Southeast Asian generics market to reach US$3.9 billion by 2016

Generics and biosimilars Initiative

Building trust in cost-effective treatments

Sign up
eng / esp

Southeast Asian generics market to reach US$3.9 billion by 2016

Generics/General | Posted 20/09/2013 0 Post your comment

Southeast Asia, with its fast-growing, young population and uninsured majority represent a great opportunity for generics in the pharmaceutical industry, according to Rhett Hemedes, Head of OTC Marketing, Great Eastern Drug Co.

The region of Southeast Asia includes Brunei, Cambodia, Christmas Island, East Timor, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, Thailand and Vietnam.

Although the generics market is currently quite small, improved access to medicines in the region means that it is growing rapidly and is expected to reach US$3.9 billion by 2016. This fact is expected to both intensify competition and attract multinational pharma companies to the area. Bigger markets in the region with low access to medicines, such as Indonesia, will drive the need for operational efficiency due to the increasing number of players, which is expected to drive down prices. In fact, Indonesia already introduced compulsory prescribing of generics in 2010 and plans to implement universal healthcare coverage by 2014.

Generics market shares vary from country to country, presenting differing opportunities for generics manufacturers, see Figure 1, but in general are increasing across the regions.

Figure 1: Generics market share in selected Southeast Asian countries (2011)

Increasing use of generics in the region is expected due to both healthcare reforms – making drugs available to more of the population – and governmental cost-containment strategies. The expanding middle class is also expected to drive demand for medicines, and especially generics, in the region. The development of better infrastructure will facilitate multinational companies being able to set up facilities in Southeast Asia.

The growth in generics, coupled with the fact that many governments in the region support local business, puts local generics manufacturers in a strong position. This means that most foreign companies will need to set up local partnerships, giving a welcome boost to local generics companies.

Related articles

Generics companies turn to ‘third tier’ countries

Generics have their feet under the table in Malaysia

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Source: IMS, The Jakarta Post