Industry insiders agree that the new pharmaceutical labeling policy, which came into effect on October 1, will have at least a small negative impact on branded OTC (Over-the-Counter) products, but may only offer a short term opportunity for medium and small-sized generic drug manufacturers, Interfax reported.
The State Food and Drug Administration's (SFDA) Order No.24, or the "Provisions on the Administration of Pharmaceutical Directions and Labels", stipulates that the generic name of a drug must be marked clearly on its packaging, whereas a brand name on the same packaging may contain no character bigger than half the size of any characters used to print the generic name of the drug, according to Interfax.
"The greatest negative impact of this policy will likely be on branded OTC products, whose sales are mostly driven by promotion and advertisements. It has been common practice, until now, for most OTC products' advertisements to focus on promoting brand names," Mr Bai Huiliang, the standing vice president of the China Nonprescription Medicines Association told Interfax.
Interfax cited Mr Wang Jianhua, the vice general manager with Henan Pharmacy Chain as saying that branded drug makers have been strengthening communication and providing training for sales personnel in pharmacies, as well as seeking new advertising strategies to ensure any negative impact is minimal.
"However, that is not to say there won't be opportunities for generic drug makers, including those medium and small-sized manufactures. I just think these opportunities will not last long," Mr Wang added.