Consumer Health Market Overview

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OTC conference 2021

Consumer Health Market

Overview

January 2021

Aleš Dohnal | Data Suppliers and Offering Manager, CZ & SK

1

Today’s agendaTop corporations in CH3

Innovations: New pack launches4

1Czech & Slovakia CH Market: Key

figures

2 Top OTC classes

2

Intro:

Global context

3

CEE&CIS region presents sizeable opportunity in OTC market

Source: IQVIA Global OTC Insights | Sales data for MAT Q2 2020

OTC Global Growth by Sub-Region: Long vs Short term

Region in decline in latest year

N America

W Europe

CEE

China

Japan

Latin America

South Asia

SE Asia

Middle East

North Asia

Australasia

Africa

-7

-5

-3

-1

1

3

5

7

9

11

13

0 1 2 3 4 5 6 7 8 9 10 11

Global Latest YearGrowth 3.4%

Global 3 Year Average Growth

3.8%

LatAm S-T growth driven by

strong growth in Brazil,

Colombia and Argentina

Negative growth in China

and Japan for all

categories except Skin

4

Refreshment index in Q2/20 by countries in CEE

Note: Refreshment Index = turnover from new launches / total company turnover. Recent launches are defined as a branded products launched in the last 2 years

Source: IQVIA CHIOTP, Copyright © 2020 IQVIA™. All rights reserved.

Romania is still the star in innovation

1311

-10

8 14 15109 12 16

-5

17-25

5

0

-20

-15

Romania

Share of MQT 06/2020 sales from recent launches (%)

Czech

%P

PG

MQ

T 0

6/2

02

0

PolandHungary

Serbia

SlovakBulgaria

Lithuania

Croatia

Latvia

Slovenia

Estonia

WEAK

Size of buble represents sales value of new sku

- MQT 06/2020

MEDIUM STRONG

5

New brands and sku’s launches faces big challenges

Source: IQVIA CHIOTP, Copyright © 2020 IQVIA™. All rights reserved.

Success factor

29.2%

49.1%

21.6%

Success factor

29.8%

22.5%

47.8%

Legenda

Success

Moderate success

Failure

SKU’s capable to keep market share growth in 2nd year after launch

SKU market share on the same level in the 2nd year after launch

SKU with declining market share and vanished from the market

CEE

launched in 2018

TOP 5 WE

launched in 2018

6

Czechia and Slovakia vs Europe

Source: IQVIATM CHIOTP, Q2 2020, OTC 1-19; 97

OTC per capita in value and units

OTC per capita LC€ - MAT 06/2020; 3 years CAGR

OTC per capita UNITS - MAT 06/2020; - 3 years CAGR

OTC per capita STD UNITS - MAT 06/2020; 3 years CAGR

7

1| Czech CH Market:

Key figures

8

Czech pharma market has been growing steadily reaching CZK 65 bn in total - Consumer Health YoY growth +4,9% .

Copyright © 2020 IQVIA. All rights reserved -

Source: IQVIA Pharmatrend data, Sell-out

Total CZ pharma market size and growth

Growth of CZ pharma market

[PPG % in sales, MAT/10/2019 vs MAT/10/2020]

0%

2%

4%

6%

8%

10%

MAT/10/2019

4.9

MAT/10/2020

5.2

2.1

3.6

7.9

0.3

CZK

65.2bn

TOP OTC classes TOP corporations in CHCZECH CH MARKET

Note: Only retail pharmacies included; PPG – Past period growth (MAT/10/2019 – 2020)

38.8%39.8%

Total pharma growth CH market growth

RX market growth Share of CH market

New packs launches

9

Consumer Market in Slovakia shows faster growth than in CZ, but still has smaller pharma market share.

Copyright © 2020 IQVIA. All rights reserved

Total SK pharma market size and growth

Growth of SK pharma market

[PPG % in sales, MAT/10/2019 vs MAT/10/2020]

10.0%

Total pharma growth CH market growth

RX market growth Share of CH market

EUR 1.86

bn


-4%

-2%

0%

2%

4%

6%

8%

10%

0.8

MAT/10/2019 MAT/10/2020

3.4

6.9

0.4

10.0

-2.3

33.8%35.8%

SLOVAK CH MARKET

Note: Only retail pharmacies included; PPG – Past period growth (10/2019 - 2020)

TOP OTC classes TOP corporations in CH New packs launches

10

Registered OTCs make up 37% of the overall CH market



Total CH market overview

Value and Growth [Sell-out sales and PPG, MAT/10/19 vs MAT/10/20]

Total CH: + 4.9%

9.6 CZK bn

26 CZK bn

8.9 CZK

bn

7.5 CZK

bn

Registered OTC: - 0.6%

Non-Registered OTC: +14.7%

Other - DRC, PAC, NUT, PEC +1.9%

10.7%

38.1%

31.4%

11.2%

Registered OTC Non-Registered OTC PACDRC NUT PECNote: Only retail pharmacies included


4.9%

10.6%

10.6%

34.2%

2.7%

36.9%

MS% in CH

market

[MAT/10/20]

New packs launches

11

Registered OTCs make up 39% of the overall CH market


Value and growth [Sell-out sales and PPG, MAT/10/2019 vs MAT/10/2020]

Total CH: + 6.9%

259 EUR mil

667 EUR mil

208 EUR

mil

200

EUR mil

Registered OTC: + 0.6%

Other - PAC, NUT, PEC +4.5%

Non-Registered OTC: + 18.5%

38.9%

31.2%

13.3%

9.6%

7.0%

MS% in CH

market

[MAT/10/20]

Total CH market overview


Note: Only retail pharmacies included

REGISTERED PECNOT REGISTERED PAC NUT

SLOVAK CH MARKET

12

CH market growth is driven mainly by growth in price and growth in new pack launches



Elements of growth – CH

Contribution to CH market growth [PPG %, MAT 10/2019 vs 10/2020]

0

1

2

3

4

5

6

MIXPRICE NEW PACKS

PP

G (

%)

-1.7

VOLUME NEW PRODUCTS

2.2

1.1

1.1

2.2

Total PPG 4.9%

TOP OTC classes TOP corporations in CHCZECH CH MARKET New packs launches

13

Independent pharmacies have same market share as a Chains but e-Pharmacies are the fastest growing segment


CH market share and contribution to growth by PCY type

Market share by PCY type [MAT/10/20] Contribution to market growth by PCY type

[% of Values, MAT/10/20]




-5%13%

-73%

INTERNET

70%

-15%-10%-10%

8%

INDEPENDENT

90%

5%

-3%

4%

CHAINS

3%7%

17%

PEC PAC DRCOTC NUT

44%

44%

11%

INDEPENDENT CHAINS INTERNET

New packs launches

14

Independent pharmacies still have the largest market share but they are last in growth


CH market share and contribution to growth by PCY type

10.4%

75.2%42.2%

59.7%

Market share by PCY type [MAT/10/2020] Contribution to market growth by PCY type

[% of Values, MAT/10/2020]


42.9%

60.0%

96%

-64%

24%4%

66%

5%

54%

INTERNET

5%13%

INDEPENDENT

0%12%

83%

CHAINS

NUTPEC PAC OTC

5%

62%

33%

INTERNET INDEPENDENT CHAINS

SLOVAK CH MARKET

15

2| Top OTC classes

16

Four CH categories (01, 02, 04 and 03) are making up ~ 50% of the market and are responsible for 62% of overall growth


Overview of the size and growth of main OTC classes

15%

13%

13%

9%5%5%

4%

37%

1 000

-500

0

500

1 500

6%

CZ

K, P

ub

lic p

rice

s

-14%

16%

64%

-4%

1%1%

27%

02 PAIN RELIEF

01 COUGH COLD&OTH RESP PROD 04 VITAM.MINER.&NUTRIT.SUPPL

03 DIGEST & OTH INTEST PROD

06 SKIN TREATMENT

52 INCONTINENCE CARE PRODUCT

12 URINARY&REPRODUCTIVE CARE

Total Others (49)

OTC classes’ share and growth contribution [Values, MAT/10/2020]

• The key growth contributor has been the

vitamins category that delivered more

than half of overall growth ~ 64 %

• Pain relief driven by demand for

paracetamol and ibuprofen products

• Others - assortment associated with

personal hygiene

Comments



TOP OTC classes TOP corporations in CHCzech CH market New packs launches

17

Four CH categories (01, 02, 04 and 03) are making up ~ 50% of the market and are responsible for 62% of overall growth


Overview of the size and growth of main OTC classes



TOP OTC classes TOP corporations in CHCzech CH market New packs launches

0.30

0.00

0.45

0.05

0.25

0.10

0.15

0.20

0.35

0.40

M4

Sale

s (

bn C

ZK

)

M11 M12 M1 M2

MAT 10/2019

M3 M5 M6 M7 M8 M9 M10

MAT 10/2020

0.6

0.0

0.1

0.4

0.5

0.2

0.3

M2

Sale

s (

bn C

ZK

)

M11 M12 M1 M3 M4 M5 M6 M8M7 M9 M10

MAT 10/2019

MAT 10/2020

0.30

0.20

0.00

0.25

0.05

0.15

0.40

0.10

0.35

M4M11

Sale

s (

bn C

ZK

)

M12 M1 M2 M3 M5 M6 M7 M8 M9 M10

MAT 10/2019

MAT 10/2020

0.05

0.25

0.20

0.15

0.10

0.00M12 M10

Sale

s (

bn C

ZK

)

M1M11 M6M2 M3 M4 M5 M7 M8 M9

MAT 10/2019

MAT 10/2020

01 COUGH COLD&OTH RESP PROD

04 VITAM.MINER.&NUTRIT.SUPPL02 PAIN RELIEF

03 DIGEST & OTH INTEST PROD

18

Plain Vitamin C and Immunostimulants have been the fastest growing OTC3 classes within Chain pharmacies


Pharmacy types split in terms of sales and growth

CZK bnSource: IQVIA Pharmatrend data, Sell-out, 2020


TOP OTC classes TOP corporations in CHCzech CH market

avg PPG 4.6% avg PPG -1.9% avg PPG 46.7%0.80.0 1.21.00.2 0.4 0.6

52B5 PULL UP INCONTINENCE PROD

02A1 GENER.PAIN RELIEF ADULTS

02E1 MUSCULAR PAIN RELIEF TOPI

01C1 SORE THROAT REMEDIES

03F1 PROBIOTICS DIGEST HEALTH

01B1 COLD OR FLU REMEDIES

01B2 NASAL DECONGESTANTS

01A4 CHESTY COUGH PRODUCTS

02G2 JOINT CARE PRDS(SYSTEMIC)

02E2 MUSCULAR PAIN RELIEF SYST

04D1 PLAIN VITAMIN C

04F3 MAGNESIUM SUPPLEMENTS

05F1 IMMUNOSTIMULANT PREPARAT.

35G1 NORMAL MILKS

52A1 LIGHT INCONTINENCE PRODUC

Chain pharmacies

E-pharmacies

Non-chain pharmacies

Top 15 OTC3 in CH[Values in CZK, MAT10/2020]

11%

6%

-9%

2%

-5%

-1%

-9%

-7%

13%

68%

15%

11%

39%

10%

9%

14%

-4%

-16%

-2%

-6%

-8%

-14%

-8%

2%

65%

5%

-2%

33%

-18%

3%

143%

55%

95%

46%

139%

84%

112%

21%

30%

182%

56%

63%

89%

16%

55%

Chain pharmacies[PPG%, MAT10/2020]

Independent pharmacies[PPG%, MAT10/2020]

E-pharmacies[PPG%, MAT10/2020]

New packs launches E-commerce

19

3| Top corporations in CH

20Copyright © 2020 IQVIA. All rights reserved - Confidential

TOP 10 corporation on the CH market

Market share [Values, MAT10/2020] PPG [Values, MAT10/2019 – MAT10/2020]


TOP OTC classes TOP CORPORATIONS IN CHCzech CH market

9%

7%

4%

4%

3%

3%

3%

2%

2%

2%

SIMPLY YOU

GLAXOSMITHKLINE*

HARTMANN*

DR.MAX*

SANOFI*

STADA*

TEVA*

DANONE GROUPE*

NESTLE*

JOHNSON & JOHNSON*

14%

7%

1%

1%

-8%

9%

6%

-2%

1%

-5%

TOP 10 players represent ~ 39% of the CH market value; the highest PPG was recorded by Dr. Max followed by Hartmann and Sanofi

New packs launches

21

All top 3 companies have been growing fast within e-Pharmacies, while the main contributor to company’s growth are Chains


TOP 15 CH corporations – sales and PPG by PCY type

CZK bnSource: IQVIA Pharmatrend data, Sell-out, 2020


Czech CH market

avg PPG 4.6% avg PPG -1.9% avg PPG 46.7%0.0 0.5 2.01.51.0 2.5

TEVA*

SANOFI*

DR.MAX*

GLAXOSMITHKLINE*

STADA*

HARTMANN*

SIMPLY YOU

DANONE GROUPE*

BAYER*

NESTLE*

JOHNSON & JOHNSON*

ESSITY*

L OREAL*

MENARINI*

ANGELINI*

Chain pharmacies

Non-chain pharmacies

E-pharmacies

Sales by PCY type [Values in CZK, MAT10/2020]

14%

8%

6%

3%

-7%

12%

4%

3%

1%

-4%

3%

3%

-4%

5%

-3%

1%

-6%

-5%

-13%

5%

3%

-10%

-5%

-11%

-6%

5%

-23%

-4%

-7%

48%

97%

65%

45%

54%

49%

29%

9%

11%

28%

51%

39%

41%

49%

92%

Chain pharmacies[PPG%, MAT10/2020]

Independent pharmacies[PPG%, MAT10/2020]

E-pharmacies[PPG%, MAT10/2020]

TOP OTC classes TOP CORPORATIONS IN CH New packs launches

23Copyright © 2020 IQVIA. All rights reserved - Confidential

TOP 10 CH market umbrella brands

Market share [Values, MAT10/2020] PPG [Values, MAT10/2019 – MAT10/2020]


TOP OTC classes TOP CORPORATIONS IN CHCzech CH market

2%

2%

2%

2%

1%

1%

1%

1%

1%

1%

IBALGIN

PARALEN

TENA

VOLTAREN

MOLICARE

WOBENZYM

URIAGE

OLYNTH

BIOPRON

CURAPROX

5%

7%

28%

11%

5%

8%

8%

4%

1%

-7%

Tena is the number one umbrella brand in terms of value, the lowest PPG was recorded by Curaprox

New packs launches

24

4| Innovations: New pack

launches

25

Refreshment index shows the footprint of growing corporations

Copyright © 2020 IQVIA. All rights reserved - Confidential

Refreshment index by corporations

230

45 100

30

50 105

510

850

10

1105

540

10 15 2520 3530 40

520

530

90 95

0

20

-10

HARTMANN* MERCK KGAA*

PP

G

DR.MAX*

TOPVET

DANONE GROUPE*

LABORATOIRES URIAG

BEIERSDORF*

KENDAL NUTRICAREZENTIVA*

STADA*BAYER*

INDEX

L OREAL*

SIMPLY YOU

SANOFI*

BOHEMILK

LOW HIGHMEDIUM

Bubble size represents sales value from new launches


Refreshment Index [MAT 10/2019 – 10/2020]

Note: Refreshment Index = turnover from new launches / total company turnover

TOP OTC classes TOP corporations in CHCzech CH market NEW PACKS LAUNCHES

26

Registered OTCs dropped both in value and volume, non-registered OTC had solid growth

Copyright © 2020 IQVIA. All rights reserved - Confidential

Source: IQVIA Pharmatrend data, Sell-out, 2020

New packs launches evolution in last 3 years (last 24 months launches, OTC categories 1-18+97)

Registered OTC Non registered OTC

1,123

281

405320

930 913

+44.1%

-21.0%

-1.9%

+23.0%

Registered OTC

2,621

Non registered OTC

1,995

4,667

2,378

6,317

4,977

+31.4%

-9.3%

-26.1%

+6.6%

TOP OTC groups TOP umbrella brandsTOP corporations in CHCzech CH market NEW PACKS LAUNCHES

MAT/8/2018 MAT/8/2019 MAT/8/2020

New packs volume dynamics [units ths, MAT9/2018-2020] New packs value dynamics [CZK mil, MAT9/2018-2020]

27

Thank you for your attention

28

Aleš Dohnal

Data Suppliers and Offering Manager, CZ & SK

[email protected]

+420 602 300 028

CONTACT US

Consumer Health Market Overview

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