OTC Marketsize

(By Order) Article

Honestly, this kind of article is’nt really me ( see ?), you know what I mean ? I mean, this ‘world’, is’nt my ‘world’. But when I tried to look for, why do people acces my weblog ? The first keyword is “ Bisnis Apotek”, and the second is “ OTC Marketsize”. Hmm, it seems that the marketing practitioners try to search the specific word using the Google and they found my weblog. Okay, so, just deal with it. So in the middle of my activity ( actually, blog is’nt my fave activity guys…), I’ve to ‘take care’ of my blog, but still, real business in real life is always better, see ?

Pasar OTC ( Over The Counter)

In 2005, the Pharmaceutical Product Manufacturing Industry generated an estimated turnover of Rp.26,200 Billions compared to Rp.25,110 Billions in the previous year. This is an increase of 4.34 percent.Value added is estimated to have increased by 2.73 per cent from Rp.6,530 Billions in 2004 to Rp.6,708 Billions in 2005. This industry’s contribution to Indonesia’s GDP is 0.28 per cent. In 2005 it is estimated that 355,900 persons are employed by 205 establishments in this industry. Employment decreased by approximately 0.7 per cent or 2,500 persons in 2005 compared to the previous year, while the number of establishments decreased by 3 players in the same period . Total wages was estimated to be Rp.4,627 Billions in 2005 decreasing from Rp.4,957 Billions in the previous year.Domestic demand calculated as revenue plus imports less exports in 2005 is estimated to total Rp.29,370 Billions. This is an increase of 3.37 percent compared to the previous year where domestic demand total Rp.28,412 Billions.

It is estimated that about 90.0 percent of the total volume of this industry were marketed domestically. The main markets are hospitals and drug stores, especially for drugs needing a doctor’s prescription.

The barrier of entry for this industry is high and the trend is increasing. The barriers include: The high level of initial capital expenditure required establishing a manufacturing plant, intellectual property, the existence of several established-and often global-operators with significant market strength, high technology, the high cost of research and development, skill intensity, high levels of government regulations, including stringent quality and compliance standards.

The basis of competition depends in part on whether the product is still in patent, out of patent or is a generic equivalent. It will also depend on whether the product is a new innovative pharmaceutical for which there is “no reasonable alternative”, or is a product for which there is a therapeutic alternative. The basis of competition will also vary between OTC (over the counter) products and complementary or alternative therapeutic products. Competition based on price, especially for the OTC products, based on product type (especially for antibiotics),competition based on service, i.e. recruitment of medical detailers to launch the new products,competition based on brands- Brand image building by implementing media advertising-

Global Trade

The level of export is medium. The export trend is increasing. Total exports in 2005 are estimated to be Rp.1,748 Billions, decreasing from Rp.1,853 Billions the previous year. Export, as a share of turnover is 6.67 per cent in 2005 compared to 7.38 per cent in the previous year. Between 2001 and 2005, the share of export to turnover averages 7.12 per cent. Mainly exports went to Nigeria, Malaysia, Australia, Korea, Thailand and Japan. The level of import is high. The import trend is increasing. Total Imports in 2005 is estimated to be Rp.4,918 Billions, decreasing from Rp.5,155 Billions in the previous year. Import, as a

Obat Bahan Alam : SURAM

Future of Herbs Medicine Market ; Bad News

As a business practitioner with basic knowledge in Pharmacy, my opinion ‘bout herbs medicine is negative. Focussing in medicine, meaning that herbs will compete with the conventional drugs which were build by novel technology, and now they reach nanotech level. When they took the alternative medicine position, meaning that their market is in niche level, so small chance to act as head to head opposite partner of conventional drugs.

Sales By Country

I’m not just thinking ‘bout scientific mindset, but it’s more ‘bout optimist- realistic business overlook. The herbs and descent products are not limited in cure, but also to promote and prevent, see ? I mean, herbs is part of our traditional life, but in pharmaceutical aspect, it’s lack of dosage information, side effect, and supporting system to reach the modern market who are so well educated with high curiosity level. ( I’m not just talking ‘bout Indonesian market, it’s global market. Later on, Indonesia will be the part of our discussion, soon). The empiric experience in herbs functionality will need more research to get adapt with some various market character and diverse variables.

The market segment for herbs derivatives is’nt just in medicine. But it’s more segmented as functional food, or cosmetics. The capital, human resource, and market factor as the ‘constraint’ in pharmacy business will become consideration for herbs innovation to join the market competition. So, to innovate the end product in nutraceutical, and cosmeceutical will show off their powerfull potencial uses.

For example in Indonesia. The health food supplements market in Indonesia grew 509% between 2002 and 2005. For the near future, sales prospects look good, with steady growth projected in the range of 15% to 25% over the next two years. The market for dietary supplements (excluding traditional Indonesian herbs or jamu) was estimated to be $260 million in 2006, exhibiting a growth rate of 25%.Imports account for over 80% of the Indonesian supplement market, about 60% of which are U.S. products. Of special interest are products related to weight loss and appearance, chronic disease like hy¬pertension and osteoporosis, stamina, sexual health and vitamins.

I’ve collected some notable argument from By Dr. Joerg Gruenwald, President of Analyze & Realize AG (A&G) in Berlin, Germany :

In fact, the greatest potential for new herb and botanical products currently lies in the food sectors, as companies harness the current global consumer interest in natural and functional foods. Some of the latest opportunities include exploring botanical alternatives to animal-sourced ingredients such as omega 3 fatty acids from fish, or finding natural alternatives to artificial additives such as preservatives or colorings. New varieties of fiber are also being discovered, opening up areas for new product development. Other growth sectors include cosmeceuticals and the emerging category of beauty foods.

However, the growth of the herbal/ botanical drug market is not as pronounced as that of the food segments. One reason for that is the long product research and development time, most notably on the drug registration side. In spite of this, there has been a positive development in the U.S., opening up the herbal drug market, which is a sign for future growth of that segment.

Euro Market

In Europe, the Traditional Herbal Medicinal Products Directive is expected to have a positive impact on the market because it allows access to the market via a simplified registration procedure without having to carry out unnecessary safety and efficacy assessments. Also, a registration in one country of Europe will apply to all other EC member states, eliminating the hassle of navigating different regulatory requirements for different countries, which was a major downside of the old system.

On the supplement side, a new directive has come into effect. It is still not clear which herbs and botanicals will be able to remain on the market as supplements, so it is difficult to make predictions on successful future supplement ingredients at this time. However, many pharmacologically active herbs will probably need to be registered as herbal medicinal products.