【正文】 amp。 hospital pharmacy interviews。 McKinsey analysis Sales by channel Mn RMB, % Sporanox Lanmeishu* (蘭美抒 ) Liangjia (亮甲 ) Tinea Unquium 65 33 69 30 1 84 15 0 12 87 2 2 YANTAI amp。 hospital pharmacy interviews。 Jining Mn RMB, % 575461857427101417005%12%25%22%Total Retail pharmacy Hospital Clinic 100%= Sporanox Lanmeishu* (蘭美抒 ) Liangjia (亮甲 ) Others Liangjia has relatively high market share in retail pharmacies At city level, Lanmeishu has 31% of hospital channel, better than Sporanox Hospital at county level and above should be the main focus PRICE IS A HUGE ISSUE FOR SPORANOX Sporanox is too expensive for most farmers whose annual ine is only around RMB 2,000 Even at county level, cost of using sporanox for effective treatment is higher than total drug expense per year for an average person 15 20~ 4 2 0~ 2 0 0~ 8 0~ 5 0 0County level price threashold City level price threashold County level annual drug expense per person Average insurance allowance per year Cost of sporanox as a derma drug Source: Interviews。 McKinsey analysis THERE ARE ONLY A FEW COMPETITORS AT CITY AND COUNTY LEVEL FOR SPORANOX。 physician interviews。 McKinsey analysis THERE ARE ONLY A FEW COMPETITORS AT CITY AND COUNTY LEVEL FOR SPORANOX。 physician interviews。 Retail pharmacy interviews。s heavy advertising Only around 10 % of those seeking treatment purchase drugs Only 1% would follow prescription Total incidence* Do not seek treatment Seek treatment Not aware 100~5~0~5~ 1 0~ 7 0~ 2 0 * The incidence rate is around 5% in Shandong Source: Physician and pharmacy interviews。 McKinsey analysis Sales by strata Mn RMB, % Gyno Daktarin Xiaomishuan(消糜栓 ) Mycostatin(制霉菌素 ) Shuangzuotaishuan(雙唑泰栓 ) Jie’eryin(潔爾陰 ) Vaginal infection drugs YANTAI amp。 hospital pharmacy interviews。 second, I don’t have facilities to check the body in the clinic。 Retail pharmacy interviews。 McKinsey analysis Sales by strata Mn RMB, % Motilium Sidashu(斯達(dá)舒 ) Wei’ershu(謂爾舒 ) Mosapride(莫沙比利 ) Tidines(替丁類藥 ) GI drugs 15 26 19 41 15 22 20 43 22 37 26 15 26 44 21 9 18 50 23 10 1 17 17 66 YANTAI amp。 hospital pharmacy interviews。 McKinsey analysis Sales by channel Mn RMB, % Motilium Sidashu (斯達(dá)舒 ) Wei’ershu (謂爾舒 ) Mosapride (莫沙比利 ) Tidines (替丁類藥 ) GI drugs 12 35 53 14 34 52 6 66 29 5 76 20 40 38 21 4 22 73 YANTAI amp。 hospital pharmacy interviews。 patient interviews。 Famotidine Source: Distributor interviews。 McKinsey analysis 3030~ 4 0~ 2 0~ 3 0~ 4 0~ 2 0~ 4 0~ 5 01997 1999 2020 Retail Pharmacy Hospital Clinic “ Unlike things in the past, patients nowadays generally try to avoid ing to hospitals because of hospitals’ expensive charges. For GI disease, most people can judge by themselves. So they usually prefer to go to pharmacies or clinics to buy drugs.” —— Qixia GI physician interview “ Most GI patients are repeating patients. They know which drugs to buy, and where the drugs are cheap. So usually they will choose pharmacies amp。 PEOPLE GENERALLY SEEK TREATMENT IN CLINICS AND PHARMACIES Latent market demand 60% of total patients do not seek any treatment As market leader, increasing awareness for Motilium to further boost treatment rate is one of the key demand levers Small clinics and pharmacies are important channels 75% of patients seeking treatment go to clinics and pharmacies Total incidence Do not seek treatment Go to large hospital* Go to small clinic Self medicate at pharmacy Seek treatment Not aware Percent Motilium’s market share Motilium has a vast room for grow because of significant leakage along the patient flow 60% of GI patients that do seek treatment Current market share of 4% which could be grown further Among the 40% people who seek GI treatment, about 30% would buy banded generic drugs**, while the rest would buy nonbrand generic drugs % FOR GI DRUGS, POLARIZATION IS BECOMING MORE OBVIOUS Anecdotes Quantitative examples SubTA sales by channel Percent Source: Hospital pharmacy interviews。 McKinsey analysis Clinics’ share in total drug sales Percent Overall County Town Village 36% 26 34 100 Sichuan Shandong City 8 27% 8 27 100 3 XJP should think about costeffective way to lock in individual clinic/barefoot doctors . Category Review 100~ 2 0~ 2 0~5~ 4 0~ 3 0~ 3 0 * More than half of patients going to large hospitals will purchase drug at retail pharmacies ** Branded generic drugs referring to generic drugs that run advertising, creating brand awareness in consumers Source: Physician and pharmacy interviews。 McKinsey analysis “ What makes you change your perceived drugs?”* – Pharmacy patient survey Percent, Shandong city level 473716Perceived drug not available。 PHARMACY CLERKS BECOME INFLUENTIAL * 40% of the patients changed their mind in pharmacy Source: Interview。 McKinsey analysis Drivers Increased price sensitivity Changed medical insurance policy Improved highway infrastructure Rich information access TV Newspaper Increased life pace No time to visit hospital Pharmaceutical market deregulation policy More and more p