BMI's Executive Summary

[TOP]

The Sector At A Glance

Key Insights On The Pharmaceutical Sector Of Malaysia

The Malaysian pharmaceutical market, which has expanded at an annual rate of around 8% in the past 12-18 months, has a relatively high growth potential when compared to other similarly developed countries in the region. Prescription drugs account for around 75% of the total market value, with the segment likely to remain dominant in the future due to private sector support for established prescribing habits. Branded drugs, which presently represent over 70% of the total market, will continue to command the larger share in terms of value, as the demand for novel and life-style drugs increases. The situation will be reflected in the rising share of imports over time, which will further tip the trade balance in favour of foreign-made products, especially as Malaysia finalises foreign trade agreements (FTA) with the US and other key trading partners.

BMI expects the Malaysian pharmaceutical market to grow 12% in US dollar terms in 2006. Market value is likely to exceed US$1.56bn by 2010, boosted by changing demographics and rising healthcare expectations, which will boost demand for cardiovascular, central nervous system (CNS), metabolic and cancer drugs in particular. The treatment of infective diseases, especially hepatitis and HIV/AIDS, will necessitate supplies from abroad, while stimulating local R&D activities in this direction. However, the country’s continued failure to align its intellectual property (IP) regulations and enforcement with international standards will continue to hamper local activities of foreign companies, while simultaneously boosting the trade in fake drugs.

Nevertheless, Malaysia will outperform a number of its immediate neighbours. The authorities’ commitment to the development of a local pharmaceutical R&D base will attract foreign investment. The demand for cheap generic medicines will remain strong, given that public hospitals – mostly supplied by a single government company – account for a significant share of the market. However, strong regional competition in the field of R&D, especially in biotechnology, will have some detrimental effect on the rate of industry expansion, as will the current deficiencies of the IP regime.

Malaysian firms lack sufficient capacity to expand overseas, and will instead continue to focus on the local, mainly generic market. However, increased regional competition as well as the pressure on the authorities to comply with international IP standards will change the local landscape over the coming years, bringing a certain amount of industry consolidation. State-held Pharmanianga, the leading local player, will increase its efforts to secure a higher share of the generic market. In the meantime, multinational sector activity in the country will continue sporadically, dependent on prevailing regulatory and pricing conditions.

Contents

[TOP]

Chapter 1 - Executive Summary

Malaysia Pharmaceuticals And Healthcare Industry SWOT

Malaysia Political SWOT

Malaysia Economic SWOT

Malaysia Business Environment SWOT

Chapter 2 - Malaysia: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics – Long-Term Risk

Politics – Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Malaysia: Market Summary

Chapter 4 - Regulatory Regime

Foreign Co-Operation

Recent Regulatory Developments

Intellectual Property Regime

Pricing And Reimbursement

Industry Trends And Developments

Healthcare Sector

Table: HIV/AIDS Estimates (2003)

Pharmaceutical Sector

Table: Malaysia – Estimated Spending On Leading 40 Drugs, 2004

Pharmaceutical Demand Analysis

Domestic Company Activity

Foreign Company Developments

Regional and Global Co-operation

Biotechnology and Research

Chapter 5 - Industry Forecast Scenario

Overall Market Forecast

Table: Malaysian Drug Market Forecast Indicators

Key Growth Factors – Industry

Table: Malaysia – Health Expenditure Forecast Indicators

Key Growth Factors – Macroeconomic

Table: GDP, Population And Output

Prescription Market Forecast

Table: Malaysia – Prescription Drug Market Forecast Indicators

OTC Market Forecast

Table: Malaysia – OTC Market Forecast Indicators

Generics and Branded Market Forecasts

Table: Malaysia – Generics And Branded Drugs Market Forecast Indicators

Export/Import Forecasts

Table: Malaysia – Pharmaceuticals Exports And Imports Forecasts, US$ mn

Other Healthcare Data Forecasts

Table: Malaysia – Healthcare Data Forecasts

Key Risks To BMI’s Forecast Scenario

Chapter 6 - Competitive Landscape

Table: Malaysia – Estimated Spending On Leading 20 Drugs, 2004

Table: Leading Firms By 2005 Sales

Chapter 7 - Company Profiles

GlaxoSmithKline

Pfizer

Novartis

Merck & Co

Sanofi-Aventis

Ranbaxy Malaysia

Eli Lilly Malaysia

Leading Indigenous Manufacturers

Pharmaniaga

Asia Pharmaceutical Products

Prime Pharmaceutical

Bumimedic

Hovid

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 9 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 10 - Country Snapshot: Malaysia Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

[TOP]

Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

[TOP]

BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: