Generics growth in south-east Asia will benefit global and local pharma companies

Published: 21-Oct-2013

Although the sector is relatively small in size, it is growing rapidly as access to medicines is improving


The generics market in Southeast Asia is forecast to grow to reach US$3.9bn by 2016, with both global and local pharmaceutical companies looking to capitalise on the opportunity, according to speakers at the CPhI Generics Southeast Asia Summit 2013 conference in Bangkok.

With its fast-growing, young population and uninsured majority in Southeast Asia, countries in the region represent a great opportunity for generic medicines. According to Rhett Hemedes, Head of OTC Marketing, Great Eastern Drug Company, although the generics sector in Southeast Asia is relatively small in size, it is growing rapidly as access to medicines are improving.

'Operations will be critical, given the increasing availability of unbranded generics and price erosion as well as the increasing regulatory requirement,' he said. 'While the bigger markets, such as Indonesia with its low access to medicines, are opening up, the competitive environment will expand with the total number of players expected to increase at a lower marginal profit.'

Marcus Pitt, CEO of the SOHO Group, said that a number of key factors would influence the rise of generics throughout the region, including government spending, foreign investment, price, innovation, infrastructure development, growth in the number of health care professionals and establishment of medical facilities, among others.

The therapeutic areas of cancer and diabetes were regarded as the next big growth areas, particularly in Indonesia, the speakers added.

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