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UK – CCA Overview UK CCA sales by pharmacy / nonpharmacy channel 2019 (MSP, $mn) 41% 59% Pharmacy Nonpharmacy Sore throat rems & medicated confec�onery 57% 43% 71% 29% 55% 45% 55% 45% 44% 56% 63% 37% Systemic cold & flu Cough remedies Topical decongestants Systemic decongestants Allergy remedies 62% 38% Chest rubs & inhalants Ingredient Status Additional notes acetylcysteine Rx OTC for children aged 6+ years ambroxol beclometasone M benzocaine M Max strength for sore throat 3mg budesonide P Max daily dose 200mcg per nostril carbocisteine Rx cetirizine M Mass market up to 30 tablet packs chlorphenamine P dextromethorphan P Max daily dose 75mg desloratadine Rx diphenhydramine P fexofenadine Rx flurbiprofen P Max dose 8.75mg fluticasone M Max pack size 60 sprays levocetirizine Rx mometasone P Max daily dose 200mcg per nostril naphazoline P pseudoephedrine P OTC in packs up to 720mg Legal status of selected CCA ingredients in UK

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Page 1: UK – CCA Overview

UK  –  CCA  Overview  

UK  CCA  sales  by  pharmacy  /    non-­‐pharmacy  channel  2019  (MSP,  $mn)  

41%  59%  

Pharmacy  

Non-­‐pharmacy  

Sore  throat  rems  &  medicated  confec�onery  

57%   43%  

71%   29%  

55%   45%  

55%   45%  

44%   56%  

63%   37%  

Systemic  cold  &  flu  

Cough  remedies  

Topical  decongestants  

Systemic  decongestants  

Allergy  remedies  

62%   38%  

Chest  rubs  &  inhalants  

Ingredient Status Additional0notes

acetylcysteine Rx OTC/for/children/aged/6+/years

ambroxol –

beclometasone M

benzocaine M Max/strength/for/sore/throat/3mg

budesonide P Max/daily/dose/200mcg/per/nostril

carbocisteine Rx

cetirizine M Mass/market/up/to/30/tablet/packs

chlorphenamine P

dextromethorphan P Max/daily/dose/75mg

desloratadine Rx

diphenhydramine P

fexofenadine Rx

flurbiprofen P Max/dose/8.75mg

fluticasone M Max/pack/size/60/sprays

levocetirizine Rx

mometasone P Max/daily/dose/200mcg/per/nostril

naphazoline P

pseudoephedrine P OTC/in/packs/up/to/720mg

Legal0status0of0selected0CCA0ingredients0in0UK

Page 2: UK – CCA Overview

USA  –  Systemic  cold  &  flu  

  July  2020  also  saw    launch  of  Vicks    Children’s  Botanicals  supplements,    posi�oned  for  cold  &    flu,  capitalising  on  trend  towards  natural  remedies  

  Versions  include  Mul�  Care  (marshmallow  root,  ivy  leaf,  elderberry)  and  Mul�  Care  Night  (with  added  chamomile),  plus  a  combina�on  pack  

  Range  is  claimed  to  soothe  cough,  clear  mucus  and  relieve  irrita�on  for  infants  and  children  aged  1+  year  

  Mucinex  cold  &  flu  range  grew  well    in  the  year  to  mid-­‐2020,  boosted  by    launch  of  Mucinex  Nightshi�  ($14.1mn)    in  summer  2019  

  Nightshi�  targets  younger,  busy  consumers  and  was  backed  via  a  partnership  with  actor  Jason  Biggs,  who  stated  at  the  launch  event  in  New  York  City  that  it  helps  to  relieve  his  cold  symptoms  at  night  so  he  can  feel  “human”  enough  during  the  day  to  look  a�er  his  young  children  –  “because  the  kids  don’t  care  if  I’m  sick”  

  Core  Fast-­‐Max  line  ($150.0mn,  +6%)  was  extended  with  Maximum  Strength  Fast-­‐Max  All-­‐in-­‐One  Cold  &  Flu  sub-­‐range  in    July  2018,  posi�oned  as  a  comprehensive  cold  &  flu  remedy  claimed  to  temporarily  relieve  symptoms  including  nasal  conges�on,  fever,  headache,  cough,  sore  throat,  nasal  conges�on,  sinus  pressure  and  body  pain  

USA  systemic  cold  &  flu  sales  by  format  2019    (MSP,  $mn)  

Liquids  &  syrups  44%  (CAGR  +3%)  

Others  6%  (CAGR  +5%)  

Powder  &  granules  9%  (CAGR  +10%)  

So�  capsules  20%    (CAGR  +5%)  

Tablets  &  caplets  13%  (CAGR  +1%)  

Year-­‐end  2019  sales;  CAGR  2019/15  

Soluble  &  effervescent    tablets  9%  (CAGR  +3%)  

Page 3: UK – CCA Overview

India  –  Allergy  remedies  

Topline  trends:  Allergy  remedies  

•  Allergy  remedies  growth  is  rela�vely  low,  with  low-­‐cost  brands  benefi�ng  from  reduced  consumer  purchasing  power  owing  to  historical  economic  challenges  and  Covid-­‐19  pandemic  in  2020  

•  While  fexofenadine  accounts  for  majority  of  CHC  sales,  ingredient  is  a  “deemed  OTC”  and  leading  brand  Allegra  is  officially  Rx  

•  Low-­‐cost  levoce�rizine  brands  in  the  mid  �er  performed  well  2016-­‐19,  while  some  opportuni�es  exist  within  bilas�ne  segment    Although  Allegra’s  “deemed  OTC”  status  means  it  cannot  

be  adver�sed  to  consumers,  marketer  Sanofi  has  invested  in  consumer  educa�on  to  raise  awareness  of    causes  of  allergies  via  allergyfree.co.in  website    (see  right)  

  While  site  does  not  contain  brand  promo�on    and  recommends  use  of  a  wide  range  of  an�histamines  for  allergy  management,  it  uses  a  similar  colour  scheme  to  packaging  for  Allegra  

  A  lack  of  fexofenadine  compe��on  has  allowed  Allegra  to  retain  a  commanding  share,  and  it  was  extended  into  nasal  sprays  segment  via  launch  of  flu�casone-­‐based  Allegra  Nasal  in  2019  

India  allergy  remedies  sales    mid-­‐2019  &  mid-­‐2020  (MSP,  $mn)  

60.7   64.1  

+8.7%   +10.9%   +10.0%  +2.5%   +5.5%  

2016   2017   2018   mid-­‐2019   2019   mid-­‐2020  

Page 4: UK – CCA Overview

Germany  –  CCA  Outlook  

Short-­‐term  forecast:  Gloomy  outlook  for  all  CCA  but  allergy  

  With  cold  &  flu  infec�on  rates  expected  to  be  significantly  down  in  winter  2020-­‐21  owing  to  social  distancing,  increased  hygiene,  etc.  the  outlook  for  a  cough  &  cold  market  that  was  already  depressed  is  grim  

  Pharmacists  administering  flu  jabs  to  adults  in  pharmacies  should  further    boost  immunity  in  the  popula�on  and  lessen  demand  for  cold  &  flu  remedies  

  2020  will  see  sales  down  across  all  but  one  CCA  category  

  Only  real  bright  spot  is  allergy  remedies,  set  to  be  driven  by  rising  allergy  levels  (around  15%  of  Germans  are  said  to  suffer  from  hayfever  at  least  once  in  their  life�me)  and  steadily  longer  and  more  severe  hayfever  seasons  

  Crea�on  of  OTC  desloratadine  segment  in  March  2020  (following  Federal  Administra�ve  Court  ruling)  paves  way  for  more  launches  

  All  categories  (save  for  sore  throat)  will  enjoy  a  small  recovery  in  2021,  but  it  is  clear  that  significant  growth  will  be  hard  won,  with  brands  needing  to  really  stand  out  in  mature,  saturated  categories  to  do  well  

  Again,  allergy  remedies  provide  the  brightest  prospect  in  2021,  while  there  may  be  slight  return  to  growth  for  topical  decongestants  and  systemic  cold  &  flu,  although  the  large  mature  sore  throat  remedies  category  stays  flat  

  From  a  very  small  base,  sales  of  asthma  remedies  could  prove  dynamic,  driven  by  at-­‐home  inhala�on  devices  from  Pari,  Emser,  Omron,  etc.  

Germany  CCA  short-­‐term  forecast    sales  by  category  2020-­‐21  (MSP,  $mn)  

Growth  rates  are  %  change  on  previous  12  months  

136  (-­‐2.8%)  

137  (+0.8%)  

235  (-­‐1.0%)  

237  (+0.7%)  

441  (-­‐1.8%)    

440    (-­‐0.1%)  

91  (+9.3%)  

99  (+8.5%  )  

208  (-­‐1.7%)  

212  (+2.0%)  

188  (-­‐1.3%)  

195  (+3.7%)  

2020   2021  

Syst  cold  &  flu   Cough  rems   Sore  throat  

Allergy   Topical  decong   Other  CCA  

1,298  (-­‐1.0%)    

1,319  (+1.6%)