There is never a dull day in Indian pharma! With each passing moment new challenges emerge on the pharma horizon. If it is the controversy of branded and unbranded generics one day, it is DPCO another moment. In spite of all these challenges, the enduring charm of pharmaceutical industry, beckons entrepreneurs who wish to strike a pharma bounty. New avenues such as MAB business (monoclonal antibody business produced through rDNA technology) give a fresh twist to the pharma story.
The Sun never sets on Sun!
The unstoppable juggernaut Sun Pharmaceuticals (ranked no. 2 in the Indian retail pharma market) rides high with a 15.1 per cent value growth in Oct 2013, while many an established pharma firm suffers de-growth or single digit growth, in Oct 2013. The Indian pharmaceutical market in Oct 2013 has suffered value de-growth for the second successive month. These are challenging times for those pharma companies whose products have been hit by the Drug Prices Control Order (DPCO), 2013. However, the Moving Annual Total (MAT) of Indian pharma market is still positive: Rs. 72,381 crores with 5.10 per cent value growth.
Trending Rise of subregional and regional pharma companies
The new flavor is the rise and rise of subregional and regional pharma firms, many of them being manned by ex-field personnel of large companies or entities launched by established pharmaceutical distributors and C & Fs. In the Indian retail pharma market Eris Life Sciences makes a special vibration by quickly climbing to the 32nd rank with Rs. 498 crores MAT value; another company making it to the 50th rank is Corona Remedies with Rs. 241 crores MAT value, Akumentis from Bangalore is an inch ahead with Rs. 245 crores MAT value (49th rank).
While the above companies are highly visible on the pharmaceutical radar, there are several other enterprises who are niche operators in various geographies or therapeutic segments, and making silent inroads into regional markets: such names include Unison, Ordain, Invida, Med Manor, Psychotropics, Talent.
This market trend signals the growth in confidence in pharma entrepreneurs and overall pharma ecosystem – many traders are moving up the value chain to become manufacturers or marketers; while, established large firms are placing their bets on innovation and R & D play.The Indian pharma industry provides high quality products through contract manufacturing, this has boosted marketing. One need not have a manufacturing set-up, if an entity has a good market network, success will befriend the marketer. Such is the tenor of Indian pharma business.
The lesson this holds out is that the Indian pharmaceutical industry is making rapid strides, production capacity and learnings’ have scaled up, the overall confidence in pharma industry is also strengthening continuously, the industry is vibrant, addressing opportunities, taking on challenges and becoming savvy by the day.
Rise of training power
The humongous growth in number of pharmaceutical marketers has led to the need for skilled people, including competent marketing personnel. The need for offering training to pharmaceutical executives and marketing and other personnel, to continuously upgrade skill sets, motivate and empower is strongly felt across departments and companies. There was a time when, me-too marketers would dress up a MR smartly, provide a bag full of samples, freebies and literatures/visual aid; this would whip up the magic and create demand for the promoted branded generic(s).
However, this formula is insufficient today. Patient empowerment and increasing knowledge regarding pharma brands/unbranded generics and promotional wars between pharma companies vying to offer value to prescribers and pharmacists – this has impelled marketers to look for ways to differentiate their offerings. Training is providing a competitive edge, in the form of smart field personnel, who can influence the prescribing process through sophisticated communication skills. Training is also the need of hour to maintain efficient and effective working of various other departments.
Rise of Vit. D3, polyphenols and such nutritional ingredients
The market for Vit D3 formulations in Oct 2013 has grown by 50.1 per cent. New knowledge and globalized information sharing platforms is impelling the growth of nutritional products/dietary supplements. Revital range (a dietary supplement) is pharma India’s third largest brand (MAT value of Rs. 256 crores and 15.40 per cent growth). It is the topmost product of Ranbaxy. Polyphenols and plant stenol esters are being appreciated for their health benefits.Dietary supplements have the additional advantage of avoiding the price control regime, as they are manufactured under food laws (FSSAI).
The healthcare market is welcoming with open arms such science and evidence-backed dietary supplement formulations.
Rise of specialties
Sun Pharmaceuticals focus on neuropsychiatry products has paid off; it generates Rs. 1000 crores of its total domestic sales of Rs. 3821 crores, from this segment alone. Specialty focused field personnel and specialty focused range of products are becoming the means of market identity and sales. For instance, there are companies which are focused only on male and female contraceptive products.
Rise of OTX
The Indian pharmaceutical market is driven by three forces: the Rx (prescription) market force, the OTC (over-the-counter) sales trend and OTX (where products enjoy both prescription patronage and over-the-counter sales). Products like Revital enjoy prescription push and end consumer pull, many products are now addressing this opportunity in the healthcare market.
Rise of differentiated products
Products need to stand out. Alu-alu pack was such an innovation, which made antibiotic brands stand out from the brand clutter.Calendar pack innovation helped in brand differentiation of chronic disease/oral contraceptive brands. Tetra Pak packaging has provided a very innovative method for differentiated value offering to the clinician. This trend of providing differentiated offerings through shape, colour, composition, packaging etc will certainly continue to help gain exclusive market loyalty.
Rise of globalization
The rise of electronic media, liberalization and transportation connectivity has helped English knowing Indian pharmaceutical entrepreneurs connect to the dynamic Indian diaspora and other foreign entities for mutually beneficially commercial terms.Pharma marketers are more global in their outlook; the internet is a window to the world. As the world’s business borders become increasingly blurred, Indian healthcare marketers are adventurously marketing worldwide.
Rise of ITES
Information Technology Enabled Services(ITES)is changing the way of documentation, communication and keeping track of field activities. ITES has become Necessarius for the effective management of pharmaceutical activities and personnel, in the backdrop of a dynamic and competitive world. The trend of ITES continues to gain traction.
Rise of pharma literacy
Many urbanites know the difference between unbranded/branded generics, and price difference between branded generics. Hence, the empowered patient particularly those suffering chronic disease in urban areas, has started looking out for quality medicines at cheaper prices. This patient empowerment is a new challenge for pharma marketers. Corporate management now looks to balance value delivery, quality and price-to-consumer of various medications.The prognosis is that in coming times, pharmaceutical entities will be compelled to invest in corporate image building advertising and marketing to end consumers – in a bid to differentiate their products and lend a better brand appeal. The likes of Cipla have started communicating in this direction through placement of promotional material in patient waiting areas of hospitals and clinics.
Summary
The pharmaceutical and healthcare product industry, which markets products through prescriber support and principally through pharmacies’, is a sunrise sector. Despite the challenges, pharmaceutical and healthcare product sector is seeing a positive future in India and across the borders.The overseas market forays of Indian pharma/healthcare marketers is seeing good scope, enjoys great goodwill in foreign markets and regulatory practices of pharma firms are constantly updating. The future is rising! (Note: All figures reference: AIOCD AWACS Oct 2013 report)
(The author is GM – Marketing and Training, Juggat Pharma, Bangalore)