Dong-A Pharm diversifies OTC portfolio to sour growth

Dong-A Pharmaceutical Co.’s Bacchus and Noscarna [Photo provided by Dong-A Pharmaceutical]

Dong-A Pharmaceutical Co., one of South Korea’s leading pharmaceutical companies, is expanding its over-the-counter (OTC) portfolio and moving away from its dependence of flagship product Bacchus, a non-carbonated energy drink.

Although Bacchus sales have steadily increased, its contribution to the overall revenue has been declining. According to the company on Sunday, Bacchus sales in the first quarter of this year amounted to 53.7 billion won ($40 million), accounting for 37.8 percent of total sales.

While Bacchus sales gained by 16.6 percent compared to a year ago, its proportion of total sales fell with 43.8 percent in the first quarter of 2021 and 40.1 percent in the first quarter of last year.

Dong-A Pharmaceutical has diversified its portfolio by introducing various products in the OTC and consumer health businesses, with acne treatments being particularly successful. The company’s OTC division sells acne scar treatments such as Noscarna and Acnon Cream. Noscarna achieved sales of 4.9 billion won in the first quarter of this year, up 47.6 percent from a year ago.

In addition, sales of topical dermatology products, such as Acnon Cream and Melatoning Cream for treating skin pigmentation, have also grown steadily. Sales of Benachio, a digestive drug, came to 4.8 billion won in the first quarter, a 17.7 percent increase from the same period last year.

In the consumer health division, the company’s imported high-dose vitamin supplement, Orthomol, recorded exceptional growth. Orthomol sale amounted to 27.8 billion won in the first quarter, up by 155.2 percent from the same period last year. Dermatology Division sales soared by 500 percent on-year, with trouble care cosmetics at the forefront.

Dong-A Pharmaceutical has established a diverse portfolio by introducing products tailored to specific functions, such as skin creams for acne scars.

“We have also made efforts to meet consumer demand by changing package lines and strengthening the line-up of existing OTC brands such as Panpyrin and Benachio,” a company spokesperson said.

This trend is expected to continue this year as the company has already released several new products in the OTC and consumer health divisions.