Ahmedabad-based Marck Biosciences Ltd., a provider of small and large volume parenterals in India, has invested Rs. 72 crore in its Kheda-based plant to foray into the emerging South East Asian market. The company, which has already started exporting to Philippines, is awaiting permission to start operations in Malaysia, Singapore, Thailand, Burma, Vietnam and Indonesia to reap profit.
In an exclusive interview to Chronicle Pharmabiz, Bhavesh Patel, managing director, Marck Biosciences said, the company is aiming at capturing 10 per cent of the total market in the region with its IV fluids, diluents and ophthalmics. The company feels that IV fluids, diluents and ophthalmics are niche markets and would provide greater opportunities at the cost of lesser competition. The company will accelerate its activities in the region so as to achieve the target of 10% of the total market share with in a span of two years, he added.
Patel said South East Asia could be considered a hot destination for Indian pharmaceutical companies, provided there is a mutual cooperation between the South East Asian and Indian companies. He reiterated that the changing shape and business conditions in the region should in turn open avenues of cooperation between Indian and South East Asian players.
According to Patel, amongst similar companies by size and profile, there are plenty of synergies to be developed. With local companies often being able to tap into consumer pools ranging from 25 to 220 million people for one country, and up to potentially 520 million consumers across the region, market prospects are appealing, even when considering the low disposable-income levels.
More over, should an Indian company be the holder of an innovative technology that can be easily transposed in this market, many success stories could blossom and thrive. Doesn't it make the South East Asian market a hot destination for Indian counterparts? He asks.
Referring to the market scenario, Patel said the region has a fairly integrated pharmaceutical market. As per him, sound economic growth, increasing economic liberalization, broadening middle class, growing and aging population, and the expanded government and private sector role in improving health care have helped the pharmaceutical industry flourish in the region.
It doesn't mean that the pharmaceutical industry in the region is free of troubles, Patel quipped. Some of the vexing issues that dampen the spirits of South East Asian market include weak intellectual property protection, differing disease needs, haphazard drug distribution and shortage of trained doctors and pharmacists. Apart, there is a host of pricing and reimbursement issues that hampers the growth of pharmaceutical industry, he said.
Patel revealed that the company is in the process of setting up a distribution network for its products in South East Asian market. The company is expected to approach the pharma corporate and clients in the region once it has established the distribution network and post regulatory grants and approvals.