Aché adopted the business unit model corporate structure in 2006 to enhance responsiveness and security in its decision-making processes. Each business unit designs its plan of action, in line with Strategic Plan guidelines. Last year, we reorganized our business units, aligning them to reflect the goal to grow in every business front.
|Aché business units|
|PRESCRIPTION||GENERICS||OTC||DERMA||INSTITUTIONAL AND SPECIALTY CARE|
Net revenue at Aché totaled R$ 2.3 billion in 2015, a 9.3% rise from a year earlier. Net profit totaled R$ 472.8 million, up by 0.4% from the same period. Adjusted EBITDA totaled R$ 716.3 million, 2% higher than in 2014. Our market share evolved 0.04 p.p. in comparison with 2014, reaching 6.2% in PPP (Pharmacy Purchase Price) reais, a high-water mark for Aché.
Our products reached over 65,000 points of sale nationwide, covering 90% of the country’s territory. This helped Aché to grow above the market in demand in both value (Brazilian reais) and volume. Such performance was spurred by our strategy to partner with new distributors and create commercial conditions to please clients of different sizes with a product portfolio offering quality and diversity.
PRESCRIPTION BUSINESS UNITS
The Prescription unit launched five new products and enjoyed 6.2% rise in unit demand in 2015, according to IMS Health (Brazilian Pharmaceutical Market), with market-share growth throughout all franchises. In 2015, Aché retained leadership in prescription drugs for the ninth consecutive year with a 6.4% share, according to Close-up.
The Demand Generation Force is responsible for providing health professionals with up-to-date scientific information. In line with initiatives valuing physicians and adherence to treatment, we highlight the Respeito pela Prescrição treatment-adherence campaign, six years running in 2016 and targeting health professionals and consumers. The campaign is supported by eight medical societies.
GENERICS BUSINESS UNIT
With four new product launches in 2015, Aché garnered a 7.7% net revenue increase in the generics segment, a significant result given the characteristically intense competition within the segment.
The generics market accounted for 28.8% of all units sold in the total Brazilian pharmaceutical market last year, according to IMS Heath, a 12.2% evolution from last year. During the period, Aché attained 18.3% growth in unit demand and a 37.7% rise in value demand, which helped drive a 0.8 p.p. market-share gain.
OTC BUSINESS UNIT
In 2015, the business unit launched five new products – two new brands, Cativa and Biozinc among them – and approved the development of another ten products to be launched in the next five years. Other tools, such as our winter campaign involving brands Decongex, Flogoral and Sorine, spurred results by offering appropriate commercial conditions for inventory replenishment and expanding product visibility at the points of sale.
In 2016, the unit gained direct responsibility for the InovaMIP Demand Generation Line, improving agility and integration in serving points of sale while seeking business growth in accordance with the objectives laid out in our Strategic Plan.
DERMA BUSINESS UNIT
Profuse, our own dermocosmetics line, developed and rolled out a new visual identity in 2015. Net revenue for the line evolved roughly 50.9%, driven by higher added-value product launches in the anti-aging segment. moreover, a concentrated effort was made to optimize Profuse exposure at points of sale resulting from specific actions and training carried out during the period.
The Dermocosmetics unit also invested in underpinning its relations with dermatologists and opinion leaders throughout 2015. Over 4,000 POS personnel were trained (including skincare consultants, pharmacists and sales clerks) to enhance customer relations. The unit will maintain investments and its focus on innovation to meet demands from health professionals, clients and consumers in 2016.
As a result of this strategy, in October Essencele Filler R won the 2015 Cosmopolitan Beauty Award in the Best Eye Cream category. An annual event hosted by the Brazilian edition of Cosmopolitan magazine, the award acknowledges the best Brazilian product launches, symbolizing the brand’s relationship with the media and the efficacy the product offers consumers.
The brand’s concern with product design was also recognized. Profuse won two important Brazilian packaging awards: the Major Packaging Cases Award, hosted by EmbalagemMarca trade magazine, and the Brazilian Packaging Award, by Embanews trade magazine.
Aché launched Profuse Dermatological Water in late 2015 at the Annual São Paulo State Dermatologists Congress, a major Brazilian event in the dermatology segment.
INSTITUTIONAL AND SPECIALTY CARE BUSINESS UNIT
Created in late 2015, the Institutional and Specialty Care Business unit works with products of greater complexity and assisted usage, providing specialized service to governments, cancer treatment clinics and hospitals. The unit’s management is integrated with the marketing, demand and portfolio renewal areas.
Last year, sales to private-sector hospitals and clinics rose by 9% in comparison with 2014, offsetting a 24% drop in public-sector sales during the same period, due to public-sector budget cuts at all levels of government.