List of Contents and Tables ANALGESICS IN SWEDEN - CATEGORY ANALYSIS... 1 Headlines... 1 Trends... 1 Switches... 2 Competitive Landscape... 2 Prospects... 3 Category Data... 3 Table 1 Sales of Analgesics by Category: Value 2005-2010... 3 Table 2 Sales of Analgesics by Category: % Value Growth 2005-2010... 3 Table 3 Topical Analgesics/Anaesthetic by Format: % Value Breakdown 2005-2010... 4 Table 4 Analgesics Company Shares by Value 2006-2010... 4 Table 5 Analgesics Brand Shares by Value 2007-2010... 4 Table 6 Forecast Sales of Analgesics by Category: Value 2010-2015... 5 Table 7 Forecast Sales of Analgesics by Category: % Value Growth 2010-2015... 5 ANALGESICS IN SWEDEN - COMPANY PROFILES... 7 Abigo Medical Ab in Consumer Health (sweden)... 7 Strategic Direction... 7 Key Facts... 7 Summary 1 Abigo Medical AB: Key Facts... 7 Summary 2 Abigo Medical AB: Operational Indicators... 7 Company Background... 7 Production... 7 Competitive Positioning... 8 Summary 3 Abigo Medical AB: Competitive Position 2010... 8 Antula Healthcare Ab in Consumer Health (sweden)... 8 Strategic Direction... 8 Key Facts... 8 Summary 4 Antula Healthcare AB: Key Facts... 8 Summary 5 Antula Healthcare AB: Operational Indicators... 9 Company Background... 9 Production... 9 Competitive Positioning... 9 Summary 6 Antula Healthcare AB: Competitive Position 2010... 9 Meda Ab in Consumer Health (sweden)... 10 Strategic Direction... 10 Key Facts... 10 Summary 7 Meda AB: Key Facts... 10 Summary 8 Meda AB: Operational Indicators... 10 Company Background... 10 Production... 11 Summary 9 Meda AB: Production Statistics 2010... 11
Competitive Positioning... 11 Summary 10 Meda AB: Competitive Position 2010... 11 CONSUMER HEALTH IN SWEDEN - INDUSTRY OVERVIEW... 13 Executive Summary... 13 Resilience To Wider Economic Forces... 13 Liberalisation Boosts Sales Growth... 13 Increasing Concentrated Environment... 13 Distribution Increasingly Diverse... 13 Positive Outlook... 13 Key Trends and Developments... 13 the Population Continues To Age... 14 Consumer Healthcare Proves Resilient To Wider Economic Forces... 14 Health and Wellness A Driver of Sales... 15 Swedish Consumers Are More Willing To Self-medicate... 16 Liberalisation Does Not Lead To Increased Price Competition... 17 Market Indicators... 18 Table 8 Consumer Expenditure on Health Goods and Medical Services 2005-2010... 18 Table 9 Life Expectancy at Birth 2005-2010... 19 Market Data... 19 Table 10 Sales of Consumer Health by Category: Value 2005-2010... 19 Table 11 Sales of Consumer Health by Category: % Value Growth 2005-2010... 19 Table 12 Consumer Health Company Shares by Value 2006-2010... 20 Table 13 Consumer Health Brand Shares by Value 2007-2010... 20 Table 14 Penetration of Private Label by Category 2005-2010... 21 Table 15 Sales of Consumer Health by Distribution Format: % Analysis 2005-2010... 21 Table 16 Sales of Consumer Health by Category and Distribution Format: % Analysis 2010... 22 Table 17 Forecast Sales of Consumer Health by Category: Value 2010-2015... 23 Table 18 Forecast Sales of Consumer Health by Category: % Value Growth 2010-2015... 23 Appendix... 23 OTC Registration and Classification... 23 Advertising... 25 Standardised Packaging Requirements... 25 Vitamins and Dietary Supplements Registration and Classification... 25 Advertising... 27 Self-medication/self-care and Preventative Medicine... 27 Switches... 28 Summary 11 OTC Healthcare Switches 2008-2010... 28 Definitions... 29 Summary 12 Research Sources... 29
ANALGESICS IN SWEDEN - CATEGORY ANALYSIS HEADLINES Analgesics witnesses current value sales of SEK1.5 billion in 2010; an increase of 7% Liberalisation is the single most important factor shaping category sales in 2010 Ibuprofen records the fastest retail value growth in 2010 of 12% Sales are concentrated with GlaxoSmithKline Sweden AB and McNeil Sweden AB controlling a combined share of 71% Analgesics is expected to reach constant value sales of SEK1.8 billion in 2015 which represents an overall increase of 23% TRENDS Liberalisation of consumer health was the single most important factor shaping analgesics sales in 2010. According to Läkemedelsverket, approximately 6,500 retail outlets are now permitted to sell certain analgesics in the country. A secondary and more general factor driving growth is the self-medication trend. Swedish consumers are all the more likely to self-medicate and diagnose minor ailments and medical complaints. In current retail value terms, growth in 2010 was slower than the 8% CAGR of the review period. Despite this, both acetaminophen and ibuprofen recorded current retail value growth rates that were faster than their respective CAGRs for the review period. Acetaminophen and ibuprofen represented a combined 60% share of total analgesics sales in 2010. The growth of acetaminophen and ibuprofen is linked to the liberalisation of consumer health which led to greater distribution and availability of these products. Other analgesics sales did not benefit to the same extent as acetaminophen and ibuprofen in terms of increased distribution and consequently this is why analgesics sales as a whole witnessed slower growth in 2010 than the review period CAGR. Ibuprofen recorded the fastest current value growth rate in 2010 of 12%. This growth was driven by the strong performance of McNeil Sweden s Ipren brand which accounted for 64% share of all ibuprofen sales in Sweden. Ipren is a widely recognised and promoted brand in Sweden. Indeed, television advertising for the brand, which depicts a singing Ipren ibuprofen tablet, reached cult status with certain groups of Swedish consumers which highlight the popularity of the brand and the relationship consumers have with the brand. Ipren has also strongly benefitted from liberalisation in consumer health which has led to an increase in its distribution and availability. Despite liberalisation, the pricing of a specified analgesics brand is predominately uniform across the pharmacy and supermarket retailer channels. The only noted price deviation is product sales via convenience stores/forecourt retailers. Products sold via this channel are priced higher than chemists/pharmacies and supermarkets. Cream/gel continued to be the dominant format in topical analgesics/anaesthetic in 2009, with an 88% current retail value share of sales. The spray format, launched in 2006, reached a share of 10% in 2010; constant with 2009 s results. Eeze Spray Gel from Antula Healthcare AB was the dominant spray brand in 2010. Sales of child-specific analgesics are marginal in Sweden, as adult analgesics are also used for children. The difference between child-specific and adult analgesics is mainly the dosage of the active ingredient. Rather than offering separate child-specific analgesics, many players simply label their analgesics product offerings with the recommended dosage for various age groups. A small number of child-specific analgesics are present, however, and differ mainly in format from adult analgesics, with liquid analgesics, for example, being common in child-specific analgesics.
Homeopathic products do exist in Swedish consumer health but their widespread usage remains relatively small in comparison to other Western European countries. According to the trade association Leverantörsföreningen för Homeopati, there are approximately 3,000 homeopathic therapists in Sweden. The registered homeopathic players in Sweden are Biologische Heilmittel Heel GmbH, DCG Nordic AB, Laboratoires Boiron, Pekana Naturheilmittel GmbH, Plantamed AB, Pharmazeutische Fabrik Dr Reckeweg & Co GmbH, Sanum Kehlbeck GmbH, Scanfarma AB and Seven Seas Limited. Brand recognition is important factor dictating the purchasing decision making process. Consumers of analgesics lean towards the brands they recognise from advertising. SWITCHES Two new naproxen analgesics and one acetaminophen product were switched to OTC status in Sweden in 2009. Orion Pharma AB launched Pronaxen 250mg and BMM Pharma AB launched Naproxen BMM Pharma. GlaxoSmithKline Sweden AB s 500mg version of Panodil was also switched in 2009, although larger packaging than 20 tablets was switched back to Rx status in June 2009 as a result of misuse by teenagers. COMPETITIVE LANDSCAPE Sales were concentrated with GlaxoSmithKline Sweden AB and McNeil Sweden AB controlling a combined value share of 71%. Both companies hold several of the most popular brands. GlaxoSmithKline acquired two brands from AstraZeneca AB in 2009; top selling brands Alvedon and Reliv, both acetaminophen, and this contributed to an increase in value share from 9% in 2008 to 36% in 2009. GlaxoSmithKline s third brand is Panodil. The acquisition of Alvedon and Reliv gave the company a 100% share in acetaminophen for 2009. Despite the entry of Apoteket AB into acetaminophen in 2010 with the launch of Apofri Paracetamol, GlaxoSmithKline continued to dominate the segment with a 2010 current retail value share of 99%.
PROSPECTS Pain deriving from an ageing body will boost future sales. In addition to this, liberalisation of consumer health and the self-medication trend will continue to have positive impacts on growth rates throughout the forecast period.. CATEGORY DATA Table 1 Sales of Analgesics by Category: Value 2005-2010 SEK million 2005 2006 2007 2008 2009 2010 Systemic Analgesics - Adult Analgesics - Child-Specific Analgesics Topical Analgesics/ Anaesthetic Analgesics,,,,, Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 2 Sales of Analgesics by Category: % Value Growth 2005-2010 % current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL
Systemic Analgesics - Adult Analgesics - Child-Specific Analgesics Topical Analgesics/Anaesthetic Analgesics Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 3 Topical Analgesics/Anaesthetic by Format: % Value Breakdown 2005-2010 % retail value rsp 2005 2006 2007 2008 2009 2010 Cream/Gel Patch Spray 3.0 7.9 8.7 10.0 10.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 Analgesics Company Shares by Value 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Others 1. 0.9 0.7 0.7 0.6 Total 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 5 Analgesics Brand Shares by Value 2007-2010
% retail value rsp Brand Company 2007 2008 2009 2010 Others 5.7 2.7 0.8 0.6 Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Forecast Sales of Analgesics by Category: Value 2010-2015 SEK million 2010 2011 2012 2013 2014 2015 Systemic Analgesics - Adult Analgesics - Child-Specific Analgesics Topical Analgesics/ Anaesthetic Analgesics,,,,,, Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 7 Forecast Sales of Analgesics by Category: % Value Growth 2010-2015 % constant value growth Systemic Analgesics - Adult Analgesics - Child-Specific Analgesics Topical Analgesics/Anaesthetic 2010-15 CAGR 2010/15 TOTAL
Analgesics Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
CONSUMER HEALTH IN SWEDEN - INDUSTRY OVERVIEW EXECUTIVE SUMMARY Resilience To Wider Economic Forces Despite the weak economic climate, Swedish consumer health sales proved to be relatively immune to wider economic forces. Consumer health posted strong retail value growth once again in 2010, albeit slower than the CAGR recorded for the review period as a whole. Most mature consumer health categories proved to be resilient and posted healthy growth rates as consumers still needed to attend to their minor ailments. Growth in 2010 was also supplemented and supported by a number of other factors such as the self-medication trend, liberalisation of pharmacy sales, the continued ageing of the Swedish population and increased category segmentation. Liberalisation Boosts Sales Growth The de-regulation of pharmacy sales occurred in November 2009, leading to the entry of numerous new pharmacy chains. As part of this process the sale of certain OTC medicines was liberalised with distribution via mass market channels such as supermarkets and hypermarkets now possible. This change led to a strong boost in sales prompted by the greater availability and distribution of consumer health products. However, despite the de-regulation of pharmacy sales, subsequent entry of new players in pharmacy retailing sales and product availability in mass market channels, increased or significant price competition had yet to occur in Swedish consumer health at the end of the review period. The lack of price competition in the context of greater product distribution consequently encouraged the recording of strong current retail value growth rates for 2010. Increasing Concentrated Environment Consumer health s sales were increasingly characterised by consolidation; numerous categories are dominated by a handful of players. Indeed major players are not just confined to one area of consumer health but have an overall presence across the spectrum of total consumer health sales. 2010 was also a year that witnessed merger and acquisition activity. The domestic player, Meda AB, firmly stated strategic goals to establish itself as a leading player. This will be achieved through a combination of organic growth and acquisition, as the company s acquisition of BioPhausia OTC medicine product portfolio in September 2010 indicates. Distribution Increasingly Diverse Positive Outlook KEY TRENDS AND DEVELOPMENTS
the Population Continues To Age Current Impact Outlook Future Impact Consumer Healthcare Proves Resilient To Wider Economic Forces
Current Impact Outlook Future Impact Health and Wellness A Driver of Sales
Current Impact Outlook Future Impact Swedish Consumers Are More Willing To Self-medicate
Current Impact Outlook Future Impact Liberalisation Does Not Lead To Increased Price Competition
Current Impact Outlook Future Impact MARKET INDICATORS Table 1 Consumer Expenditure on Health Goods and Medical Services 2005-2010 SEK million Pharmaceuticals, 2005 2006 2007 2008 2009 2010
medical appliances/ equipment Outpatient services Hospital services Total Source: Euromonitor International from official statistics, trade associations, trade interviews Table 2 Life Expectancy at Birth 2005-2010 years 2005 2006 2007 2008 2009 2010 Males Females 82.8 82.9 83.0 83.2 83. 83.5 Source: Euromonitor International from official statistics MARKET DATA Table 3 Sales of Consumer Health by Category: Value 2005-2010 SEK million 2005 2006 2007 2008 2009 2010 OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Child-Specific Consumer Health Consumer Health,,,,,, Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy care as well as cough, cold and allergy remedies, medicated skin care and eye care. Table 4 Sales of Consumer Health by Category: % Value Growth 2005-2010 % current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Child-Specific Consumer Health Consumer Health Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy care as well as cough, cold and allergy remedies, medicated skin care and eye care.
Table 5 Consumer Health Company Shares by Value 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Consumer Health Brand Shares by Value 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 7 Penetration of Private Label by Category 2005-2010 % retail value rsp 2005 2006 2007 2008 2009 2010 Consumer Health OTC Sports Nutrition Vitamins and Dietary Supplements Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 8 Sales of Consumer Health by Distribution Format: % Analysis 2005-2010 % retail value rsp Store-Based Retailing Grocery Retailers Discounters Healthfood shops Hypermarkets Small Grocery Retailers Supermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Healthcare Specialist Retailers 2005 2006 2007 2008 2009 2010
Mass Merchandisers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 9 Sales of Consumer Health by Category and Distribution Format: % Analysis 2010 % retail value rsp OTC SN VDS WM HTP AC Store-Based Retailing Grocery Retailers Discounters Healthfood shops Hypermarkets Small Grocery Retailers Supermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Healthcare Specialist Retailers Mass Merchandisers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 100.0 100.0 100.0 100.0 100.0 CSCH Store-Based Retailing Grocery Retailers Discounters Healthfood shops Hypermarkets Small Grocery Retailers Supermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Healthcare Specialist Retailers Mass Merchandisers Other Non-Grocery Retailers Non-Store Retailing Vending
Homeshopping Internet Retailing Direct Selling Total 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight management; HTP = herbal/traditional products; AC = Allergy Care; CSCH = child-specirfic consumer health Table 10 Forecast Sales of Consumer Health by Category: Value 2010-2015 SEK million 2010 2011 2012 2013 2014 2015 OTC 5 Sports Nutrition Vitamins and Dietary 2 Supplements Weight Management Herbal/Traditional Products Allergy Care Child-Specific Consumer Health Consumer Health 8,,,,,, Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy care as well as cough, cold and allergy remedies, medicated skin care and eye care. Table 11 Forecast Sales of Consumer Health by Category: % Value Growth 2010-2015 % constant value growth 2010-15 CAGR 2010/15 TOTAL OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Child-Specific Consumer Health Consumer Health 2.9 15.5 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy care as well as cough, cold and allergy remedies, medicated skin care and eye care. APPENDIX OTC Registration and Classification
European regulatory systems Marketing authorisations
Advertising Standardised Packaging Requirements Vitamins and Dietary Supplements Registration and Classification
National legislation Distribution Regulation of vitamins and dietary supplements
Regulation of herbal products Advertising Self-medication/self-care and Preventative Medicine