Ravi Speaks:
“Fast trending conversion from Rx to OTX and then to OTC in Ethical-Pharma-Brands.”
Updated on 21.08.2021
Presently, there has been a very clear shift happening from the brands being sold earlier only on the prescriptions to the same brands now being sold over the counter. This shift-over is in the modern times called the OTX range of products-where the same product is being sold on both the prescriptions and over the counter. This trend has set in very good growth of such products, mainly by becoming the OTX brands. Companies have realized that there is a constant dip happening in the prescription support for these brands and the proportionate dip in sales happening from the exclusive ethical prescription base is being compensated by the same brand being sold over the counter. Earlier the concept was simply known as the shift to the OTC section, whereas now with the new coining of OTX -the clear-cut difference between the complete OTC and OTX is being prominently made out. Therefore, now, the Indian pharmaceutical market is driven by three forces: the Rx (prescription) market forces, the OTC (over-the-counter) sales trend, and OTX (where products enjoy both prescription patronage and over-the-counter sales).
In the recent past there have been some of the widely known brands like “Neurobion-Forte”, “Revital-gp.”, Volini Gel, and many more such brands which were earlier fetching very good sales purely based on their prescription backing, however, have got a very clear cut direct-purchase support from the consumers, based on their promotion being only done through the advertisements by the concerning companies.
Even in the Ayurvedic section too companies like Himalaya, have done the business -the OTX way. In Himalaya, some products like analgesic gels, Eye drops, Cough Syrups, and cough lozenges, and even the nutritional products are being sold on this pattern intensively and for that, even the separate field force to handle only the retail outlets are being kept. Such sections are being called the Key account divisions and are doing fairly well.
Among the first set of salts converted to OTC status were the antihistamines, brompheniramine, and chlorpheniramine, which were approved for OTC use on September 9, 1976, in the States. Since then, products ranging from sleep aids to intranasal steroids have transitioned. The availability of a range of OTC products enables self-treatment of a variety of minor illnesses, improves access to care, and reduces the cost of care for consumers and the healthcare system.
OTC WAY SAVING A HUGE REVENUE IN HEALTHCARE SEGMENT.
The second most important segment where the conversion from Rx to OTX & OTC has been prominently observed- is the segment of Indigestion. A high compound annual growth rate of 13% is predicted for indigestion remedies, fuelled by the entry of H2 antagonists (such as SmithKline Beecham’s cimetidine, Glaxo’s ranitidine, and Merck & Co’s famotidine) – prescribed by doctors to treat peptic ulcers but with applications in less serious digestive upsets in the OTC sector, it has entered into the market.
Non-steroidal anti-inflammatories are also likely to see further Rx-OTX-OTC switches in the next five years. The analgesic sector is expected to grow more slowly because it is characterized by strong brand loyalties, with customers in some countries favoring generics. Although in India- we have already many such brands doing very well in the OTX segment like Volini Gel, Omni Gel, and even the indigenous preparations are already a very set choice of certain segments of consumers.
And the antiallergic sector has grown considerably because of the entry of a new generation of non-sedating antihistamines in some European countries. The largest growth is foreseen in countries that have yet to see the OTC impact of the new breed of products in this sector.
Coming back to the company-Himalaya-where I was additionally heading the ISR segment besides the normal Field force comprising MRS, etc. We had started first experimentally the retail coverage for those retailers where our normal field force could not cater. And it was also an enormous segment since the number of retailers had come up in very high numbers in the areas which are the interiors and micro-interiors even in the bigger metros. The newly appointed people were called the ISRs (Interim sales Representatives) and their job was only to ensure the full availability of the identified products which were given to them for the OTX promotion. What we observed was that these were the large number of business points which were otherwise being neglected, and this helped us mainly on three fronts. Number one, the availability front, number two the enhancement of revenue through this act, and importantly, the third one was towards the strengthening of the brand even more emphatically. If the trend which it had shown in the initial stage remained the same way, I will not be surprised to see that the shift of even more of the prescription-oriented brands towards the OTX segment would be there.
Otherwise also if we see the overall trend, the dip in the prescription generation has been happening constantly in the pharma industry and such shifting would compensate for the revenues and for the brand strengthening exercise for the companies in the times to come. With the fast awareness of the consumers and the fast adaptability towards the digitalization -the markets are going to be finally the OTC driven ones and the word ethical may then be changed to something else which would befit somewhere in between OTX and OTC-besides, of course, the super-specialty lifesaving brands which would only be on the Consultant’s advice.