Pharmabiz
 

Singapore: Turning for better?

MumbaiThursday, April 22, 2004, 08:00 Hrs  [IST]

Valued at approximately $27.8 million in 2001, Singapore's generic pharmaceutical market is estimated to account for nearly 10 per cent of the total pharmaceutical market in the country. The market environment can be characterized as highly competitive with about 20 generic manufacturers and distributors vying for a piece of the market. With only around 4.3 million people in Singapore, the relatively small population base restricts demand for pharmaceutical products. Given the limited market size, tight competition becomes a constraint as it hinders significant increase in market share. Price competitions are rife; a situation which challenges market players to maintain low costs & contain prices in order to sustain business profitability in the long run. Currently, Drug Houses of Australia (DHA), Beacons Chemicals & Sunward Pharmaceutical appear at the helm jointly capturing nearly half of the market. Their ventures into exporting, engagement in contract manufacturing & extensive product lines give them an advantage in the face of strong competition. In Singapore, continuous expansion in product pipeline is almost necessary to remain competitive in the market. Generic drugs are distributed mainly to GPs/clinics and to public hospitals with antibiotics and cardiovascular drugs being among the popular drug classes here. The economic slowdown which has resulted in retrenchment & higher unemployment rates in Singapore has also left repercussions in the generic market for pharmaceuticals. Growth rate is expected to decline to approximately 5 per cent in 2002 as opposed to 7.8 per cent in 2001. During better times in the previous years, the industry has enjoyed an average of 10 per cent growth. Although growth might seem to have almost arrived at a saturation point causing a decline that is precipitated by a sluggish economy, there is still avenue for growth in generic pharmaceutical market. As Singaporeans become more cautious of their spending, opportunities abound for market players as people tend to search for cheaper drugs that are just as efficacious and of good quality. The government's efforts at boosting the economy via tax cuts could also stimulate spending & increase demand and growth in the generics market. Furthermore, as Singapore faces a retired & aging population, a rise in demand for more affordable quality drugs can be expected especially in the category of elderly prone ailments such as hypertension & diabetes. One important factor that would significantly drive demand for generics in the domestic market is the major patent expiries that will be occurring in every quarter of the next five years. The issue of biotechnology patent rights in relation to the launching of many new biotech products worldwide would also be an interesting development to follow as it could lead to 'generic' biotech products which in turn could give rise to opportunities for new markets in the country. - (Source: Frost&Sullivan, Asia-Pacific)

 
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