion U.S. dollars

#

# Statista 2015

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.

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 additional56,000 medical practitioners would need towork full-time to prescribe medicines for self-treatable conditions.

Study Findings 2

Study Findings 3

Globally, Western Europe and the U.S. remain the largest OTC

regions representing 43% of thesector’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).

Effectiveness of Marketing Campaigns

Adver-tisement

Education Magzine Executives Consumers0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OTC Recommendation

Headache Fever Cold/Cough

Acidity Pain Digestive0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

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….

OTC Market Growth DriversWIDER

DISTRIBUTIONCHANNEL

DIRECT TOCONSUMER

ADVERTISEMENTS

INCREASEDCONSUMERAWARENESS

LOWPRICE

CONTROLS

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

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

OTC Medicine Market ForecastINDIA

REFERENCES• BMI Research• www.equitymaster.com (Pharma OTC: A step

beyond generic drugs)• Statista 2015• IRI• Dolcera• IMS• CHPA