中国非处方药(OTC)行业市场分析报告2010.pdf

datamonitor usa 245 fifth avenue 4th floor new york, ny 10016 usa t: +1 212 686 7400 f: +1 212 686 2626 e: datamonitor europe 119 farringdon road london ec1r 3da united kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: datamonitor middle east and north america datamonitor po box 24893 dubai, uae t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena datamonitor asia pacific level 46, 2 park street sydney, nsw 2000 australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 1 industry profile otc pharmaceuticals in china reference code: 0099-0364 publication date: july 2010 executive summary china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 2 executive summary market value the chinese otc pharmaceuticals market grew by 7% in 2009 to reach a value of $9,811 million. market value forecast in 2014, the chinese otc pharmaceuticals market is forecast to have a value of $13,449.9 million, an increase of 37.1% since 2009. market segmentation i traditional medicines is the largest segment of the otc pharmaceuticals market in china, accounting for 30.8% of the markets total value. market segmentation ii china accounts for 32.3% of the asia-pacific otc pharmaceuticals market value. market share johnson a much less costly business model than developing branded drugs. the regulatory body for drug approval in china is the state food and drug administration. there are opportunities for new companies in over-the-counter drugs with the strong growth of the market. in the pharmaceutical industry, product recalls can damage brand image and issues over the safety of drugs can impact end users decision to purchase otc drugs, lowering switching costs. even in this market where some products are highly important to the end user, customer preferences can have a strong pull-through on manufacturers. however, it is unusual for an otc drug to be withdrawn from the market due to safety issues although there have been a few instances. drugs often become over the counter by switching from a prescription drug which can increase consumer confidence in the product. overall the threat of new entrants is moderate. five forces analysis china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 19 substitutes figure 9: factors influencing the threat of substitutes in the otc pharmaceuticals market in china, 2009 source: datamonitor d a t a m o n i t o r prescription drugs offer an obvious substitute to otc pharmaceuticals, but these are normally suited to treating more serious ailments, and thus largely fail to encroach into the otc market. moreover most pharmaceutical companies produce both otc and prescription drugs, which diminishes any threat from this particular substitute. many consumers now use alternative medicines, like homeopathy but often in conjunction with conventional medicine, thereby making them less threatening, and more complementary. sustained use of alternative medicines instead of scientific preparations is often linked with adherence to an alternative lifestyle. thus, while there is niche demand for such products, the majority of the populace are unlikely to view alternative medicines as a viable alternative to otc pharmaceuticals. traditional remedies are also an important and established substitute in the chinese market. overall the threat from substitutes is assessed as weak. five forces analysis china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 20 rivalry figure 10: drivers of degree of rivalry in the otc pharmaceuticals market in china, 2009 source: datamonitor d a t a m o n i t o r the otc pharmaceutical industry is witnessing increasing consolidation of leading and bigger companies and more competition. most of the leading firms are large multinationals, and their wide geographic spread reduces rivalry. however, these firms have typically high fixed costs, as drug research and development requires continued investment. exit barriers are fairly high as most companies that manufacture otc drugs are focused on the pharmaceutical market and are similar to one another. however, some personal care companies operate in the otc drugs market or even in prescription pharmaceuticals meaning that exit barriers are lowered for these companies. for example, reckitt benckiser owns the nurofen and strepsils brand after acquiring boots healthcare international and is also primarily involved in the production and distribution of household cleaning and personal care products. in this market, manufacturers can differentiate by demonstrating a drug that has a greater clinical benefit than another and also through a strong brand image. for example, ibuprofen is a popular painkiller but nurofen is the best known brand which has achieved strong sales. sales growth has been sustained by innovation and extensions to the product, for example the production of nurofen fast relief. the growth of the chinese market mitigates rivalry somewhat. overall, rivalry with respect to the otc drugs market is moderate. leading companies china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 21 leading companies johnson tylenol acetaminophen products; sudafed cold, flu and allergy products; zyrtec allergy products; motrin ib ibuprofen products; and pepcid ac acid controller from johnson topamax (topiramate), approved for adjunctive and monotherapy use in epilepsy, as well as for the prophylactic treatment of migraines; and procrit (epoetinalfa, sold outside the us as eprex), to stimulate red blood cell production. j levaquin (levofloxacin) and floxin (ofloxacin), both in the anti-infective field. furthermore, the company offers concerta (methylphenidate hcl) for the treatment of attention deficit hyperactivity disorder; aciphex/pariet, a proton pump inhibitor co-marketed with eisa; and duragesic/fentanyl transdermal (fentanyl transdermal system, sold outside the us as durogesic), a treatment for chronic pain that offers a novel delivery system. the medical devices and diagnostics segment offers a wide range of products used principally in the professional fields of physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. the products are distributed to wholesalers, hospitals and retailers. the segment offers cordis circulatory disease management products; depuys orthopedic joint reconstruction, spinal care and sports medicine products; ethicons surgical care and womens health products. it also offers ethicon endo-surgerys minimally invasive surgical products; lifescans blood glucose monitoring and insulin delivery products; ortho-clinical diagnostics professional diagnostic products and vistakons disposable contact lenses. the distribution to the health care professional markets is undertaken both directly and through surgical supply and other dealers. the international business of j oncology; neuroscience and ophthalmics; respiratory; immunology and infectious diseases. the pharmaceuticals division is organized into global business franchises for the marketing of various products. the company also operates a business unit under pharmaceuticals division, novartis oncology, which globally develops and markets oncology products. the division is made up of approximately 80 affiliated companies which employed 56,310 associates in 2009, and selling products in approximately 140 countries. the product portfolio of the pharmaceuticals division includes more than 50 key marketed products. in addition, the divisions portfolio of development projects includes 145 potential new products, new indications or new formulations for existing products in various stages of clinical development. the vaccines and diagnostics division focuses on the research, development, manufacture and marketing of preventive vaccine treatments and diagnostic tools. the division was formed in 2006 following the acquisition of a stake in chiron. the division has two activities: novartis vaccines and chiron. novartis vacciness major products include influenza, meningococcal, pediatric and travel vaccines. chiron develops blood screening tools that protect the blood supply. the vaccines and diagnostics division employed 5,416 associates worldwide in 20 countries in 2009. the product portfolio of its vaccines and diagnostics division includes more than 20 marketed products. in addition, the divisions portfolio of leading companies china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 27 development projects includes more than 15 potential new products in various stages of clinical development. sandoz, novatiss generic pharmaceuticals company, develops, produces and markets drugs along with pharmaceutical and biotechnological active substances. the division focuses on retail generics, anti- infectives and biopharmaceuticals activities. in retail generics, sandoz develops and manufactures active ingredients and finished dosage forms of pharmaceuticals no longer covered by patents and supplying active ingredients to third parties. under anti-infectives, it develops and manufactures off-patent active pharmaceutical ingredients and intermediates for use by retail generics and for sale to third-party customers. in biopharmaceuticals, it develops and manufactures protein or biotechnology-based products no longer protected by patents (known as biosimilars or follow-on biologics). sandoz offers about 1,000 compounds in more than 130 countries. the consumer health division operates through three business units: otc (over-the-counter medicines), animal health and ciba vision. the otc business unit offers otc self medications. the business of otc is conducted in more than 45 countries. the animal health business unit offers veterinary products for farm and companion animals. the ciba vision business unit markets contact lenses and lens care products. in 2009, the consumer health division invested $346 million in research and development, which amounted to 6% of the divisions net sales. the novartis otc product categories are analgesics, cough, cold, allergy, gastrointestinal, skin care and smoking-cessation treatments, as well as mineral supplements. the company markets its otc products under the brand names sinecod, triaminic, rhinomer, ascriptin, bufferin, myoflex, maalox, and slow fe among others. key metrics novartis generated revenues of $44.3 billion in the financial year ended december 2009 (fy2009), an increase of 6.8% as compared to previous year. the companys net income totaled $8.4 billion in fiscal 2009, an increase of 2.5% as compared with 2008. the consumer health division accounted for 13.1% of the total revenues generated by the company in fy2009. the consumer health division recorded revenues of $5.8 billion in fy2009. asia, africa and australasia (including china) accounted for 18.3% of the total revenues in fy2009. revenues from asia africa and australasia reached $8.1 billion in 2009, an increase of 13.3% as compared to 2008. leading companies china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 28 table 9: novartis ag: key financials ($) $ million 2005 2006 2007 2008 2009 revenues 32,212.0 36,031.0 38,072.0 41,459.0 44,267.0 net income (loss) 6,130.0 7,175.0 11,946.0 8,195.0 8,400.0 total assets 57,732.0 68,008.0 75,452.0 78,299.0 95,505.0 total liabilities 24,568.0 26,714.0 26,056.0 27,862.0 38,043.0 employees 90,924 100,735 98,200 96,717 99,834 source: company filings d a t a m o n i t o r table 10: novartis ag: key financial ratios ratio 2005 2006 2007 2008 2009 profit margin 19.0% 19.9% 31.4% 19.8% 19.0% revenue growth 14.0% 11.9% 5.7% 8.9% 6.8% asset growth 10.0% 17.8% 10.9% 3.8% 22.0% liabilities growth 16.0% 8.7% (2.5%) 6.9% 36.5% debt/asset ratio 42.6% 39.3% 34.5% 35.6% 39.8% return on assets 11.1% 11.4% 16.7% 10.7% 9.7% revenue per employee $354,274 $357,681 $387,699 $428,663 $443,406 profit per employee $67,419 $71,226 $121,650 $84,732 $84,140 source: company filings d a t a m o n i t o r leading companies china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 29 figure 13: novartis ag: revenues & profitability source: company filings d a t a m o n i t o r figure 14: novartis ag: assets & liabilities source: company filings d a t a m o n i t o r leading companies china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 30 chengdu rosun antiseptic pharmaceutical co., ltd table 11: chengdu rosun antiseptic pharmaceutical co., ltd: key facts head office: longquanyi district, zip code: 610016, chengdu, sichuan province, chn telephone: 86 28 65988010 fax: 86 28 65988036 website: source: company website d a t a m o n i t o r chengdu rosun antiseptic pharmaceutical is a manufacturer of human applied disinfectants and environment friendly sanitizing products. the company supplies a wide range of products such as: disinfectants, antiseptic lotions, mouthwash, multi-enzymatic detergent, water sanitizing equipment and skin care products. the company sells its products under the brand name rosun. it also provides farming disease control services. it primarily focuses on research and development of products. currently, the company has entered into several long-term cooperation agreements with well-known hospitals and hygiene institutions throughout china, including the china southwest medical centre and the military medical colleges. furthermore, the company also exports its products to the us, middle east and southeast asian countries. key metrics chengdu rosun antiseptic pharmaceutical is a private company. there is no financial information available. distribution china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 31 market distribution pharmacies / drugstores form the leading distribution channel in the chinese otc pharmaceuticals market, accounting for a 68% share of the total markets value. independent retailers accounts for a further 15.1% of the market. table 12: china otc pharmaceuticals market distribution: % share, by value, 2009 channel % share pharmacies / drugstores 68.0% independent retailers 15.1% specialist retailers 7.2% others 9.8% total 100% source: datamonitor d a t a m o n i t o r figure 15: china otc pharmaceuticals market distribution: % share, by value, 2009 source: datamonitor d a t a m o n i t o r market forecasts china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 32 market forecasts market value forecast in 2014, the chinese otc pharmaceuticals market is forecast to have a value of $13,449.9 million, an increase of 37.1% since 2009. the compound annual growth rate of the market in the period 200914 is predicted to be 6.5%. table 13: china otc pharmaceuticals market value forecast: $ million, 200914 year $ million cny million million % growth 2009 9,811.0 67,116.1 7,055.7 7.0% 2010 10,486.6 71,737.9 7,541.6 6.9% 2011 11,196.7 76,595.5 8,052.2 6.8% 2012 11,923.8 81,569.6 8,575.2 6.5% 2013 12,676.0 86,714.7 9,116.0 6.3% 2014 13,449.9 92,009.4 9,672.7 6.1% cagr: 200914 6.5% source: datamonitor d a t a m o n i t o r figure 16: china otc pharmaceuticals market value forecast: $ million, 200914 source: datamonitor d a t a m o n i t o r macroeconomic indicators china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 33 macroeconomic indicators table 14: china size of population (million), 200509 year population (million) % growth 2005 1,297.8 0.5% 2006 1,304.3 0.5% 2007 1,310.6 0.5% 2008 1,317.1 0.5% 2009 1,323.6 0.5% source: datamonitor d a t a m o n i t o r table 15: china gdp (constant 2000 prices, $ billion), 200509 year constant 2000 prices, $ billion % growth 2005 1,890.6 10.4% 2006 2,110.0 11.6% 2007 2,375.9 12.6% 2008 2,603.5 9.6% 2009 2,830.0 8.7% source: datamonitor d a t a m o n i t o r table 16: china gdp (current prices, $ billion), 200509 year current prices, $ billion % growth 2005 2,042.5 13.5% 2006 2,378.0 16.4% 2007 2,941.4 23.7% 2008 3,717.9 26.4% 2009 4,079.2 9.7% source: datamonitor d a t a m o n i t o r macroeconomic indicators china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 34 table 17: china inflation, 200509 year inflation rate (%) 2005 1.8% 2006 1.5% 2007 4.8% 2008 5.9% 2009 (0.7%) source: datamonitor d a t a m o n i t o r table 18: china consumer price index (absolute), 200509 year consumer price index (2000 = 100) % growth 2005 107.0 1.8% 2006 108.6 1.5% 2007 113.8 4.8% 2008 120.5 5.9% 2009 119.7 (0.7%) source: datamonitor d a t a m o n i t o r table 19: china exchange rate, 200509 year exchange rate ($/cny) exchange rate (/cny) 2005 8.2033 10.1964 2006 7.9819 10.0145 2007 7.6172 10.4228 2008 6.9623 10.1875 2009 6.8409 9.5123 source: datamonitor d a t a m o n i t o r appendix china - otc pharmaceuticals 0099 - 0364 - 2009 datamonitor. this profile is a licensed product and is not to be photocopied page 35 appendix methodology datamonitor industry profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented i