By Lin Hui Tham and Izatulshima Yahya
This market insight aims to provide an overview of the Malaysian pharmaceutical industry in terms of the factors that drive and restrain the market, sales trends, government initiatives, and potential growth and market opportunities. At the outset, a brief discussion on the global pharmaceutical industry is also provided, in order to highlight the trends that have resulted in a shift of global pharmaceutical trend away from the West to Asia, including Malaysia.
Global Pharmaceutical Industry: Shift in Center of Gravity
In 2006, the global pharmaceutical market stood at $607.0 billion and Frost & Sullivan estimates this market to reach $818 million by 2013.
In 2006, Asia Pacific contributed to 7.0 percent of the total market share and this is expected to increase as the Asia Pacific market displays an upward trend in growth. The increased share of contribution from Asia Pacific countries is expected to be fuelled by the expiry of patents and limited pipeline of blockbuster drugs. This opens up opportunity for developing nations to strengthen their local pharmaceutical industries by entering the arena of generics and traditional medicine.
Furthermore, with the growing trend among companies to outsource clinical work to contract research organizations, contract manufacture their products, and enter partnerships with other companies to increase their competitiveness, the opportunities for emerging countries for R&D and manufacturing are expected to open up considerably. Frost & Sullivan believes that generics, biotechnology, and specialist-driven therapies will drive the pharmaceutical market in countries such as Malaysia.