The pharmaceutical industry in Asia is gearing up to be at the centre of global market and most expect that the shift has already started. A survey of PWC shows that 55 per cent of multinational companies (MNCs) and 62 per cent of domestic companies believe that centre of gravity of global pharma will be in Asia rather than Americas or Europe. Asia will become biggest pharmaceutical market and will look radically different in medium term.

Asia has its own set of challenges and risks, and demands a 'whole new strategy approach' for all emerging markets to compensate internal factors of MNCs limiting the success in the Asian markets. Some key challenges are IPRs, corruption, regulated pricing pressures, affordability and lack of knowledge of local business environment and culture of the whereas generic companies/ domestic companies has been performing so well in the same environment.

In the past three decades, multinational companies really contributed to cause transfer of knowledge to generic companies in technology, marketing know-how, working methods, management techniques, research and development, and branding. But, now is the time that multinational companies can also learn significantly from generic companies in the changing landscape, which enabled them to outpace MNCs in most emerging markets including Asia.
1-    Think more outward rather than inward: Multinational companies should analyze the market needs, understand local dynamics rather than to solely rely on their indigenous pipeline and wait for headquarters to feed new products.
2-    Disease profile of population: Every market has its own set of disease burden which may not be answered by the indigenous pipeline, product portfolio can be designed in such a way to address local disease profile, and MNCs may introduce off patent products to address the unmet treatment solutions.
3-    Diversified product range: Various markets may have different market share for each ATC but generally more than 85 per cent market share remains within top ten ATCs, like generic companies MNCs should have no limitation in introducing products in all ten ATCs rather than limiting them to an inherent strong foothold of product options which may not be significant in different market.
4-    Outsourcing R&D and manufacturing: Majority of multinational companies think that industry is failing to fully grasp the potential of outsourcing and missing opportunities. As per PWC survey 56 per cent companies agreed that companies do not look at outsourcing in a dynamic way and miss real opportunities. Now majority are willing to outsource R&D which was previously considered core to their business, clinical trials, manufacturing with suitable controls and good partnership selection to counter the risks of outsourcing. Major benefits of outsourcing can be low cost manufacturing (39 per cent companies think so) capacity optimization and others while MNCs may focus on branding, sales and marketing.
5-    Flexible management method and localised decision making processes: It is unavoidable that bigger hierarchical management in different regions, getting approval of headquarters would take longer time in decision making, a delegated decision making (within broader strategy frame) can help MNCs to expedite “speed to the market” which is name of the game in emerging market and especially in generics.
6-    Healthcare products: Shrinking pipeline of MNCs, pricing pressure and ever upgrading regulatory regime has created a space for MNCs to introduce products for healthcare, consumer, personal care, dietary supplements, phytopharma and others, the way domestic generic companies has done so successfully to bring alternative solutions to people since a clear shift is being observed from chemical products to more natural options. Today natural products are available in standardised forms, manufactured in pharmaceutical manners and clinically supported, hence same learning curve of pharmaceutical business can also be used for alternative medicines brand.
7-    Hiring professional from generic companies: Generic business is driven by training and by mindset, professionals at MNCs are best prepared for proprietary, innovative, “new to the market” products, hence in order to excel in the generic marketing, MNCs may hire professionals from leading generic company who would bring a whole lot of mindset and attitude which is best suited to generic business.
8-    Engage in portfolio marketing: By limitation of proprietary products, in MNCs generally the entire sales and marketing team is visiting a large number of physicians but only for one or two products generally, there is a greater need to engage physicians for a larger number of products creating a deeper and more wider product portfolio in each therapeutic category and off-patent products can generate value in terms of business, physician’s trust and also in optimizing the selling cost.
9-    Multi-channel engagement: Integrated and well executed multi-channel approach can help accelerate the sales force effectiveness. MNCs should consider leveraging non-traditional channels that go beyond the individual sales rep. Similarly MNCs should create a channel to safeguard their prescription at pharmacy level to get their brands not substituted with brands of domestic companies just on the basis of price.
10-    Unmet needs of patient: Certainly stakeholders' interest will remain a prime factor how companies form business model and strategy for best ROI, this however should not necessarily under estimate the unmet needs of the patients in any given market condition keeping in view the gaps in the treatment options.
11-    Using country of origin: Literature and studies identified that country of origin cue can be a big competitive advantage for corporations operating on global scale. MNCs should leverage upon country of origin factor when introducing generic product portfolio and also use the highest standards of quality those respective MNCs use in their organization in all business processes. But there is a need of precaution as well, for some political or other specific reason, using country of origin effect can be counter productive due to certain upsetting ongoing situation.
12-    Recalibrate regulatory affairs: Ability to accelerate the company’s go-to market capability can be driven faster if multichannel bureaucratic hurdles can be met effectively and efficiently and regulatory staff must master.
13-    Stand brave against domestic companies: Without ignoring the fact that domestic companies would have a unique set of capabilities and MNCs should not undermine the strengths of the domestic companies but MNCs should stand brave against domestic companies leveraging upon their own set of capabilities, skill, and global knowledge of product. It is time to “thrive” rather than “survive”.
Branded generic in emerging markets present a viable avenue for potential growth for big pharma companies but they also need to understand the often unique challenges they have to face in pursuing the opportunities. The window of opportunities may not remain open for long time, therefore MNCs should consider exploring a combination strategies.

(Author is a pharmaceutical executive and has worked with pharma industry for over 19 years in many projects in Asia and other emerging markets).