Pharma market in West Asia seems to be an important region for Indian companies, as it is a quality-centric destination dependent on delivery timelines. According to a section of exporters, companies, which are in the regulated market, find it easy to trade and make a presence in the West Asia pharma market.
The West Asia region comprises of Turkey, Georgia, Armenia, Azerbaijan, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Afghanistan, Pakistan, Iran, Syria, Iraq, Jordan, Saudi Arabia, Yemen, Kuwait, UAE and Oman.
Some of the leading Indian companies present in the region are Dr. Reddy, Cipla, Aurobindo Pharma, Biocon, Micro Labs, Bal Pharma, Shrushti and the Himalaya Drug Company.
Rakesh Bamzai, president, marketing, Biocon Limited, said, "For Indian pharma companies, the West Asia region is a challenge. There are around 20 countries with different regulatory requirements, entry restrictions and disease profiles. To venture into this region, understanding of the market is critical and local presence is vital."
The countries of West Asia show a high inclination towards life style drugs, as a result of their high opulent lifestyles. Therefore, there is a huge demand for drugs in diabetic, hypertension, nephrology, cancer and stress related problems. The Indian companies export both bulk and formulations to West Asian region for these diseases.
According to sources, if one is present in the Gulf region and particularly United Arab Emirates, it can benefit from the most advanced and largest free trade zones in West Asia, the Ajman Free Trade Zone specifically designed to attract foreign business and investment, encourage production, provide fillip for trade, foster global commerce and promote industrial activity. The destination is ideal for pharma activity with no personal income tax, corporate tax and red tape. Hence, the region has absolute hassle-free atmosphere. To top it all, it is the strategic location at the entrance of the Arabian Gulf, which has proven to be an ideal opportunity for Indian drug manufacturers and exporters to gain access to the strong West Asian markets as well as globally through the extensive connectivity of the adjacent Ajman Port.
Early this year, Indian biotech major, Biocon realized the potential of the region and has entered into a joint venture with Abu Dhabi-based pharmaceutical company Neopharma to manufacture and market a range of bio-pharmaceuticals. The initiative will see the company make its presence in the region with Insugen, its bio-insulin, BioMAb EGFR for head and neck cancer and range of nephrology drugs.
To make a foray into the rigid region of West Asia, the regional regulators demand that Indian pharma formulation companies should have at least three of its drugs listed in the European Union's approved list of 22 drugs. This is a tough trade requirement, according to export heads of pharma companies.
Going hand in hand with formulations requirement is huge scope for herbal exports. The Himalaya Drug Company has started operations in Dubai. Dabur has also made its presence and is a recognized supplier of varied herbal formulations. Bal Pharma's Bal Vedics is exploring the possibility to enter the fray.
While the region of West Asia has been hell bent on looking at only pharmaceutical supplies from US and Europe, there is an increased interest towards Indian drugs going by the quality and time line deliveries, said VR Kannan, pharma consultant.
If Indian companies understand and adhere to regulatory issues, they can go a long way in the West Asian region, Bamzai noted.