chi 2019 awards – the best in business development and
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The Winners
Congratulations to the winners of the first-ever OTCToolbox Consumer Healthcare Industry (CHi) Awards.
The three CHi Awards recognise the best in business development and innovation around the world.
Transaction of the YearWINNER GlaxoSmithKline-Pfizer Joint Venture This CHi Award honours the best transaction in 2018. Judges
were looking for a transaction – an acquisition, merger, licensing agreement, joint venture or strategic alliance – with the power to transform the company’s consumer healthcare presence.
Business Development Team of the YearWINNER Procter & Gamble This CHi Award honours the best business development team in 2018.
Judges were looking for a business development team that announced and/or completed one or more transactions with the power to transform the consumer healthcare presence of the team’s company.
Innovation of the YearWINNER Infirst Healthcare’s Flarin This CHi Award honours the best consumer healthcare product
innovation in 2018.
Winners of the CHi Awards were decided by a panel of highly-experienced executives in the consumer healthcare field. Many thanks to our panel of 14 judges for giving us both their time and their expertise.
The CHi Awards are open to consumer healthcare/OTC companies from around the world. They cover a broad range of consumer healthcare/OTC products including: non-prescription medicines; vitamins, minerals and supplements (VMS); self-care medical devices; skin health products; and other consumer healthcare/OTC products.
Deborah WilkesFounder and Editor & PublisherOTCToolbox
Contents
The Winners 2
The Judges 3
Transaction of the Year 4
Business Development 5 Team of the Year
Innovation of the Year 6
The Awards Presentation 7
The OTCToolbox website produces a range of online publications that enable business developers and innovators in the consumer healthcare/OTC industry worldwide make well-informed decisions.
OTCToolbox is part of Source Publishing Limited. Company registered in England No 06839664. Registered office: 54 Creynolds Lane, Solihull B90 4ER, United Kingdom. Tel: +44 121 314 8757. Email: [email protected].
No part of this publication may be copied, reproduced, stored in a retrieval system or transmitted in any form without prior permission from Source Publishing Ltd. © Source Publishing Ltd. All rights reserved.
Cover Image: © James Chipper / Rob Wilcockson / Stock.Adobe.com
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The Judges
Pierre-Antoine Bodin Pierre-Antoine Bodin is Principal for Pharma & Healthcare at Roland Berger, with a special knowledge of OTC/consumer healthcare topics. Before joining Roland Berger in 2012, he spent eight years in various supply chain and marketing positions in pharmaceutical companies such as Pfizer and Johnson & Johnson. Awards judged – Transaction of the Year, Business Development Team of the Year
Tim Brady Tim Brady is Sales and Marketing Director at Thornton & Ross, part of the Stada Group. Prior to joining Thornton & Ross in 2014, Tim worked for Genopharm, Genus Pharmaceuticals, Meda Pharma, OPi and Special Products. Tim is a member of the PLG Board.Awards judged – Innovation of the Year
Chris Bunniss Chris Bunniss is Managing Director of Bunniss Associates and Marketing Director of The Marketing Centre. He spent 17 years at SSL International, including a period as Strategic Acquisitions Director.Awards judged – Transaction of the Year, Business Development Team of the Year
Andrew Dean Andrew Dean is Director and Owner of Present Value, a life science business development company specialising in acquisitions, divestments, licensing and strategy. Andrew has 25 years of experience in the pharmaceutical industry including roles at Schering-Plough and Alliance Pharma. Andrew is also Vice Chairman of the PLG.Awards judged – Transaction of the Year, Business Development Team of the Year
Keith Garrity Keith Garrity is Director of International Business Development at Ceuta International. Keith has more than 25 years of experience in the healthcare industry, with exposure to all trading channels from independent pharmacy to mass market retailers across many international platforms working with the Ceuta Global Alliance.Awards judged – Innovation of the Year
Mathias Käsebier Mathias Käsebier is Senior Director of Bannert Manlik Consultants. Mathias is a former Director of the Americas for Boehringer Ingelheim Consumer Health Care and a former Chief Executive Officer and President of Heel USA. Awards judged – Transaction of the Year, Business Development Team of the Year
Kevin McFarthing Kevin McFarthing is Founder of Innovation Fixer. Before founding the business a decade ago, Kevin spent 17 years at RB including a period as Head of R&D, Health & Personal Care.Awards judged – Innovation of the Year
Bob Moran Bob Moran is President of Plexus Ventures. Bob has worked on OTC product divestments for consumer healthcare companies around the globe including GlaxoSmithKline, Johnson & Johnson, Novartis and RB.Awards judged – Transaction of the Year, Business Development Team of the Year
Ros Munday Ros Munday is a specialist OTC Consultant with experience gained over more than 20 years in the industry, including more than a decade at Sanofi. Ros operates across all disciplines from manufacturing through to consumer sales and marketing. Ros is a member of the PLG.Awards judged – Transaction of the Year, Business Development Team of the Year, Innovation of the Year
Jeremy Puttock Jeremy Puttock is president of Healthy Brands. During his 30 years in the consumer healthcare industry, Jeremy’s positions have included Vice President Global Consumer Healthcare Franchises at Johnson & Johnson and Senior Vice President Global Non-Prescription Medicines at Teva Pharmaceuticals. Awards judged – Transaction of the Year, Business Development Team of the Year, Innovation of the Year
Keena Roberts Keena Roberts is a Senior Consumer Health Analyst at Euromonitor International. Before joining Euromonitor, Keena worked with the National Opinion Research Center (NORC) and the US Department of Health and Human Services (HHS).Awards judged – Innovation of the Year
Ralf Sibbing Ralf Sibbing is Managing Partner of Diapharm, the global service provider and consulting firm for the consumer healthcare and pharmaceutical industry. The company offers multidisciplinary experience covering regulatory affairs, scientific and medical affairs, quality management and pharmaceutical consulting.Awards judged – Innovation of the Year
Andy Tisman Andy Tisman is Global Senior Principal, Consumer Health at IQVIA. Andy joined IQVIA in 2005 with a strong industry and consulting background including more than 15 years at SmithKline Beecham. Awards judged – Transaction of the Year, Business Development Team of the Year, Innovation of the Year
Deborah Wilkes Deborah Wilkes is Founder and Editor & Publisher of the OTCToolbox website. Deborah has more than 25 years of experience in analysing developments in the consumer healthcare/OTC market worldwide. She co-founded the OTC bulletin and Generics bulletin newsletters, as well as creating OTC bulletin’s OTC Marketing Awards.Awards judged – Transaction of the Year, Business Development Team of the Year, Innovation of the Year
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Transaction of the Year
The planned joint venture between GlaxoSmithKline and Pfizer is the clear winner of the CHi Award for Transaction of the Year, with eight out of the nine judges giving it the maximum five points.
“A strategically significant deal to create the number one consumer healthcare company globally,” was how one of our judges described the planned joint venture between GlaxoSmithKline and Pfizer.
A second judge remarked the joint venture was an “industry game changer”, while a third said it had the potential to be “truly transformational for the company and the consumer healthcare industry as a whole”.
Another judge, Bob Moran, President of Plexus Ventures, pointed out the deal was “transformative in that GlaxoSmithKline will have taken over two of its principal competitors – Novartis and Pfizer – within a short period of time”.
Meanwhile, Mathias Käsebier, Senior Director at Bannert Manlik Consultants, highlighted that GlaxoSmithKline planned to split into two businesses after forming the joint venture with Pfizer Consumer Healthcare. “This deal is about more than just creating the number one consumer healthcare company,” he said. “It creates a leader in the OTC industry which is not an appendix of a prescription-oriented organisation.”
Journey to the transactionIn March 2018, GlaxoSmithKline revealed that it had withdrawn from the process to acquire
Pfizer Consumer Healthcare. A few days later, GlaxoSmithKline announced that it was acquiring Novartis’ 36.5% stake in
the consumer healthcare joint venture between the two companies for USD13.0 billion in cash. The transaction was completed on 1 June 2018.
GlaxoSmithKline and Novartis announced in April 2014 that they had agreed to combine their global consumer healthcare operations. Following completion of the deal on 2 March 2015, GlaxoSmithKline had a controlling equity interest of 63.5% in the consumer healthcare joint venture, with the remaining 36.5% owned by Novartis.
In December 2018, GlaxoSmithKline and Pfizer announced that they had agreed to combine their consumer healthcare businesses into a “world-leading” joint venture with combined annual sales of around GBP9.8 billion (USD12.7 billion).
According to GlaxoSmithKline, the proposed joint venture will be the global leader in OTC products with a market share of 7.3%. The company noted the nearest competitor had a share of 4.1%.
GlaxoSmithKline will have a majority controlling equity interest of 68% in the joint venture, with Pfizer holding the remaining 32%. The joint venture will be known as GlaxoSmithKline Consumer Healthcare.
Announcing the joint venture, GlaxoSmithKline said the move paved the way for its separation into two new companies focused on Pharmaceuticals/Vaccines and Consumer Healthcare. Within three years of forming the joint venture, GlaxoSmithKline intends to separate the joint venture via a demerger of its equity interest and a listing of GlaxoSmithKline Consumer Healthcare on the UK equity market.
Rank Transaction Points (from a maximum of 45)
1 GlaxoSmithKline-Pfizer joint venture 43
2 Procter & Gamble’s acquisition of Merck Consumer Health 34
3 Nestlé’s acquisition of Atrium Innovations 23
The transaction will create a new world‑leading Consumer Healthcare company, says GlaxoSmithKline’s Chief Executive Officer Emma Walmsley
Nine judges evaluated five candidates for this CHi Award
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Business Development Team of the Year
Procter & Gamble captured the CHi Award for Business Development Team of the Year thanks to the acquisition of Merck Consumer Health at a difficult time.
2018 was a challenging year for Procter & Gamble’s consumer healthcare business. When it became clear that the PGT Healthcare joint venture with Israel’s Teva Pharmaceutical had come to the end of the road, Procter & Gamble snapped up the Consumer Health business of Germany’s Merck KGaA.
Commenting on the deal, Procter & Gamble said Merck Consumer Health would “replace and improve upon the highly-successful PGT Healthcare joint venture” with Teva.
Procter & Gamble announced in April 2018 that it was acquiring Merck’s Consumer Health business for EUR3.4 billion (USD4.2 billion) and would terminate PGT Healthcare on 1 July 2018. The deal was completed in December 2018.
Procter & Gamble and Teva had combined their OTC operations in all markets outside of North America in the PGT Healthcare joint venture in November 2011. US-based Procter & Gamble held 51% of the venture, with Teva taking the remaining 49%. Inside North America, Procter & Gamble retained full ownership of its OTC operations.
However, Teva announced in early 2018 that it was exploring all options for PGT Healthcare.
Complementary geographic presenceMerck Consumer Health complements Procter & Gamble’s strength in the US. The business has
a significant presence in the Asia-Pacific region, Europe, Latin America, and the Middle East and Africa, but not in China or the US.
Merck Consumer Health’s largest brand in 2017 was the Neurobion nerve care line with worldwide sales of EUR309 million, representing around a third of the total sales of EUR911 million. The portfolio also includes the Bion, Femibion and Seven Seas vitamins, minerals and supplements (VMS) brands as well as Nasivin nasal decongestants.
Secured a meaningful futureMathias Käsebier, Senior Director at Bannert Manlik Consultants, was one of three judges
who gave Procter & Gamble the maximum five points. “The Procter & Gamble team did a fantastic job – given the circumstances – to secure a meaningful future for the company in OTC,” he commented.
Not only did the acquisition of Merck Consumer Health come at the right time, added Käsebier, “but it will transform Procter & Gamble’s consumer health business.”
Another judge pointed out the deal had transformed Procter & Gamble into a “full global player with favourable deal terms”.
This judge noted that Merck Consumer Health had filled Procter & Gamble’s gaps in Latin America and Asia-Pacific, and was a great strategic fit in the VMS and decongestants categories.
Rank Business Development Team Points (from a maximum of 45)
1 Procter & Gamble 27
2 GlaxoSmithKline 26
3 Dermapharm 20
Nine judges evaluated nine candidates for this CHi Award
Procter & Gamble gained Merck Consumer Health’s portfolio of consumer healthcare brands including Neurobion and Seven Seas
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Innovation of the Year
Infirst Healthcare’s Flarin is the winner of the CHi Award for Innovation of the Year, with one judge describing the medicine for flaring joint pain and inflammation as a “potential game changer”.
“Known drugs – made better” is how Infirst Healthcare sums up its approach to OTC innovation. Speaking to OTCToolbox in 2014, Chief Executive Officer Manfred Scheske said the OTC industry needed to rethink its approach to innovation, buy into the concept of constantly improving drugs and treatments, and be ready to conduct clinical trials to generate evidence. “Only then will the industry be able to fully unlock its fantastic potential,” he commented.
In January 2018, Infirst launched Flarin in the UK following a “significant investment in pioneering research and development”. Flarin is backed by the FLARE clinical trial.
The pharmacy-only medicine comprises oral capsules containing 200mg ibuprofen. During the manufacturing process, ibuprofen is fully dissolved into melted lipid excipients, explains Infirst, and the ibuprofen remains in this lipid solution even when the product is encapsulated and cooled. Infirst adds that the ibuprofen remains encased in the lipids during transit through the stomach.
At the time of the launch, Infirst said Flarin was the “first and only OTC lipid-formulated ibuprofen which helps relieve flaring joint pain and inflammation”. The company added that Flarin’s unique lipid formulation “helps shield the stomach from damage”.
Findings of the FLARE studyThe company highlighted the findings of its FLARE study, which it said demonstrated that
lipid-formulated ibuprofen at 1,200mg a day – Flarin – was as effective as the prescription dose of 2,400mg standard ibuprofen a day at relieving flaring joint pain.
FLARE was a double-blind, randomised study involving 462 patients across 27 primary care centres in the UK and the Netherlands. The findings were published in Osteoarthritis and Cartilage.
Around 86% of people who took Flarin had an improvement in their flare ups after five days, said Infirst, adding that patients also reported a reduction in stiffness and swelling.
Based on the findings of FLARE, Infirst’s marketing campaign for Flarin promises “joint pain relief as effective as prescription strength ibuprofen without a prescription”.
One judge who gave Flarin the maximum five points said the product “impacts one of the largest OTC categories and has the potential to be multi-country”. Flarin served a “large consumer base of dissatisfied sufferers”, continued this judge, adding that it was “another option in the quest to reduce opioid consumption”.
According to this judge, Flarin was a “potential game changer in chronic pain/oral analgesics”.A second judge, Tim Brady of Thornton & Ross, observed there was “so little innovation in
analgesia”. “To invest so much in improving the safety and efficacy of one we use already was high risk but could be a huge benefit to patients,” he said.
A third judge said Flarin could “empower more pain sufferers to self-care rather than having to visit the doctor for prescription pain relief”.
Rank Innovation Points (from a maximum of 45)
1 Infirst Healthcare’s Flarin 23
2 Appia Healthcare’s Cryotag Skin Tag Remover 22
3 GlaxoSmithKline’s TheraFlu PowerPods 21
Infirst Healthcare launched Flarin in the UK in early 2018
Nine judges evaluated eight candidates for this CHi Award
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The Awards Presentation
Transaction of the YearWINNER GlaxoSmithKline-Pfizer Joint Venture
Business Development Team of the YearWINNER Procter & Gamble
Innovation of the YearWINNER Infirst Healthcare’s Flarin
Chris Harley-Martin – Vice-President and Global Head of Business Development at GlaxoSmithKline Consumer Healthcare – was presented with the CHi Award by Deborah Wilkes of OTCToolbox (pictured left) and Tim Brady of the PLG (pictured right).
Richard Learwood – International Brand Franchises Leader of Procter & Gamble Health – received the CHi Award from Deborah Wilkes of OTCToolbox and Tim Brady of the PLG.
Manfred Scheske – Chief Executive Officer of Infirst Healthcare – was presented with the CHi Award by Deborah Wilkes of OTCToolbox and Tim Brady of the PLG.
Thursday 28 February 2019
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