Fast moving health goods hold promise

As patients start treating themselves for minor ailments like cough and cold, constipation, acidity and fatigue, most pharmaceutical biggies are planning to jump into the self-medication bandwagon, also called over-the-counter products or fast moving health goods. This segment has seen a spurt of over 20% in the last three years and Dr.Morepen and Himalaya Drug Company seem to be enjoying most of the profits.

Just waking up, major pharmaceutical companies are planning to set their feet in the OTC segment before it gets too crowded. Unconfirmed reports say big companies like Dr.Reddy's, Cipla and Glaxo Smithkline (which already has its Eno in the market) are already looking at this market.

The Over-the-counter or fast moving health goods are sold without a prescription. Their market is worth about Rs.4500 crore and enjoy 20-30 percent of shelf space. So, it's obvious that this much money may want to make everyone take a dip in the over-the counter pool.

What is also inciting them is the success of players who are already reaping the profits of this market. Dr. Morepen, a subsidiary of Morepen Laboratories, and Himalaya Drug Company have exploited the OTC market for quite sometime now with an army of advertisements about their isabgols, instant antacids and energy drinks etc. These companies target urban consumers who lead a fast and erratic life. Therefore, it is the herbal and natural medications that hog most of the limelight.

Himalaya's OTC products comprise about 21 percent of the bulk drugs market. Ravi Prasad, President & CEO, Himalaya Drugs, says OTC healthcare products account for 7-8 percent of Himalaya's revenues. And, he says, the future is bright too, adding, "Given the change in lifestyle which leaves little time to consult a doctor for minor ailments, consumers are opting for self-medication which is becoming a lucrative business opportunity for many new entrants."

Dr. Morepen has also seen a rise in sales figures since the launch of its FMHGs, says Bhavna Sood, Head, Corporate Communications. Sood says, "The segment has great potential and has received tremendous response since people are more health conscious now a days."

It would now be interesting to watch whether companies that are seasoned players in the OTC market will lead the market, or whether they will be toppled by the new entrants which include some of the biggest pharmaceutical companies in the world.