En new product algidex

J. B. Chemicals & Pharmaceuticals Ltd.www.jbcpl.com. © Copyright 2007 J. B. Chemicals & Pharmaceuticals Ltd.

Marketing Plan

Product: ALGIDEX2007-2008

Moscow Representative Office

July 2007


2.Market. 2.1. State of the market: Market Overview

The volume of retail dressing market in 2006 is 112 mln.$ USA (Source: the Centre of Marketing Research - Pharmexpert).

Wound dressings for hospital patients are sold through chemist's shops.

Market volume of surgical dressing is 5.6 mln $

The dressing market is characterized by high share of Russian products – 81% in a cost term (90% - in natural).

Retail. The main players.N Producer 2006

Volume, mln $

N Producer 2006 Volume, mln $

1 VEROPHARM Russia 16,645 11 SAREPTA Ukrain 1,583

2 GYGROVATA Russia 7,324 12 FEST Russia 1,516

3 PAUL HARTMAN Germany 7,037 13 INTERTEKSTIL Russia 1,503

4 EVRES PHARM Russia 6,340 14 TORUNSKIY Russia 1,354

5 MASTER UNI Russia 4,712 15 LAUMA Russia 1,176

6 TONUS Latvia 3,310 16 VITALPHARM Russia 0,923

7 LABORATORIES URGO 2,846 17 JONSON&JONSON USA 0,839

8 NOVOSYBCHEMFARM Russia 2,553 18 3М USA 0,739

9 APPOLO Russia 2,164 19 PLASTOD 0,751

10 BETA SUN BANT 1,621 20 BIOTEKPFARM Russia 0,683


2.Market. 2.1. State of the market: Market Overview

Structure of Retail

Surgical dressing ;

5%

Other cosmetic

substance; 14%

Gauze; 6%

Cotton wool; 15%

Bandage; 22%

Plaster; 33%

Set of dressing &

first-aid set; 5%


1. Executive Summary (1)

The market of adhesive dressings isn’t developed.

Reasons:- Нigh price of these dressings;- Нigh doctors’ traditionalism to habitual methods of wound and burn treatment; - The lack of cumulative clinical usage experience;- Low doctors’ awareness about wound dressings;- The absence of general treatment standards implying the usage of modern dressings;- Hospitals aren’t ready to buy these expensive dressings.- The lack of active promotion and wide distribution from main manufacturers: Johnson&Johnson,

Hartman, Colloplast, 3M.

- The national distributors are not the main players at the market.

The forecast of market development.

Need for effective wound healing dressings may be up to 25000 m² annually. If 1 sm² of average dressing costs 0,04 $ USA, market turnover is evaluated up to 10 mln. $ USA annually. The markets of first-aid, of field [sets for cars military] surgery and of dental products are out of this evaluation. According to other evaluations the potential of Russian wound dressing market is 17 mln. $ USA. *

* Data from the investment project of wound dressing of Federal Medical Biological Agency of Russia


Modern wound dressing market isn’t developed in the RF.Main barriers:High cost of new dressing treatment – it’s a key point.New wound dressing image: for doctors such dressings are “expensive and noneffective”. Doctors don’t form demand.Target group (doctors) differentiate various types of dressings badly (Hydrocolloids.

Hydropolimers, films (polimers) etc. ).

____________________________________________________________________________However in different segments approaches to wound treatment by means of modern dressings differ a little though hospitals financing is almost the same: - Burns. Burns department doctors don’t usually want to use dressings because they aren’t sure of their efficacy. High traditionalism to ointments and antiseptic solutions. At the same time in this segment the right choice of the dressing is the crucial factor of treatment efficacy. - Trophic ulcers. Suppurative department surgeons have higher loyalty to modern dressings (as atraumatic dressing usage is one of the principles of trophic ulcers therapy). However dressing isn’t the main therapy remedy in this case, it’s only a subsidiary along with the systematic treatment. Dressing may be put on the tender lists for hospitals on the basis of demand formed by doctors and through the personal motivation of hospital chiefs, responsible for purchases. ___________________________________________________________________________

Situation Analysis Summary: Key Findings (1)


Patients as target groups – • Badly informed about the places where it’s possible to buy it;• Burns department patients are usually people from low social groups. They aren’t in our

target group.• Patients with chronic wounds (trophic ulcers of different origin, including pancreatic

diabetes) may realize the necessity of treatment efficacy.

Distributors may head for some competitive products. Their mission isn’t only logistic but also informative (putting of product information on sites; joint actions with specialized pharmacy shops).

National distributors – supplies to net pharmacy shops.

Situation Analysis Summary: Key Findings (2)


Porter’s five forces

1. Industry structure - Middle level of competition in technological product segment. High competition from traditional dressings.

3.Bargaining power of customers – very high. Low hospital budget Low Dr. loyalty Low Dr.awareness,

Consumers - most patients aren’t ready to pay and to use.

2.Threat of new entrants – very low.

New entrants are possible. Entrance barriers are high.

4. Bargaining power of suppliers - very high because product demand is specific, they participate in the market and stimulate it.

5. The threat of substitute products. Low from the point of entrance of new methods for wound treatment.

The highest influential forces are from hospitals (don’t buy an expensive dressing), doctors ( as demand generators) and patients.


- To form demand through doctors’ and hospital chiefs’ positive opinion to the trade name.

- Suggestion of package: film, Gel, Sponge

- To enlist the support from key OL.

- To include the product into the pricelists of the leading medical goods distributors.

- To use the given resource - national distributors.

- Large scientific centers, commercial hospitals and departmental clinics should be in priority during the first year of promotion.

- To enter supply programs for military medicine and accident medicine.

- Positioning – priority segment is the one with patients having trophic ulcers, because entrance barriers are lower (treatment standards, high incidence rate, high relapse frequency), largest segments

- Target groups shouldn’t associate Algidex with one of many other representatives of modern dressings. There should be strict trade name differentiation on the basis of actions uniqueness.

- Patients with trophic ulcers are one of the main target groups.

Critical success factors


Product Profile

Clinical profileChronic wounds – incidence rate. Trophic ulcers, ischemic ulcers, diabetic foot and pressure ulcers are great socio-economic problem.

ALGIDEX Film, Gel Sponge

Clinical profile Problem importance. Inner hospital infection growth. In the structure of inner hospital infections there are 17% of post injectional infections. Because of more frequent intravascular procedures, prosthetic valve usage, intravenous catheters for outpatient infusions etc., there increases the risk of S. aureus infection, including MRSA – strains. Statistics shows that the number of aerobic gram-positive coccus (S. aureus, streptococcus, enterococcus) among inner hospital infections has increased from 30% to 60-70%. There were 27000 officially registered cases of inner hospital infections in 2005. However this criterion wasn’t taken by the government as significant. Samplings, hold in different parts of this country, show considerable spread of inner hospital infections (6-8%) from the number of people registered in hospital.

The number of inner hospital infections in Russia increased from 2mln. up to 2.5 mln. last year! In the structure of inner hospital infections there are 17% of post injectional infections. (425 000 patients).

ALGIDEX cathguard


4. Segmentation. Morbidity.

ALGIDEX ALGIDEX cathguard

Тrophic ulcer Pressure ulcer

Burn ( I-II) donor sites Superficial wounds, lacerations, cuts, grazes

Preventive measures of infection. Acceleration of processes of healing of wounds.

Chronic venous insufficiency -

Chronic arteriosclerosis obliteranspancreatic

Diabetes I type

Diabetes II type (Patients age 70-75) syndrome "diabetic foot " 5,6%

15-20% of hospital patient

in general structure of traumatism burns are 4% of all victim

2 % of able-bodied citizens

4-5 % of elderly age

3% among diseases of circulation of the blood

15% 5,6% from numbers patients with Diabetes II type

746 980 833 600 680 000 40 000 140 000 31 000 000 500 000 (all) 2500000

Source:Goskomstat RF. The Federal scientific-practical center of medical-social examination and rehabilitation. RMAPO, Moscow



Retail Price,$


Our Price suggestion ($)

Size № Price (Retail),$

CIP (Moscow),$

Algidex film 5x5 1 2,80 1,84

10x10 1 5,10 3,34

10x20 1 11,20 7,34

20x20 1 15,00 9,84

Algidex sponge

5x5 1 2,85 1,87

10x10 1 5,20 3,41

10x20 1 11,50 7,54

20x20 1 16,00 10,49

Algidex Gel 10g 1 6,50 4,26

Algidex cathguard

2,5sm 1 1,50 0,98


SWOT Analysis



Strategic Options (1)Strategic Options Patient

potential Ability to influence

Tactics Options Tactics Options Tactics Options

Objectives

Persuasion / forming of positive opinion about modern wound dressings through giving information about product to the burn department surgeons.

High Medium New methods education (Department of doctors’ experience improvement) OL. Departments where doctors can broaden their knowledge on the topic.

Research pharmaceutical and economic efficacy of Algidex in comparison with traditional dressings and competitive wound dressings.

Mailing, visits FF.

1/ Increase perceived value. 2/ Demand forming of wound dressing usage in hospital segment. 3/ Initiation of purchases 4/ Recommendations to patients with information about the sales places.

Creation of awareness about trade name Algidex.Giving information about product to the suppurative department surgeons.

High High Mailing – wide coverage of target groups, visits FF

Actions «doctor-chemist’s-manufacturer- patient»

Research efficacy of Algidex – Product approbation

1/ Increase perceived value. 2/ Demand forming of wound dressing usage in hospital segment. 3/ Initiation of purchases 4/ Recommendations to patients with information about the sales places.5/ Monitoring over sales channels


Strategic Options (2)Strategic Options Patient

potential Ability to influence

Tactics Options Tactics Options Tactics Options

Objectives

Creation of awareness about trade name Algidex.Giving information about product to the Polyclinics Surgeons

Medium Medium Mailing, visits FF

Actions «doctor-chemist’s-manufacturer- patient»

1/ Demand forming of wound dressing usage 2/ Recommendations to patients with information about the sales places)

Patients. Creation of awareness about trade name Algidex.Persuasion / forming of positive opinion about usage benefits .

High High Media (Medical television programs)

Advertising through Pharmacy Shops

Patient`s educational literature

1/ increase number patients seeking Dr advice. 2/ patients will know where to buy Algidex.

Motivation of hospitals chiefs, Chief medical officer, Deputy of Chief medical officer, responsible for purchasing.

High High visits FF -Information about product benefits

Direct investments Purchases

Image differentiation Algidex

High High Research and approbation aims

1/ Increase perceived value. 2/ Decrease influence of competitors.

Tendermarket entrance including accident and military medicines

High High Giving information about usage benefits .

Direct investments Assured sales channel – additional sale sours for Unique.


Strategic Options Patient potential

Ability to influence

Tactics Options Tactics Options Objectives

Motivation and Giving information about product to Hospital of Chief medical officer, deputy of Chief medical officer, (Departments: Oncology - long infusions (long anesthesia), resuscitation department and intensive [critical] care, cardiosurgery

High High Mailing, visits FF Direct investments Initiation of purchases

Strategic Options (3)

ALGIDEX cathguard


Оbjectives

To enter market and to reach sales level $204 000 due to 14.5 % of the

market coverage.


Positioning and BrandingPositioning statement Algidex – ergonomic, polyfunctioning wound dressing for exudative and

dry wounds, owing to unique technology of ionic silver and calcium complex in alginate and maltodextrene matrix, giving optimal moist environment, excellent exudative management and complex effect on hemostasis processes, proliferation and granulation and antimicrobial action.

USP1 Algidex - Unique polyfunctioning dressing for ergonomic wound healing

USP2 Algidex allows to retain most part of the tissues around the wound for the following plastic wound closing.

USP3 Algidex can be used in some functionally “inconvenient areas” where there is limited plasticcapacity by means of the local tissues. (head, hand, foot and the areas of extremity joints )

Brand promotion

Key promotion messages

Algidex provides effective treatment long nonhealing wounds owing to unique technology and polyfunctional influence on processes of healing of wounds.


Positioning and Branding

Positioning statement Algidex – Ideal dressing for intravenous catheters, owing to unique technology of ionic silver and calcium complex in alginate and maltodextrene matrix, for effective protection and prevention of catheter related infections.

USP Algidex is a polyurethane absorbent sponge wound dressing, with an layer of gel, with active silver ions (destroy microorganisms) and alginate (algae wicks away moisture from the site, inhibiting development of microorganisms). Together, they deliver a sustained release of antimicrobial activity for up to seven days.

Algidex is an ideal barrier and protective dressing for intravenous catheters, tube sites or external fixator pin sites..

ALGIDEX cathguard

Key Message: Reduction of patients’ number with inner hospital infection and the number of days in hospital


Field Force Objectives and Requirements

Target Customer Group Reach (Coverage.% )

Frequency ( visit per year)

Surgeon (62301) 1,5 % 12 000

Polyclinics Surgeons (21254) 10 % 20 000

Hospitals chiefs, Chief medical officer, Deputy of Chief medical officer, responsible for purchasing (10704)

3 % 1 500

Chemist's shops 5200

Total 33 500 (25 %)


Field Force Objectives and Requirements

33500 visits are 25 % from all MedRep`s visits of Rx department (50 MR). The given quantity of visits is necessary to achieve our purposes.

At present 5 products are promoted actively. Two new products are also expected: Metrogil Plus

and Panum.

We believe that for increasing promotion efficiency of Algidex it is necessary to increase the staff up to 84 person.

In this case the share of visits will make 15 %.

It would be expedient to increase the staff by 1q.2008 after the scientific base of Algidex promotion is ready and when agreement OL for cooperation in Moscow and regions received.


Structure of Strategic Actions Phase 1

Phase 2

Phase 3


Structure of Strategic Actions

We are approbate, hold post registration researches in two large centers in Moscow. Then we work with regional OL in 7 places: Moscow, Saint-Petersburg, Kursk, Novosibirsk, Nizhni Novgorod, Rostov-on-Don, Perm.It is the 1st phase of Algidex promotion.

The 2 st phase includes large-scale activity both through regional OL (lecturing, publication) and through the field-force (sampling). The goal is to reach the synergistic effect on the doctors who must:а/ recommend their patients to buy Algidex for their own money (both in hospitals and policlinics because it is a long period process for the hospitals to decide if it is necessary to buy these dressings)b/ make a declaration to a Chief medical officer (initialization of purchases) thus it is very important not only to inform a doctor about Algidex, but also provide a doctor an opportunity to use it (samplings) and also provide a doctor with the information where a patient can buy our product. (Hartman company spreads not only information posters but also leaflets with pharmacy shops addresses. The work must start with large commercial medicine centers and departmental clinics which have large budgets and which have already been buying expensive dressings.



Actions Budget $

Clinical approbations 30000

Sampling 25000

Work with ОL 30000

Promotional material 70000

Publications 70000

Mailing 10000

Reports at conferences 10000

Visits FF (doctors) 30000

Work with consumers 30000

Direct investments (Нospitals chiefs, responsible for purchasing) 30000

Visits FF (chemist's shop) 10000

Work with distributor 5000

320 000

Budget, $


Sales Forecast

Size № Price (Retail),$

CIP (Moscow),$

Quantity Volume,$

(3q 2007- 2q 2008)

(3q 2008- 2q 2009)

(3q 2009- 2q 2010)

(3q 2007- 2q 2008)

(3q 2008- 2q 2009)

(3q 2009- 2q 2010)

Algidex film

5x5 1 2,80 1,84 3 000 5 000 10 000 5 520 9 200 18 400

10x10 1 5,10 3,34 15 000 55 000 90 600 50 100 183 700 302 604

10x20 1 11,20 7,34 2 000 14 680

20x20 1 15,00 9,84 500 4 920

Algidex sponge

5x5 1 2,85 1,87 1 000 2 000 4 000 1 870 3 740 7 480

10x10 1 5,20 3,41 3 000 16 000 40 000 10 230 54 560 136 400

10x20 1 11,50 7,54 2 000 15 080

20x20 1 16,00 10,49 500 5 245

Algidex Gel

10g 1 6,50 4,26 9 000 15 000 30 000 38 340 63 900 127 800

Algidex cathguard

2,5sm 1 1,50 0,98 100 000 200 000 350 000 98 000 196 000 343 000

204 060 511 100 975 609


Appendix


1. Product Profile

1.1 The place of ALGIDEX in wound therapy.


1. Ointment 2. Gauze bandages3. A principle of damp treatment 4. Active wound therapy.

Foams/ Hydropolymers

Moist saline gauze

Alginates

Hydrocolloids

Skin substitutes

0 ,00

10 ,00

20 ,00

30 ,00

1965 1970 1975 1980 1985 1990 1995 2000

В

С

1

2

3

4

А

Stages of development of treatment of wounds (time of the first appearance of scientific publications; research MEDLINE)

A - The improved treatment outcome (efficiency)В - Progressive wound treatmentС - The traditional method of treatment


Modern wound dressing requirements Algidex

- High absorption action of wound exudation +

- Irreversible removal of detritus, microbial particles and excess exudation

+

- Defense from wound dry out +

- Sufficient permeability for gases (oxygen, carbonic acid) to stimulate reparative processes in the wound

+

- Wound defense from mechanical effect, chemical irritation and secondary infection

+

- Shouldn’t disturb blood circulation and oxygenation of wound edges

+

- Absence of adhesive features +

- To be convenient for patients, to make optimal micro environment for wound healing

+

- Absence of pyrogenic, antigenic and toxic effect +

- Absence of local irritative and allergic effect; +


The criteria of dressing choice depending on wound process phase

Phase Therapy aim Dressing requirements Dressing

Inflammation phase 5-7 days

1/ wound cleansing. Necrotic tissues and foreign bodies removal, reduction of microbial contamination, lessening of autolytic enzyme level in the wound.

1/ high absorption force of wound exudation; 2/ irreversible removal of detritus, microbial particles and excess exudation

Algideх

2/ fight against infection,

3/ adequate drainage, wound cleansing acceleration

4/ reduction of systemic manifestations of inflammatory reaction.

Regeneration phase or proliferation 2-4 weeks

1/ fight against infection, 1/dressings, preventing from dry out as well as from excess moisture;

Algideх

2/ granulation tissue defense 2/ wound defense from mechanical effect and secondary infection;

3/ reparation process stimulation, moisture conditions.

3/absence of adhesion

4/stimulation of reparative processes.

Epithelization and remodeling/ resimulation phase

1/ epithelium growth acceleration,

1/keeping the wound in mildly moist conditions;

Algideх

2/ wound defense from injuries 2/ defense from traumatism.

3/ mildly moist environment.


The criteria of dressing choice depending on wound types

Positioning of different wound dressing types

Hydrogels (Nu gel) and advanced hydropolymers (Tielle) try to take up the niche of «heavy and moderate exudative wounds» - alginate niche and one of the main niches - Algidex.

In contrast to other alginate products Algidex can be used for dry wound treatment.


Modern wound dressing vs traditional means.

Traditional means are less effective, safe and convenient - High adhesiveness. Algesias, tissue traumatism, adequate wound drainage disturbance at the moment of dressing change;- Bandage usage - probability of secondary infection and slow wound healing; - No required features combination necessary for wound dressings; - Sorbent action isn’t evident. The principle of wound moisture doesn’t work.

Representatives Basic feature

antibacterial absorption abstersion of ulcer

regenerative ability

Solution antiseptics

3% hydrogen peroxide potassium permanganate, dioxidine, miramistine, chlorhexidine, 0,25% solution argentic nitrate

+ - - -

Ointment:

Unidirectional action: Bactroban, Baneomicine + - - -Hydrophilic: Levocine, Levomecol + + - -

Proteolytic enzymes:

Сrystalline -Collagenase,Tripsine,Chemotrypsin - - + -Ointmen: Iruxol (Pliva) - - + +

Нyaluronic acid:

Zinc hyaluronate- Curiosine (Gedeon Richter) + - + +


ALGIDEX Gel

ALGIDEX Film

ALGIDEX Sponge

1.2 Forms


Brand history – The holder of marketing licence Algidex® - ADRI company, only 3 companies (De Royal, B.Braun and Viridis) have manufacturing license. Content

Algidex Gel Algidex Tull Algidex Sponge

1 g of gel contains: Silver alginate and calcium alginate complex (polysorbat 80, silver-calcium alginate, carboxymethylcellulose, calcium gluconate, sodium bicarbonate, hydrochlorous acid). .125 mgMaltodextrine ………………….. 20 mgPropilenglicol ………… ……..... 35 mgGlicerol ………………… … . . 75 mgWater ………………… …… …745mg

Sterile dressing consisting of 2 layers- Sterile polyurethane sponge - Film made of silver alginate and calcium alginate complex in maltodextrine matrix.Waterproof bag made of polythene/aluminum foilSize (cm): 5х5; 10х10; 20х10; 20х20

Film made of silver alginate and calcium alginate complex in maltodextrine matrixWaterproof bag made of polythene/aluminum foilSize (cm): 5х5; 10х10; 20х10; 20х20


IndicationsManagement of infected and uninfected wounds including skin ulceration (e.g. trophic [venous stasis] ulcers on legs,pressure ulcers), diabetic ulcers, wounds, subcutaneous wounds, avulsed [lacerated] wounds, cuts, abrasions, donor areas and second-degree burns. Unique Algidex matrix content allows to use it on dry, moist and wet wounds.

Algidex is used for wound effluent healing including:• Pressure ulcers;• Venous ulcers (Trophic ulcers of venous origin);• Traumatic skin injuries;• Second-degree burns;• Donor areas.


Clinical profile. Chronic wounds – incidence rate. Trophic ulcers, ischemic ulcers, diabetic foot and pressure ulcers are great socio-

economic problem.Algidex ® presents ionized silver and calcium alginate on maltodextrine matrix.

- Owing to the unique technology and slowly released silver ions Algidex ® has massive prolonged antibacterial action against wound pathogenic microorganisms, including those which are stable to methicillin strain . Staphylococcus aureus (MRSA), Staphylococcus aureus, Pseudomonas aeruginosa, E.coli, and prevents from foreign bacterial contamination. - Algidex ® absorbs wound exudation, cleanses the wound from contaminants, reduces wound odor and creates moist environment which helps wound healing.- Owing to maltodextrine Algidex ® activates the functions of granulation tissue forming by means of organism own cells. Algidex ® Algidex ® Algidex ®- Owing to calcium alginate Algidex ® makes cellular proliferation possible and activates hemostasis.- Owing to adhesive water molecules Algidex ® doesn’t dry out makes dressing wearing comfortable, makes its usage efficient on dry wounds.Wearing period of 1 dressing is up to 7 days.

Contrandications:Algidex should not be used for the treatment of the following: Third- degree burns Ulcers resulting from infections Lesions associated with active vasculitis Patients with hypersensitization to alginates or other gel components


Product benefits (1)





Algidex Gel

Algidex Film

Algidex Sponge


Algidex advantages over main representatives of modern wound dressings.

Nu Gel Johnson& Johnson (Hydrogel with alginates) Algidex gel

Content: water (70%) , alginat - 70% Water - 75% (more water)

No silver – no antiseptic action antiseptic action

Wounds with dry or mild necrosis granulation and/ or epithelization wounds. + exudative wounds

Dressing wearing period with gel - 24-72h. Up to 7 days – more economical

Absorption effect should be studied and then compared.

Silversel (Johnson&Johnson) hydroalginat+carboxymethilcellulosa,Ag Algidex film

no Са and maltodextrine – no effect on hemostasis , cellular proliferation and granulation actions by means of organism own cells.

More ergonomic. Higher efficacy – polyfunctioning features are wider.

Active on dry wounds.

Infected wounds with evident exudationSilver in dressings needs moist environment to change its state into ionic –

active only on moist wounds.

Нydropolymers: TIELLE Jonson&Jonson TIELLE Plus Johnson&Johnson

Algidex Tull

No Са and maltodextrine – no effect on hemostasis , cellular proliferation and granulation actions by means of organism own cells. No antimicrobial components.

More ergonomic. Higher efficacy – polyfunctioning features are wider.

Antibacterial effect, hemostasis , proliferation and granulation effect


ALGIDEX cathguardIndications Wound surface managementи and wound healing activation.




ALGIDEX cathguardIndications Wound surface managementи and wound healing activation.




Features Advantages Benefits

Dressing form and ionic silver

Bacterial barrier prevents from infection appearing and developing when intravenous catheters, tube sites or external fixator pin sites are used.

Reduction of patients’ number with inner hospital infection and the number of days in hospital. Efficiency.

Silver ions Antibacterial action against a broad spectrum of wound pathogens including those which are stable to methicillin strain . Staphylococcus aureus (MRSA), Staphylococcus aureus, Pseudomonas aeruginosa, E.coli, and prevents from foreign bacterial contamination.

Efficacy

Prevents from infection throuth the catheter. Safety.

Unique silver alginate and calcium alginate complex in maltodextrine matrix

Antimicrobial action up to seven days.

Conveniences.

Form. It has an ideal cut No preparations before usage Conveniences.

Calcium alginate in Algidex content

Actives wound healing when infected with catheter.

Efficacy

ALGIDEX cathguard


2.Analysis of environment

Social and political factors - 1. Incidence rate of trophic ulcers on the basis of chronic venous insufficiency and pancreatic [insular] diabetes. Chronic wounds are a big problem for public health service both from the economic aspect and from the aspect of medical staff time spending. 2. Up to now all over the world there is no perfect aid to the patients with diabetic foot syndrome. At least 47% of the sick start treatment later than necessary. The results are extremity amputation, which increases patients’ death rate twice as much and further treatment cost three times as much. The improvement of diagnostic policy, medical examination, patients’ treatment reduces the number of amputations by 43-85%.3. Incidence rate of inner hospital infections in Russia is more than 22% including postinjection infections. The government is worried about the situation based on statistics and on incidence rate of inner hospital infections. Because of it state control is intensified – through the Federal Inspection Service in the sphere of protection of consumers and people well-being to keep disinfection norms and to increase efficacy of inner hospital infection prophylaxis measures. Economic factors – Hospitals have low budgets and can’t buy expensive dressings on continuing basis. The dressing isn’t on the list for those who suffer from pancreatic diabetes



1. Industry structure - Middle level of competition in technological product segment. High competition from traditional dressings.

3.Bargaining power of customers – very high. Low hospital budget Low Dr. loyalty Low Dr.awareness,

Consumers - most patients aren’t ready to pay and to use.

2.Threat of new entrants – very low.

New entrants are possible. Entrance barriers are high.

4. Bargaining power of suppliers - very high because product demand is specific, they participate in the market and stimulate it.

5. The threat of substitute products. Low from the point of entrance of new methods for wound treatment.

The highest influential forces are from hospitals (don’t buy an expensive dressing), doctors ( as demand generators) and patients.


Porter’s five forces1/ Industry structure:

Number and strength of competitors: Morden wound dressing segment. Market volume is estimated about 6 mln. $. As predicted, by 2010 it may become 10-15 mln.$.The leaders are such companies as Paul Нartman, Johnson&Johnson, Lohmann Rausher, Unomedical (UK). Laboratoires Urgo, 3М. Company Collopast does’t have any significant positions at Russian market. There are some indirect proposals to promote company’s activity in Russia. Competitive level may be estimated as medium.Paul Нartman, Johnson&Johnson, Lohmann Rausher offer different dressing types. Each dressing has its own prescription on what stage of wound process it should be used. It’s recommended to use them one after another on different stages of wound process. Russian companies at the market of highly effective wound dressings aren’t the main ones. SimiIarity of products. Making it simple and easy for consumers to switch from one brand to another. These are the so called traditional remedies for wound treatment: antiseptic solutions and ointments. These are the main remedies doctors use to treat chronic wounds and burns. The main advantage is their low price. Price policyProducts are differentiated and there are no many supplies. Johnson&Johnson offers the highest prices. Manufacturers head for the strategy of ”high price” or “premium extra charge”. Promotion.Work with КOL – to educate doctors how to use modern wound dressings. Publications in medical magazines.Visits to target groups. Aim – to persuade doctor to give a patient recommendations to buy the dressing for patient’s money.Manufacturer gives doctors and consumers the information where the dressing can be bought.Joint actions of manufacturers and specialized chemist’s.Information for patients. Specialized sites (diabetic foot)The net commercial representatives (Johnson&Johnson)


Target groups.

Doctors – no wound treatment standards (burn) , high traditionalism to ointments and antiseptic solutions. Assurance in high efficacy of these remedies and consequently inexpediency of expensive wound dressing usage. Little experience of new wound dressing usage - Main influential group.

Opinion Leaders – education and advocacy of new treatment methods. This is the main influential group.

Final consumers – majority heads for product price and is ready to buy traditional remedies to the prejudice of treatment quality.

Bargaining power of customers Porter’s five forces


HospitalsPurchases Is realized within tender programs through the responsible supplier in the region (it’s a Central chemist’s store). To include the product into the tender it’s necessary to make requests from hospitals;- local or federal tenders;- according to quotations -(requests through the Internet). Hospitals can buy the necessary remedies and medical goods to the sum of 9.6 thousand $ monthly; - to the sum of $2000 hospital can buy goods beyond tender limits.

Departmentalе and private institutions.

Committees of public health services in Moscow, Moscow region and other Russian regions – social aid programs for the old and people suffering from pancreatic diabetes.

Accident medicine (Ministry of emergency situations) – has its own budget on remedies and medical goods.

Retail Specialized chemist’s shops (Set`nol`tri), net chemist’s shops, Internet chemist’s.Chemist’s shops - In chemist’s the range of dressings should be constant and necessary, but by no means leading. That’s why chemist’s necessity to renew the range of dressings depends on consumers’ groups and on mean income of population living in this region.

Frequent consumers - the majority isn’t ready to pay for the treatment.

Bargaining power of customers



Distributors.Protek and SIA are not wound dressing suppliers.

Main players are specialized regional companies which deliver medical facilities and goods.

«Medicina Al`ba», «Aconit», «Accept Plus», «Intermed», “Beromed", “Del`rus, as well as «Shreya» «Moron»

And official manufacturers’ distributors.

Bargaining power of suppliers

Threat of new entrantsThere are Russian developments of wound dressings ( «Polypherm»)The manufacturers are ready to offer dressings at low price. However these productions are a “secondary” business or held on the basis of research institute and need the investment of capital. No resources for their product promotion. Entrance barriers are high.

En new product algidex

Documents

chemicals pharmaceuticals

wound dressings

market turnover

set of dressing

new wound dressing image

expensive dressings

forecast of market development

various types of dressings