Japan Self-Medication Industry
introduction
organization
Country Profile of Japan
JSMI member companies
JSMI Newsletter
Self-medication Handbook
     

 
JSMI NEWSLETTER Number 63, Nov. 2005

CONTENTS
1. Seiichi Sato, JSMI Vice-Chairman, accepted WSMI Vice-Chairman for the Asia Pacific Region
2. The pharmaceutical market trend of the year 2004
3. Self-Medication Handbook
4. Seminars held on implementing fair advertising practices of nonprescription medicines
5. Consumer Awareness Survey The 29th Report on Consumer Awareness of Nonprescription Medicines
 
1.Seiichi Sato, JSMI Vice-Chairman, accepted WSMI Vice-Chairman for the Asia Pacific Region

With Dr Seung-Pil Yu's (Chairman and CEO of Yuyu Inc., Korea) tendering resignation of the position of WSMI Vice-Chairman for the Asia Pacific Region, WSMI Chairman Hans Regenauer offered the Vice-Chairmanship to Seiichi Sato (President & CEO of Sato Pharmaceutical Co., Ltd.), who has graciously accepted the position.

JSMI has long been committed to promoting "Responsible Self-Medication" by helping interested consumers obtain sufficient information on nonprescription medicines, take a more active role in their own health problems and live a life free from disease or infirmity.

There is evidence that consumers in the Asia Pacific Region can practice self-medication responsibly. Also there is support showing the consumers recognize and respect nonprescription medicines.

Seiichi Sato as WSMI Vice-Chairman for the Asia Pacific Region, in collaboration with the WSMI Member Associations in the region, will devote himself to establishing a responsible framework in place for self-medication where people, as a whole, use nonprescription medicines appropriately, carefully, and safely

Mr. Seiichi Sato
Educational Background
1982 BS in the Science and Technology Faculty, The Keio University
1985 Master of Business Administration, The Babson College in Massachusetts, USA

Work Experience
1985 SmithKline Beecham, Canada Branch
1986 Mitsubishi Bank, New York Branch
1986 Sato Pharmaceutical Co., Ltd.
1990 Executive Vice President, Sato Pharmaceutical Co., Ltd.
1995 President and COO, Sato Pharmaceutical Co., Ltd.
1997 Vice-Chairman, JSMI
2000 President and CEO, Sato Pharmaceutical Co., Ltd.

2.The pharmaceutical market trend of the year 2004

The overall market trend
OTC medicines sales at pharmacies and drugstores in the year 2004 (April 2004 ~ March 2005) were Japanese YEN (JPY) 1,095.4 billion (approximately US$ 9.488 billion), showing a minus growth of 1.0% as compared with the previous same period. The OTC medicines market registered an increase in the growth, largely due to intense heat of the summer, in the therapeutic categories appealing to alleviation of heat rash, itching, and insect bites. Notably, in March, a rise in the amount of pollen in the atmosphere from maturing cedar and other trees contributed to a vigorous growth of the sales of rhinitis remedies, eye lotions and the like respectively. On the other hand, the market failed to see launching of Rx-to-OTC switches and blockbustering new OTC products, and hair-growth products, gastrointestinal remedies, tonics & nutrients and the like registered a considerably large decline as compared with the previous same period, having resulted in the overall slack.

In July 2004, as the second deregulatory step in the pharmaceutical retailing, 371 OTC drug products were shifted into the quasi-drugs with new scopes, however, the total sales of the quasi-drugs (with those 371 items and the newly designated quasi-drugs shifted in 1999 combined together) at pharmacies and drugstores were JPY 70.6 billion (approximately US$ 0.612 billion), a minus 0.7% as compared with the previous same period. The total sales of OTC medicines and quasi-drugs (newly designated ones and those with new scopes combined) at pharmacies and drugstores were JPY 1,166 billion (approximately US$ 10.1 billion), a minus growth of 0.9% as compared with the previous same period, indicating the market was still sluggish.


The trend in the physical distribution
Among those drugstores whose stocks are listed, many top-ranking companies continued to increase their sales. The grouping among them was accelerated, and, consequently the restructuring of the business sector including mergers and acquisitions of companies of middle standing continued.


The trend in the pharmaceutical administration
In July 2004, the Ministry of Health, Labour and Welfare (MHLW) implemented the second deregulatory step in the pharmaceutical retailing whereby 371 OTC drug products (such as, among others, stomachics, intestinal regulators, gargles, etc.) were shifted to the "quasi-drug" status which can be sold at the general retail outlets. The Revised Pharmaceutical Affairs Law fully went into effect as from April 2005, marking a start of the new pharmaceutical administration. Enhancement of Post Marketing Surveillance and Shift from Manufacturing Approval to Manufacturing/Marketing Approval are the major focal points of the Revised Pharmaceutical Affairs Law.


Household expenses survey
According to the household expenses survey conducted by the Management and Coordination Agency, in the year 2004 (January ~ December), the expenses for medical treatment (the expenses spent on the products for the maintenance of health were excluded) per household throughout the country were JPY 22,223 (approximately US$ 192.5), a minus spending of 5.7% as compared with the previous year.

The breakdown for the major therapeutic categories was: Cold remedies = JPY 2,235 (US$ 19.4), minus 9.7% as compared with the previous year; Gastrointestinal remedies = JPY 1,216 (US$ 10.5), minus 1.2%; and Nutrients = JPY 6,146 (US$ 53.2), minus 10.6%.
The expenses for the products for healthcare including so-called health foods were JPY 15,038 (US$ 130.3), plus 13.7%, a significant rise over the previous same period.
The expenses for medical treatment included the costs of prescription medicines dispensed at the pharmacies outside of the medical institutions where physicians issued the prescriptions.


The sales trends of the major therapeutic categories

Health drinks and Mini-drinks
The sales were JPY 97.05 billion (approximately US$ 0.841 billion), minus 4.7% as compared with the previous same period. In addition to the sluggish market, the second deregulatory step in the pharmaceutical retailing was responsible for the minus growth in the period.


Nutrients and Tonics other than health drinks and mini-drinks
The sales were JPY 203.45 billion (US$ 1.762 billion), minus 3.0% as compared with the previous same period.

The breakdown by therapeutic categories was: Nutrients and Tonics = JPY 73.0 billion (US$ 0.632), plus 2.7%; Multi-vitamins = JPY 29.45 billion (US$ 0.255), zero percent; Vitamin E Preparations = JPY 14.65 billion (US$ 0.127 billion), minus 12.8%; Vitamin B1 Preparations = JPY 43.05 billion (US$ 0.373 billion), minus 5.0%; Vitamin C Preparations = JPY 15.55 billion (US$ 0.135 billion), minus 12.4%; Calcium Preparations = JPY 5.45 billion (US$ 47 million), minus 7.6%.

The products which clearly claimed therapeutic efficacy and/or indications such as "For neuralgia and arthritis" , "For urinary discomforts", and the like satisfactorily increased their sales.
With an increase in the number of the middle- and advance-aged, the products specifically targeting at those age group were well accepted.


Gastrointestinal remedies
The sales were JPY 66.45 billion (US$ 0.576 billion), minus 3.8%, as compared with the previous same period, showing a constant decline. Over the past two to three years, the trend was that multi-symptom remedies, stomachics and Kampo medicines for regulating the stomach condition all showed a sluggish rise. On the other hand, H2 blockers whose efficacy on a stomachache has been relatively well recognized and stomachics for a hangover which can be easily purchased at convenience stores and the similar retail outlets recorded a stabilized growth.


Cold remedies and medicines related to a common cold
The total sales of the cold remedies (Multi-symptoms cold remedies, Anti-tussives and expectorants, Rhinitis remedies, Oral cavity drugs, and Gargles) were JPY 203.3 billion (US$ 1.761 billion), registering a very slight increase of 0.8% as compared with the previous same period. While in the first half of the period, the influenza which was most rampant during the past 11 years and the record rise in the amount of pollen contributed to a considerable increase in the sales, the slower growth in the latter half of the period offset the better performance, having resulted in the minimal growth as a whole.

Only the rhinitis remedies, with the sales of JPY 32.9 billion (US$ 0.285 billion), plus 16.3%, registered a bigger growth as compared with the previous same period. Multi-symptoms cold remedies that have a 60% share in the market recorded the sales of JPY 112.95 billion (US$ 0.978 billion), minus 0.5%. The sales of Gargles (JPY 10.55 billion, US$ 91 million, minus 0.9%), Anti-tussives and expectorants (JPY 34.85 billion, US$ 0.302 billion, minus 4.8%) and Oral cavity drugs (JPY 12.05 billion, US$ 0.104 billion, minus 4.0%) all saw poor records.


Anti-pyretics and analgesics
The sales were JPY 47.5 billion (US$ 0.411 billion), minus 4.0%. The products containing Ibuprofen continued to grow as in the past years.


Eye drops
The sales were JPY 67.5 billion (US$ 0.585 billion), plus 9.3%, showing an increase two consecutive years. A rise in the amount of pollen in the spring season in 2005 generated the expansion of the market as the sales of Anti-allergic ophthalmologic drugs and Eye washing solution respectively increased. Artificial tears carrying claims such as "Refreshingness", "Moistened sensation" and "Alleviation of discomforts when wearing contact lenses" in addition to the conventional indications, "Eye strain" and "Blurred vision", showed a yearly increase, sustaining the growth of the market. The future outlook of the market is that as the eye drop market becomes more segmentary, will become more important the merchandising strategy that can meet diversified consumer demand.


Epidermal analgesics and anti-inflammatory drugs
The sales were JPY 73.25 billion (IS$ 0.434 billion), minus 1.3%.


Epidermal drugs
The sales were JPY 86.35 billion (US$ 0.748 billion), plus 0.9%, showing an increase two consecutive years. The breakdown was: Products for dermatitis for external use = JPY 39.25 billion (US$ 0.34 billion), plus 2.2%; Antiseptics = JPY 17.5 billion (US$ 0.152 billion), plus 2.0%; Epidermal drugs for common skin problems = JPY 16.15 billion (US$ 0.14 billion), minus 6.6%, and Epidermal analgesics = JPY 13.45 billion (US$ 0.117 billion), plus 5.9%. The temperatures higher than usual favorably affected the sales of Products for dermatitis for external use and Epidermal analgesics.
On the other hand, the higher temperatures and more precipitation than usual during autumn and winter when the seasonal demand for Epidermal drugs for common skin problems was brisk adversely affected the sales of Cream for dried skin.


Athlete's foot products
The sales were JPY 26.0 billion (US$ 0.225 billion), minus 5.6%, presenting a striking contrast to the 2003's performance of plus 7.8% as compared with the previous same period. The summer of 2004, which was featured by intense heat but by fewer precipitation, generated only one condition, "High temperatures" but not two conditions, "High temperatures and High moisture", considered to be ideal for ringworm to propagate and increase. All in all, the summer weather resulted in the poor sales. The sales of "Rx-to-OTC switched products", on the other hand, kept steadily growing every year, with the year 2004 having registered a tremendous increase of 36.9% as compared with the previous same period.



Market share by therapeutic categories (Figures of 2003)
Multi-symptoms cold remedies 10.8 % ( 10.7 %)
Health drinks and Mini-drinks 9.2 % ( 9.7 %)
Epidermal drugs 8.3 % ( 8.1 %)
Epidermal analgesics and anti-inflammatory drugs 7.0 % ( 7.0 %)
Nutrients and Tonics 7.0 % ( 6.7 %)
Eye drops 6.5 % ( 5.8 %)
Gastrointestinal remedies 6.4 % ( 6.5%)
Anti-pyretics and analgesics 4.5 % ( 4.7%)
Anti-tussives and expectorants 3.3 % ( 3.5 %)
Others 32.9 % ( 33.0 %)


The market trend of quasi-drugs
The total sales of quasi-drugs (the newly designated quasi-drugs and the quasi-drugs with new scopes combined) were JPY 149.95 billion (US$ 1.299 billion), minus 1.0% as compared with the previous same period, were the total of sales recorded at convenience stores, super markets, and home centers. The decline of Health drinks that have a large share in the market dealt a blow to the growth of this area.
47 % and 53% of the products were sold at pharmacies/drugstores and general retail outlets respectively, indicating more than a half of the products were sold at the general retail stores




Courtesy: INTAGE Inc.
For further information, please contact the following:
1-41-1, Hommachi, Higashi-Kurume-Shi, Tokyo 203-8601, Japan
TEL: +81 - 424 - 76 - 5177 FAX: +81 - 424 - 76 - 5198
URL: http://www.intage.co.jp/english/index.html
 

3.Self-Medication Handbook

Toward the end of September, the Public Affairs Committee, as part of its annual campaign of public relations, printed 220,000 of a pamphlet for consumers entitled "Self-Medication Handbook" and distributed them to 47 prefectural pharmaceutical authorities, Consumer Centers, and Public Health Centers in the cities designated by the Cabinet Order. The Committee prepared and distributed these copies in its bid to support various events annually held throughout the country corresponding to the "Week of Medicines and Health" which started from October 17.
The contents of the pamphlet were partially modified so as to include anew two sections, namely, the one titled "Pharmaceuticals ? Medicines ? Drugs ?" to elucidate dietary supplements in relation to pharmaceutical products and the other to guide the readers to "The ABC of Emergency Measures".
 

4.Seminars on implementing fair advertising practices of OTC medicines
The seminars have been annually held at the two venues in Tokyo and Osaka for the purposes of promoting proper advertising practices of OTC medicines. Not only pharmaceutical manufacturers but also TV stations, Newspapers, Advertising agencies, Advertising production companies are encouraged to attend the seminars where are provided useful pieces of information such as lectures on the specific issues of mutual interest and concern, recent developments in the pharmaceutical regulatory affairs relating to advertising practices and case study of the advertisements questioned at the Advertising Review Board (ARB).

Pharmaceutical products which are closely related to protection of human life and health have particular features that are different from characteristics of other commodities consequently the pharmaceutical advertisements are stringently required to pursue and maintain the ethics that are different from those of other commodities. Furthermore, restrictions are imposed on what the pharmaceutical advertisements can say. The advertisements of OTC medicines play an important role in providing information that urges consumers to properly use OTC medicines, therefore, the pharmaceutical advertisements should not allure consumers to carelessly use the medications and especially should not mislead consumers into misuse.

From such viewpoints, JSMI has formed the said ARB, which conducts once every two months voluntary reviews of the OTC medicines advertisements in whole. The ARB, consisting of independent third-party experts for securing opinions from the unbiased standpoint, reviews the OTC medicines advertisements carried or run in TV, newspapers and magazines. The reviews are carried out in the light of the Pharmaceutical Affairs Law (PAL) and the Industry Self-Imposed Advertising Standards (SIAS).

The advertisements judged at the reviews to be violating the PAL and SIAS are directly referred back to the manufacturers in question for remedying thereof. At the same time, for ensuring thorough comprehension of the issues in question by all those involved, ARB has been issuing "ARB Report" which covers the details of each and every voluntary review. Japan Advertising Review Organization, Inc. accredits JSMI and ARB with their fair and impartial reviews of pharmaceutical advertisements. JSMI and ARB, through the ARB activities including advertising seminars once every year, are committed to continuing the campaign to help those concerned deepen understanding of the OTC medicines advertisements and improve their quality.

The above gist is considered either to be relevant to or to affect OTC medicines.
 

5.Consumer Awareness Survey
Report of the 29th Consumer Awareness Survey on OTC Medicines

As part of its regular campaign to promote responsible self-medication, JSMI conducted a consumer opinion survey on the consumer awareness of self-medication by means of a questionnaire in an advertorial in the Asahi Shimbun dailies on December 24, 2004. The survey also covered how deeply consumers are interested in the pharmaceutical retailing system currently under deliberation and how well they understand the matters indicated on the Package Inserts.

BREAKDOWN OF THE RESPONDENTS
(A) Gender and Age
The 1,000 respondents consisted of approximately equal number of male (52.5 %) and
female (47.5 %).
(B) Occupation
"Salaried employees" showed the largest percentage, 33.2%, followed by "Jobless and Others", 28.7% and "Housewives", (27.1%).
 
RESULTS OF THE SURVEY
(1) Awareness of Self-Medication
  The term, "Self-Medication" is defined as self-diagnosis and self-treatment of minor illnesses or injuries by use of OTC medicines available without professional supervision.
Do you know this term ?

1: Yes, I know it pretty well.
2: Yes, I know it to some extent.
3: I have only heard the term.
4: No, I don't know it.
 
 
Awareness of the concept of "Self-Medication" indicated by 1 (5.9 %) and 2 (24.2 %) combined was 30.1 %.
Awareness of both the concept and the term of "Self-Medication" indicated by 1, 2, and 3 (33.6 %) combined was 63.7 %.
Thus, the total awareness exceeded 60% of the respondents, leaving the "No, I don't know" respondents at 36.3 %.
 
(2) Usage of the Package Inserts
  Package Inserts are attached to OTC medicines for urging consumers to read them carefully and to use the products correctly.
How do you read and keep the Package Inserts ?

1: I keep them together with the medicines.
2: I keep them together with other Package Inserts.
3: I immediately throw them away after having read them first of all.
4: I throw them away without reading.
5: Others
 
 
"I keep them together with the medicines" (70.6 %) and "I keep them together with other Package Inserts" (6.1 %) combined were 76.7 %, indicating that the great majority of the respondents keep the Package Inserts. Those respondents who "throw away" represented 21.8 %, with "I immediately throw them away after having read them first of all" (19.5 %) and "I throw them away without reading" (2.3 %) combined.
 
(3) Understandability of the Package Inserts
  The Package Inserts of OTC medicines, as compared with those made several years ago, have been devised to improve their readability.
Do you think the Package Inserts currently used are easy to understand ?

1: Easy to understand
2: Understandable to some extent
3: A little bit hard to understand
4: Hard to understand
 
 
Those respondents who answered "Easy to understand" represented 84.8 % with "Easy to understand" (17.0 %) and "Understandable to some extent" (67.8 %) combined, indicating that the great majority of the respondents understand the Package Inserts. On the other hand, those respondents who answered "Not understandable" represented 15.0 % with "A little bit hard to understand" (11.4 %) and "Hard to understand" (3.6 %) combined.
 
(4) Matters on the Package Inserts hard to understand
  To those respondents who answered 3 (A little bit hard to understand) or 4 (Hard to understand),
what are the matters hard to understand ?

The letters are too small and illegible
63
Illustrations and designs easy to understand at a glance are needed
4
Hard to understand the explanations full of technical terms 33
The explanations are lengthy
19
Hard to understand ingredients and/or indications
13
Hard to understand dosage and/or when to take
13
Insufficient explanations on side effects
9
Too sparingly folded to read
1
Quality of papers is poor
1
The matters need to be printed on the containers/wrappers 1
The matters need to be printed on the outer containers/wrappers 1
 
To those 150 respondents who answered either "A little bit hard to understand" or "Hard to understand", a question, "What are the matters hard to understand ?", was raised and 135 specifically answered.
A total of 67 respondents, namely, 63 (The letters are too small and illegible) and 4 (Illustrations and designs easy to understand at a glance are needed), representing almost a half of the respondents, thought the designs of the Package Inserts were poor. There were also many respondents, namely, 33 (Hard to understand the explanations full of technical terms) and 19 (The explanations are lengthy) who wanted the expressions to be improved. Other major matters felt to be improved were "Hard to understand ingredients and/or indications" (13 respondents), "Hard to understand dosage and/or when to take" (13 respondents), and "Insufficient explanations on side effects" (9 respondents).
 
(5) Awareness of Relaxation of Restrictions on Pharmaceutical Retailing
  At present, relaxation of restrictions on pharmaceutical retailing has been under deliberation within the Ministry of Health, Labour and Welfare.
Are you familiar with this issue ?

1: Yes, I am.
2: Although I am not, I feel an interest in it.
3: No, I am not.
 
 
Those who "are familiar with" (62.2 %) indicated that the awareness exceeded 60 % of the respondents while the "Although I am not, I feel an interest in it" respondents and the "No, I am not" respondents represented more than 20 % and approximately 10 % of the respondents respectively.
 
(6) Retailing system of OTC medicines
  To those respondents who answered either "Yes, I am." or "Although I am not, I feel an interest in it.", in relation to (5) Awareness of Deregulation, a question, "How would you like OTC medicines be retailed ?", was specifically raised.

1: They should most preferably be sold only, as they are now, at pharmacies and drugstores where professionals of medicines are available.
2: Some of them might be most preferably sold at convenience stores and general stores as well where professionals of medicines are not available.
3: All of them might be most preferably sold at convenience stores and general stores as well where professionals of medicines are not available.
 
 
To those respondents (83.3 %) of both "Yes, I am" (62.2 %) and "Although I am not, I feel an interest in it" (26.1 %), a specific question, "How would like OTC medicines be retailed ?", was raised.
More than 30 % of the respondents answered "OTC medicines should be most preferably sold, as they are now, at pharmacies and drugstores where professionals of medicines are available" while 61.7 % representing "Some of them might be most preferably sold at convenience stores and general stores as well where professionals of medicines are not available" (52.4 %) and "All of them might be most preferably sold at convenience stores and general stores as well where professionals of medicines are not available" (9.3 %) expressed pros for sales of OTC medicines at stores other than pharmacies.
 
(7) Naming of OTC medicines
  OTC medicines currently sold at pharmacies and drugstores have many different names.
What nomenclature would you like to recommend for them if unification becomes necessary ?

1: Medicines for general public
2: Marketable medicines
3: Medicines for general use
4: OTC medicines
5: OTC drugs (An abbreviation for Over-The-Counter drugs)
6: No specific idea for naming
7: No need to unify
8: Others
 
 
Of the five (1 ~ 5), the top preference was 2 (36.8 %), followed by 3 (30.8 %), 1 (14.1 %), 4 (9.4 %) , and 5 (1.6 %), indicating the term, "OTC drugs", to be least popular.
 

 

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