Growing Awareness & life style transformation are driving dermacosmetic market in India

Published April, 2010 Sante Mernaud, a dedicated derma-cosmetic company with over 40 products is cashing in opportunities in India. From therapeutics for skin to aesthetic skin care solution the company has a team trained sales force to market its products via the ethical route. The company introduced a shop-in-shop chain SMART to offer skin wellness solutions. Recently, it entered the beauty professional segment to cater to highend saloons and spas. In an interaction with NANDITA VIJAY, SHIVA P HIREMATH, chief executive officer, Sante Mernaud Pharmaceuticals Pvt. Ltd , provides an overview of the sector and opportunities for the company in the future, Excerpts; How is the derma cosmetic sector faring in India and global markets? The emerging` derma cosmetic segment is gaining considerable importance in India. There is a huge awareness and lifestyle transformation which are the key growth factors. There are not only pharma companies developing dermatology products but exclusive cosmetic companies entering the fray. The concept of wellness is also gaining ground Preventive skin care is also an important area of focus which is coming up because of an understanding on the need to pay attention at an early age. The sector has clearly two opportunities; One is relief from skin diseases like psoriasis, hyper pigmentation and eczema or bacterial-viral infections. Other is remedy for acne, scarring and ageing skin. Although derma cosmetic is a novel concept and a fad, potential for growth comes in for management of ageing hyperpigmentation, photo-ageing, acne, eczema and psoriasis. The derma cosmetics market is valued around Rs.7,300 crore growing at 15 percent, Largely products are prescription driven, recommended by the dermatologists and cosmetologists. Major companies in India include Dr.Reddy`s, Sun Pharma, USV Ltd, Micro Labs and Nichollas Piramal. What according to you are the visible trends? Healthcare provides are focusing on specialty dermatology services by a team of well-known skin dermatology and cosmetics solutions including laser and surgery at large hospitals. There is a profusion of derma-cosmetic clinics manned by qualified private practitioners. This has further created a demand for higher prescriptions in derma-cosmetics products. What are the growth drivers of the sector? The products to control skin allergies, chronic disease and inflammation arising out of pollution and stress, followed by those available for prevention and control anti-ageing and maintaining skin texture, including smoothing facial wrinkles, fill up scars and lift droopy brow lines. How did the sector fare during the global economic recession? The current global recession was unprecedented. This sector had never faced such uncertainly and products launches. The cosmetics segment is driven by affluence and therefore affordability was a key factor for survival. Since our products come under the premium category, patients procured products for relief because of severity in skin conditions which included acne management. But when it came to beauty care products, like for instance acne control among others, we did see consumers restricting purchase of these. How has Sante Mernaud performed during global economic slowdown? in Ingredients SouthAsia

Despite the slowdown, we made efforts to expand our business. In order to maximize the reach; create an awareness of our products and its efficacy the company in 2008 set up the Sante Mernaud Aesthetic Retail Trade (SMART) which is a shop-in-shop concept. Today, we have 25 SMARTs and are working towards opening 200 outlets by fiscal 2011. We also have alliances with retail chain pharmacies. The biggest advantage is that Sante Mernaud has conducted global multi-centric trials and therefore there proof on the product efficacy and safety. How many products are in your portfolio and which according to you are the fastest growing? Currently there are 40 products. Over 75 percent of Sante Mernaud products are therapeutics and the balance constitute the beauty care Iklen` a biopeel for hyper-pigmentation and photo-ageing, Exfoliac for acne, Trio A for deep pigmentation and Sensidiane eye contours. Since your inception in October 2007, you have opted for the partnership model. What was the reason for this strategy? During the launch of the company, we teamed up with Merck Medication Familial, France an subsidiary of Merck KGA, Germany to offer an innovative derma care in hyper-pigmentation, eczema and psoriasis. A few months ago, we teamed up with Noreva Pharma, France to launch 30 products in the area of dermatology therapy for general skin diseases; gynecology hygiene and pediatrics tender skin. The model for alliance will help us to introduce products which are backed by scientific proof at a faster pace through a team of marketing and distribution personnel. We are also looking at South Asia markets, Vietnam and Myanmar to expand out reach.

Under The Skin Populations across the world are paying the price for development in form of functional issues in every organ system, but the skin pays the heaviest price as it is the first point of contact for every possible microbe or toxin. Aashruti Kak writes about what drives the dermatology market The human skin, being the largest organ in the human body, provides protection, regulates temperature, resists dissolution, controls evaporation and and much more than one can imagine. However, due to its diverse nature, and the fact that is it the most 'taken for granted' organ, it is also a rich habitat for microbes. So whenever it malfunctions or is under unavoidable attack, that is where dermatology steps in. Market potential "Research for psoriasis and cosmetological of drugs applications is already

underway in some Indian companies Dipta Sr. Consultant Pharma like Lupin and Piramal."

Chaudhury & Biotech

Practice South Asia and Middle East,

The global dermatology market Frost & Sullivan billion in 2008, and the Indian

was

estimated

at

$19

dermatology market was

estimated at $513 milion in 2010. The dermatology market is quite vast, ranging from prescription to over the counter medicines. This includes both treatment for skin disorders, including burns, fungal infections,wounds, and conditions like eczema, psoriasis etc, to cosmetic dermatology with products like Botox, Latisse, Juvederm, etc. The potential for both the streams is massive, says Dipta Chaudhury, Senior Consultant-Pharma and Biotech Practice, South Asia and Middle East, Frost & Sullivan. The importance of skin has increased in recent years. With successful surgery, treatment of surgical scars and other wounds has become an equally important area. Patients today are willing to pay for-state-ofthe-art treatments and companies can continue to tap into this highly lucrative market by carving out their niche in the overall derma segment, she adds. As per IMS dataset MAT-Mar, 2011, the Indian derma "The need to look young, market has grown by 14.8 per cent over the last year. The double market shows promise, considering the fact that there is (DINK) rising disease awareness in derma related indications and females income no kids more

families, in the

corporate

the fact that there is a higher propensity of population at sectors add to the factors supporting large willing to treat the disease. In the derma segment, growth NDDS research is a great opportunity as it enhances Nitin compliance and drug delivery of the existing formulations. Sr. Gen. Manager Sales & in the segment." Ambre Mktg.,

Nitin Ambre, Senior General Manager-Sales and Marketing, Ajanta Pharma Ajanta Pharma believes that although dermatology (medical or aesthetic) is not going to provide life saving therapies but it will definitely have a role in making people looking young, therefore, it will have a long term impact in the field of R&D. Drivers and restraints There are no real threats that the segment is facing. In fact "There are no real threats there are several opportunities which are being exposed, that the segment is facing. especially in the area of aesthetic and skin care segment, In fact there are several informs Farida Hussein, Senior Vice President - Marketing, opportunities USV. which are

being exposed, especially in the area of and skin care segment." Hussein

The derma market depends a lot upon the type of products, aesthetic while cosmetic dermatology can be considered as a luxury. Farida

However, for treatment related products, the market is Sr. Vice President (Mktg.), USV directly dependent upon the number of patients who can afford the treatment, says Chaudhury, Basic treatments for skin related disorders are always in demand, however, since most medical spending in India is mainly out-of-pocket, the drug sales can be expected to be higher in metros and tier II cities than in all rural areas as well. With an increase in pollution, stress and poor nutrition, many skin disorders have become more common in India, and that will definitely drive the market. Cosmetic dermatology is also expected to grow in tier I and II cities with increasing spending power and the high aspirational value. However, the cost of drugs may be the main barrier for growth of the high profit segment of dermat drugs. She explains, While antibiotic and anti-fungal segments of derma

products are in constant demand, they are also of low value and highly priced in nature. The drugs propelling the market are cosmetic derma brands like Botox, Juvederm and Latisse, which are priced high and not available to the larger population. This may make it difficult for the segment to show very fast growth. Ambre adds increased awareness, the need to look young, double income no kids (DINK) families, more females in the corporate sectors add to the factors supporting growth in the segment. However, according to him, restraints are that the number of qualified cosmetologists across the country is very less compared to our population. Competitive landscape Some global companies active in the market include Nycomed (Takeda), Allergan, Galderma, Valeant, Sanofi Aventis, Intendis, J&J, GSK, Roche, etc. Indian companies include Nicholas Piramal (now Abbott India), J&J India, Ranbaxy, Zydus Cadila, Glenmark Pharma, Lupin, etc. According to IMS dataset MAT-Mar, 2011, the top five therapeutic sub segments are topical corticosteroids, emollients and protectives, anti-fungals, topical anti-infectives, antiseptics, and anti acne products. Of course Ajanta Pharma and some other small companies also have good volumes in certain areas, but they operate with different business modules. Recently launched successful brands are triple combo demelanising agents like melacare/skinlite, antidandruff shampoo, topical immunomodulators, says Ambre. And there are many more in pipeline as well, he adds. Hussein informs, Successful drugs in the global market are Benzaclin (SNF), Differin (Galderma), and Retin A (J&J). Top five derma companies in India are GSK, Glenmark, Ranbaxy, Abbot and Win Medicare. GSK leads the market with a growth rate of 24 per cent (MAT April 2011) which is more than the market growth itself. Successful brands in India are Betnovate, Candid and Suncros. According to her, derma products contribute to 3.9 per cent of USV sales. In the therapeutic area, USV has topical Clindamycin (Erytop) for the treatment of acne, Derobin for management of psoriasis and they contribute upto 2.3 per cent of the USV sales. In the area of skin care and aesthetics, we have Sebamed range of products that contribute upto 1.6 per cent to the USV sales. We have a tie up with Sebapharma, a German company specialising in skin care. They have a global presence and their skin care products are all formulated at the skin pH of 5.5. We are also actively looking for meaningful tieups in the area of aesthetics and therapeutics which will complement the skin care basket from Sebamed, reveals Hussein. Ranbaxy also has a strong presence in topical steroids, anti-fungals, anti-infective, acne management, emollients and aesthetic dermatology (anti-aging, sun protection). In our quest to be a leading player in the derma segment, we constantly evaluate opportunities, especially to introduce new products in unrepresented markets. Luliconazole is our latest in-licensed brand in the anti-fungal market. Amexidil (hair loss) is another popular brand available in the area of new delivery system, says a Ranbaxy spokesperson. A futuristic view Chaudhury believes that the Indian dermatology market is poised for growth. At its current growth rate we expect the trend to continue, with growth at around 20 per cent over the next three to four years. The segment is still not highly crowded, as it has few players, but it has immense potential in the Indian market. Over the counter (OTC) products are also large segments in the market, and will propel growth.

Due to importance of patents, Indian companies can also look at licensing some innovator products for the Indian market. While the treatment of skin related disorders remains the primary segment for derma, the sector driving growth will be cosmetic dermatology since it is of high value. Research for psoriasis and cosmetological applications of drugs is already underway in some Indian companies like Lupin and Piramal, she adds. There exists a high potential for R&D in the derma market, especially since most of the agents take care of the signs and symptoms and not the underlying cause of the disorders, except for infective disorders, says Hussein. She further says, In the aesthetic or skin care market, there is a high potential to do research in the field of aging and hyper-pigmentation. And with the entry and success of premium priced skin care products in India coupled with increase in the number of interventions and aesthetic procedures conducted in the country, along with the fact that many dermatologists are now taking higher training in aesthetic dermatology, the dermatology market will grow at a rate more than 25 per cent year-on- year. Ambre agrees to the fact that the future of dermatology market has huge potential as the total number of dermatologists have almost doubled in last five years, and that clinical dermatology will remain the mainstay, whereas aesthetics/cosmetology segment will prosper even in the rural areas because of increased awareness and availability of knowledgeable/skilled doctors. The key areas will be psoriasis, eczema, hair nutrition, facial upliftment, peels and fillers to name few, with Ajanta taking the lead always. Many companies are jumping into the field of cosmetology and more research and advancement will be seen in painless dermal procedures, he says. aashruti.kak@expressindia.com