Francine Nieto Quintiles IMS Presentation

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Copyright © 2016 QuintilesIMS. All rights reserved. The Big Picture of Consumer Healthcare Consumer Healthcare Investment - 15 th November 2016 Francine Nieto, Global Offering Director, Consumer Health QuintilesIMS

Transcript of Francine Nieto Quintiles IMS Presentation

Page 1: Francine Nieto Quintiles IMS Presentation

Copyright © 2016 QuintilesIMS. All rights reserved.

The Big Picture of Consumer Healthcare

Consumer Healthcare Investment - 15th November 2016

Francine Nieto, Global Offering Director, Consumer Health

QuintilesIMS

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Agenda

Key Market Trends

Routes to Growth

Summary

Global OTC Market Overview

Consumer Healthcare Investment - November 2016

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• MAT sales to end Q2 2016 from QuintilesIMS OTC Global Analysis

• Sales calculated at manufacturer prices

• Growths based on previous MAT to Q2 and use latest exchange rate across all time

periods

• Some qualifications:

– Sales from Pharmacy/Drug Store channels are included, as well as Mass Market in

some countries e.g. Germany, Italy, Japan, Netherlands, Portugal

– Companies include all OTCs from the corporation

– i.e. “J&J” includes Johnson & Johnson, McNeil and Neutrogena

– Bayer includes legacy Merck CH

– GSK-Novartis JV is a QuintilesIMS estimate of the GSK & Novartis CH joint venture

– Sanofi+BI includes all Sanofi and BI OTC business except BI China

The Basis for Figures in this Presentation

Consumer Healthcare Investment - November 2016

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The OTC market reaches $112 bn and remains attractive,

despite slowing growth due to the Cough/Cold season

Consumer Healthcare Investment - November 2016

Source: IMS OTC audits plus estimates (Excluding Venezuela)

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Developing regions continue to drive growth

Source: IMS OTC audits plus estimates (Exc Venezuela)

Developing

Regions

Total

OTC

Share of Sales 49%

Share of Growth 72%

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Categories of high interest are VMS and Digestive,

posting the highest growth rates globally

Source: IMS OTC Global Analysis

Global OTC – Key Categories

Value Share (%) Value Growth (%)VMS & Tonics

growth driven by

Europe (+7.4%)

and APAC (+9.8%)

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Agenda

Key Market Trends

Routes to Growth

Summary

Global OTC Market Overview

Consumer Healthcare Investment - November 2016

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There is an “irresistible force” moving through society

towards health promotion rather than just treating illness

Awareness

• Media and advertising campaigns promote interest in maintaining health

Adoption

• Consumers around the world are buying into healthy lifestyles – but there is enormous potential for further expansion

Payers

• Many stakeholders recognise the long-term cost-benefits to preventative healthcare and health promotion

Future

• As a result more companies are entering into this expanding Consumer Healthcare space

Source: QuintilesIMS

Consumer Healthcare Investment - November 2016

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As OTC becomes increasingly attractive, players

become more diverse and the competitive set expands

Consumer packagedgoods

• Payer and generic pressure driving diversification

• Rx to OTC asset leverage

Pharma moving into consumer health

FMCG moving into consumer health

Pure play consumer health

• Higher consumer health margin and prices

• Leverage consumer and trade marketing muscle

• Leverage sales and marketing capabilities

• Economies of scale in supply chain

PharmaConsumer

HealthFMCG/CPG

A shift in thinking from: “Pharmaceuticals for the Consumer” towards:

“Consumer products about Health & Wellness”

Source: QuintilesIMS

Consumer Healthcare Investment - November 2016

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As a result, the OTC marketplace is evolving rapidly and

distinct forces are at play regionally and globally

• Wellness and prevention

through treatment and

cure to restoration along

the consumer journey &

OTC / OTX /Rx

continuum

• Online connectivity,

mobile technology,

smart health are

producing a connected

consumer to engage

with

• Increasing

medicalisation of herbal

and natural remedies as

part of diet, lifestyle and

wellbeing regimes

Convergence of Health &

Wellness

Rise of the connected

consumer

Trend towards Herbal &

Natural Remedies

Consumer Healthcare Investment - November 2016

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This shift of focus towards health & wellness leads to

the development new transversal market segments

Pharmaceuticals

NutritionPersonal Care

NutraceuticalsCosmeceuticals

Nutricosmetics

Topically applied

Vitamins, herbs, various oils, and botanical extracts typically added

May not claim drug-like or therapeutic effects

Provides medical or health benefits, includingthe prevention and/or treatment of a disease

Typically sold in the medicinal form of capsule, tablet, powder, solution

Sometimes associated with functional foods

Ingestible. Containing ingredients such as botanical actives, enzymes, proteins, and vitamins.Marketed specifically as beauty aids

Source: QuintilesIMS

Consumer Healthcare Investment - November 2016

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The OTC market place is evolving rapidly and distinct

forces are at play regionally and globally

• Wellness and prevention

through treatment and

cure to restoration along

the consumer journey &

OTC / OTX /Rx

continuum

• Online connectivity,

mobile technology,

smart health are

producing a connected

consumer to engage

with

• Increasing

medicalisation of herbal

and natural remedies as

part of diet, lifestyle and

wellbeing regimes

Convergence of Health &

Wellness

Rise of the connected

consumer

Trend towards Herbal &

Natural Remedies

Consumer Healthcare Investment - November 2016

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This has significant implications for innovation, where

use of social media and technology is commonplace

The most common, but a proven way to extend a brands life.

An ever-present in consumers’ daily life, but care must be taken in Pharma/Consumer Health.

Healthcare apps are growing rapidly with Cardio Diet and Women's health accounting for half the volume.

Devices can improve efficacy and control

Sensors provide the consumer with a direct feedback on their current state of health.

Synchro-TechTM has helped two actives with opposing dissolution profiles to come together

Innovation

Line Extensions

Social Media

Apps

Devices

R&D

Sensors

Source: QuintilesIMS

Consumer Healthcare Investment - November 2016

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And there is clear correlation between internet searches

on health or illness and OTC consumption

Consumer Healthcare Investment - November 2016

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Agenda

Key Market Trends

Routes to Growth

Summary

Global OTC Market Overview

Consumer Healthcare Investment - November 2016

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• There is an increasing leverage of combining science &

consumer insights to drive differentiation & growth

• Switch is increasingly being called out as a growth driver to

create new categories & penetrate existing

• Channel mix and GTM becoming more of a focus for

MNCs and local players

• Innovation is a key for major multinationals and regional

players are becoming more active

• Geo cover becoming a key battle ground as multinationals

and locals fight for new growth in faster growing markets

Routes to Growth

Consumer Healthcare Investment - November 2016

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Agenda

Key Market Trends

Routes to Growth

Summary

Consumer Healthcare Investment - November 2016

Global OTC Market Overview

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Understanding localization

and how to respond are

essential

Establishing strong foothold in faster growing geos will fuel future growth

Being strong in the right

categories will maximize

growth opportunities

As the Consumer Healthcare arena broadens, opportunities for innovation & growth continue to expand

Correct understanding of

opportunities is key to

support future investment

decisions

M&A activity in Consumer Healthcare will continue as key route to growth

Will we see new entrants

enter the market,

intensifying competition?

The OTC market continues to show steady growth and broadens towards CHC

In summary

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QuintilesIMS works with investing companies and private

equity funds throughout the entire investment lifecycle

Target screening

and identification

Helping with:

By employing:

Commercial due

diligence

Portfolio company

strategyExit value

maximization

Dedicated team

with deep sector

expertise

Experienced team

working on 100+

engagements p.a.

Leveraging expertise

and capabilities of the

broader QuintilesIMS

organization

Gold-standard, global

healthcare data and

informational assets

Consumer Healthcare Investment - November 2016

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Please contact us for more information

Consumer Healthcare Investment - November 2016

Francine Nieto

Global Offering Director, Consumer Health

[email protected]

+44 203 075 4102

+44 7802 848288