Malaysia is one of the only two Asian countries that has been accepted as member of the Pharmaceutical Inspection Co-Operation Scheme (PICS). The benefits of this membership include global acceptance of the quality of pharmaceutical products manufactured by and exported from Malaysia.
PICS membership will serve as a stepping-stone for the local pharmaceutical companies to establish its presence in the international arena. "The PICS membership would allow us to export to more markets such as Europe, Australia and New Zealand," said Duopharma Biotech Bhd financial controller Chek Wu Kong.
Besides, the trend towards usage of generic drugs in the global pharmaceutical industry also presents opportunities for Malaysian drugmakers and pharmaceutical product manufacturers, particularly when quite a large number of drugs' patents are expected to expire in the next two years.
Two public-listed drug manufacturers Pharmaniaga Bhd and Duopharma are already looking out for opportunities to sell drugs to other countries. Pharmaniaga managing director Azhar Hussain said the group wanted to promote its products to Indo-China and Middle East.
Bumiputra medical products manufacturer Ideal Healthcare Sdn Bhd is stepping up efforts to expand its export market to cultivate future earnings growth.
Its managing director Haminnuddin Abd Hamid said the company planned to increase export volume from 20 per cent of total output to 40 per cent next year allowing it to penetrate 10 new countries, including Russia and Spain.
"The expansion will help strengthen the presence of Malaysian products in the international medical marketplace," he said.
Xepa-Soul Pattinson (M) Sdn Bhd executive director Goh Ser Heng said local manufacturers could build on the country's 'no-nonsense' reputation to be a regional supplier for pharmaceuticals.
While the regulatory authorities are adopting higher standards for pharmaceuticals, this would challenge the more marginal producers but favour those who had invested facilities and technology, said Goh.
Export markets could be another source of growth for the domestic pharmaceutical companies.
Industry players said enhancing exports would be another way to source earnings growth, given that local private hospitals are reluctant to use generic drugs.
Nonetheless, analysts said competition in the global market, from countries such as India, was expected to be tough. The government is the largest consumer of generic drugs in the country as it is more affordable. However, this does not mean that generic drugs will never be prescribed in the private hospitals.
Azhar pointed out that the PICS membership would somewhat boost the confidence on the local generic drugs.
"There is more room for the local pharmaceutical companies to grow. "It may be difficult to penetrate the local private hospital market but it could be done if more resources are being put in such as changing the mindset of the users," he said.
Azhar said investment in research & development was essential for the drug makers who wanted to tap onto the private hospitals and export markets.