With higher disposable incomes and changing attitudes towards healthcare, Indian consumers are buying more over-the-counter (OTC) drugs than before. While the total domestic OTC market size at INR21 billion, is much smaller than the prescription drug market at INR360 billion, their growth rates are telling. The former is growing at 16% compared to the 14% of prescription drugs.
Ranbaxy’s health supplement Revital, Cipla’s emergency contraceptive i-Pill and Zydus Cadila’s Aspartame product Sugar Free, have all turned bestsellers, clipping ahead of the respective companies’ ethical drug segments.
Ranbaxy’s largest sales come from Revital at INR660m, higher than its previous top-seller antibiotic Mox, at INR630m. Revital is a health supplement containing ginseng, vitamins and minerals, and is finding many takers as Indians turn to preventive care and self-medication. To benefit from this trend, Ranbaxy has further launched an anti-ageing product and a protein supplement.
A similar story is the emergency contraceptive i-Pill which is giving chase to Cipla’s asthma drug Asthalin’s INR900m sales. Since OTC drugs can be advertised, they have greater visibility. Free availability makes growth in these segments faster and more consistent. A critical driver is good distribution networks. Revital sales, for example, have hit a 25% growth rate compared to Mox’s 7%.
Zydus Cadila’s Sugar Free with Rs 80-85 crore sales has beaten its bestselling hypertension drug Aten with INR700m of sales. Mankind’s branded condoms and emergency contraceptive ‘Unwanted 72’ are also benefiting from the phenomenon of higher spending, having hit INR250m and INR200m of sales, respectively.
This phenomenon is contrary to the global markets where big pharma companies like Pfizer dominate with their prescription drugs. The world’s best selling drugs today are Pfizer’s cholestrol lowering drug Lipitor with $12 billion of sales, followed by AstraZeneca’s anti-acidity drug Nexium at $4.5 billion.