Karnataka pharmaceutical companies are keen to enter the Malaysian markets after the Malaysian External Trade Development Corporation simplified rules in August 2003 to reduce the entry time for pharma product exports to 8-12 months from the 18-20 month period.
Following the decisions taken during ASEAN 2003 held in Bali, Indonesia, the government of Malaysia has agreed to introduce Mutual Regulatory Process (MRP) for pharmaceutical products and is expected to announce guidelines to ease the cumbersome export procedures, shortly.
The phase-wise approval format, which used to be there initially, sought long-drawn administrative and legal sanctions followed by stringent drug document approvals. Since August 2003, pharma exporters from India only need to submit dossier in a CD-ROM.
Entry into the Malaysian market was found difficult by many Indian exporters as there is no Mutual Regulatory Process (MRP) unlike the European region.
Although India is recognized as a power house for pharmaceutical exports, Malaysian External Trade Development Corporation which is the National Trade Promotion Agency of Malaysia is stringent in permitting approvals for exports of pharmaceutical products from India, according to Karnataka pharma industry sources.
With an ease in regulations, pharma companies in Karnataka are keen to grab a fair share of the market where drugs in cardiology, diabetology, anti infective and pain management are in demand. Currently, Malaysian export market is approx. 400 million Ringets.
One of the companies that has made a mark in Malaysia is Micro Exports, part of the Micro Group. Its range of products in cardio-logy, diabetology, anti-infectives and pain management have made a mark since its entry in 2000. However, the company refused to divulge figures of its earnings from the region.
Regulatory barriers are comparatively few in Malaysia compared to the regulated markets of UK, US and Europe, said Sriram Iyer, vice president, Micro Exports.
Natural Capsules, a gelatin capsule manufacturer is also present in Malaysia in the last six months. Sunil L Mundra, managing director, Natural Capsules Limited said that the gelatin capsules were being exported to companies in Penang.
Sources from the Himalaya Drug company informed that initiatives were being made to enter Malaysia as they have assessed the market has a potential demand for herbal products.
Strides Arcolabs which covers South East Asian countries like Sri Lanka, Vietnam, Myanmar, Philippines and Cambodia is also in the process of entering the region, said KR Ravishankar, CEO India Operations.
According to Jatish N Seth, secretary, Karnataka Drugs and Pharmaceuticals Manufacturers Association (KDPMA) and director, Srushti Pharmaceuticals, most formulations units in Karnataka are keen to trade with Malaysia.