Soft power and a single herbal product license

The herbal market picture

The herbal market along with the Indian healthcare market is looking up. Growth is the catch all word in healthcare today.

In fact, this 2004 report from The Times of India states:The Indian herbal health care segment seems to have swallowed a vitamin pill. The segment grew at a rate of 12 per cent last year, and there is no immediate sign of the momentum slowing down, with an expected growth rate of 20 per cent this year. The domestic herbal market has now crossed the Rs 5,000 crore mark, and is set to reach further heights this year. Herbal exports from India is worth Rs 450 crore, whereas even a decade back the amount was barely Rs 100 crore. This may not be a huge sum when compared to the Chinese herbal exports market which is worth Rs 2,000 crore; but the sheer potential of the Indian herbal companies should make people sit up and take notice.

The attractive growth of the domestic herbal market is reinforced by a global herbal trend as per World Health Organization (WHO):THE green consumer is coming of age. The demand for medicinal plants is increasing everyday and the World Health Organisation (WHO) has projected that the global herbal market will grow to $5 trillion by 2050 from the current level of $62 billion.

Generating prescriptions for herbals

In India the doctors are the most important opinion builders for pharma and healthcare products.

According to marketers, Indian consumers have preconceived notions on brands, advertisements and people. When models wearing white coat are shown in ads, consumers attach a positive connotation that adds to the credibility of brand preposition. Mothers often listen in rapt attention when a neighborhood doctor suggests Hindustan Lever’s (HLL) Huggies diapers for bed wetting babies. HLL’s Lifebuoy Liquid and Reckitt Benkiser’s surface care brand Lysol say it all with a ‘doctor’ by their side. The doctor is a way of assuring the mother (in case of Horlicks and Complan). Marketers always want an endorser, be it celebrities, or authority figures such as doctors and teachers. It kind of becomes instructive for the functional benefits of the product category. “
- from the Economic Times dated 12.2.2007, p.no. 6

Revital from Ranbaxy is marketed with the Rainbow Coalition Product Promotional plan, in which, Revital is promoted to both doctors and end-consumers. Revital, containing Chinese ginseng, vitamins and minerals is categorized as a nutritional or dietary supplement, and thus, gets the support of all specialties of doctors (allopaths, ayurveds, etc). Had it been classified as an Ayurvedic product, the prescriber base would have got limited, and business results would be muted.

It is important to open the use of herbals, herbomineralvitamin formulations, and herbominerals to all medical practitioners by issuing a single herbal or herbomineralvitamin or herbomineral product license and not through separate categorizations as Ayurvedic, Siddha or Unani products. The complete data of whether the product is Ayurvedic, or Unani or Siddha, can be collected by the AYUSH department for records, but the license and label should simply mention as an herbal or herbomineral or herbomineralvitamin product. There is a need to go beyond the Ayurvedic, Siddha, and Unani licensing regimes – they only add to the herbal confusion.

The present licensing regimes as Ayurvedic etc, strengthens the defensiveness of allopaths (who form the bulk of the Indian prescriber market), and they resist from prescribing some of these medicines. However, a herbal product like standardized Centella asiatica extract from Roche (for blood vessel problems like varicose veins) or silymarin (German herbal product for liver disorders) or the Gingko biloba extract from German Remedies are categorized or labeled as allopathic products, and hence prescribed by allopaths. The objection from potential allopathic prescribers (who are the bulk of the prescribers in India) is not for the herbal actives used in the pharma product, but for the words An Ayurvedic Proprietary Medicine or A Sidda Proprietary Medicine.

It is important to present the native Indian pharma product to potential prescribers in a way that is welcome and generates confidence on the safety and efficacy of the product, and one way of doing this is by abolishing labeling as Ayurvedic or Siddha or Unani and labeling such products simply as Herbal or Herbomineral or Herbomineralvitamin. In that sense, Revital from Ranbaxy containing Chinese ginseng, vitamins and minerals, is a dietary or nutritional supplement, and this is a neutral labeling as it is neither Ayurvedic or Siddha or Unani. Hence, Revital enjoys a fund of confidence from all types of prescribers in India.

At stake here, is the soft power of India

The word soft power was coined by Joseph Nye, a distinguished professor of Harvard. The soft power of a country rests primarily on three resources: its culture (in places where it is attractive to others), its political values (when it lives up to them at home and abroad), and its foreign policies (when they are seen as legitimate and having moral authority.)

Soft power is a great product and service differentiator. Even the giants of global Pharma industry cannot match the way Kerala serves the world through Ayurveda (soft power component here is Ayurveda). In fact, the solidity and depth of success of companies like The Himalaya Drug Company comes from the fact that they have banked on the soft power of India.

So let the Govt., throw open the use of herbals to a broader audience (which would include allopaths – who form the bulk of the prescriber segment in India), and build the clinical experience for these soft power Indian products in modern parameters. Lack of clinical data in modern terms should not cause a loss of market opportunity for India. At stake is the soft power of India, the cultural history of India, and a slice of the past that is intrinsically Indian. In case of basmati rice patent case, we were reactive in taking care of Indian interest; in the neem patent case we scraped through. The business world however, has no mercy and keeps profits at the forefront. Let us observe, for a businessman, everything is fair in love, war, and business. (Sorry, can’t help, but think of Iraq war here). Being proactive and assertive is a wiser approach to defend and strengthen the soft power of India.

Today wars of a different type are on. It is a soft power war, and battles are fought in the marketplace with brands. Business interests drive and influence Govt. and military action in today’s world. The era of brand colonization is on. Today, Dyanora TV, EC TV, Crown TV, Weston TV, which were top TV brands of India at one time are not even in human memory for many in India. No wonder, they say public memory is short. Similarly, in the cola market Thums Up, Campa Cola etc are nowhere to be seen; and Coca Cola and Pepsi are now becoming a part of the Indian culture, psyche, and marketplace.

The herbal actives of Indian heritage will come back through allopathic field in a different form for eg., rauvolfia alkaloids (reserpine), vinca alkaloids (vincristine and vinblastin), and Taxol.

Pharma companies are not interested in any ‘pathies’ like allopathy, or any other branch of medicine. It is the marketability, corporate responsibility, patient interest, and top line and bottom line interests that matter to pharma companies. The main point is shareholder and stakeholder interests of the pharma company. For eg., consider the following brands in India of foreign (non-Indian) MNCs:

The interesting case of Calcium Sandoz

Of late, have you picked up a box of Calcium Sandoz? The label reads as follows:

Novartis
KHATIKA CURNA
Calcium Sandoz 250
Each chewable uncoated tablet contains:
Khatika Curna 625 mg
Nimbukamlam Shushkam 25 mg

This is a Novartis product. This multinational company was at the epicenter of the Glivec patent case. As per this link http://www.netdoctor.co.uk/medicines/100000428.html Calcium Sandoz contains calcium glubonate and calcium lactobionate in UK. In India the picture is as follows:

The historic product - Calcium Sandoz that had Calcium Carbonate now has something called Khatika Curna and Nimbukamlam and is A Proprietary Ayurvedic Medicine. Probably, Khatika Curna is Calcium carbonate and Nimbukamalam is Vit. D3. But type in Khatika Curna and Nimbukamlam in to http://www.google.co.in/ you get nothing. In fact, you get as follows:

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This brand case is that of a silent metamorphosis from an allopathic product to an Ayurvedic proprietary medicine. What are the new features, benefits, and problems of the new active ingredients in Calcium Sandoz? So what does the 250 in the brand name stand for? Earlier it meant that each tablet offered 250 mg of elemental calcium. Is it possible to claim accurately 250 mg of elemental calcium in an Ayurvedic product? Is an Ayurvedic manufacturing process followed for Calcium Sandoz? Khatika Curna and nimbukamlam – from where are they sourced? What is the qualitative and quantitative Ayurvedic assay techniques used for the above product, with respect to Vitamin D3 and elemental calcium? Ayurvedic products are manufactured as per Bhavaprakasha nighantu etc. So which reference does this label follow? These aspects need to be looked into and not swept under the carpet.

This link on the official website of Novartis, http://www.novartis.co.in/products/product_otc_impact.asp?Sid=2 describes the product Calcium Sandoz but does not use the words Khatika Curna and Nimbukamlam. Why? May be the webpage is not updated. Calcium is very well marketed OTC as a FMHG. May be the Ayurvedic avatar of Calcium Sandoz helped it go OTC and become a FMHG.

What about Iodex?

This age old product comes from GSK Consumer division. GSK is world leader MNC. Iodex too is an AYURVEDIC PROPRIETARY MEDICINE. When launched by Eskayef it was an allopathic product. It changed its licensing and affiliation sometime in 90s to Ayurvedic. Puzzling to note how the switch over of a pharma brand from one stream of medicine to another is easy.

If you click here: http://www.gsk-ch.in/Iodex.aspx the web page does not give details of composition or even a hint of its Ayurvedic profile. But the Crocin web page http://www.gsk-ch.in/crocin.aspx gives very good details of its composition.

And is NPPA casting a Nelson’s eye on these brands?

The above pharma examples are unique and point to the challenges in the regulatory environment in India with the fast growth of Indian healthcare market.

Functional foods and regulatory challenges

With the healthcare boom, rise of the functional foods market and herbal market, regulatory challenges are many. For eg., Saffola Gold is positioned as a cooking oil medium that helps reduce blood cholesterol levels. Is it safe for my daughter 61/2 years of age to eat puris three times a week cooked in Saffola Gold for the rest of her life? Or should my wife use Saffola Gold while cooking for the aged members in my family, and regular Saffola for the younger ones? These questions and many others will crop up when the functional foods market gains steam. There is a thin line between medical claims and health claims. To address such public concerns the USA has a dietary supplement health regulation act.

Regulatory changes in USA

Come Nov 2007, there will be debate in the USA to start a new category of pharma products called behind-the-counter medicines. This means pharmacies in USA will have over-the-counter medicines, prescription products, and probably a new categorization for some medicines called behind-the-counter medicines. This new category of products will not require a prescription for purchase similar to the over-the-counter pharma products. It must be noted here that the merit of India’s pharma market is the fact that it is an OTX market, which USA is now trying to make happen through a new behind-the-counter medicines category.

A single herbal or herbomineral or herbovitaminmineral product license

The answer to knotty problems as above, lies in a single herbal or herbomineral or herbomineralvitamin product license. Not Ayurvedic, not allopathic, not siddha, not unani and what have you…only a single simple license that makes the product amenable to prescriptions from all doctors (whether allopathic, ayurvedic, unani…). And then unleash the potential of herbal soft power of India for the world.

This is my 50th blogpost - yes I have completed a half a century of blogposts. Please do read all other blogposts by clicking on older posts wherever required.

FMHG ADVERTISING IN INDIA

Saffola is not just a cooking oil medium, this brand is evolving - constantly reinventing itself - fast becoming a functional food brand in the FMHG segment. For eg., we see a Saffola additive product for wheat flour that helps reduce blood cholesterol. Read on and experience the buzz in the emerging market of FMHG products...

Today the pharma, healthcare, and beauty market in India is rocking. It is also evident that FMCG products are promoting products on the health platform. For instance, Saffola Gold is a cooking medium. This oil has an additive called oryzanol that helps lower cholesterol. On World Heart Day there was an interesting sms mobile phone based product promotional campaign from Saffola. If you send a sms to a number then you can get a free cholesterol blood test done. In this campaign we observe that Saffola a FMCG product is using the health platform with very positive effect, and they have married the most persuasive technology - mobile phone – for their campaign on World Health Day. In fact, Saffola Gold contains rice bran oil that contains the oryzanol.

FMHG MARKET

FMHG (Fast Moving Health Goods) market represents products for health that are directly promoted to end consumers. For eg., Saffola Gold a FMCG product is more like a FMHG product the way it is promoted; health drinks (like Complan and Horlicks) are FMHG products. Equal and other low calorie sweeteners, Benadryl and Glycodin the cough syrups, Tums and Gelusil the antacids, Vicks, Coldarin, Anacin, Listerine, Waterbury’s Compound, Woodwards gripe water, and Iodex are some of the other FMHG products.

Revital is also in the FMHG product market, however, its business and marketing model is unique and is called the rainbow coalition product promotional model. Essentially in this model while Revital product promotional messages are targeted to patients and end consumers on one end, doctors too are promoted this product for oral endorsements, recommendations, and prescriptions. The success story of this product is definitely inspiring. The Jan 2007 ORG IMS figures show that Revital, which contains Chinese ginseng, is ranked all India 35th with a MAT value of Rs. 55.56 crores, 54.8% growth and 133% EI %! As per March 2007 values, REVITAL is the 31st largest pharma brand with MAT value of Rs. 61.89 crores, 65.34% growth and has a EI% of 145%. Revital has improved its sales and product ranking even further in present months.

The action is hotting up even further in the FMHG market with the booming healthcare market and entry of foreign brands. In the derma segment, Garnier, Ponds, Emami, Fair & Lovely, L’Oreal, Olay etc are slugging it out. These brands are focused on product promotion to end -consumers directly. However, they are ignoring one important lesson that is provided here quoted from Economic Times:

“Brand belief: they buy just what doc orders

According to marketers, Indian consumers have preconceived notions on brands, advertisements and people. When models wearing white coat are shown in ads, consumers attach a positive connotation that adds to the credibility of brand preposition. Mothers often listen in rapt attention when a neighborhood doctor suggests Hindustan Lever’s (HLL) Huggies diapers for bed wetting babies. HLL’s Lifebuoy Liquid and Reckitt Benkiser’s surface care brand Lysol say it all with a ‘doctor’ by their side. The doctor is a way of assuring the mother (in case of Horlicks and Complan). Marketers always want an endorser, be it celebrities, or authority figures such as doctors and teachers. It kind of becomes instructive for the functional benefits of the product category. “

-from the Economic Times dated 12.2.2007, p.no. 6

The lessons are clear

From the above Economic Times report, and the success story of Revital, one thing is evident doctors are very important opinion builders for healthcare brands. In fact, the success of brands and campaigns hinges on connecting brands to opinion builders and prospects/customers, and strengthening word-of-mouth. Once these two aspects are taken care of during marketing initiatives, brand values and brand sales increase exponentially.

Opinion builders for healthcare brands include doctors, nutritionists, beauty therapists, dieticians, physiotherapists, and other celebrities who fit in to the brand image.

For strengthening successes of current FMHG brands

FMHG brands have an important role in strengthening health of the Indian population given the low doctor to public ratio. FMHG products can penetrate market better to every nook and corner of the country. Their availability universe is beyond the pharmacies and includes non pharma retail outlets. They do contribute to wellness and beauty management of the health aspect. However, in therapeutic and sickness management, it is the play of pure ethical (prescription based) pharma brands.

Formula # 1: FMHG product promotion can straightaway take a leaf from Revital’s success story and include doctors and other opinion builders for product promotion. For eg., Colgate and Pepsodent are two interesting brands in the FMCG/FMHG sector that have a great franchise with dentists. The dental clinics in India do have posters and other patient education material from these brands and dentists orally recommend Colgate and Pepsodent. Similarly, Farex and Cerelac are FMCG/FMHG brands that are promoted to pediatricians and they are prescribed, endorsed, and orally recommended by pediatricians to patients. Johnson and Johnson has appointed a fully dedicated field force for promoting babycare range products to pediatricians. Thus, skin care brands can take a leaf from the above successful brand promotional approaches for better business results.

Formula # 2: In end consumer oriented advertising, models featured as doctors or other opinion builders along with brand fit celebrities, will surely ensure better business results as explained by the Economic Times report quoted above.

Formula # 3: Launch interesting in-pharmacy product promotions for tapping into the strength of pharmacies to connect to customers and prospects. For more on this please CLICK HERE.

The consumer is getting better value

The booming healthcare market in India, entry of foreign brands, fierce competitive practices, retail pharmacy chains … these are adding to the options and information on healthcare. In the end the consumer gets benefited through empowering information and value for money products.

This is my 49th blogpost, please do read all other blogposts by clicking on older posts when required! Thnks and God Speed!

BEAUTY TREATMENTS IN CLINICAL SETTINGS

Traditionally, doctors provide treatment for sick people. Doctors are involved in sickness management – managing and curing illnesses and infirmities. As the pharma and medical field advanced, wellness management came under the umbrella of clinical practice. And now the stage is set for another dimension - beauty treatment in clinical settings. Thus, the modern day doctor is involved in sickness treatment and management, wellness management, and, now, beauty treatment in clinics.

Beauty treatments are called medical aesthetic treatments too. This medical service is offered by qualified doctors – mainly plastic surgeons, trichologists, dermatologists & dermacosmetologists. For eg. this clinic in London offers medical beauty treatment: https://www.botonics.co.uk/clinics.php

Cosmetic clinics like www.theclinics.co.uk offer acne laser treatments, and other invasive and non-invasive cosmetic treatments. Acne and brown spots treatment, management of oily skin, acne scar treatment, fine and major skin wrinkles treatment, sagging skins - for which skin tightening is done, derma-abrasions, reduction of age spots or liver spots, and skin peelings are some of the clinical beauty treatments.

Why beauty treatments in clinical settings?

WHO defines health as physical, mental, and social well being, and not merely the absence of sickness and infirmities. Clinics are the key social organs for healthcare delivery. Doctors in clinics are the key healthcare professionals (particularly in India) for delivering physical, mental, and social well being of individuals. Beauty treatments in clinical settings, is one more approach for adding value to a person’s social well being.

Aging: the reality of today’s world

It is well known that people in society are living longer than ever before. Aging is the new challenge on the clinical horizon. Aging brings along with it associated challenges – senescence causes physical and mental dullness, weak digestion and metabolism, muscle shrinkage, skin atrophy (reduction in size), dementia, sagging skin, wrinkling, frown lines, fragile and brittle bones (osteoporosis), degenerative joint disease or osteoarthritis, and….LONELINESS and other mental ailments. The collapse of the traditional joint family systems and community/caste support systems in urban and semi urban places of India has caused exacerbation of mental ailments in the aged. Thus, the scope of some major herbal therapies like brahmi, ashvagandha, kapikacchu, and gokshura that have a rejuvenative effect is large. In fact, the USP of Ayurveda is rasayana or rejuvenative treatments that are apt for the burgeoning population of the world.

Beauty treatments for the aging population of India

There is a significant increase in use of cosmetics, drugs, and treatments that help the aging population and the aged to live a better and healthier life. The growth of purchasing power in urban and semi urban areas of India, and the influence of media has lead to increased consumption of luxury goods and services too. Masstige products are seeing increased demand. There is a trend of mass customization of luxury goods for select target audiences in India. It is this feature of the Indian market that has led to higher consumption of beauty products and services in clinical and non-clinical settings. For instance a dermacosmetologist has set up shop even in Latur. In advanced countries, plastic surgeons/dermatologists are into body sculpting and skin tightening treatments for giving healthy looks to the young and old alike. Body sculpting is a fad among teenagers and young women. The rise in obesity has led to an increased demand for such products and medical services the world over.

Spotting opportunities for pharma companies

Pharmaceutical and Healthcare companies are always on the lookout for trends and market gaps or opportunities for addressing with value added products and services. The rise of beauty consciousness and purchasing power in India provides a lucrative market for medically oriented beauty products. Right now, dermatologists, cosmetologists, and plastic surgeons in urban and semi urban settings are profiting from this trend. It is only a matter of time when the gynecologist, general surgeon, consulting physician and top GPs start cashing on this clinical beauty boom, by augmenting their services. For eg., the gynecologist will start recommending suitable treatments and products for menopausal women (for fine wrinkles, sagging skin, and dull skin), acne in PCOS women; the consulting physician or endocrinologist would start recommending suitable beauty care products for patients suffering from premature aging and fine wrinkles due to diabetes or other endocrinological disorders or as a result of side effects of other medications. All in all, the beauty boom is starting to gain momentum and the market signals are seen too. For eg., we see the zooming growth of Kaya skin clinics - as per Economic Times, 10.9.2007, Investors Guide: In FY 07 Kaya business has grown by 57% to Rs. 75 crores, in April-June 07, the turnover is Rs. 21 crores, up 31% over last year. Further the report suggests Kaya skin clinic is a growth driver broke even in FY 07 with marginal profit, in FY 07 – 08 Kaya will add 15 new clinics. Kaya offers: beauty clinic, lifestyle disease management, stress management, fairness solution, and weight-loss solutions. One thumb rule for product promotion to doctors cannot be ignored – the products should be backed by robust clinical trials to assure safety and efficacy.

Many mid size European and American healthcare companies are stitching together a cogent BRIC (Brazil, Russia, India, and China) strategy for growth of their products and services mainly through local Indian companies (for the Indian market). Besides the attractiveness of the Indian market, the allure also comes from the fact that the drugs and cosmetics regulations are not high hurdle, and the various fees are not prohibitively priced like that of the US FDA. The entry costs and procedures are easier in India compared to countries like USA.

So the action is all set to hot up in the Great Indian Health, Medical and Pharma Bazaar! WELCOME TO INDIA - the customer will be the final winner!!

This is my 48th blogpost - please do read all of my other posts by clicking on older posts when required. Thnks.

CRICKET AND PHARMA PRODUCT CATEGORIES

India's passion is Bollywood/films and cricket. Both met for a common cause at Johanessburg Cricket World Cup 20-20! The Indian team delighted every Indian by winning the World Cup. Shah Rukh Khan was there in South Africa with his son Aryan to cheer the Indian team led by skipper M S Dhoni.

India’s passion is cricket

Indian popular passions revolve around bollywood/films and cricket. The sporting passion – the popular game of cricket - is played in three formats: test cricket (can last up to 5 days), one-day cricket (each team plays for 50 overs; a result of the match is within a day), and the new fancy Twenty-Twenty. Each team in this new format - that has been included for Asiad - plays for 20 overs each. It is fast, intense, and requires a lot of physical and mental effort. Thus India’s passion, CRICKET has three formats – 5 day test matches, the one-day matches, and Twenty – Twenty (the new format that has captured the cricketing world’s imagination).

Indian ethical Pharma industry’s product lines

There are several ways to categorize the Indian Pharma ethical market. One interesting way of categorization proposed here is based on the product characteristics and growth potential of three sub-markets. These sub-markets are compared to the three cricketing formats:

a) the allopathic ethical formulations Indian Pharma market is like the test match
b) the herbal ethical formulations Indian Pharma market is like the one-day cricket match
c) the biotech formulations market is like the Twenty Twenty cricket series.

Allopathic ethical formulations Pharma market

Indian Pharma industry has three product categories just as cricket has three popular formats. The five day cricket test match is the biggest cricket format played for five days. Playing test cricket requires stamina, concentration for longer time spans, and staying power. The same are the allopathic Pharma formulation market characteristics – one requires arduous working to make a mark given the fierce competitor activity. The attraction is that the Indian Pharma market has a significant big allopathic formulation market (it is almost Rs. 28000 crores). 25% of this allopathic pharma formulation market is the antibiotic-anti-infective market and another 25% is the gastrointestinals market (which mainly includes drugs for acid peptic disease and electrolytes…). The rest of the allopathic ethical Pharma market includes the emerging segments such as neuro-psychiatry, derma, asthma management, arthritis management, and the cardiovascular-diabetes (cardiometabolic disease) management segment.

The ethical herbal formulations Pharma market

Akin to the one-day cricket match, here is a fast growing, attractive, popular, and evergreen segment – the herbal segment. The herbal market is bright. In fact, this 2004 report from The Times of India states:

The Indian herbal health care segment seems to have swallowed a vitamin pill. The segment grew at a rate of 12 per cent last year, and there is no immediate sign of the momentum slowing down, with an expected growth rate of 20 per cent this year. The domestic herbal market has now crossed the Rs 5,000 crore mark, and is set to reach further heights this year. Herbal exports from India is worth Rs 450 crore, whereas even a decade back the amount was barely Rs 100 crore. This may not be a huge sum when compared to the Chinese herbal exports market which is worth Rs 2,000 crore; but the sheer potential of the Indian herbal companies should make people sit up and take notice.

The attractive growth of the domestic herbal market is reinforced by a global herbal trend as per World Health Organization (WHO):

THE green consumer is coming of age. The demand for medicinal plants is increasing everyday and the World Health Organisation (WHO) has projected that the global herbal market will grow to $5 trillion by 2050 from the current level of $62 billion.

The biotech formulations Pharma market

The darling of the Pharma market is the biotech market that is attracting a lot of attention and investments. In fact…

As per the Economic Times, dated 16.6.2007, on page no. 5, the Indian biotech industry has crossed the 2 billion dollar mark. The exact amount is 2.13 billion dollars in total revenues in FY2007 (April 2006 to March 2007). There was a 31% growth over FY06’s 1.6 billion dollar revenues (Rs. 6521 crores). Exports from this sunrise sector for the FY07 stood at 1.2 billion dollars (Rs. 4937 crores) showing a good growth of 47%.

The high growth of the biotech segment is largely due to the policies of the Govt., entrepreneurial interests and the strategic investments by the private equity and venture capitalists.

The most important reason for a buzz in the biotech segment is the fact that India has a bright chance of being a major player in the global biogeneric segment. As per Economic Times 22.9.2007, p.no.5; US govt. is preparing to usher in the first generation of biosimilars. In five years, biotech drugs will represent 25% of the total pharma market. Seven major biotech molecules are facing patent expiry before 2010. EPO (erythropoietin), human insulin, interferons, and granulocyte colony stimulating factor are the attractive markets. India is said to be on the threshold of scripting a success story in the field of global biosimilars just as it has been very successful in the global bulk drugs market and chemical formulations market.

The Indian Pharma market beckons

As per the Economic Times dated 19.9.2007 on page no. 4, India is emerging as a global powerhouse in the pharma business with a robust domestic industry. As per CII and Assocham, the turnover is expected to treble in 2015 and reach the Rs. 80,000 crore mark. As of now, the domestic sales is Rs. 31,600 crores and exports is Rs. 21,200 crores (the export figure includes bulk drugs and formulations). The R & D spend is Rs. 2210 crores.

Opportunities in the above three segments of the Indian Pharma market

The allopathic Pharma formulations market is crowded, with an estimated 20,000 manufacturers/marketers. It is a crowded segment with over 70,000 brands. It is a segment characterized by brand clutter. The segment has well entrenched players.

The herbal Pharma formulations market is the smaller fast growing and popular format. The segment is not crowded, and the herbal space though popular has not caught the fancy of many a company. One rich feature is that the products in this segment are evergreen and are less susceptible to product obsolescence. However, this segment is in need of scientific standardization of extracts, a proper ecosystem for supply of raw herbal extracts, and the herbal or herbomineral preparations need robust clinical studies to win the prescribers’ favor. This segment lends itself to brand building. One can seemingly go on marketing this range endlessly as product obsolescence is a rarity here.

The soft power nature of the herbal segment makes the market even more evergreen and very attractive.

The biotech formulations Pharma segment is the hi-tech segment. This is like the Twenty Twenty cricket segment, special skills are required. One needs to have a modern and aggressive mindset to manage business here. This is a highly capital intensive industry. The biotech formulations Pharma segment is futuristic – but you need deep pockets.

The allopathic Indian Pharma formulations market is well mapped by market research agencies. However, there is a lacuna in the market estimates of herbal and biotech segments although their worth is high and prospects are very bright. The Indian Pharma market beckons…take your pick!

This is my 47th blogpost, please do read all of the earlier blogposts including by clicking older posts. They are worth reading. Thanks.

CHAK DE, PHARMA INDIA; CHAK DE, DR. KISHORE

Chak de, India (means Go India Go!) has caught the imagination of moviegoers in India and the Indian Diaspora. Moreover, corporate India and B schools have taken up to Chak de, India with great gusto. There are lessons in leadership. There is a rare joie-de-vivre. Chak de, India is not just about women’s hockey – it is about a leader-coach making ordinary people do extraordinary things. It is about inspiring the team and inducing passion for the game and winning. It is this spirit of Chak de, India that is the hot button of the movie.

India is on a winning spree on the Pharma wicket too. Indian Pharma field was an importer of medicines, during the time of independence (1947) and today self-reliant India is a net exporter of pharmaceuticals. Today, traditional Indian healthcare science is gaining momentum too. Ayurvedic Liv 52 is the numero uno pharmaceutical product of the Indian Pharma market. (The Economic Times, front page on 12.9.2007 announced rather cheekily, AHEM! LIV 52 CLIMBS ATOP DRUG CHARTS.)

Indian soft power in marketing themes

It is said business is marketing and marketing is business. The major component of Indian Pharma market is allopathic. The success of Indian Pharma industry is based on reverse engineering under the umbrella of Indian Patents Act, 1970. However, enduring marketing success is possible by banking on the soft power of India.

What is soft power?

The soft power of a country rests primarily on three resources: its culture (in places where it is attractive to others), its political values (when it lives up to them at home and abroad), and its foreign policies (when they are seen as legitimate and having moral authority.)

Soft power is a great product and service differentiator. Even the giants of global Pharma industry cannot match the way Kerala serves the world through Ayurveda (soft power component here is Ayurveda). In fact, the solidity and depth of success of companies like The Himalaya Drug Company comes from the fact that they have banked on the soft power of India. The successes of companies like Himalaya are not easily replicated. The milestones achieved by such companies and the depth of business is matchless as their business journey is based on an indelible cultural theme of Indian society. In contrast, the successes of Indian global Pharma companies like Ranbaxy, Nicholas Piramal, Cadila, Mankind… are notable but on shifting sands. The point is there is a product obsolescence factor in manufacture and marketing of allopathic products. But the natural based products can seemingly go on forever, they are dependent on brand building activities. Thus, with soft power based products and services we have an enduring business model. Product obsolesence is a rarity. The business journey of the large companies in India is lacking in the soft power component.

Is it impossible for Indian Pharma companies to use SOFT POWER?

It is possible to use soft power by Indian Pharma but what is apparently lacking is an appreciation of playing on the soft power theme and the corporate will to use soft power in business processes of Indian Pharma companies. This is vital since this soft power differentiator is not available with competing companies from advanced countries.

Is use of soft power a rocket science?

Obviously not! All it requires is back up by scientific trials in modern metaphors and language; presenting traditional themes in modern terms. Brand building is the second most important aspect for using soft power in business processes. Brand building will involve a unified signage, logo, color, font …

Dr. Kishore Patwardhan’s efforts to contemporize the soft power of India

Dr. Kishore Patwardhan is a young dapper MD in Ayurveda – a part of the faculty at Benaras Hindu University, Varanasi. While he is gaining popularity as a good teacher he is also pursuing Ph D and has made a great effort in contributing to Ayurveda by way of a book with an original and interesting perspective. Dr. Kishore Patwardhan’s effort is laudable, as he has created a compact easily readable book demystifying the concepts of Ayurveda and has presented the same with reference to modern medicine. It is a grand effort to present the soft power of India in a relevant way.

I sincerely recommend this book to all healthcare professionals in the world – particularly for those in marketing of natural pharmaceuticals.

Let us remind ourselves that there is a great appreciation for natural medicine in modern medical practice. Saw palmetto and silymarin are international best seller medicines. Moreover, modern day anti cancer vincristine and vinblastin have their origins in Ayurvedic Vinca rosea alkaloids. That is an example of soft power from India.

Please click here for contacting Dr. Kishore:

http://www.bhu.ac.in/ayurveda/kishorpatvadhan.htm

You could also contact Dr. Kishore at: patwardhan.kishor@gmail.com

The book penned by Dr. Kishore Patwardhan:

Human Physiology in Ayurveda

Here is how you can buy the book online:

http://www.bagchee.com/books.php?id=501

Or you could contact Dr. Kishore at (for purchasing the book)

patwardhan.kishor@gmail.com

The publishers of this book:

CHAUKAMBHA ORIENTALIA, POST BOX NO. 1032, GOKUL BHAVAN , GOPAL MANDIR LANE, VARANASI 221001

I am also happy and proud of Dr. Kishore

Dr. Kishore happens to be my wife’s cousin (to be specific: Dr. Kishore is the eldest son of my wife’s father’s elder brother. Dr. Kishore’s father is retired Prof. Of Kannada, Shri Dharmasthala College, Ujire, and he too is an author of repute in Kannada. So Dr. Kishore is a chip of the old block!). Dr. Kishore is happily married to Dr. Medha (a dermatologist) and they live at Varanasi with their bubbly baby boy Satvik. Their photos are at the top of this blogpost.

Kudos to Dr. Kishore on his contribution to the soft power of India.

Thanks for reading this blogpost. Please read all other posts, including by clicking on OLDER POSTS as they are all worth it. Thanks once again.

GOOGLE HEALTH AND END-TO-END HEALTHCARE SOLUTIONS

The above is the google moble phone that can play a vital role in rewriting the delivery of healthcare. Read below...

The goal of every business activity is to enhance relationships with existing customers and get new customers. This is a well known fact. To strengthen such an approach, companies normally expand and augment their product and service offerings and thus strengthen customer base.

The concept of end-to-end healthcare solutions

It is important to ask oneself some questions such as which industry are we in? Are we in manufacturing of pharmaceuticals or in the business of offering healthcare solutions? Remember the classic case study where the railroad industry forgot it was in the transportation business rather than in the railway line business. Today, a better opportunity for business is available if a pharma company defines itself as a healthcare solution provider rather than a mere supplier of pharma active substances.

For eg. Wockhardt has a practical and sagacious approach of being a company offering augmented products and services. Their presence in the hospital segment and pharma active ingredient manufacturing business has helped create an ecosystem to offer end-to-end solutions.

Can Google Health help offer better end-to-end solutions?

One of the greatest possibilities will be the offerings from Google Health that can revolutionize healthcare in both advanced countries and emerging markets.

a) Let us imagine Google Health partners with healthcare providers, clinics, and hospitals to offer digital medical records storage. This means if I am a regular out-patient of Wockhardt Hospital for my diabetes management, my medical records, including diagnoses, images, and prescriptions will be stored through the hospital at Google Health. Using my password I can access my entire life’s medical records at the press of the button and use it for second opinions etc. If my e-mail messages can be stored in sites such as G mail then why can’t my medical and health records be stored in secure sites of Google Health?
b) The dawn of a facilitative Google Health medical and health record storage offering can lead to a new field called Google Health Analytics. This refers to a field which works on anonymous medical and health records data mining. Imagine what a great contribution to humanity. On the internet one can analyze health issues and cull important medical facts on the disease patterns and researchers can gain insights from a huge repository of case studies for betterment of human health. Of course, certain security issues are there that need to be worked out.

Biocon and end-to-end solutions

Biocon has an unique approach in marketing its insulin based products for diabeticians where it is partnering with the healthcare providers in the diabetes management ecosystem and offering its products at the right place and the right price.

Integrated approach to healthcare will get a boost

If Google Health plays a pivotal role in organizing human medical and health knowledge on the internet, the plethora of studies, clinical information and case studies will lead to the collapse of silos such as ayurveda, siddha, Tibetan medicine, Chinese Traditional Medicine etc. An integrated healthcare approach will evolve that will deliver better value to patients.


Google, end-to-end healthcare solutions and the most persuasive technology on earth

The most persuasive technology is the mobile phone. Please click here for more on this: CLICK HERE. Google with its mobile phone can create a new era of healthcare through its solutions.

For eg. I receive a message through Google Health and the Google phone from my physician that my appointment is due today. The sms will be sent in my doctor’s name and a Pharma brand will be its sponsor.

When I open my medical records, ads relevant to me would open up.

Google can also sms me messages that encourage desirable behaviors such as quitting smoking and anger management that will improve my health status.

Summary

To summarize in the above citizen marketing activism, we observe that Google Health has the wherewithal to organize a grand new era of healthcare just as it has contributed to a grand era of the information age. Pharma companies should believe that there are in the business of providing healthcare solutions to patient’s problems rather than in manufacturing and marketing active ingredients. This end-to-end solutions approach for healthcare will help provide impetus to revenue flow of pharma companies. And in the Indian context, one sees Wockhardt well placed to achieve this. Himalaya too can create an end-to-end healthcare solution approach in the herbal wholistic field.

PASSION IN PHARMA

Peter Drucker has described a business enterprise in a very interesting manner – a business enterprise is a social organ that provides goods, services, and jobs to society, and makes a profit. One of the most important bellwethers of a business is the venture capitalists and private equity investors. When PE investors or angel investors pick up a business to invest in; their decisions are not guided by mere financial figures and projections. As Mr. Moritz of Sequoia Capital says: “we look for founders and management teams who are enthusiastic and passionate about a product or service that is addressing a very large market”. ‘So the trick is to look for a combination of markets, managements, and products’ he reiterates. Mr. Moritz adds that ‘Often one has to imagine an emerging market while taking the investment decision’. Mr. Moritz is the one who has funded Apple, Cisco, Google, and You Tube. So we observe it is not just financial figures that guide decision making. And as Peter Drucker’s definition would suggest, the social aspect of a business too is very important. After all, business is about people, it is people who do business with people. Relationships are fulcrums of businesses – both internal relationships and relationships with external entities and individuals.

Among various emotions, that guide business activities, FEAR AND GREED are very common. The fear of losing one’s status in the market guides companies to desperate marketing measures. The greed arising due to some freak or solitary success drives companies to take very adventurous decisions often causing damage. However, one emotion that often guides companies to unimagined heights is PASSION.

Here are some examples of passion-at-work:

a) The launch of The Himalaya Drug Company, Bangalore took place in the Himalayan forests when the founder Mr. Manal took to commercializing folk medicine. In fact, it was his passion to explore the traditional heritage of Indian medicine that aided him in launching the world’s first antihypertensive – SERPINA. It was not mere economic reasons that drove the maverick in him to look for commercializing herbal remedies. It was a passion for herbal pharmacy that launched The Himalaya Drug Co.
b) John Mack’s passion for pharma marketing is at display when we see his enormous enthusiastic involvement in activities beyond VirSci to the Pharma marketing forums. There is no strict commercial logic for his avid involvement in blogging and forums – it is more of his passion for pharma marketing that is at work here. Perhaps, there are spinoff economic benefits for him but that is a result of his passion.
c) When Jamshedji Tata took upon himself to invest in power, steel, and indigenous scientific talent, it was pure passion for his country’s industrial development that was at work. Otherwise why was the necessity for him to take pains and build a caring industrial empire? It was passion based on certain clear values.
d) Dhirubhai Ambani was the real change agent of the Indian business firmament who carved a great busines empire that created the booming share bourses of India.
e) When Ramanbhai Patel shed his role as a teacher of Pharmacy to don a pioneer Pharma industrialist’s role it was again passion at work.
f) FRLHT is a contra organization that is hard at work in Bangalore for reviving folk medicines – people sacrificing to work out strategies to fit the ancient therapies in a modern context – this is pure passion play.
g) The Swami Vivekananda Yoga Kendra (a deemed university) is led by a chemical engineer who has sacrificed a lucrative career in America, and picked up Yoga development as his passion.
h) Google, Apple- ipod, and Microsoft (in its early stage) were passionate about their work and the net result is that they are global leaders in respective fields.
i) Just log on to http://www.trusted.md/ , http://www.curinghealthcare.com/ and http://www.diabetesmine.com/ , and you will see PURE PASSION at work. The quality of output reflects their zeal, enthusiasm, and passion.

In the modern Pharma context we see lots of activity and a high hunger for sales – but what are the business drivers – LOVE, PASSION, GREED, OR FEAR?

Unless there is a revivalism in the global Pharma industry for passion as a driver business sentiment, as we see at in workplaces such as Google, it will be inevitable that passionate people from Google Health and other ventures start taking the front seat in driving the future of healthcare while other core healthcare companies will be quiet followers.

What drives work at workplaces?

Workplaces and professional work are driven by four emotions – LOVE, PASSION, FEAR and GREED. Love is what drives Sri Sri Ravishankar, Mata Amritanandamayi, Satya Sai Baba and their like in their worldly activities. Passion is what drives, Mr. Narayan murthy of Infosys and Mr. Azim Premji of Wipro. Fear and greed also drive people to work. The business results of people working with passion are always superior and create benchmarks.

What is passion?

Passion is an intense emotion that drives human activities.

Is PASSION the fifth P of marketing?

Marketing is an ever growing field and there have been a number of thoughts on expanding the list of 4 Ps. The other Ps suggested include people, physical evidence, process, packaging, publicity among other Ps. Here is an interesting thesis to include PASSION - as the fifth P of marketing. This blogger has the bright idea that passion is indeed the fifth P of marketing - please click here: http://cincom.typepad.com/simplicity/2005/11/the_fifth_p_of_.html And it seems to be right, ask Sequoia Capital and Mr. Moritz!

This is my 44th blogpost - and the picture is that of Mr. Moritz. I am sure you have enjoyed this blogpost. Please do read all other blogposts including by clicking on OLDER POSTS. Please enjoy. Thanks.