South Asia is expected to drive the global growth in coming years. The region represented by eight countries covering Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka has the opportunities to develop as a base for expanding operations in the area of pharma and healthcare.
Of the eight countries, India is the largest pharma market valued at cover Rs. 90,000 crore and growing at 16 per cent annually. The other growth markets are Bangladesh, Sri Lanka and Pakistan which have a robust pharma industry and healthcare providers. The remaining countries are Afghanistan, Bhutan, Maldives and Nepal which largely depend on imports from India and other parts of the world.
From Abbot, Aarti Industries, Ajantha Pharma, Biocon, Bal Phamra, Micro Labs, Dr. Reddy’s Ranbaxy, Cadila, Elder Pharma, Lupin, Torrent, Panecia Biotech to Merck and Serum Institute, all these companies have a South Asia market strategy ensure that their drugs are readily available in these regions.
Though the economic funk in the US and Europe has created a bleak scenario for all industries including pharma products , the bright prospects for essential drug export to the South Asia is a silver lining on the clouds that gathered over them , opine industry experts.
India
Indian pharma industry has a significant presence in the South Asia. Indian pharma industry has already acquired a commendable position in the global pharma market as a supplier of high-quality, low-cost generic drugs and also has moved up the value chain into more challenging segments such as Drug Discovery and Development among others.
Globally, India ranks third in terms of manufacturing pharma products by volume and 14th in value terms. The estimated turnover of the Indian Pharmaceutical Industry is US$ 21 billion. The growth rate of the industry is about 14 per cent per year. The pharma industry in India produces around 20 to 24 per cent of the global generic drugs.
The transformation in the global pharma market offers immense opportunity for Indian drug industry. Patents worth $13 billion of blockbuster drugs expired in 2007. Patents worth $60 billion will expire by 2012 end. As a result, the newly available market will be filled by generics worth $73 billion.
India is capable of capturing this opportunity and can become a global base for outsourcing of pharmaceuticals since it has certain distinct advantages many other countries of the world.
Pakistan
Pakistan has a growing pharmaceutical industry. As of 2012, the total export value of Pakistani-manufactured medicines around the world stands at $ 400 million. Many different companies sell a diverse range of drugs and pharmaceutical products.
The pharmaceutical market in Pakistan is dominated by locally manufactured pharmaceuticals, predominantly generic drugs, which meets around 90 per cent of country’s needs. Imported retail medicaments account for the remainder of the market, although manufacturers rely heavily on imported raw materials for production. Multinational companies account for around half of the market by value, although local producers have a far greater share in terms of volume.
Today, the pharmaceutical sector is one of the most developed hi-tech sectors within the country's economy. New pharmacy schools have been set up nation-wide in the past few years which provide and cater to quality pharmacy education to students of pharmacy. The Punjab Pharmacy Council is a government department responsible for conducting examination and tests.
Pakistan has four geographic pharmaceutical clusters, Karachi, Lahore, Islamabad and Peshawar, in which the trade should be carried out according to the nature of each clusters. Dabur Pharma, Biocon and Natco Pharma are some of the companies that have already established their tie- up with Pakistan pharmaceutical companies, according to the Pakistan Pharmaceutical Manufacturer's Association (PPMA).
Bangladesh
According to BD Drugs.com the first online drug index of Bangladesh, the pharmaceutical sector is one of the most developed hi-tech sectors within the country's economy. The development of this sector was accelerated after the promulgation of Drug Control Ordinance – 1982. Two organizations, one government (Directorate of Drug Administration) and one semi-government (Pharmacy Council of Bangladesh), control pharmacy practice in Bangladesh. The Bangladesh Pharmaceutical Society is affiliated with international organizations International Pharmaceutical Federation and Commonwealth Pharmaceutical Association.
According to the Bangladesh Pharmaceuticals and Healthcare Report Q1 2011, “the country’s medicine sales reached Tk 7,000 crore in 2010. Business Monitor International in its latest report of Q1 2011 said Bangladesh has moved up one place to occupy the 14th position in 17 regional markets surveyed in BMIs Pharmaceutical & Healthcare Business Environment Ratings for the Asia region. However Bangladesh has a long way to go, the report said.
While there is a big business for the active pharmaceutical ingredients (APIs), there is also major scope for finished formulations. A profusion of hospital and increasing life style disorders, chronic and communicative diseases are have opened up immense prospects, said Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA).
According to Rakesh Bamzai, president, marketing, pharmaceuticals, Biocon Ltd, Bangladesh shows an increasing demand for drugs in cardiovascular, diabetes, renal failures resulting out of these life style disorders. This has led the company to generate substantial sales from its range of APIs.
Afghanistan
According to the Afghanistan Research and Evaluation Unit(AREU) report titled ‘Understanding Markets in Afghanistan: A Study of the Market for Pharmaceuticals’, there has been a dramatic increase in the quantity of both donated and privately imported medicines entering Afghanistan since 2002. The private sector accounts between 70 to 80 per cent of total pharmaceuticals consumption and the market may be worth up to US$200 million per year.
Medicines for use in public health facilities are determined by the National Essential Drugs List. Privately imported medicines are also nominally limited by the Ministry of Public Health list of medicines licensed for use in Afghanistan. Pharmaceuticals are brought into Afghanistan from many different sources, and there is a bewildering array of products on sale. The number of players is larger at every point in the supply chain than in other markets studied. There are more importers, wholesalers, pharmacies, grocery stores that sell pharmaceuticals and street vendors of medicines, as well as purveyors of traditional medicine.
Bhutan
In the Royal Kingdom of Bhutan, health care is free and the Essential Drugs Programme under the Ministry of Health has been able to provide high quality effective medicines for the people. The bulk of these medicines is imported from generic companies in India, where based on its 1970 patent laws. Copies of patented drugs manufactured using different processes made it cheap and affordable for many developing countries. However with the enactment in India of its new patent laws in 2005 and with Bhutan becoming a member of the WTO, the affordability of those medicines developed post-1995 became severely limited.
"With both India and Bhutan becoming TRIPS compliant, we will have to incorporate and amend our national laws and review how best we can utilize the flexibilities in TRIPS, afforded by the Doha Declaration and the Decision of the General Council. We need to address these issues if we are to safeguard public health and to continue to access affordable high quality medicines for our people", said Dr. Tandi Dorji, Paediatrician, JDWNR Hospital, Thimphu in his report on the ‘Effect of TRIPS on Pricing, Affordability and Access to Essential Medicines in Bhutan’
Says Dr. Dorji “Bhutan has an effective EDP with more than 90 per cent of its people having access to high quality medicines, mainly generics imported from India. With India’s new patent laws, the sustainability of the EDP and free health care policy is threatened. Without a domestic pharmaceutical industry, a compulsory license is unlikely to benefit Bhutan and we should rely instead on the waiver issued by the council in 2003. ”
Maldives
Pharma industry is a small segment in Maldives. The pharmaceutical sector comprises 2900 registered products, 280 pharmacies for 320 000 people, including 73 pharmacies for 100 000 people in Male, and about 19 importers. The Pharmaceutical
Board advises the MFDA and government on all issues concerning drugs.
All drugs are imported, mostly by the private sector. Apart from a specific category of hospital drugs and controlled drugs, all other drugs must be bought by patients at private pharmacy shops. Insured patients pay Rs 40 per prescription, the rest being reimbursed directly to the pharmacist by the insurance company, but he the majority of uninsured patients must pay out of pocket. Patient demand and drug consumption are high and increasing, as estimated by the high density of pharmacy shops to the population and the quantity of imports.
Two Indian players have invested in the region's healthcare sector. One is Apollo Hospital Group and the other is Teleradiology,a provider of speciality services to hospitals.
In January 2010, Apollo Hospital Group went on manage Indira Gandhi Memorial Hospital located in Male. In Oct 2010, Teleradiology Solutions, entered into an agreement with Indira Gandhi Memorial Hospital (IGMH) in Maldives to provide timely and quality reporting of patient CT scans and other diagnostic tests to the patients on the island.
With 275 beds, IGMH was set up in 1995 as an acute tertiary care public referral hospital in the Maldives. This association will enable the hospital to improve service delivery and quality of care to any one seeking services at IGMH.
Dr Arjun Kalyanpur, CEO, Teleradiology Solutions said, “The Indira Gandhi Memorial Hospital is looking for a partner to enhance its speciality services and we are happy to install patient CT scans and other diagnostic services to offer affordable healthcare to the public.”
“The hospital is an important milestone in the Maldivian governments’ efforts to provide sustainable, high quality health services to its public. We have a shortage of trained radiologists and our tie-up with Teleradiology Solutions will help us bridge this gap. Teleradiology Solutions is recognized for its high quality services and we are delighted to associate with them”, said Zubair Mohammed, managing director of Male’ Health Services Corporation Ltd which runs IGMH.
The Maldivian government has continuously upgraded its facilities adding more services including CT scanning facilities, haem-dialysis services and expanded diagnostic capacity of its clinical laboratory services.
Nepal
The Nepal pharma market is a fast emerging one. The local pharma majors have a 30 per cent presence and remaining are by Indian and multinational companies like Dabur, Lupin, Alkem to name a few.
There are a total of 45 local manufacturers in Nepal and over and above these manufacturers. There are more than 265 companies from India and other parts of the world which are registered in Nepal.
The future of Nepal pharma industry is promising and bright. The industry is growing at a rate of around 18 to 20 per cent. The per capita expense on medicine which is very minimal is also the rise. Foreign remittances sent by a large number of Nepalese people working abroad are also helping in improving the overall lifestyles. People are now spending on health care and life style products.