ANNUAL REPORT - Complementary Medicines Australia Report CMA 201… · CMA ANNUAL REPORT 2016 - 2017 | 2 Message from the President CMA has been very busy in what has become a pivotal

ANNUAL REPORT2016 - 2017

ABN: 49 169 036 088

1 | CMA ANNUAL REPORT 2016 - 2017

Contents 1

Message from the President 2

Message from Chief Executive Officer 4

Treasurer’s Report 6

CMA Board 7

CMA Secretariat & CHC Office of Advertising Compliance 8

CMA Vision 9

Complementary Medicines Industry Snapshot 2016 10

Achievement Highlights for CMA 2015-2016 11

CMA delegation to China Report 13

Submissions 15

Annual Conference 2016 16

17th Annual Industry Awards 17

Contents

CMA ANNUAL REPORT 2016 - 2017 | 2

Message from the President

CMA has been very busy in what has become a pivotal time for our industry.

Last September, we welcomed the announcement by the then Health Minister, the Hon. Sussan Ley, that the government had accepted most of the Expert Panel’s recommendations for the Medicines and Medical Devices Review (MMDR).

The MMDR has the goals of improving the timely and safe access to therapeutic goods for consumers, ensuring that the regulatory framework is appropriately aligned to risk, and to remove unnecessary regulatory and administrative burden for industry.

CMA has placed a strong focus on the regulatory reform agenda to ensure that our industry is regulated in a manner that is applicable for low-risk products and reflects the goals of the MMDR. The right regulatory environment is an imperative if our industry is to provide well-informed consumers with innovative new products. Given the importance of getting the regulatory environment right for the future of our industry, the challenge is to ensure that the reforms are implemented as intended and underpinned by appropriate legislation.

CMA’s latest audit of the Australian complementary medicines industry was launched this year, demonstrating that our industry has experienced impressive growth. The audit indicated the value of sales of Australian complementary medicines doubled from $2.3 billion to $4.7 billion in just over three years and our export sales have doubled in size in just two years.

These results are largely thanks to the growing popularity of Australian CM products overseas, recognised as being manufactured with the highest standards of quality and safety in the world. The Australian industry is the second largest exporter of complementary medicines and the second biggest market in the world, and is gaining recognition of its position as a world leader.

The next 12 months will be an exciting, yet challenging, time for our industry. We are certain that we will continue to be united in tackling any challenges and ensuring the success of the regulatory reforms. These reforms, if implemented successfully, should encourage innovation, drive the evidence base of our products, reward greater investment in research and development, and most importantly, continue to enable consumers to access the very best complementary medicines in the world.


Dusko Pejnovic CMA President

We will also continue our focus on the export business through our ongoing engagement with international stakeholders, in particular with our Chinese counterparts, to secure better access to international markets for Australian CM products. Trade with overseas markets is essential for the long term prosperity of the Australian complementary medicines industry.

I’m proud to be able to represent our industry as the CMA president at international forums and events. Our industry, operating under Australia’s robust regulatory framework, holds an enviable position in the world for its pharmaceutical-standard products of the highest quality.

I would like to thank all our members for their continued support and contribution to our industry. I am proud to be able to work with you as a team.

I would also like to thank our Board of Directors for their strong leadership and wealth of knowledge about the industry.

May I finally address a special word to the Secretariat at Complementary Medicines Australia for all the tremendous work they do behind the scenes. Thank you for your effort and your commitment to the industry.


Message from the Chief Executive

The complementary medicines industry in Australia goes from strength to strength, with growing consumer demand domestically and internationally for our high quality therapeutic products.

Our robust regulatory environment and strict manufacturing processes ensure that Australian products are renowned for quality, safety and efficacy. Our strategic vision is to build on these foundations to make sure we continue to innovate and deliver consumers the very best products in the world.

I am pleased to report progress against all areas of our work program.

Membership: We have strengthened membership to record levels and we are delivering services that matter to members.

Exports: We have met our target of doubling exports in 2 years – and now we aim to repeat this challenge over the next two years. Free trade agreements with China, Korea and Japan are helping us to access these markets, with China now our biggest and most important export country.

Industry Delegations: CMA led two trade delegations to China and strengthened relationships with several important trade associations, including the China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE) and the China Quarantine Association.

International Profile: After the USA, Australia is the second largest exporter of complementary medicines – and the second biggest market. We are viewed as world leaders and CMA is ensuring we maintain and enhance this profile by attending key events, including Supply Side West and the first ever Naturally Good Expo held in Sydney. I was honoured to be appointed to the Executive Committee of the world trade body, IADSA.

Industry Audit: We published our most comprehensive industry audit to date announcing that the size of the industry is now $4.7 billion – the size of the VDS category alone has doubled in three years.

Media: we continue to drive the positive message with over 75 positive mentions – analysis shows we secured a 60% positive media share for our industry. CMA is also there to defend against negative media with a strong and robust presence on ABC Four Corners.

Events: CMA ran many successful events during the year including our best ever Conference and Awards Dinner, Regulatory Compliance Seminar, and a series of Industry Leaders’ Forums. CMA also focussed on the Science behind Supplements with an Omega 3 Conference and the support of an AIMA Day of Science Symposium for Practitioners.


Carl Gibson CMA CEO

Standing with Practitioners: CMA knows that practitioners play an important role for our industry. They are the first line of knowledge and advice to consumers and our greatest advocate – so it’s crucial we support them and stand with them. CMA supported a complaint to hold the NHMRC to account for the flawed review on homeopathy.

Innovation: The TGA has recently approved the inclusion of many new ingredients to the List of Permissible Ingredients – the lifeblood of innovation. CMA has started a series of economic benefit analyses of new ingredients to support even more.

Regulatory Reforms: CMA continues to advocate for the appropriate implementation of a new registration pathway that protects research and rewards innovation. We support the axing of the Complaints Resolution Panel and the reform of advertising pre-approvals.

I thank all our Members for their continued loyalty and support. CMA is your Association and I am proud to represent our industry every day.

My thanks to the CMA Board of Directors for their encouragement, support and industry knowledge – they play a vital role in setting our strategic direction.

And finally a big thank you to the team at Complementary Medicines Australia who work so hard to deliver against our work program, which helps us meet our strategic objectives.


Treasurer’s Report

Our aim at Complementary Medicines Australia is to drive forward the industry’s agenda and advocate for a positive political and regulatory agenda that encourages and supports preventive healthcare.

Our primary goal is not to make a profit – but to make sure that member funds are used effectively to meet our objectives. Having said that, we also have a duty to members to make sure your Association is financially solvent.

I am pleased to report in the last year the Association has seen strong growth. Our revenue income is at record levels, as we continue retain existing loyal members and also to attract new members with the range of valued service offered by CMA.

As our income grew during the year we were able to add additional services to benefit members. We ran two trade delegations to China and also strengthened the CMA secretariat with the appointment of an in house health economist and additional regulatory affairs support.

With the additional services and strengthening the secretariat, I am pleased to report a profit of $38,027 this year.

This is the third year in a row of positive returns for members, which totals over $165,000 added to total member funds which now stands at $512,185.

Our advertising pre-approvals service has been transformed from a loss making service, but attracted an enquiry from Australian Tax Office on its not-for-profit status. I am pleased to advise that this enquiry has been satisfied.

My thanks to Carl, Carol, Philip and the whole team who strive to ensure that we have a strong thriving Member Association.

John Baker CMA Treasurer


CMA Board

Kerry CunninghamBlackmores

Resigned Sep 2017

Sue HoganVice PresidentHealth World

Appointed Apr 2017

Ben Rowe Brauer Natural Medicine

Natasha FlynnHealth Direction

Resigned Jul 2017

Richard HenfreyVice President

Blackmores Resigned Apr 2017

Mark BissetCatalent Australia

Resigned Sep 2016

Dusko Pejnovic President

Lipa Pharmaceuticals

Sally BrumleyQueanbeyan Mega Health

& Leura Health Foods

John BakerTreasurer

Go Vita Springwood

John KavanaghIntegria Health Care

Ian ChantAker BioMarine

Australia

Carolyn Barker AMEndeavour Learning Group

Justin HowdenSwisse

Wayne CootePathway International

Nathan CheongBioceuticals

Appointed Mar 2017

Paul MannionBlackmores

Appointed May 2017

Carl Gibson Complementary Medicines

Australia


CMA Secretariat

Carl GibsonChief Executive Officer

Emma BurchellHead of Regulatory Affairs

Karen HockingHead of Government Relations

& Industry Development

Tricia CampbellAdvertising Compliance Manager

Ruben JonesAdvertising Compliance Manager

Philip AndersonIT Manager

Chelsea van ZylBusiness Development

Carol HartHead of Finance

Miho KikuchiIndustry Development

Dee WatsonBusiness Manager

Alice CallahanCommunication,

Marketing and Events

Staff not pictured: Tony Lewis - Advertising Services ManagerAmanda Ferguson - Advertising Compliance Coordinator

CHC Office of Advertising Compliance

Gerry DendrinosProject Manager

Aiden EsseryEconomic Advisor


CMA Vision

1

• Stabilise Finances• Improve Team Morale • Right people in the right roles• Connect with Members • Finalise Education Program • Develop Advocacy and

Deregulation Agenda• Start to drive the issues that

matter to our members• New Brand and Identity

• 2020 Strategic Plan in Place: Vision, Mission, Goals

• CMA the lead voice for CMs• CMA the Industry Advocate• Strengthen Membership • Annual Revenue $2m+• Double Exports Revenue• Drive Deregulation & Advocacy

Agenda • Collaborate with Leading

Researchers and Educators

• CMA the go-to Peak Body, Champion and Campaigner for CMs

• Australia World Leading:- Innovation - Manufacturing - Quality CM Products - Streamlined Regulatory System- Confident Industry - Informed Consumers - Five Star Research & Science Base- Globally Recognised for Reputation

Stabilise Energise World Leaders2014 – 2015 2016- 2019 2020

Vision 2020Australia

The Natural World Leaders


Achievement Highlights for CMA 2016-2017

Advocacy:CMA has continued to place a strong focus on influencing the regulatory reform agenda as our top priority. Since Health Minister, Hon Sussan Ley, announced that the Government had accepted the majority of the expert panel’s 58 recommendations at our annual Conference in September 2016, CMA has been working hard to ensure that the regulatory reform agenda will be successfully implemented including:

New ingredient pathway to support new products and innovation. The TGA has recently approved the inclusion of many new ingredients to the List of Permissible Ingredients. In the Therapeutic Goods (Permissible Ingredients) Determination No. 2 of 2016, 38 new ingredients were added to the list.

New registration pathway that drives even more research and rewards innovation. The MMDR reforms, implemented successfully and as intended, will ensure we continue to deliver consumers with the very best complementary medicines in the world.

CMA also continued to support the axing of the Complaints Resolution Panel and the reform of advertising pre-approvals.

CMA hosted a Regulatory Obligations Seminar in April 2017. The seminar was kicked off with a presentation by Lyndall Soper, Assistant Secretary from the TGA. The seminar reached a record number of participants, with over 90 people in attendance, to hear about the details of the reforms as well as ongoing and future regulatory developments.

Proactive Media & Communications:CMA has continued to strengthen our media profile, publishing numerous media releases and monthly articles in Food-Navigator Asia. CMA was also there to defend against negative media with a strong and robust presence on ABC Four Corners.

CMA developed a series of booklets, including CMA Industry Audit 2017, Science of Complementary Medicines, and Australia’s Complementary Medicine Industry. Australia’s High Quality Complementary Medicines Industry was also updated in February 2017.

Leadership:CMA conducted its latest audit of the Australian complementary medicines sector and launched the 2017 Complementary Medicines Industry Audit in August 2017. The 2017 audit clearly demonstrated that the Australian complementary medicines industry is in good health as individuals continue to invest in their wellbeing.

CMA was an exhibitor at Naturally Good Expo, Australia’s largest natural, organic s and health products Expo, in June 2017. CMA participated as an event supporter as part of our commitment to industry growth and the delivery of the very best quality therapeutic products to consumers. This year, the Expo launched a CM Pavilion for the first time.

CMA also supported an Omega 3 conference as well as an AIMA Day of Science Symposium for Practitioners.


International Profile:CMA became a member of the executive committee at the International Alliance of Dietary / Food Supplement Association (IADSA) and has positioned itself to more effectively provide input to overseas regulations, such as those in China.

CMA represented the industry internationally at Supply Side West in Las Vegas and VITA FOODS ASIA in Singapore.

CMA’s China Working Group has led two delegations to China in the past twelve months, as our industry success in China will be heavily influenced by our ability to remain abreast of developments in the market, including changes to the regulatory environment, border controls, and consumer tastes and trends.

CMA Awarded Grant Funding to Host Chinese Delegation:CMA has been awarded grant funding from DFAT’s Australia-China Council (ACC) to support our hosting of a Chinese delegation, led by the CCCMHPIE, to visit Australia and attend the CMA Innovation Seminar & Supplier Expo, Annual Conference and Industry Awards on 25-26 October 2017 in Sydney.

We are extremely fortunate to have been successful in securing funding, as one of only 34 successful recipients across a wide range of strategic priority areas for the ACC, which include arts and culture, education, economic diplomacy and Australian studies in China.

Supporting Exporting:CMA continued to work closely with Austrade. Austrade organised two webinars for CMA members including “Why ASEAN Why Now: Opportunities for Complementary Health in ASEAN” and “E-Commerce in China – business update” in April 2017. Many of our members participated in these seminars, demonstrating a growing focus by members on the Asian markets.


CMA delegation to China Report 8-9 December 2016, Beijing

CMA led its first international delegation to Beijing, China. The primary purpose of the visit was to commence industry engagement with Chinese stakeholders, including industry bodies, key departments of the Chinese Government and commercial organisations, to better understand the regulatory developments and share key learnings on effective regulation of low risk therapeutic products.

Our delegation was coordinated by the Australian Trade and Investment Commission (Austrade) and the Australian Embassy in Beijing. In a packed two day program, the delegation had meetings with seven key organisations, hosted a networking dinner for key industry partners and stakeholders and met with over 60 people.

CMA wishes to thank the Australian Embassy and Austrade for hosting and coordinating our very first overseas trip, and to the delegates for their time, enthusiasm and active participation.

The Australian Complementary Medicines Trade Delegation

(Front row: left to right: Colin Tang (Austrade); Raymond Chan (Blackmores); Anna Lin (Austrade Commercial Consul); Dusko Pejnovic (Lipa and CMA President and Head of Delegation); Carl Gibson (CMA); Jessica Fang (Lipa).

(Back row: left to right: Stephen Vile (Caruso’s Natural Health); Mark Bisset (Catalent); Justin Howden (Swisse Wellness); John Kavanagh (Integria Health Care); Dan Tebbutt (Austrade Senior Trade Commissioner); Frank Di Bartolo (Caruso’s Natural Health); Isaac Huang (Swisse Wellness); Jay Drezner (Vitaco).

^

Dan Tebbutt, Senior Trade Commissioner at Australian Trade & Investment Commission briefs the delegation.

^

China Health Care Association Deputy Secretary General: MR. ZHANG Da Chao hosts a banquet lunch for the Australian Delegation.

^


CMA delegation to China Report 19-22 June 2017, Shanghai

CMA led its second delegation of 19 industry leaders to Shanghai to attend the Healthplex & Nutraceuticals China (HNC) Expo, an increasingly important event on the global natural products industry calendar. During the Expo and Conference, the delegation gained firsthand knowledge of the real and rising attention towards Australian complementary medicines by Chinese stakeholders.

Amongst the highlights of the trip, the delegation attended the China International Nutrition and Health Industry Summit 2017, were guests at a networking dinner organised by CCCMHPIE, had an opportunity to visit a Bonded Warehouse and logistics centre, and met with on-line ecommerce giant Alibaba.

The CMA delegation to Shanghai was hugely successful and we received incredibly positive feedback from our delegates. CMA wishes to thank our friends at the CCCMHPIE and Austrade for hosting and coordinating the delegation trip.

Our ongoing engagement with the CCCMHPIE and Austrade will remain strong, and CMA is looking forward to welcoming a Chinese delegation to CMA’s 18th Annual Conference and Industry Awards in October.


CMA Submissions

2017• CMA Submission to the Therapeutic Goods

Administration on Exposure Draft of the Therapeutic Goods Amendment (2017 Measures No. 1) Bill 2017 (5 September 2017)

• Targeted consultation - Pharmacovigilance Inspection Guidelines (2 August 2017)

• Submission to Interim Report – Review of Pharmacy Remuneration and Regulation (21 July 2017)

• Submission to TGA on Australian homeopathic market information (19 July 2017)

• Targeted consultation - Pharmacovigilance responsibilities of medicine sponsors (17 July 2017)

• Submission to the Therapeutic Goods Administration on the new Risk-Based Approach to Medicine Variations -Registered CMs Part 2 (7 July 2017)

• CMA Submission: Enhancing Sanctions and Penalties in the Therapeutic Goods Act 1989 (31 May 2017)

• CMA submission to Department of Foreign Affairs and Trade on the Indonesia - Australia Comprehensive Economic Partnership Agreement (22 May 2017)

• CMA submission to the consultation - Options for the future regulation of ‘low risk’ products (12 May 2017)

• CMA submission to the consultation -Reforms to the regulatory framework for complementary medicines: Assessment pathways (28 March 2017)

• CMA submission to the Therapeutic Goods Amendment (2016 Measures No. 1) Bill 2016 inquiry (3 March 2017)

• CMA 2017-2018 Federal pre-Budget Submission (January 2017)

2016• Submission to the TGA Consultation on

the regulatory framework for advertising therapeutic goods (21 December 2016)

• Submission to the Therapeutic Goods Administration on the Risk-Based Approach to Medicine Variations -Registered CMs (20 December 2016)

• Submission to Department of Foreign Affairs and Trade on the Discussion Paper on Addressing Non-Tariff Measures (December 2016)

• Submission to the Productivity commission on Data Availability and Use (November 2016)

• Submission to Codex Committee on Nutrition and Foods for Special Dietary Uses: Proposed Draft Revised Standard for Follow-Up Formula (CODEX STAN 156-1987) (25 November 2016)

• Submission to Department of Industry, Innovation and Science on the Review of the R&D Tax Incentive(October 2016)

• Submission to Department of Industry innovation and Science, additional information on amendments to the Australian Consumer Law - substantial transformation and country of origin labelling (21 October 2016)

• Submission to the Medicines Scheduling Secretariat: amendments to the Poisons Standard ACMS meeting, November 2016 (1 September 2016)

• Submission to Department of Industry innovation and Science on amendments to the Australian Consumer Law - substantial transformation and country of origin labelling (28 September 2016)

• Submission to the Review of Pharmacy Remuneration & Regulation (23 September 2016)

• Productivity Commission on its Issues Paper: Consumer Law Enforcement and Administration (30 August 2016)

• Submission to the Structural Review of NHMRC’s Grant Program (25 August 2016)

• Submission to Food Standards Australia New Zealand (FSANZ) on Proposal P1042 - Low THC hemp seeds as food (25 August 2016)

• Submission to TGA Scheduling Committee: consideration of new ingredient - Kunzea ericoides (Kānuka) essential oil (8 August 2016)


CMA Annual Conference 2016 Healthy Industry, Healthy People

CMA was delighted to host the event at picturesque Doltone House, Jones bay wharf for the second time. The venue is not only situated in a beautiful location, it is also able to meet the increasing needs of an industry event that we are proud to say gets bigger and better every year. The conference sold out yet again, with over 230 people in attendance and over 360 at the Industry Awards.

The program presented an exceptional array of Australian and International speakers, each providing a fresh insight in exploring the theme ‘Healthy Industry, Healthy People’, a theme that encompasses a number of key approaches for how our industry can continue to innovate, grow and contribute to better health outcomes.

We would like to, once again, extend our thanks and appreciation to all our sponsors, supporters and exhibitors at the event – in particular our major conference and industry awards sponsors, DSM Nutritional Products and Ferngrove Pharmaceuticals Australia.

Program and SpeakersThe conference proceedings were kicked off with a video message from the Health Minister, The Hon. Sussan Ley. The Health Minister announced in her message the government response to the Sansom review, and the acceptance by both the Expert Panel and the government of about 90 per cent of our recommendations for regulatory reform.

The program continued on a high note with a full day of plenary speakers, including an engaging and informative presentation from keynote speaker Mark Blumenthal, Founder of the American Botanical Council. Special thanks to Network Nutrition-IMCD for making Mark’s attendance possible through their sponsorship.

Sponsors, Exhibitors and PrizesThis year the conference welcomed 12 exhibitors, along with an espresso coffee cart thanks to our major sponsors, DSM Nutritional Products.

Delegates were encouraged to get on social media with the promise of an Apple Watch prize to the person with the most retweeted tweet using the hashtag #CMAConference.

As part of our passport promotion we gave away a bundle of prizes donated by exhibitors. Congratulations to all the lucky winners, and thank you to all those who took part in the promotion.

CMA would like to send a special thanks to all our sponsors and exhibitors who help to make this event possible each year.


17TH ANNUAL INDUSTRY AWARDS

An engaging and informative day of conferencing was again topped off with the Annual Industry Awards. The Awards Dinner is the perfect opportunity to network with industry colleagues and celebrate the outstanding success of our greatest contributors.

The awards evolved again in 2016 with the addition of the Judges Choice Award. As always, the awards were highly contested and we congratulate all the winners, in particular the winner of the Lady Cilento Award - Frank Caruso.

Our very own Carl the Koala introduced the entertainer for the evening, Mick Colliss. Mick’s hilarious story of becoming a representative of Australia had the crowd roaring with laughter.

The 17th Annual Industry Awards were proudly sponsored by Ferngrove Pharmaceuticals. Ferngrove surprised 35 lucky guests with the prize of a Tone Phone Mate.

A performance by celebrity comedian, Kitty Flanagan, ended the formal proceedings of the evening.

The 16th Annual Industry Awards were proudly sponsored by Ferngrove Pharmaceuticals Australia. Ferngrove surprised 40 guests with a lucky door prize of an LED lamp.

INDUSTRY AWARDS WINNERS 2016The Lady Cilento Award for Lifetime Achievement Frank Caruso

Wholesaler/Distributor of the Year GoVita Distributors

The Vince Russell Retailer of the Year Award Blackmores for their flagship store, Bondi Junction

Social Selling Award Herbalife Australasia

Most Outstanding Contribution to Research, Education or Training Fit BioCeuticals

The Network Nutrition Quality Raw Material Supplier Transchem

High Quality Manufacturer of the Year Lipa Pharmaceuticals

Most Outstanding Marketing Campaign (Sponsored by Foodsource) Integria Healthcare for the Thompson’s Marketing Campaign

Industry Contributor of the Year Swisse Wellness

The Judges Choice Award Network Nutrition


PO Box 450 Mawson ACT 2607

T +61 (0)2 6260 4022 F +61 (0)2 6260 4122

www.cmaustralia.org.au

Documents

ANNUAL REPORT - Complementary Medicines Australia Report CMA 201… · CMA ANNUAL REPORT 2016 - 2017 | 2 Message from the President CMA has been very busy in what has become a pivotal