Countries in the south-east Asian region currently grab a greater attention from Indian pharamaceutical firms. Several small, medium and big players in Indian pharma, biotech and allied industries have established strong presence and many more are in the process in the fast-emerging markets of this region.
The Asian tigers, who were adversely affected by the financial breakdown of 1997s, are bouncing back into a hub of business activities, thanks to the free market environment, developed industry and investment in health and health infrastructure. The result is obvious. The western as well as the Indian companies, not to mention pharmaceutical industry, are in a rat race to expand their portfolio in the region.
South East Asian cubs -- Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand - together represented a market of 588 million people and combined gross domestic product (GDP) of US$ 2.2 trillion in 2006, speaks volumes for the improving economic scenario of the region. These markets have emerged as a real area of opportunity for companies that engage in manufacturing, production and provider of services.
Though the general market favors production and export of generic medicines, the demand for imported drugs is not that puny. The general outlook for the sale of generic pharmaceuticals in the South East Asian region, and Malaysia in particular, is strong due to GDP growth, increasing middle class and ageing population.
The region also has a couple of manufacturing facilities and efforts are being made to attract more multinational pharmaceutical companies to set up their plants. While the countries like Singapore are focusing on export driven trade policy and making every effort to attract multinational pharmaceutical companies to set up their manufacturing facilities in the region, countries including Indonesia and Taiwan are offering their western and other Asian counterparts, including India and China, a platform to export their products, including original and generic drugs.
In common, the South East Asian countries are in need of prescription, over-the-counter and traditional medicines. It is important to bear in mind that the global prescription market is expected to grow by 5.6 per cent and achieve sales between US$ 665 and $ 685 billion in 2007, up from US$ 620 billion in 2006. Hence, the region can be undoubtedly termed as a solid ground for marketing prescription medicines.
Apart, the Indian and the western pharmaceutical companies can capitalize on the feeble health often caused by different sort contagious diseases and life style disorders such as cardiovascular, diabetes, musculoskeletal disorders and cancer to expand the market.
With expectations soaring high, the Indian pharmaceutical companies are making a hasty entry into the region to make it big over there. Many companies, from top guns including Lupin, Zydus Cadila and Claris to mid and small cap companies like Marck Biosciences, have already made their presence felt in the region. While some of the Indian companies cater to the import needs of the region, others care working on manufacturing facilities.
The Indian pharmaceutical companies are also all set to tap the South East Asia's status as the fourth largest pharmaceutical market in the world. The South East Asian pharmaceutical market is placed after the US, Japan and Europe. The Indian pharma majors, including Dr. Reddy's, Ranbaxy, Glenmark, Lupin , Cipla, Micro Labs, Biocon, Bal Pharma, Aurobindo Pharma, Orchid Chemicals and Crosslands see the South East Asian market as a hub for export activities.
SINGAPORE
Singapore has already built up its reputation as a trusted site for pharmaceutical activities. By building up its domestic capabilities and encouraging more international activity in the country, Singapore has long been trying to gain the confidence of global pharma community.
Compared to other Asian tigers, Singapore has the highest gross domestic products (GDP) per capita and its vital health indicators are on the same footing with that of many in the developed Western world. The country acts as a key-trading hub to connect South East Asia and the Western and exports more pharmaceuticals than any other of the tiger economies by a significant margin.
The country's market value is likely to exceed US$ 0.66 billion by 2010, up from US$0.53 billion in 2005.
INDONESIA
With steady increase in imports, the Indonesian pharmaceutical market has become a favorite of western as well as Indian pharmaceutical companies. The government encourages the production and distribution of generic drugs which makeup 10 percent of the total market, while market for prescription drugs are at low key. The country is also witnessing a growth in domestic manufacturing.
TAIWAN
The Taiwanese pharmaceutical market is one of the most developed in Asia, offering good prospects for overseas investment. Imports dominate the market and there is also a heavy multinational presence, which amounts to almost three quarters of the market total.
SOUTH KOREA
The country has a well-developed healthcare sector with highly trained staff and demand for the latest available treatments. Fierce domestic competition, poor IP protection and an opaque regulatory/reimbursement system still make Korea a difficult market to penetrate. However, the Indian pharmaceutical companies will find the Korean market favorable for generics, as the Korean ministry of health and welfare will allow only cost-effective drugs to be covered by national health insurance. The Korean MHW had in 2006 cut the prices of drugs made by foreign companies.
THAILAND
Like most of the countries in the region, generic drugs and over-the-counter medicines rule the Thai pharma market. The government's relationship with the international pharmaceutical industry continues to be uneasy, largely due to the country's lax patent laws and preferential treatment of domestic producers. However, the country is a hot destination for countries concentrating on export. Thai is witnessing a high demand for imported modern drugs.
VIETNAM
The pharmaceutical market in Vietnam is witnessing a gradual but steady expansion with foreign investment increasing year-over-year. If we are to go by statistics, in December 2005, 100 foreign enterprises had received licenses for medical equipment and pharmaceutical investment, with the total proposed capital investment reaching US$ 800 million.
The Vietnamese pharmaceutical market has significant growth potential, largely due to a sizeable population. The government hopes to boost per capita spending to US$10-15 by 2010, through a major development programme.
PHILIPPINES
The Philippines is one of the poorer countries in the association of South East Asian Nations (ASEAN) region, with GDP per capita of US$ 1,250 in 2006. Health expenditure is low and the country attracts a degree of overseas aid. With generic market representing a negligible part of the market, drug prices are amongst the highest in Asia.
MALAYSIA
Around 60-70% of the Malaysian market is in the private sector, with prescription drugs often available over the counter. Physicians often sell the drugs they prescribe; around 45% of non-OTC drugs are sold by dispensing medical practitioners, with a further 30% being sold through public/private healthcare institutions.
BURMA
With widespread poverty eating up the majority of the population, the demand for cheaper alternative medicine is high in the country. Hence, countries like India, which are concentrating on the generic market, have a good fortune in Burma.
During Burma's socialist era, there was only one registered drug producer, the Burma Pharmaceutical Industry (BPI). Now, Myanmar Pharmaceutical Factory (MPF) has taken over the ruins and private ventures, including Yangon Pharmaceutical Factory and FAME Pharmaceuticals contribute to the country's medicinal drug market.