Abbott steps up pace of product launches

Abbott India, the listed subsidiary of the US-based pharmaceutical giant Abbott, is using unique campaigns to foray into sub-therapies as it plans to accelerate sales growth by launching 20-22 products each year over the next five years, up from 14 product launches last year.

In its recent campaign, Abbott India has roped in cricketer Virender Sehwag for a YouTube video on constipation. It received 1.5 million unique views and the campaign was among the top five trends on Twitter with 35 million impressions.

“We want to go beyond pills to meet our strategic intent of being a pioneering health care company,” said Ambati Venu, managing director, Abbott India. The company’s campaign on constipation involved a nationwide gut health survey to assess the condition of those who suffer from the ailment.

The survey found that 49 per cent respondents were reluctant to seek medical help for their ailment. On average, respondents admitted to waiting for about four months before deciding to consult a doctor. Also, 33 per cent respondents were never treated for constipation, while 48 per cent resorted to home remedies. Abbott India plans to tap these customers by creating awareness about the importance of a healthy gut, which leads to a strong immune system. The firm’s laxative brands include Duphalac and Cremaffin.

“Every therapy we operate, we try and understand the patient’s entire journey—right from the time a patient becomes aware, to diagnosis, treatment, post-treatment care and lifestyle modifications,” Venu said.

Abbott operates through two main entities in India that includes unlisted Abbott Healthcare apart from Abbott India. The listed entity has outpaced its multinational peers to register 14.6 per cent growth in sales to ~25.19 billion in the first nine months of 2017-18.

Abbott’s growth comes at a time when the implementation of the goods and services tax has affected most Indian firms, including their multinational peers. Some of their products have also been affected by the growing list of products in the government’s National List of Essential Medicines. This led to UK-based GlaxoSmithKline and US-based Pfizer report negative sales growth of 2 per cent and 5.2 per cent, respectively, to ~21.47 billion and ~14.49 billion.

Abbott India has used its awareness campaigns to boost sales in treatment for thyroid disorders and influenza vaccination for pregnant women. The company markets over 110 brands in India. Abbott India is a leading player in the thyroid segment and has over 55 per cent market share through its brand Thyronorm, which grew by 43 per cent in December, despite being under price control. The firm is planning to foray into subtherapies in this segment such as thyroid cancer.

“In terms of broad therapy areas, I do not think there can be much change in the future as Abbott (all our divisions put together) has presence in almost 90 per cent of the therapy areas in India,” said Venu.

“Abbott India, on its own, is present primarily in women’s health, gastroenterology, thyroid, diabetes, neurology, vaccines, pain management and general care. So in these areas, we will further target the subtherapies,” he said.

Ranjit Kapadia, analyst with domestic brokerage Centrum, said, “Abbott India continues to provide marketing thrust to its top 17 brands. It is present in metros and Tier-I and Tier-II cities and has no plans to enter the rural market.”