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E7: The Outlook for Pharmaceuticals to 2012
Date:1/11/2012

Commission (NDRC) implemented two rounds of drug price reductions in 2011, one in March and the other in September. Most of the drugs reduced were manufactured by multinationals, which had previously not been subject to pricing controls. In July 2011, the MoH revealed that it may introduce mandatory licensing policy to secure cheaper drugs for HIV/AIDS patients, as part of the country's universal health coverage programme. In January 2011, the MoH announced that the Essential Drugs List would be further expanded to cover nearly all government-sponsored grass-roots health institutions.

INDIA

The Indian pharmaceutical market is highly competitive and remains dominated by low priced, domestically-produced generics. Despite having the second largest population in the world and a growing middle class with high healthcare expectations, India accounts for less than 2% of the world pharmaceutical market in value terms. In one of the world's better performing economies, spending on pharmaceuticals accounts for less than 1% of GDP and average per capita spending remains one of the lowest levels in the region. India's biopharmaceutical sector is currently experiencing double-digit growth and this is expected to continue, driven by the vaccines market. Growth drivers include education and increased awareness of disease prevention, higher disposable income and government participation in immunisation programmes. Continued growth is also expected in the diagnostic and therapeutic segments, including cancer and diabetes.

INDONESIADue to the sheer size of the population, Indonesia cannot simply be dismissed. The Indonesian pharmaceutical market is projected to grow at a high single-digit CAGR in US dollar terms during the forecast period, and it will be the sixth largest pharmaceutical market in the Asia Pacific region by 2016. There are around 240 domestic pharmaceutical manufacturers in Indonesia, with the vast majority located in Java. However, despite the
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