Consumer Perspectives

1
Confidencial-Prohibida su reproducción-Propiedad de QuintilesIMS

Consumer Healthcare SMR
A Strategic Management Review of the Global OTC Market
Global Trends & Key Challenges
Prasanna Pitale – Global General Manager
QuintilesIMS
Copyright © 2016 QuintilesIMS. All rights reserved.

Consumer Health covers 4 key market sectors
Over The Counter Personal Care
Cough & cold Ophthalmics / Eye care
Analgesics Skin care / dermo-cosmetics
Digestive Oral hygiene
Vitamins & minerals Face & Hair care
Dermatological Fragrances
Obesity/weight loss
Patient Care Nutritionals

Blood glucose monitoring Nutraceuticals
Stoma & incontinence Medical nutrition
Wound care Infant nutrition
Test instruments Slimming aids
Diabetic food
Defined using an industry-recognized global classification system based on consumer product positioning
3
QuintilesIMS Confidential - Colombia ConsumersuHealth
Confidencial-Prohibida reproducción-Propiedad de QuintilesIMS
Acknowledging truly different challenges/dynamics to Pharma
Pharma Consumer Health

Companies Companies
Health Care Professions Promotion Consumer, Trade & HCPs
Market Access & Payer Pricing Consumer & Trade
Pharmacy & Hospitals Distribution Pharmacy & Mass Market
Months/Years Frequency Days/Weeks
4
OTC growth remains in mid-single digits. Pharma growth starts
to fall, driven by the U.S.
GLOBAL
Source: IMS OTC audits plus estimates (Excluding Venezuela)

QuintilesIMS Confidential - Colombia Consumer Health World Review May 2017
5
CEEMEA contributions increasing to 38%, while
contributions from China and LatAm fall closer to GLOBAL
their share of sales.
Region Share of Region Share of

Developing Total
Global OTC Sales Global OTC Growth
Regions OTC
Share of Sales 50%
Share of Growth 82%
Source: IMS OTC audits plus estimates (Exc Venezuela)
6
indications of a strong start to the Cough/Cold 2016/17
season. Latin America remains the best performing GLOBAL
region.
Source: IMS OTC Global Analysis
7
Most sub-regions experience growth stable or slowing in
the latest year. Middle East, South Asia and CEE post
strongest annual growth.
GLOBAL
Region in decline 8
products/line extensions the biggest contributor in
developed regions. Price Changes drive growth in
LatAm and CEE.
GLOBAL
Elements of Growth by Region – 5 Year Cumulative Growth %
Base Volume Change
Price Change
New Products
Line Extensions
Total Change
GLOBAL (exc Ven) WESTERN EUROPE NORTH AMERICA
Base Volume Change
Price Change
New Products
Line Extensions
Total Change
CEE LATIN AMERICA APAC

Source: IMS Elements of Growth Analysis exc Venezuela excl Japan
9
Russia and France are the only Top 10 Markets with growth improving in
the short-term. GLOBAL
10
Sanofi+BI will become the No.1 OTC corporation and
the only corporation in the top 10 growing ahead of the
market.
GLOBAL
0.0%
0.0%
-0.1%
-0.1%
-0.1%
0.0%
0.0%
Top 10
corporations 0.0%
account for
29.2% of OTC -0.1%
market Change in
Market Share
-0.1%
>0%
=0%
<0%
GSK CH is an IMS estimate of GSK-Novartis JV

SANOFI+BI (exc China) 11
GLOBAL
Sanofi+BI exceed global growth, while Takeda declines.
Sanofi+BI +5.2% Takeda -0.7%
•Sanofi above OTC performance driven by APAC (driven by Japan), •Takeda decline driven by CCR
whilst keeping track in N America and LatAm. and VMS & Tonics
•Eve (+12%), Allegra (+16%) and Alesion (+164%) drive strong •Slow down most significant in
performance in APAC core region of APAC (Japan)
•Enterogermina key driver in Digestive category in APAC. •Alinamin in VMS and Benza
in CCR drive decline
•Doliprane (+16%) boosts performance in EMEA through Pain
category
12
GLOBAL
Abbott, Stada and Menarini exceed Global Growth
Abbott +9.5% Stada +8.4% Menarini +7.9%
•Abbott’s largest core category, •Stada’s #1 brand Nasenspray • Prostamol Uno Menarini’s #2
Digestive grew by +11%. +21% - drives Stada growth in brand grew +22%. It relieves
Decongestants complaints for males to the
•Top 3 brands all Digestive products prostate gland, driving growth of
•Pedialyte +8.5% - replaces •Growth backed up by: the Urinary and Reproductive
electrolytes after diarrhoea •#5 Vitaprost +40% in Urinary sector. Strong growth in Russia
•Duphalac +10.5% - laxative and Reproductive accounting for 45% sales, boosted
•Creon +12.8% - pancreatic •#8 Lavomax +75% in VMS by Geo Expansion in Italy.
enzyme replacement • In Systemic Pain Relief,
•30% of sales are in Russia, where Enantyum +38% growing strongly
•Focus on high growth countries – Stada achieves +17% growth in its heritage Turkey, and assisted
India, Russia, USA, Pakistan, by Geo Expansion into Poland,
Colombia, Turkey, Brazil – account fo Russia and Czech Republic.
75% Abbott sales
13
Cough/Cold posts the highest annual global growth rate, with a strong first
GLOBAL
quarter to the 2016/2017 season.
Global OTC – Key Categories
Value Share (%) Value Growth (%)
CCR growth
driven by
EMEA (+7.1%)
Q4 2015 Q42016 Qtr on Qtr %chg

CCR $5.3Bn $5.8Bn +9.8%
14
driven by the increase in EMEA, whilst all other
categories see growth slowing.
GLOBAL
CCR CCR
2015 2016
$15.5Bn $16.3Bn
+5.3%
Slow down in Skin

performance,
experienced in all
regions
15
Eye Care drives the growth of minor categories. GLOBAL
Weight Loss continued decline accelerates.
Global OTC – Minor Categories

Value Growth (%)
Value Share (%)
Eye Care
growth driven
by Artificial
Tears & Dry
Eye Products
16
IMS Regions – Latin America
Latin America:
Argentina
Brazil
Central America
Chile
Colombia
Dominican Republic
Ecuador
Mexico
Peru
Uruguay
Venezuela (currently
excluded)
17
Brazil continues to see high growth although slowing,
which is the trend duplicated in the LatAm region. LATIN
AMERICA
Argentina growth rate impacted by high

Source: IMS OTC Global Analysis inflation and fixed exchange rates vs. $.
Market size adjusted as high inflation and
controlled currency rate exaggerates
size/growth 18
LATIN
AMERICA
Expenditure per capita increases across the region.
19
Short-term growth out-performs long-term growth in
Digestive and CCR, whilst all other categories
experience growth slowing. LATIN
AMERICA
Increase in CCR
growth driven by
Expectorants,
Decongestants,
Sore Throat and
Anti-Allergy Anti-diarrhoeals and
Laxatives drive the
11% growth of
Digestive in LatAm
All sub-categories of Skin

experiencing a slow-down
in growth, particularly Anti-
Fungals.
20
Circulatory, Herbal & Homeopathics and Weight Loss
experience short-term growth significantly slowing from
the long-term growth trend. LATIN
AMERICA
Short Term growth

improvement in Habit
is driven by Nicotinell
21
Sanofi+BI is the No.1 in LatAm with growth ahead of the market; GSK CH,
Pfizer and PGT also achieve above market growth, LATIN
AMERICA
0.1%
-0.2%
Top 10 -0.3%
corporations
account for 0.0%
50% of OTC
market -0.1%
-0.9%
>0%
=0% 0.1%
<0%
Change in -0.2%
Market Share
0.0%
-0.1%
Source: IMS OTC Global Analysis GSK CH is an IMS estimate of GSK-Novartis JV

Bayer includes Merck
22
see growth slowing with short-term growth behind long-
term growth, while most of the top 10 see growth
improving.
LATIN
AMERICA
Genomma decline is
driven by Skin and
‘others’ across all
countries
23
Catching the Consumer/Shopper!
QuintilesIMS Confidential - Colombia Consumer Health World Review May 2017 24

24
Consumer centricity and empowerment are increasingly key drivers for
growth in the future...
Traditional Mindset Future Mindset
Patients Brand & Service
Influencers Value prop.
Customers MCM
(channels &
Channels messages)
Messages B2C
Brand B2B Consumer
Intermediate
Influencer
Intermediate are relevant external stakeholders with access to

consumers (i.e. Pharmacists, physicians, etc …)
25
Source: QuintilesIMS QuintilesIMS Confidential - Colombia ConsumersuHealth
IMS studies show, the consumer faces different influences in each
country, and so purchase habits also differ
• 70% of consumers • 97% of consumers shop

don’t have a specific with a brand in mind
brand plan • Only 3% of pharmacists
proactively offered advice
• >60% of shoppers are
• 90% of purchases are
willing to ask a made Over-the-Counter
pharmacist for advice.
China Philippines
Malaysia
South
• 73% of shoppers had a specific Korea • ~23-41% have a brand in mind
brand in mind & will most likely buy the same
• In over 2/3rd of cases brand brand
benefits is the main influence of • Drivers of purchase:
choice pharmacist, recommendation
• Consumers are well informed from friends & family &
with over half consulting the advertisement
internet for advice
Source: IMS Shopper Insights Studies
26
The OTC marketplace is evolving rapidly
Convergence of Health & Rise of the connected Trend towards Herbal &
Wellness consumer Natural Remedies
• Wellness and prevention • Online connectivity, • Increasing

through treatment and mobile technology, medicalisation of herbal
cure to restoration along smart health are and natural remedies as
the consumer journey & producing a connected part of diet, lifestyle and
OTC / OTX /Rx consumer to engage wellbeing regimes
continuum with
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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.
Line
Extensions
Sensors provide the

consumer with a direct Social An ever-present in
Sensors consumers’ daily life, but
feedback on their current Media
state of health. care must be taken in
Pharma/Consumer Health.
Innovation
R&D Apps
Synchro-TechTM has helped Healthcare apps are
two actives with opposing growing rapidly with Cardio
dissolution profiles to come Diet and Women's health
together Devices accounting for half the
volume.
Devices can improve efficacy and control
28
Source: QuintilesIMS QuintilesIMS Confidential - Colombia ConsumersuHealth
And there is often clear correlation between internet searches on health or
illness and OTC consumption
29
Market leader in digestive, Gaviscon, driving growth through ‘occasion’, as
well as ‘form’.
 Gaviscon – market leader in Digestives
 Driving growth +10% globally
 Heritage in liquid format, 40% share of Gaviscon
INNOVATION
 Single dose liquid sachets, 28% share of Gaviscon
 Chewable Tablets, 25% share of Gaviscon
 Gaviscon Instant Granules…. dissolve instantly on the
tongue….to give fast, soothing relief
 UK Launch supported by a £3m TV & digital advertising
campaign for 6 months.
2007 2008 2009 2010 2011 2012 2013 2014

30
Voltaren currently achieving 15% 3Yr CAGR in Muscular Pain
How long will this

last?
31
Will technology drive the next wave of innovation?
ACTi Patch
harnessing TENS
technology
originally
developed for
labour pain.
32
There is an increasing leverage of combining R&D and consumer insights
to drive differentiation & growth
Works 3x Science optimising Gaviscon differentiation in a crowded

faster than claims & engaging antacid market & reducing threat from
antacids HCPs PPI
Science combining Voltarol delivering 12 hour relief for the

with consumer 55+ age group & creating a cap for
driven insights arthritic hands to open
Flonase explaining it is different to

antihistamines pulling in a claimed 70%
Leveraging science in
incremental volume from new OTC
consumer promotion category users
33
APAC
Many of these traditional supplements & ingredients are now using
DTC marketing with aggressive claims.
Livcool is made from a single herb,
Kacip Fatimah and Pueraria the Kalmegh leaves or known locally
mirifica are 2 of the most safe as the Hempedu Bumi (Andrographis
and effective phytoestrogen paniculata) that provides relief for
herbs available. Traditionally disorders caused by the deficiency in
used to improve female the liver function.
hormonal health, relieve This rainforest herb, also known as
menopausal symptoms, improve the `King of Bitters’, has long been
breast tone and size and considered as the wonder remedy by
improve skin softness and the traditional Chinese and Indian
suppleness. healers.
PANCARE serve as an effective remedy for diabetics. This

remedy strengthens the pancreatic function that regulates Made from coconut oil, VIRGIN COCONUT OIL
insulin production and also helps to strengthen the renal and (VCO) is known for its anti-bacteria, anti-virus and
liver function to help alleviate diabetic condition. Over time potent antioxidant properties. It provides
this remedy helps reduce reliance on prescribed medication. incredible health and weight loss benefits.
34
This shift of focus towards health & wellness leads to
the development new transversal market segments
Blurring the boundaries (or broadening the scope!) and attracting new competitors
Pharma
Cosmeceuticals -ceuticals Nutraceuticals
Topically applied Provides medical or health
benefits, including
Vitamins, herbs, various oils, the prevention and/or
and botanical extracts treatment of a disease
typically added
Typically sold in the medicinal
May not claim drug-like or form of capsule, tablet,
therapeutic effects powder, solution
Personal Care Nutrition
Sometimes associated with
functional foods
Nutricosmetics Ingestible. Containing ingredients such as

botanical actives, enzymes, proteins, and
vitamins.
Marketed specifically as beauty aids
35
Skin and Hair Cosmeceuticals are the major categories in the
“Cosmeceuticals” space
BROAD DEFINITION OF HAIR COSMECEUTICALS
Consumer-driven HCP-driven;
Consumer
Maintenance/ Core Cosmeceuticals therapeutic / Pharma
& Shopper
prevention restorative
Usual Sensitive scalp;

Dandruff Hair repair; Hair loss
claims hair loss
POS
Mass market,
(Point of Pharmacy; hair salon Clinics
pharmacy
Sale)
Examples
Clear CG 210 Kérastase TrichioKare clinic

(Unilever) (Abbott) (L’Oreal) (Singapore)
Worth $7.6billion in 2015, with expected CAGR of 8%

36
Increased competition from new companies
Consumer Health is an attractive market for diverse new players to enter
Pharma Consumer Health FMCG/CPG
Consumer packaged
Pharma involved in Pure play FMCG moving
goods into
consumer health consumer health consumer health
• Payer and generic • Leverage sales and • Higher consumer

pressure driving marketing capabilities health margin and
diversification prices
• Economies of scale in
• Rx to OTC asset supply chain • Leverage consumer
leverage and trade marketing
muscle
37
Becoming ‘Fast Moving Consumer Health (FMCH)’
PHARMA FMCH FMCG
38
Winning Brand Loyalty!
Healthcare learning from FMCG?
39
Which FMCG Brand comes to mind? Be clean!
40
In FMCG, can go in extremely differentiated routes to leverage packaging as a
visibility tool
RB broke every Fabric Care traditional category codes and gained strong in-store visibility going full
flashy pink with the launch of Vanish
41
Consistency across touchpoints can also help maximize ROI
42
Consistency across touchpoints: Carlsberg Euro 2016 case
43
Consistency across touchpoints: Carlsberg Euro 2016 case
44
In FMCG, flavour/scent consumer-centric innovation has become even recurrent
and sometimes “newsjacking”
Movenpick (Swiss Premium Ice Cream) dedicates 20% of its variants to 6-month limited editions
Unilever Laundry/Softener P&G Laundry/Softener

Winter Limited Editions London 2012 Limited Editions
45
Companies who drive the FMCH approach increased weight of
consumer health within their business over last 3 years
% of Consumer Health Care on Total Company revenue
2012 2015
19% 25%
24% 33%
9% 11%
Source: GSK, RB, P&G Annual Reports, 2012 and 2015 46

QuintilesIMS Confidential - Colombia Consumer Health
Summary
The OTC market continues to Early signs are for a better
show steady growth and attract 2016/2017 C&C season
new competitors and stronger overall growth
Mega-deals have driven corporate How can “middle” players

growth, and the “middle ground” is (4-20) drive real growth
squeezed as local and regional and avoid being “caught in
players grow strongly the squeeze”?
The market continues to broaden Are RB’s move into

from OTC to CHC, with companies nutrition and Nestle’s full
talking advantage of opportunities to acquisition of Galderma
grow through portfolio extension harbingers of this trend?
Innovation remains the key growth A correct mix of innovation

driver –it is imperative to address the strategies is key, across
opportunities creatively product, service, approach
47
QuintilesIMS Confidential - Colombia Consumer Health
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Copyright © 2016 QuintilesIMS. All rights reserved.

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1

Confidencial-Prohibida su reproducción-Propiedad de QuintilesIMS

Copyright © 2016 QuintilesIMS. All rights reserved.

Patient Care Nutritionals

Pharma Consumer Health

Health Care Professions Promotion Consumer, Trade & HCPs

Market Access & Payer Pricing Consumer & Trade

Pharmacy & Hospitals Distribution Pharmacy & Mass Market

Months/Years Frequency Days/Weeks

Source: IMS OTC audits plus estimates (Excluding Venezuela)

Region Share of Region Share of

Source: IMS OTC audits plus estimates (Exc Venezuela)

Source: IMS OTC Global Analysis

Source: IMS OTC Global Analysis

Base Volume Change

GLOBAL (exc Ven) WESTERN EUROPE NORTH AMERICA

Base Volume Change

CEE LATIN AMERICA APAC

Source: IMS OTC Global Analysis

GSK CH is an IMS estimate of GSK-Novartis JV

Sanofi+BI +5.2% Takeda -0.7%

Abbott +9.5% Stada +8.4% Menarini +7.9%

Q4 2015 Q42016 Qtr on Qtr %chg

Source: IMS OTC Global Analysis

Slow down in Skin

Source: IMS OTC Global Analysis

Global OTC – Minor Categories

Source: IMS OTC Global Analysis

Argentina growth rate impacted by high

Source: IMS OTC Global Analysis

All sub-categories of Skin

Source: IMS OTC Global Analysis

Short Term growth

Source: IMS OTC Global Analysis

Source: IMS OTC Global Analysis GSK CH is an IMS estimate of GSK-Novartis JV

Source: IMS OTC Global Analysis

QuintilesIMS Confidential - Colombia Consumer Health World Review May 2017 24

Brand B2B Consumer

Intermediate are relevant external stakeholders with access to

• 70% of consumers • 97% of consumers shop

Source: IMS Shopper Insights Studies

• Wellness and prevention • Online connectivity, • Increasing

Sensors provide the

Devices can improve efficacy and control

2007 2008 2009 2010 2011 2012 2013 2014

How long will this

Works 3x Science optimising Gaviscon differentiation in a crowded

Science combining Voltarol delivering 12 hour relief for the

Flonase explaining it is different to

PANCARE serve as an effective remedy for diabetics. This

Nutricosmetics Ingestible. Containing ingredients such as

Usual Sensitive scalp;

Clear CG 210 Kérastase TrichioKare clinic

Worth $7.6billion in 2015, with expected CAGR of 8%

• Payer and generic • Leverage sales and • Higher consumer

PHARMA FMCH FMCG

Healthcare learning from FMCG?

Unilever Laundry/Softener P&G Laundry/Softener

% of Consumer Health Care on Total Company revenue

Source: GSK, RB, P&G Annual Reports, 2012 and 2015 46

Mega-deals have driven corporate How can “middle” players

The market continues to broaden Are RB’s move into

Innovation remains the key growth A correct mix of innovation