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The Outlook for Pharmaceuticals in Central Asia
Date:11/14/2011

on in 2016, as these are two of the poorest countries in the world that also have large young populations. In comparison to China and India, the healthcare services of Bangladesh and Pakistan are underdeveloped, which is illustrated by limited health spending, low physician rates and high infant mortality rates.

Multinational pharmaceutical companies are increasingly looking to invest in or form partnerships in these four markets, due to the size of the potential drug consumer pool. The generic sectors in these four markets are particularly significant, and have grown rapidly in recent years. However, there still remain concerns over IP protection and its enforcement, which could deter multinational companies from entering these markets.

Highlights from the region

BANGLADESH

There is a large generic market in Bangladesh, and companies such as Square and Beximco are beginning to have success overseas. In November 2010, for instance, Beximco announced a strategic manufacturing, supply and product development agreement with the US firm, Adamis Pharmaceuticals, to launch generic drugs in the US market. However, despite the country possessing huge manufacturing capabilities which supply 96% of domestic need, the complete lack of R&D in domestic companies could affect the market, especially if companies have not evolved by the time the TRIPS agreement comes into effect.

CHINA

The Ministry of Health (MoH) has made lowering drug prices a top priority for health authorities in 2011. The National Development and Reform 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 cover
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