It has been predicted that Malaysia is likely to be a leader in the global pharmaceutical industry. The predicted growth of the pharmaceutical industry in 2008 will be through the increasing numbers of pharmaceutical manufacturers that are seeking to outsource or in-license their operations. The future market trends seem to be shifting towards consumption of generics as well as biotech and specialist therapies. Hence, the opportunity for healthcare companies venturing into Malaysia looks bright. This will, in turn, enable the country not only to expand its footprint in the Asia-Pacific healthcare industry, but also globally.
Because of the strong dominance of branded drugs made by multinational companies, Malaysia's pharmaceutical industry focuses more on generic and OTC (over the counter) products. The government continues to be the major purchaser of generics in order to reduce the cost of healthcare financing. The Malaysian government also plays a big role by providing incentives to the pharmaceutical industry to support R&D initiatives.
The market opportunities for the pharmaceutical industry are vast. The biotechnology industry is expanding at an incredible rate. As research into bioactive compounds from indigenous plants for the treatment of diseases such as cancer, eczema, diabetes and hypertension continues, the future patenting of such discoveries will hold great promise for medical technology. The expiry of patents over protein therapeutics will also allow for further development of lower cost generic versions of expensive protein drugs.
The relatively unexplored bio-generic industry is expected to grow by an average of $16 billion each year in the next four years. It is thought that Malaysia will be one of the few countries to lead the herbal market, thus numerous incentives such as research grants are being offered to local companies in this market. Lastly, the vitamin sector has seen great progress in the past few years. The vitamin and dietary supplements market for Malaysia reached $131 million in 2006. Further growth is expected in 2008.
The expiry of patents and the limited pipeline of blockbuster drugs provide opportunities for developing nations to strengthen their local pharmaceutical industry by entering the arena of generics and traditional medicine. The growth of the generic pharmaceutical business, which represents about 60% of the actual volume of drug sales and prescriptions, will continue and Malaysia is taking the opportunity to exploit the potential in this market.
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Patrick Mirandah |
Patrick Mirandah Co (Malaysia)
Suite 3B-19-3 Plaza Sentral
Jalan Stesen Sentral 5
50470 Kuala Lumpur
Malaysia
Tel: +603 2278 8686
Fax: +603 2274 6677
