Finding White Space: Navigating Through Pakistan s Herbal Medicinal Product Market

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1 EUROPEAN MODEL FOR DEVELOPING SUCCESSFUL HERBAL MEDICINAL PRODUCTS Finding White Space: Navigating Through Pakistan s Herbal Medicinal Product Market Muhammed A. Qayyum, MD & CEO Medics Laboratories Pvt. Ltd.

2 Terminology Phtyo pharmaceutical Origin greek greek phuein phuton phyto come in to being a plant from Greek phuton a plant, from phuein come into being. Herbal Medicinal Product

3 What's the difference? Pharmaceutical Phtyo pharmaceutical Herbal Medicinal Product Why Not Nutraceuticals Or Dietary Supplements?

4 DRAP Act HOTC SRO 412 Schedule I Sec 2a Drug: Pharmaceutical any substance or mixture of substances that is manufactured, sold, stored, offered for sale or represented for internal or external use in the treatment, mitigation, prevention or diagnosis of diseases, an abnormal physical state, or the symptoms thereof in human beings or animals or the restoration, correction, or modification of organic functions in human beings or animals, including substance used or prepared for use in accordance with the Ayurvedic, Unani, Homoeopathic, Chinese or biochemic system of treatment except those substances and in accordance with such conditions as may be prescribed; Sec 2 xxxv Phtyo pharmaceutical means herbal preparation or herbal products which contain processed or unprocessed standardized materials derived from plants or parts thereof or combination of parts of plants, standardized or quantified extracts or fractions thereof in a dosage form for internal or external use of human beings or animals and intended to be used for the diagnosis, treatment, mitigation or prevention of any disease or disorder in human beings or animals but does not include administration by parenteral SRO G.S.R. 918(E) 2015 Sec 2 lxxi Herbal Medicinal Product any medicinal product, exclusively containing as active substances one or more herbal substances or one or more herbal preparations, or one or more such herbal substances in combination with one or more such herbal preparations European Medicine Agency

5 Traditional Meds Sub Continent Ayurveda 5000 BCE Indus Valley Civilization Abd Al Rafe Heravi Ghazni King, Khusro Malik, Lahore Mughals Sher Shah Suri, Unani physician at every stopover house on caravan routes, GT Road.

6 Traditional Meds Pakistan Hashmi Surma Sub Continent, 1700 Tayyebi Dawakhana Unani, Indore 1815 Hakim Muhammed Hashim 1794 Hakim Azam Khan (Tayyebi 1800) Hakim Ajmal Khan Hakim Abdul Rahim Ashraf 1939 Ashraf Laboratories Verowal 1939 Ajmal Dawakhana Pvt Ltd 1948 Hamdard Laboratories Karachi 1948 Qarshi Dawakhana Lahore 1968 Hakim Mohammed Said Hakim Mohammad Hassan Qarshi

7 1980 s Emergence of Ethical Marketing Akhlaque Ahmed, Formerly Albert David & Atco Est / Verona on prescription Bulgarian research on Tribulus Sold 1995 / CIS 1996 / 2017 Countries 25 Tawassul Hussain, Formerly Boots & Macter Est / Livergen on prescription Consumer Since 2013

8 1990 s New Players Enter Personal Care Consumer Personal Care Qarshi Ethical Marketing Div Brookes Herbal Division Vatika & Amla Dabur India M&P Himalaya India Himont Bonnisan Hajmola Prescription Consumer LIV52

9 Game Changer Intesar Siddiqui in Started with Himalaya India 2002 Dr. Koff in 2010 for Rs. 150 Epitize Most Aggressive Moving to consumer brands

10 Ivy Leaf Story 415M IMS 2016 Initial idea 2009, PKR 75 too expensive Launched in PKR 150 Prescription wide acceptability Prospan followed in Products in 4 years as of Jan 2017 Single Ingredient Premium Quality Others 10% Pulmonat 5% Traceability HMPC Monograph Strong Clinical Evidence White Space Olcuf 6% Hylixia 7% Coferb 43% Kroff 9% Prospan 20%

11 We Must Launch Ispaghol

12 Jan 27, 2016 National Advertising Review Board (NARB) Discontinue Claim that Benefiber Helps Maintain Regularity. blood pressure, triglycerides, cholesterol, bowel function, health claims not supported by EFSA Can it compete with Ispaghool? 1. Pricing? 2. Positioning? 3. Value Addition? 4. Profit Margins??

13 World s Greatest Idea

14 Our love for Ispaghool

15 Here Comes Cold JOHAR JOSHANDA Qarshi s flagship product Largest selling cold product Time, Best of Asia, May 2008 Strongest media blitz HASHMI JOSHANDA Me too formulation Heavy media advertisement No sales or distribution network 1. Pricing? 2. Positioning? 3. Value Addition / Differentiation? 4. Profit Margins??

16 Fennel Dill Oil Dill Oil PKR 50 6 Billion PKR 60 PKR Billion 55 Mio IMS 139 M QARSHI Spot the Difference?

17 Whatever became of them two Livergen peaked 50,000 / month mid 90 s Declining to 50,000 / year 2016 Several set backs Market dynamics Still contributes to profits Verona continues to be a prescription product Supported by clinical studies Growing in international markets Cash cow for the company

18 How it took away the pain Simple formulation Starting as prescription product Steady growth Limited completion 2010 stopped doctor visits Small budget TVC 2013 Growth increased Over 2 million 206

19 The Learning Curve

20 Market Segmentation Traditional Unani Products Herbal Medicinal Products Phytopharma Homeopathic Medicines Home Remedies Dietary Supplements

21 Herbal / Traditional Products in Pakistan Euromonitor International September 2016 Expert advice will be pivotal in consumer purchasing decisions

22 The Innovation Ambition Matrix HBR May 2012 Scientifically and traditionally proven premium quality herbal medicinal products or phytopharmaceuticals

23 Simple Starting Point

24 Peak Matters

25 Reality

26 World s Greatest Idea

27 Size??? Euromonitor International Nadeem & Qayyum PKR Billion

28 Lesson from Unani Medicines Patient Centric Spiritual Goodness

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