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Affluence, an Aging Population, and Anticipated Rx-to-OTC Switches Boost a Healthy $32 Billion OTC Market in China, According to Kline
Date:11/27/2012

PARSIPPANY, N.J., Nov. 27, 2012 /PRNewswire/ -- With vigorous 15% growth over the previous year and a confluence of factors encouraging even greater growth, the Chinese OTC market provides ample opportunities for OTC marketers. An aging population and increasing incidence of several chronic diseases makes several therapeutic classes appealing for future Rx-to-OTC switches in China, reveals recently published Emerging Markets Rx-to-OTC Switch: Forecasts and Opportunities report published by global consulting and research firm Kline & Company.

Indications such as cholesterol, asthma, osteoporosis, migraine, and peptic ulcer are currently excluded from the list of medications allowed to be approved for OTC status. Driven by the increasing incidence of these chronic diseases the Chinese State Food and Drug Administration (SFDA) is considering including these additional indications before 2015 opening the door for manufacturers to pursue Rx-to-OTC switches in these classes.

Laura Mahecha, Kline's Healthcare Industry practice manager, notes, "To really put these incidents into context, China's phenomenal growth is six times stronger than the United States over the same time, amounting to an astounding CNY 209.2 billion (USD 32.4 billion) for the 2011 retail OTC market. Moreover, China's growing prosperity, aging population, and increasing adoption of Western lifestyles, abetted by imminent Rx-to-OTC switches for certain therapeutic classes, are expected to significantly increase market size and OTC demand."

The registration procedure of a new active ingredient for prescription status is the same for local and multinational manufacturers. Even for an active ingredient which is registered and widely used in other countries, the registration procedure is the same as a new active ingredient in China. The potential for switch is determined by several factors.

A broad range of
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SOURCE Kline & Company
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