OTCPharm reports 1Q2016 sales results
Moscow, 27 May, 2016 – OTCPharm PJSC (“OTCPharm” or the “Company”) announces its 1Q2016 sales results.
OTCPharm’s revenue grew 79% y-o-y in 1Q2016, reaching RUB6.5bn – the highest growth rate among the top 5 players in the Russian pharmaceutical market both by value and by volume1.
1Q2016 Key Events and Sales Highlights
- 79% increase in sales to RUB6.5bn in 1Q2016 (vs RUB3.7 bn in 1Q2015);
- Sales growth of over RUB2bn across the top 15 own brands in 1Q2016;
- The top 15 brands mix has changed significantly, as Amixin® became the best-selling product, moving from the #4 to #1 position in the reporting quarter, while Arbidol remained #2, supported by 81% revenue growth, Acipol® rose from #7 to #5, and Rinostop® from #9 to #6. Pentalgin®, Codelac®, Aphobasolum® and Flucostat® shifted down from #4 to #5 and from #6 to #8 respectively. Compared to a year ago, as many as five new products moved to the top 15 group in 1Q16, including Univit, Next, Mycoderil, Maxicold, Azitrox (#11, 12, 13, 14 and 15 respectively).
- 14 out of the top 15 products showed an increase in sales, including 12 products with an average y-o-y growth of more than 100%2, out of which 7 products showed double-digit growth and five products showed triple-digit growth;
- The third party product (TPP) portfolio has also changed significantly:
- Roche’s Tamiflu® brand was added to the portfolio, becoming the leading TPP with sales of RUB356mn in 1Q16. The Company acquired exclusive rights to distribute Tamiflu in the Russian Federation;
- Sales of Lactofiltrum® increased by 177%.
- 1Q16 saw two flu pandemic waves, one in January and the other in March, resulting in increased demand for anti-cold medicines and associated products:
- Sales of Arbidol® grew by 81%;
- The anti-cold category (Amixin®, Codelac®, Rinostop®, Maxicold® and Azitrox®) showed 98% growth;
- Growth was also observed in the related category, vitamin and mineral complexes (+ 74%).
- New brands performed well in 1Q16:
- Mycoderil, launched in 2Q15, became a top 15 product in less than a year;
- Univit®, which was added to the Company’s portfolio in late 2014, and a number of other branded products with recently launched new dosage forms (Arbidol®, Complivit®, Rinostop®), have also demonstrated growth.
1Q16 Market Highlights3
- In 1Q16 the Russian pharmaceutical retail market grew by 3%, reaching RUB218 bn (1.2 billion packs), while its OTC segment also expanded 3% y-o-y, to RUB124bn (881 million packs);
- The average retail pack price for OTC drugs increased by 5% to RUB 140 per pack;
- OTCPharm is the #1 player in the Russian OTC market by 2015 revenue with a market share of 6.3%;
- The Company maintained its leadership in the key segments of the Russian pharmaceutical market in 1Q16;
- Four of OTCPharm’s brands (Arbidol®, Amixin®, Pentalgin® and Complivit®) are TOP 30 products in the Russian retail OTC market, including two products in the top 10 group (Arbidol® and Amixin® with shares of 1.3% and 0.8% respectively).
Own Brand Sales
Sales of Amixin® rose by 116% in 1Q16 y-o-y, reaching RUB890mn due to strong demand at the time of the flu epidemic. Amixin® for the first time became the best-selling product in the Company’s pharmaceutical portfolio (14% of total 1Q16 revenue), accounting for 22% of organic portfolio sales growth. Amixin® also became No.2 in its market category with a 19% market share by value (3% market share growth y-o-y).
Arbidol® sales revenue increased 81% in 1Q16 due to two flu pandemic waves in January and March 2016, reaching RUB855mn. The Company has taken successful steps to strengthen the positioning of the brand, including the development of Arbidol® for kids in the form of powder for oral suspension, and a new form of Arbidol® in capsules, Arbidol® Maximum. These sub-brands represented 23% of the total Arbidol® revenue in 1Q16. Arbidol® was #2 in our overall portfolio in 1Q16 (13% of sales) and the second best-selling product in the anti-viral category, with 33% market share by value.
Cold and flu seasons are marked by increased demand for vitamins and pain relief drugs as well as anti-viral and anti-cold medicines. Sales of Complivit® rose 60% in 1Q16, to RUB733mn, making it the #3 product in our portfolio by sales (11% of total sales). However, we also worked consistently to launch new forms of Complivit in 2014 and 2015, introducing the Complivit® Shine sub-brand in 2014 and new dosage forms and sub-brands such as Complivit Chondro®, Complivit® tablets No.30 and Complivit® Calcium D3 for women 45+ in 2015. Sales of the new forms and sub-brands grew by 129% in 1Q16 (contributing 26% to the overall growth of Complivit® sales). Complivit® ranks #1 in its category by sales volume (39% share) and #3 by value (20% share).
Sales of Pentalgin® increased 31% y-o-y in 1Q16, reaching RUB639mn. The product remained the leader among analgesic drugs with 5.6% market share by volume and 19% by value. Pentalgin® is the fourth best-selling product in our portfolio (10% of 1Q16 revenue).
The Company’s No. 5 product by sales is Acipol®. Due to extensive promotion by the Company, the brand showed strong sales growth in 1Q16 (+60% or RUB99mn). Acipol® moved from the #7 to #5 position in our portfolio and became #3 in its category with a market share of 10% by volume and 9% by value.
Sales of Rinostop® expanded by 101% in 1Q16 due to the cold and flu season and continued successful advertising campaign, which was launched in 2015. Rinostop® became No.1 in its market category by volume with a 10% market share.
Aphobasolum® demonstrated 13% sales growth in 1Q16. It is the leading product in its category and is No.1 with 17% market share by value and 3% by volume.
Codelac®3 was the number 8 product in the organic portfolio in 2015, with sales of RUB237mn (19% growth in 1Q15), and #2 in its market category by volume with a 7% market share.
Magnelis® В6 showed 65% y-o-y sales growth, mostly due to strong demand for vitamins.
Flucostat® remained the leader in the anti-fungal products category in 1Q16 by sales value. Revenue from Flucostat® sales declined 18% in 1Q16 compared to last year, in line with the general downward sales trend in the category.
Launched in late 2014, Univit® has been showing steady sales growth ever since. Sales increased by c.400% (or RUB91mn) y-o-y in 1Q16. Most of this growth was generated by Univit® for kids (Univit® Kids and Univit® Kids with Omega 3 and choline). Univit® became the #11 brand by sales in the Company’s proprietary portfolio.
Sales of Next® rose by 179% y-o-y. Next® became #12 in the organic portfolio by sales and #6 in its category with 4% market share by value.
Mycoderil®, launched in 2Q15, became a top 15 Company brand in 1Q16, with sales of RUB97mn.
Maxicold® sales grew 112% in 1Q16, reaching RUB95mn, due to increased incidence of flu and acute respiratory disorders during the period.
Tamiflu® was added to the portfolio in January 2016. It became No.5 in the Company’s pharmaceutical portfolio in 1Q16 by revenue (RUB355mn) and the leading TPP product.
Sales of Taufon® increased by 29% compared to 1Q15 (Taufon is the absolute leader in the eye care category with the market share of 21% by value and 27% by volume in 1Q16).
Mikrazyme® revenue grew 104% to reach RUB201mn in 1Q16.
OTCPharm Sales Breakdown, 1Q16
| Q1 2015|
|% of total sales|| Q1 2016|
|% of total sales|| Change|
|Amixin®||412 286||11,3%||889 980||13,6%||477 694||115,9%|
|Arbidol®||473 096||12,9%||855 455||13,1%||382 359||80,8%|
|Aphobasolum®||239 240||6,5%||269 176||4,1%||29 936||12,5%|
|Acipol®||184 666||5,0%||294 669||4,5%||110 003||59,6%|
|Codelac®||198 874||5,4%||236 792||3,6%||37 917||19,1%|
|Complivit®||457 036||12,5%||733 275||11,2%||276 239||60,4%|
|Mycoderil®||0||0,0%||96 747||1,5%||96 747||0,0%|
|Lactasar®||10 173||0,3%||20 018||0,3%||9 844||96,8%|
|Lactonorm®||5 971||0,2%||9 600||0,1%||3 628||60,8%|
|Magnelis®||104 796||2,9%||172 881||2,6%||68 086||65,0%|
|Maxicold®||44 912||1,2%||95 363||1,5%||50 451||112,3%|
|Next®||38 155||1,0%||106 419||1,6%||68 265||178,9%|
|Noopept®||25 572||0,7%||52 642||0,8%||27 070||105,9%|
|Pentalgin®||489 245||13,4%||638 833||9,8%||149 588||30,6%|
|Rinostop®||135 251||3,7%||272 052||4,2%||136 801||101,1%|
|Flucostat®||175 982||4,8%||142 468||2,2%||-33 514||-19,0%|
|Ciclovita®||8 975||0,2%||19 498||0,3%||10 522||117,2%|
|Cinocap®||14 726||0,4%||21 227||0,3%||6 501||44,1%|
|Univit®||23 079||0,6%||114 564||1,7%||91 485||396,4%|
|Other(1)||155 639||4,3%||304 580||4,7%||148 942||95,7%|
|Total organic:||3 197 676||87,4%||5 346 240||81,6%||2 148 564||67,2%|
|Dinolac®||5 219||0,1%||7 875||0,1%||2 656||50,9%|
|Lactofiltrum®||102 729||2,8%||284 596||4,3%||181 867||177,0%|
|Mikrazyme®||98 219||2,7%||200 838||3,1%||102 619||104,5%|
|Tamiflu®||0||0,0%||355 684||5,4%||355 684||0,0%|
|Taufon®||211 527||5,8%||272 743||4,2%||61 216||28,9%|
|Filtrum-STI®||42 094||1,2%||81 674||1,2%||39 580||94,0%|
|Total TPP:||459 788||12,6%||1 203 410||18,4%||743 623||161,7%|
|Total:||3 657 464||100,0%||6 549 651||100,0%||2 892 187||79,1%|
(1) – Includes Asvitol®, Ascophenum-P®, Aerovit®, Azitrox®, Gastrozol®, Klarisens®, Nitrocor®, Selmevit®, Spasmol®, Termicon® and Neosmektin®
1 - As per IMS Health;
2 - Excluding Mycoderil and Azitrox;
3 - Market data as per IMS Health;
4 - OTCP responsible for sales and promotion.