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The Outlook for Pharmaceuticals in South East Asia
Date:12/13/2012

TaiwanThe government has been investing heavily in biotechnology research capability and this has helped facilitate the growth of the biologic sector. The plan is to double the annual output of the sector over the period 2009 to 2013. 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. However, despite the country possessing huge manufacturing capabilities, the complete lack of R&D in domestic companies could affect the market, especially if IPR regulations were tightened. Although multinationals will be unhappy at the legislation requiring all drugs in the Indonesian market to have been manufactured in Indonesia, it could potentially reduce costs in the long term for both the manufacturer and the consumer.

MALAYSIA

The Philippines has some of the highest drug prices in the world. Changes brought about by the controversial Cheaper Medicine Act have impacted the Philippines pharmaceutical market in a number of areas, including IP laws, competition and drug price control mechanisms. Since the Act's implementation, a considerable number of drugs have seen price reductions by up to a half. The immediate term will be the most volatile, as the government battles with the international pharmaceutical industry for ground in the market, which up until recently experienced a free-market policy with no price regulations in place.

SOUTH KOREAThe implementation of the EU-Korea Free Trade Agreement (FTA) will provide EU companies with better access to the South Korean pharmaceutical market by paving the way for elimination of tariffs on EU pharmaceutical exports to the country. The volume and value of EU pharmaceutical exports are expected to increase with the implementation of EU-Korea FTA, pos
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