The bidding market is cruel, the prescription drug companies have been transformed, and the OTC market will blow out!

Release date: 2015-07-16

I. Overview of OTC products

There are about 15,000 kinds of drugs in China, and there are currently 4,727 OTC products. Since 2007, 180 products have been converted from prescription drugs to OTC. Among all OTC varieties, 3,718 were proprietary Chinese medicines, accounting for 78.7%, and 1,009 were chemical drugs, accounting for 21.3%. In all OTC products, there are more than 2,300 double-span products (both OTC and prescription drugs), of which more than 2,000 are Chinese-Chinese medicines and more than 300.

It can be expected that with the improvement of self-medication awareness and the promotion of OTC enterprises, more drugs will enter the ranks of OTC, especially the varieties of proprietary Chinese medicines converted to OTC will be more.

This year China is expected to rank among the world's second largest OTC market. By 2020, China's OTC drug market will rank first in the world.

Second, OTC products and their development trends

Generally speaking, China's OTC products generally have the following three development trends:

Three small: low toxicity, small side effects, small dosage;

Three effects: quick, efficient, long-lasting;

Three stools: convenient for storage and transportation, convenient to carry and easy to use.

OTC products are big conditions

First, it has clear curative effect and good quality;

Second, raw materials and production capacity are guaranteed, and the production process is mature. Chinese medicine emphasizes the medicinal materials in the end, and there is no product guaranteed in the end, and it is inevitable that it will be faked;

Third, it must be a major disease; or a small and ill-resistant variety with remarkable curative effect;

Fourth, the category of demand diseases that are not fully met;

The fourth is to treat chronic diseases or frequently-occurring diseases, frequent onset, OTC products requiring long-term and course medication.

Fifth, it has the characteristics of a large health product, that is, treatment, health care, health care, and health improvement functions, such as Dong'e Ejiao, Jiangzhong Jianweixiaoshi, and Kyoto Nianci.

These products are not so much medicines, but rather health products, or they are sold as health products.

Will have more products converted to OTC products

Due to the price limit and bidding restrictions of the basic drug policy, if many products in the base drug catalogue do not win the bid, or if the company does not have the ability to operate the base drug market, these products will be converted into OTC products or converted into OTC channels. Marketing operations.

For the same reason, many double-span varieties, when there are more than five competitors, the winning bidder will use the product as a prescription drug, and operate the product according to the unspoken rules of prescription drugs, especially to try to win the high price of the product. With the cost space of each link between the management, the product sales are realized.

Therefore, most of the non-exclusive basic medicines are only the games of the most successful bidders. For non-winning enterprises, you are not the basic medicine at all, and even the only market that has to be eaten by Others, therefore, the so-called winning bid Most of the base drugs will be converted to OTC products, and OTC products will achieve blowout.

Large health products (or quasi-OTC products, OTC-like products) will be more and more

Last year, the author put forward a point of view on the consumption behavior habits of “a serious illness into the hospital, a small illness into the community, and a healthy health to a pharmacy”. Pharmacies must operate these big health products in order to operate the big health market. The big health products cover a wide range of products, such as medicines, foods, health products, equipment, cosmeceuticals, and functional drinks.

First of all, some ancient Chinese medicine OTC products will be transformed into large health products, such as Hongmao medicinal liquor, Jiangzhong Jianweixiaoshi, Kyoto Nianci 庵 炼 川 川 , , , , , , , , , , , , , 山 山 山 山 山 山 山 山 山 山Vitamin C, Vitamin E, and some OTC products are converted into great health.

Secondly, there are more and more products that enter the big health market by pharmaceutical companies or non-pharmaceutical enterprises: healthy drinks (herbal tea, Qingrun tea, health-care functional tea (with Ling Yimeng, Guangyao Ganoderma lucidum spore oil, Lanzhou Fushi Ganmai Dazao Soup, Harbin Sixth Factory's "Slim Lady" slimming drink, Bailing's love "collagen", etc., supplementing physical strengths such as Red Bull, Wow Haha Kaili, Tiandi No.1), health care products ,Healthy Food. The author is interested in the marketing, promotion, research and consultation of the big health OTC products, and is willing to discuss with colleagues.

Stereotyped medicines and homologous Chinese medicine decoction pieces will become the largest growth star category in the OTC market

Chinese medicines of homologous medicines and medicines can be regarded as OTC products, because the homologous Chinese medicines (canned, bottled, bagged, shaped pieces, etc.) are suitable for the sales and purchase habits of OTC products.

Great health, treatment of illness, health care, and longevity of health care are the needs of wealthy people. Recently, the national policy encourages the support of the health industry, and through the spread of pharmaceutical retail and industry media, the fire of the stars of the big health products has become the trend of the original, the author's budget: big health products will become the best-selling OTC category of pharmacies within five years.

At present, the government has approved 87 kinds of homologous Chinese medicines and medicines, and the new resource foods cover more than 80 kinds of traditional Chinese medicines. These large healthy OTC categories have a lot of articles to be done, but in addition to the traditional ginseng and fine products on the market. It is rare to see medicines in the real health care products.

Cosmeceutical products will become a quasi-OTC star product in 5-10 years

Skin problems, including endocrine, microcirculation, sleep, hormone secretion, external manifestations of problems in the body organs and other factors on the skin, are not only solved by cosmetics covering, smearing, regulating, and delaying. Cosmetics are all external use, and can not be treated internally or externally. The author firmly believes that the internal and external repair of Chinese medicine and the systematic solution to skin cosmetic problems are the foundation of the beauty method. In order to improve endocrine, microcirculation, sleep and hormone secretion, there must be a real cosmeceutical product; there are medicine and food homologous products conditioning products, and even large health products such as physiotherapy. Therefore, cosmeceutical products will surely be the star of the new OTC category. Ma Yinglong Babao eye cream has proved this.

Third, the development trend of OTC enterprises

The original strong OTC enterprises will be more powerful, and the two levels will be clearly differentiated.

Originally, there are big brand products in the OTC market and companies with OTC marketing experience, sales networks and terminal resources will be more powerful. State-owned OTC brand enterprises, with team resources, will launch more OTC brand products and their second-line products, firmly occupy the OTC market, such as Sanjiu, Guangzhou Pharmaceutical, Baiyao, Yuhong, Harbin Pharmaceutical, Kangmei, Magic, Kang Enbei And other businesses.

Domestic prescription drug companies transform into enterprises that make OTC products

This is due to the fact that the basic drugs, the bidding failure, the price limit, the hospital marketing expenses are expensive, the payment is difficult, especially the medical system to combat commercial bribery, tax strict investigation and other policies result in the inevitable result of the transformation of prescription drug companies into OTC. No transformation is waiting for some enterprises to die, and there is still a glimmer of life in the transformation. Although the transformation is difficult and the problems are many, the competition in the OTC market is more flexible and fierce, but it still needs to be transformed. Because whoever mastered the terminal one day earlier, whoever mastered the market, and the drug retail chain has continued to grow and develop in recent years, and the market share has gradually increased.

According to the author's understanding, many pharmaceutical companies have turned their marketing eyes to drug retail terminals, recruiting them everywhere, forming teams, and vying for new growth points in drug sales. They all want to use OTC with high input and fastest speed. The market is divided into a piece of cake.

Foreign enterprise transformation to do OTC product marketing

Foreign companies in China will gradually lose the special treatment of non-national treatment. China has no shortage of funds, foreign companies will no longer be special, the Chinese market is time to purify foreign companies, foreign companies in their domestic and Chinese two sets of standards, two The practice should have been abandoned. For the huge and fertile and promising Chinese market, it is impossible for foreign companies to opt out, and the foreign executives and traders are mostly Chinese. They are familiar with the Chinese market and they will naturally choose to transform into the OTC market to avoid risks.

Foreign companies entering the Chinese OTC market will also adopt the same approach as Sanofi's acquisition of Minsheng and Sunstone and the British fast-moving giant Li Jie when they purchase Guilong Pharmaceutical, and quickly deploy China's OTC industry and market through mergers and acquisitions.

Strong state-owned enterprises enter the OTC market

At present, the best varieties of good Chinese patent medicines are mostly in the hands of state-owned enterprises. Due to system problems, some state-owned enterprises are in the state of “sick cats”, but the industry colleagues cannot take these sick cats into tigers. Once they wake up or release institutional energy, They will all be tigers. Their strength and scale are not comparable to some private SMEs in China. The key is their superior product resources, capital resources, administrative resources, and nationalization movements in the future circulation and retail sectors. State-owned businesses and state-owned chains may be an advantage and trend for them.

Source: China Pharmaceutical Alliance

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