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Malaysia's Total Pharmaceutical Market Expected To Top US$1.82bn in Value By 2012, Increasing By Around 11% Per Annum

Posted on: Tuesday, 15 July 2008, 06:00 CDT

Research and Markets (http://www.researchandmarkets.com/research/6f5453/malaysia_pharmaceu) has announced the addition of the "Malaysia Pharmaceuticals and Healthcare Report Q2 2008" report to their offering.

The Malaysia Pharmaceuticals and Healthcare Report provides independent forecasts and competitive intelligence on Malaysia's pharmaceuticals and healthcare industry.

Although Malaysia's pharmaceutical market is one of the fastest growing in Asia Pacific, BMI's Business Environment Ranking table for Q208 places the country is the joint eight place, alongside India, out of the 14 markets surveyed in the Asia Pacific region. Economic development, a fast-growing population and Association of South East Asian Nations (ASEAN) harmonisation initiatives are among the main drivers of forecast market growth over the coming years, with the total market expected to top US$1.82bn in value by 2012, increasing by around 11% per annum. One of the areas of rising pharmaceutical demand is anti-smoking drugs, as the authorities highlighted the need to tackle the cost of three main smoking-related diseases borne by the Malaysian public health services, which topped US$1bn for the year 2007.

However, low per capita spending and shortcomings of the country's intellectual property (IP) environment have resulted in a dynamic market for counterfeit medicines. Enforcement work is challenging, given the use of advanced technologies to avoid detection and demand for cheap medicines. Moreover, free trade agreement (FTA) negotiations with the US have recently run into difficulties over various issues, including compulsory licensing, which will further threaten the growth of the patented drugs sector.

Nevertheless, Malaysia boasts a strong local drugmaking industry, although its output mainly comprises basic generics. While Malaysian medicines have gained a strong reputation abroad, especially in neighbouring South East Asian countries, the market will remain dependent on imports for the supply of expensive patented medicines. In the meantime, BMI has revised its export forecast upwards to reflect the strong growth in exports in 2007. According to the Malaysia External Trade Development Corporation (Matrade), the value of medicines exported from Malaysia reached MYR678mn (US$212mn), which is significantly more than BMI's previous estimate of US$134mn. Exports have benefited from rising demand in Asia, the modest but sustained growth in the global economy, especially in the US, and the further opening of China's market following WTO entry, which led to a drop in import tariffs. The ongoing elimination of tariffs under the Japan- Malaysia Economic Partnership Agreement and the consequent FTA will serve to further boost trade between the two countries.

Consequently, the domestic industry will remain committed to increasing its presence in foreign markets. Local companies are likely to use the growing trade links with the Middle Eastern Islamic markets for their halal medicines. Indeed, while pharmaceutical companies have been aware of this niche for some time, they have only recently begun explicitly targeting this growth area. Similarly, the government is aiming to promote the biotechnology industry in order to attract foreign investment, with the sector already showing dynamism.

Most recently, US-based biopharmaceutical company Emergent BioSolutions and government-owned Ninebio (9Bio) formed a joint venture in Malaysia for the production of biodefense biologics and vaccines.

Key Topics Covered:

Executive Summary

Malaysia Pharmaceuticals And Healthcare Industry SWOT

Malaysia Political SWOT

Malaysia Economic SWOT

Malaysia Business Environment SWOT

Pharmaceutical Business Environment Ratings

Table: Business Environment Rankings

Limits Of Potential Returns

Risks To Realisation Of Returns

Malaysia - Market Summary

Regulatory Regime

Recent Regulatory Developments

Intellectual Property Regime

Counterfeit Pharmaceuticals

Compulsory Licensing

Table: The November 2001 Doha Declaration On The TRIPs Agreement And Public Health

Free Trade Agreements

Pricing And Reimbursement

Industry Trends And Developments

Epidemiology

Table: HIV/AIDS Estimates, 2003

Healthcare Sector

Pharmaceutical Sector

Table: Malaysia Estimated Spending On Leading 20 Drugs, 2004

Pharmaceutical Demand

Domestic Company Activity

Table: Pharmaniaga's Key Products

Halal Medicine

Traditional Medicine

Biotechnology And Research

Table: Key Points Of The Malaysian National Biotechnology Policy

Table: The Benefits Of Conducting Biotechnology Research In Malaysia

Recent Biotechnology Developments

Clinical Trials

Medical Devices

Industry Forecast Scene

Overall Market Forecast

Table: Drug Expenditure And Prescription Market Indicators

Key Growth Factors - Industry

Table: Malaysia Health Expenditure Forecast Indicators

Key Growth Factors - Macroeconomic

Table: Malaysia Economic Activity

Patented Market Forecast

Table: Malaysia Patented Drug Market Forecast Indicators (US$mn unless otherwise stated)

Generics Market Forecasts

Table: Malaysia Generics Drugs Market Forecast Indicators

OTC Market Forecast

Table: Malaysia - OTC Market Forecast Indicators (US$mn unless otherwise stated)

Export/Import Forecasts

Table: Malaysia Pharmaceuticals Exports And Imports Forecasts (US$mn)

Other Healthcare Data Forecasts

Table: Malaysia Healthcare Data Forecasts

Key Risks To our Forecast Scenario

Competitive Landscape

Table: Malaysia Pharmaceutical Market, Q406

Table: Leading Firms By 2005 Sales

Company Profiles

Multinational Companies

- GlaxoSmithKline (GSK)

- Pfizer

- Novartis

- Merck & Co

- Sanofi-Aventis

- Ranbaxy Malaysia

- Eli Lilly Malaysia

Leading Indigenous Manufacturers

- Pharmaniaga

Asia Pharmaceutical Products

- Prime Pharmaceutical

- Bumimedic

- Hovid

- Chemical Company of Malaysia (CCM)

- Kotra Pharma

- YSP Southeast Holding

Our Forecast Modelling

How We Generate Our Industry Forecasts

Pharmaceutical Industry

Pharmaceutical Business Environment Ratings Methodology

Ratings Overview

Table: Pharmaceutical Business Environment Indicators

Weighting

Table: Weighting Of Components

Sources

For more information visit http://www.researchandmarkets.com/research/6f5453/malaysia_pharmaceu.

Source: Business Wire

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