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Report Summary

The eight pharmaceutical markets of South East Asia are developing at markedly different speeds and are characterised by both contrasting and similar macro environments. These markets are projected to have a total pharmaceutical market value of US$77.4 billion at retail prices in 2016.

Established

South Korea is the largest market in this region and the third largest in the Asia Pacific region. Other advanced markets such as Taiwan and Singapore are both relatively small, with growth limited by the size of these island nations. These three countries have a high percentage of population over 65, a growing incidence of lifestyle diseases and large health expenditures, which present many opportunities for pharmaceutical companies. However, their governments are increasingly employing protectionist measures which deter foreign companies. The biologic sectors in these pharmaceutical markets in south east Asia are witnessing rapid growth due to advanced technology capabilities, extensive R&D operations and strong government support.

Browse All: Pharmaceutical Market Report

http://www.reportsnreports.com/market-research/pharmaceuticals/

Emergen

Indonesia, Thailand and the Philippines are fairly large emergent pharmaceutical markets, with large populations and steadily growing economies. Despite concerns over counterfeiting and low efficacy of generic products, IPR protection and manufacturing standards are improving thanks to effective national regulations, foreign investment and joint-ventures with multinational companies. Malaysia and Vietnam are small pharmaceutical markets, typified by rapid economic growth, increasing foreign investment and support from national government. These five markets have significant OTC sectors and rapidly expanding generic sectors, and present previously untapped populations for potential foreign pharmaceutical companies.

Focus on Biotechnology… A research-friendly environment These markets are keen to attract high value investment and have identified biotechnology and biopharmaceutical research as key areas. Their governments strongly advocate the growth of biotechnology.

Malaysia

The government has identified biotechnology as one the core technologies to accelerate the transformation of the country into a knowledge-based economy by the year 2020. As a result of this initiative, a number of new biopharmaceutical research companies have emerged.

Singapore

The biologic sector is growing, with several large multinational companies investing a total of US$2.0 billion to set up biologic facilities. The government is increasing its investment in biomedical sciences research over the period 2011 to 2015.

South Korea

The biologic sector is witnessing rapid growth and many domestic companies have expanded their operations in 2011. Several significant competitive strategies have been completed in 2011.

Taiwan

The government has been investing heavily in biotechnology research capability and this has helped facilitate the growth of the biologic sector. The plan is to double the annual output of the sector over the period 2009 to 2013.

Highlights from the region

INDONESIA

Due to the sheer size of the population, Indonesia cannot simply be dismissed. The Indonesian pharmaceutical market is projected to grow at a low double-digit CAGR in US dollar terms during the forecast period, and it will be the sixth largest pharmaceutical market in the Asia Pacific region by 2016. However, despite the country possessing huge manufacturing capabilities, the complete lack of R&D in domestic companies could affect the market, especially if IPR regulations were tightened. Although multinationals will be unhappy at the legislation requiring all drugs in the Indonesian market to have been manufactured in Indonesia, it could potentially reduce costs in the long term for both the manufacturer and the consumer.

MALAYSIA

Important Malaysian biologic manufacturers include Bioven, CCM Duopharma, Inno Biologics and Ninebio. The National Pharmaceutical Control Bureau (NPCB) has adopted the Guidance Document and Guidelines for the Registration of Biosimilars, making Malaysia only the second country, after Australia, in the Asia Pacific region to adopt regulations for biosimilar registration. Competitive strategies in Q1 2011 and 2010 include; US-based Viropro acquired Alpha Biologics; and Indian-based Avesthagen, in partnership with Inno Biologics, announced the completion of manufacturing of darbepoetin alfa, its biosimilar version of Amgen’s Aranesp.

SOUTH KOREA

The generic sector in South Korea has not taken the KORUS FTA well, as it believes it will damage an industry that is already under strain as a result of regular government price cuts. In order to compete, South Korean companies are investing profits from their generic sales into “super-generics”. However, this requires capital and R&D pipelines that many South Korean generic manufacturers simply do not possess. Competitive strategies in 2011 include: Daewoong completed the construction of new a cGMP-compliant plant in Baran, Gyeonggi province; and Hanmi signed an additional licence and supply agreement with Merck for Amosartan, Cozaar XQ as Merck’s brand name.

THAILAND

The Thai generic sector is growing, especially in the public sector, where the government has encouraged its use over patented drugs in order to cut costs. Greater Pharma has launched its first generic inhaler drug for the treatment of osteoporosis, making it the first company in Southeast Asia to successfully manufacture a generic version of this drug. The Thai biologic sector is very underdeveloped, but there are signs that this could change. The government-backed organisation BIOTEC has formed partnerships with both Greater Pharma and i+MED. Greater Pharma has developed the first biologic allergy vaccine in Southeast Asia.

Related Reports:

The Outlook for Pharmaceuticals in Northern Europe – http://www.reportsnreports.com/reports/53465-the-outlook-for-pharmaceuticals-in-northern-europe.html

Pharmaceutical Key Trends 2011 – Prescription Pharmaceutical Sales Overview – http://www.reportsnreports.com/reports/67687-pharmaceutical-key-trends-2011-prescription-pharmaceutical-sale.html

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