The 300 billion retail market is making waves again! 46 varieties nugget new tracks

In order to meet the needs of clinical drugs and standardized drug management, since 2004, the State Food and Drug Administration has converted 805 prescription drugs into over-the-counter drugs, including omeprazole enteric-coated tablets, pudilan anti-inflammatory tablets, budesonide nasal spray and other OTC Class A and double-span varieties
.
According to data from the intranet, the market sales scale of China's retail pharmacy terminals (urban physical pharmacies + online pharmacies) will exceed 300 billion yuan in 2021, an increase of 11.
42%
year-on-year.
As more and more prescription drugs turn to over-the-counter, the retail pharmacy market will usher in a major reshuffle
.

 

46 prescription drugs were transferred to OTC, and 15 Class A and double cross varieties were listed

 

Drugs can be divided into prescription (RX) and over-the-counter (OTC) drugs, but the species of a drug is not set in stone, and when certain conditions are met, prescription drugs can be converted to OTC drugs; Among them, Class A OTC drugs must be purchased and used under the guidance of pharmacists practicing pharmacists, while Class B OTC drugs do not have this requirement
.
Usually, a drug can only be classified as prescription or over-the-counter, but sometimes a drug can be either prescription or over-the-counter, also known as a double cross-breed
.

 

Since 2021, the State Food and Drug Administration has issued a total of 21 announcements on the conversion of prescription drugs to OTC drugs, involving 46 kinds of drugs (in terms of product name), including omeprazole enteric-coated tablets, potassium glucosamine sulfate tablets, Bao Women's Health Gel, Menstrual Beauty Care Granules, Pudilan Anti-inflammatory Tablets, Safflower Tablets, Biphenylacetic Acid Gel, Aloe Vera Pearl Capsules, Thirst Quenching Mixture, Ambroxol Hydrochloride Sustained Release Tablets, Wind Relief Capsules, Jin Zhen Granules, Gynecological White Phoenix Capsules, etc
.
These medicines can be sold from retail channels without a prescription, as required
.

 

In the past two years, the State Food and Drug Administration has published a list of prescription drugs to OTC varieties

Source: State Food and Drug Administration, compiled by Minnet

 

Among the 46 prescription drugs for trans-OTC, there are 15 double-span varieties, including omeprazole enteric-coated tablets, Bao nymphalin gel, puddylan anti-inflammatory tablets, ambroxol hydrochloride extended-release tablets, lactulose oral solution, compound plate blue root granules and budesonide nasal spray and other commonly used clinical drugs; From the perspective of treatment categories, most of them are respiratory chemical drugs, a total of 13; Respiratory system medicines, musculoskeletal system chemicals, gynecological proprietary Chinese medicines and five organs proprietary Chinese medicines are closely followed, all of which are 4 or more
.

 

Pudilan anti-inflammatory, budesonide.
.
.
The firepower is in full swing, and the 300 billion retail pharmacy market has made waves again

 

In the past two years, after the conversion of a number of prescription drugs to OTC, sales and their growth rates have continued to rise
in retail pharmacies.

 

Pudi blue anti-inflammatory tablets, which are known for their "heat-clearing and detoxification" effects, will only have tens of millions of sales revenues in 2021 in China's public urban public hospitals, county-level public hospitals, urban community centers and township health centers (referred to as China's public medical institutions); The terminal sales scale of retail pharmacies in China is close to 800 million yuan, an increase of 9.
42%
year-on-year.
It can be seen that this kind of treatment of common cold cough rather than antibiotic products, the retail market is obviously more popular
than the hospital market.

 

In the past three years, China's retail pharmacies terminal Pudilan anti-inflammatory tablets sales trend (: 10,000 yuan)

Source: Intranet Database

 

Budesonide is a large variety of inhalants, and budesonide nasal spray is its second best-selling preparation, with terminal sales of more than 400 million yuan in Public Medical Institutions in China in 2021; The sales of retail pharmacies in China also exceeded 200 million yuan, of which the sales of online pharmacies terminals increased by 63.
21%.

At present, only two import enterprises of the drug, AstraZeneca and Jianqiao Xinyuan Pharmaceutical, have been approved for production, and for exclusive or mild competition pattern of "treatment to non- products", retail pharmacy terminals are expected to become a major weapon
for their sales growth.

 

Budesonide nasal spray enterprises approved

Source: New version of the Intranet database

 

Omeprazole enteric-coated tablets are proton pump inhibitors (PPIs) and are mainly used for the treatment of duodenal ulcers, Dro-Ai syndrome (gastrinoma), gastric ulcers and reflux esophagitis
.
Affected by the collection, the terminal sales of the drug in China's public medical institutions fell by 76.
89% in 2021; In contrast, in China's retail market, especially online pharmacy terminals, the sales of the drug maintained a year-on-year growth rate of 53.
17%, and the potential still exists
.
Omeprazole enteric-coated tablets as a large variety of collection, the market profits of the hospital have been highly compressed, and now from prescription drugs to over-the-counter drugs, relevant pharmaceutical companies are expected to wait for opportunities to accelerate the development of the retail market and fill the gap
in product profits under the influence of collection.

 

In the past three years, China's online pharmacy terminal omeprazole enteric-coated tablets sales trend (: 10,000 yuan)

Source: Intranet China Online Pharmacy Terminal Competition Pattern

 

According to data from the Intranet, the overall market size of terminal chemical drugs and proprietary Chinese medicines in China's retail pharmacies will exceed 300 billion yuan in 2021, an increase of 11.
42%
year-on-year.
According to incomplete statistics, since 2004, 805 drugs have been converted from prescription drugs to OTC, involving thousands of production enterprises, and as more and more prescription drugs turn to over-the-counter drugs, the retail market will usher in a new fierce battle
.

 

Overall Sales Trend of Terminal Chemical Drugs and Proprietary Chinese Medicines in Retail Pharmacies in China from 2019 to 2021 (: RMB100 million)

Source: Intranet Database

 

What is the intention behind "turning things around" or becoming the trend of the times?

 

The expansion of "handling non-treatment" relies on the continuous improvement of China's drug management system, and with the implementation of relevant policies, a situation
of multi-party benefit is being formed.

 

First, benefit consumers of medication

 

According to the drug administration law's classification management requirements for prescription drugs, over-the-counter drugs Class A and Class B, after the drug is changed from prescription drugs to OTC, patients can buy drugs offline pharmacies and online e-commerce platforms without a doctor's prescription, and the purchase channels have increased, making it more convenient to buy drugs, especially for some patients who
need to buy drugs for a long time.

 

Second, reduce the national medical insurance expenditure

 

Medical and pharmaceutical expenditure will increase the financial burden of the government, from prescription drugs to B OTC varieties will withdraw from the national medical insurance reimbursement system, in the long run, "treatment to non- will be an effective measure
to save national medical insurance funds.

 

Third, save clinical diagnosis and treatment resources

 

For some small diseases, patients can achieve the effect of cure through self-diagnosis and treatment, self-medication, etc.
, doctors do not need to spend time and energy on the work of prescribing, they have more time to diagnose and treat patients with major diseases, improve their own diagnosis and treatment technology, and can get self-satisfaction and sense of
achievement from work and patient satisfaction.

 

Fourth, open up retail channels and continue the product life cycle

 

Pharmaceuticals, like other products, have a life cycle
.
After the expiration of the original drug patent, facing the fierce price competition of generic drugs, there will be a sharp decline in sales, that is, the patent cliff; Coupled with the impact of policies such as medical insurance control fees and collection and price reduction in recent years, some original research drugs have even withdrawn from the market
.
After the conversion of prescription drugs to over-the-counter drugs, on the one hand, the life cycle of the product can be extended, and pharmaceutical companies can obtain more benefits; On the other hand, making the product face objects from specific patients to the general public is conducive to driving the sales
of other products of the company.

 

Fifth, enrich the variety of products and promote new growth in the retail industry

 

For end pharmacies, the more over-the-counter drugs there are, the more they can meet the needs of consumers
.
"Transfer-to-non" drugs can be purchased directly in pharmacies, which is expected to increase product sales and expand market share
.
If the drug already has a good consumption base at the prescription drug stage, the opening of new channels after the "treatment of non-treatment" can bring more lucrative profits
to enterprises.
In recent years, the scale of China's OTC market has grown rapidly, and the "transfer to non- " varieties have ushered in more flexible promotion and sales channels, which will bring important development opportunities to the OTC market and related enterprises
.

 

epilogue

 

It is foreseeable that due to factors such as volume procurement, medical insurance control fees, and pharmaceutical reform, a large number of prescription drugs in the hospital will be squeezed out of
the hospital.
Industry insiders speculate that the proportion of conventional prescription drugs converted into general drugs in the future is about 70%, and these drugs will gradually move to the out-of-hospital market and release huge market potential
.
"Riding on the policy spring breeze of prescription drugs to OTC, how to quickly bring the advantages of prescription drugs into the OTC market and bring consumers more professional, more clear efficacy and better perception of products" will become a hot spot
for enterprises in the next stage of competition.

 

Source: Intranet database, the official website of the State Food and Drug Administration

 

Note: Minnenet", "China's three major terminals and 6 major market competition patterns", the statistical scope is: urban public hospitals and county-level public hospitals, urban community centers and township health centers, urban physical pharmacies and online pharmacies, excluding private hospitals, private clinics, village clinics, excluding county and rural pharmacies; The above sales are calculated
based on the average retail price of the product at the terminal.