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PRESCRIPTION
Deals with drugs and treatment used in conjunction with healthcare professionals only – the drug component reflects medicines prescribed by a registered physician and thereafter dispensed with a prescription – the treatment component relates to invasive and non-invasive technologies supporting select and potentially dire morbidities WOMEN’S HEALTH
DERMATOLOGY
RESPIRATORY
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AND UROLOGY
OPHTHALMIC
CARDIOVASCULAR
GENERICS
MARKET TRENDS
BUSINESS FOCUS
GENERICS
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Capitalise on critical mass in therapeutic areas to support sustained profitable business growth t
Leverage operations to support additional partners, t
Extend the product line through alliances with MNC’s and acquire “new chemical entity” (NCE) products t
Funders encourage switching from t
Ageing population result in GENERICS
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Profitable business growth through innovation and early t
Intensely competitive environment t
Regulations supporting generic ADCOCK INGRAM INTEGRATED REPORT 2013
TURNOVER
TOP 10 BRANDS’ TURNOVER
CONTRIBUTION AFTER
MARKETING EXPENSES
This division markets and sells a portfolio of owned prescription brands Respiratory – creative sales initiatives to promote Solphyllex (cough
as well as brands from multi-national companies (MNCs) with whom syrup) produced sales in excess of R40 million for this owned brand.
the Group has various alliances. The latter arrangements are based on synergistic and mutually beneficial collaborations supporting the Pain – Myprodol held its position in a highly genericised and
commercialisation and distribution of selected brands in South Africa. competitive environment with Adcock Ingram’s own generic, Gen- This strategy has enabled the Group to build critical mass in defined payne growing by 28%. Synaleve was relaunched successfully in the therapeutic categories and develop targeted therapeutic focus in moderate to severe pain sector and the business has ambitious hopes for this product as an alternative to previously discontinued DPP- terms of knowledge, skills and commercial competence. The attendant benefits of this strategy have facilitated the building of resource and investment in world-class marketing, sales and distribution capabilities Anti-retroviral (ARV) treatments – supply constraints and higher than
which supports both our own and MNC portfolios.
anticipated demand at the beginning of the year inhibited the Group’s PERFORMANCE
performance in the ARV tender market. The tender, worth an estimated R800 million over two years, continues to the end of 2014, in which Growth was recorded in all major categories in terms of owned Adcock Ingram provides a basket of 13 products. With the launch originator brands. The Group’s relationship with MNCs, including Novo of Trivenz, the Group already participates in buy-outs for the triple- Nordisk, Roche, Novartis, MSD, Lilly, and a new partner, Lundbeck Pharmaceuticals, is also bearing fruit. The satisfactory sales results were achieved despite difficult trading conditions and competition from Generics – Adco-Atorvastatin, a newer generation molecule for the
treatment of hypercholesterolaemia, was launched. Despite being seventh to market at launch, Adco-Atorvastatin achieved a 10% market Our latest MNC partner, Lundbeck Pharmaceuticals, is a global leader share in the first six months. Script volumes are gaining momentum, in central nervous system and brain disorders markets. Their product with the Adco product being the fourth most prescribed atorvastatin.
range includes a variety of products, including the market leading brand, Cipralex. This collaboration, which became effective in January Adco-Fem35 (contraceptive) was relaunched successfully, and educational 2013, has seen a dramatic turn-around in performance with market campaigns in the media yielded positive sales growth. Adco-Fem35 is now share gains and sales growth for all Lundbeck brands.
the fastest growing product in its class.
Adco Generics maintained the No. 2 position in the generics market in Renewed focus on customer relationships and tailored strategies volume terms. Five new products launched in 2013 contributed to growth, to meet specific customer needs, are contributing to growth in this with new products accounting for turnover of approximately R30 million. New products are expected to increase the Group’s value share of the OPPORTUNITIES
generics market, with six new products planned for launch in 2014.
Expanding the MNC programme by adding new partners, additional products from existing partners, as well as extending the programme into Profitability was impeded as a result of the Single Exit Price (SEP) the Rest of Africa are opportunities for the Group.
increase being limited to only 5,8%, effective March 2013, against an average 14% devaluation of the Rand against the basket of currencies New product introductions planned for 2014 include the acquisition in which the division’s active ingredients and finished products are of NCE patented products from existing and prospective partners. This procured, and the change in mix with higher volumes of low-margin will broaden the base of owned brands, offering increasingly exciting opportunities for profitable growth.
HIGHLIGHTS
The comprehensive basket of ARV’s, including a triple-combination Women’s Health – this portfolio achieved excellent results, bolstered
dosage, will facilitate growth in the private market.
by the relationships established with key partners. The consequent critical mass in this category enabled the Group to extract improved The critical mass developed in major therapeutic categories enables performances on own brands such as Estropause (HRT) and Urispas (UTI).
the division to develop relationships with health professionals through an extensive continuing professional education programme. Activities Marketing strategies included consumer education and interaction include therapeutic category-directed meetings including Adcock with consumers via social media. These strategies have provided a Ingram’s successful and highly publicised Healthcare Summit.
valuable base for brand specific promotions in the future.
Healthcare funders’ efforts to contain medicines costs by encouraging An innovative marketing strategy has been initiated for a unique the use of generic medicines and the increasing membership of product, Vagifem, for vaginal dryness. The unique technology inherent medical schemes (especially low cost options) will provide market in the product has created an entirely new market segment for this growth in the generics category. Development of further relationships category. A major consumer education programme was launched with funders will ensure that the Group’s products are included on at the end of the year which included a full media campaign, incorporating washroom posters and advertorials in leading Chronic generic medicines offer significant growth potential as a result magazines. This programme will create awareness that this condition is of a growing middle class market and an increasing ageing population.
not unusual and that there is a solution.
Dermatology – Dovobet (psoriasis treatment) enjoys market leadership
CHALLENGES
with an 80% share of the psoriasis market. Further penetration in the The increasing trend towards cheaper generic products in the psoriasis market gained momentum with the introduction of Xamiol market does pose a threat to certain of the multi-national brands. (from Leo Pharmaceuticals), a first line treatment for psoriasis of the Adverse currency fluctuations, the cost of compliance with increasing scalp. This initiative supports our ambitions of market expansion in the regulatory standards, competition and pressure exerted by healthcare categories where we compete. Roaccutane (from Roche) and owned funders to lower prices, impacts margins and profitability. The slow regulatory process affects the Group’s ability to launch new generic generic Acnetane (acne treatments) recorded impressive share gains and products. New product launches with ‘first to market’ status are key entrenched the Group’s leading position in the anti-acne class.
strategies to counter margin declines.
ADCOCK INGRAM INTEGRATED REPORT 2013

Source: http://overendstudio.co.za/online_reports/adcock_ir_2013/pdf/go-sa-prescription.pdf