By Philip Blenkinsop
BRUSSELS, Sept 11 (Reuters) - Belgian health products
distributor Omega Pharma <OMEP.BR> plans a concerted expansion
in the coming years beyond its western European base with its
long list of over-the-counter (OTC) brands.
"We want to be part of the worldwide top in OTC," Chief
Executive Marc Coucke told an investor event on Thursday.
Omega, selling non-prescription products to pharmacists,
competes with the OTC arms of pharma giants such as Johnson &
Johnson <JNJ.N> and Bayer <BAYG.DE> and of consumer product
groups from Procter & Gamble <PG.N> to Reckitt Benckiser <RB.L>.
Omega, the only sizeable stand-alone OTC company, ranks
itself 13th in that market with sales last year of 789 million
euros ($1.1 billion). Its key products include wart treatments,
mosquito repellents, vitamins, pregnancy tests and sun tan
lotions.
Worldwide OTC sales growth has accelerated from 2-3 percent
in 2000-2001 to 6-7 percent now and matches that of
pharmaceuticals, whose growth has fallen from 10-12 percent in
the blockbuster boom era at the start of the decade.
Coucke said the western European OTC market was growing at a
modest 2 percent a year. Omega wants to tap into markets such as
eastern Europe, with forecast annual growth of 10 percent or
southeast Asia, with expansion seen at some 12 percent a year.
In 2000, Omega was busy expanding from Belgium.
In recent months, Omega has snapped up Aurora, an Australian
importer, a majority stake in Switerland's Interdelta, the whole
of Altermed of the Czech Republic and plans a purchase of an as
yet unidentified Hungarian operator -- all for some 20 million
euros, with a further possible payment of 5 million euros.
"We are looking at one acquisition per country, one platform
per country," Coucke said.
He added Omega wanted to push its products into Romania,
Bulgaria and countries of the former Yugoslavia and Soviet
Union, as well as establishing a presence in South America.
It has opened offices in Singapore, Hong Kong and Bangkok
and eyes the launch of a first product in China in 2009.
In India, a 50-50 joint venture with that country's Modi
Mundipharma should be closed within six months and provide
Omega's first experience of production in a low-cost nation.
Coucke said it could be an industry trend in coming years,
mirroring low-cost production practices for generic medicines.
The company, which reported flat first-half sales, eyes
growth of between 3 and 7 percent this year, with new products
boosting the second half in core markets Belgium and France.
"From 2009 to 2012 we see ourselves introducing four to
seven blockbusters per year," Coucke said.
The company chief also predicted further consolidation of
the fragmented market, particularly after OTC products in Europe
were required to prove their efficacy claims, similar to
pharmaceuticals. Such a move would increase costs of entry.
Omega has repeatedly disappointed with sales and earnings
figures in recent quarters and demoted its former chief
executive in March following 2007 results. However, its
second-quarter figures exceeded market expectations.
(Editing by Dale Hudson)
