Malaysia:

Malaysia is a federal constitutional monarchy in Southeast Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometres (127,350 sq mi) separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and Malaysian Borneo. In 2010 the population exceeded 27.5 million, with over 20 million living on the Peninsula. Malaya was restructured as the Federation of Malaya in 1948, and achieved independence on 31 August 957.

Since independence, Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5% for almost 50 years. The economy has traditionally been fuelled by its natural resources, but is expanding in the sectors of science, tourism, commerce and medical tourism.

The government system is closely modelled on the Westminster parliamentary system and the legal system is based on English Common Law. The constitution declares Islam the state religion while protecting freedom of religion. The head of state is the King, known as the Yang di-Pertuan Agong. He is an elected monarch chosen from the hereditary rulers of the nine Malay states every five years. The head of government is the Prime Minister.

Geography:

Malaysia is the 67th largest country by total land area, with a land area of 329,847 square kilometres (127,355 sq mi). It has land borders with Thailand in West Malaysia, and Indonesia and Brunei in East Malaysia. It is linked to Singapore by a narrow causeway, and also has maritime boundaries with Vietnam and the Philippines. The Strait of Malacca, lying between Sumatra and Peninsular Malaysia, is one of the most important thoroughfares in global commerce, carrying 40 per cent of the world's trade.

Economy:

Malaysia is a relatively open state-oriented and newly industrialised market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5 per cent annually from 1957 to 2005. In 2010 the GDP (PPP) was $414,400 billion, the 3rd largest economy in ASEAN and 29th largest in the world.

In the 1970s, the predominantly mining and agricultural-based economy began a transition towards a more multi-sector economy. Since the 1980s the industrial sector has led Malaysia's growth. High levels of investment played a significant role in this. The economy recovered from the 1997 Asian Financial Crisis sooner than neighbouring countries, and has since recovered to the levels of the pre-crisis era with a GDP per capita of $14,800. Inequalities exist between different ethnic groups. The Chinese make up about one-third of the population but accounts for 70 per cent of the country's market capitalisation. Malaysia is an exporter of natural and agricultural resources, the most valuable exported resource being petroleum. At one time, it was the largest producer of tin, rubber and palm oil in the world. Manufacturing has a large influence in the country's economy, although Malaysia’s economic structure has been moving away from it. Malaysia remains one of the world's largest

producers of palm oil.

In an effort to diversify the economy and make it less dependent on exported goods, the government has pushed to increase tourism to Malaysia. As a result, tourism has become Malaysia’s third largest

source of income from foreign exchange, although it is threatened by the negative effects of the growing industrial economy, with large amounts of air and water pollution along with deforestation affecting tourism. The country has developed into a centre of Islamic banking, and is the country with the highest numbers of female workers in that industry. Knowledge-based services are also expanding.

GDP of Malaysia By Sectors:

Agriculture Sector

Industry Sector

Service Sector

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Agriculture Sector, 10.50%

Industry Sector, 41.40%

Service Sector, 48.20%

GDP

GDP

Demographics:

The demographics of Malaysia are represented by the multiple ethnic groups that exist in this country. Malaysia's population, as of July 2010, is estimated to be 28,334,000, which makes it the 41st most populated country in the world. Of these, 5.72 million Malaysians live in East Malaysia and 22.5 million live in Peninsular Malaysia. The Malaysian population continues to grow at a rate of 2.4% per annum. According to latest 2010 census, among the three largest Malaysian groups Malays and Bumiputera Fertility rates are at 2.8 children per woman, Chinese 1.8 children per woman, and Indians 2.0 children per woman. Malay fertility rates are 40% higher than Malay Indians and 56% higher than Malay Chinese. In 2010, the Malays were 60.3%, Chinese 22.9%, and the Indians 7.1% of the total population. The Chinese population has shrunk to half of its peak share from 1957 when it was 45% of Malaysia, although in absolute numbers they have multiplied more than threefold.

Censuses were taken in Malaysia in 1970, 1980, 1991, and 2000, with the one in 2000 taking place between 5 and 20 July. The total population is approximately 28 million. The population distribution is highly uneven, with some 20 million residents concentrated in Peninsula Malaysia. 70% of the population is urban. Due to the rise in labour-intensive industries, Malaysia is estimated to have over 3 million migrant workers, which is about 10% of the Malaysian population.

The table represents the yearly growth of the population according to the age:

Year Less than or 15 years (%)

15-64 years (%)

More than 65 years (%)

Population (in millions)

2001 32.7 63.4 3.9 24.122002 31.9 64.1 4.0 24.722003 31.2 64.8 4.0 25.322004 30.4 65.5 4.1 25.912005 29.7 66.1 4.2 26.482006 29.2 66.5 4.3 26.832007 28.7 66.9 4.4 27.182008 28.2 67.3 4.5 27.542009 27.7 67.7 4.6 27.902010 27.2 68.1 4.7 28.252011 29.6 65.4 5 28.72

Age Structure:

29.60%

65.40%

5.00%

Age Structure

0-14 years15-64 years65 years and over

0-14 years 15-64 years` 65 and over29.60 65.40 5

Demographic Rates of Malaysia:

Population 28,728,607 (July 2011 est.)Net migration rate 0.37 migrant(s)/1,000 populations (2012 est.)Sex Ratio At birth: 1.07 male(s)/female

Under 15 years: 1.06 male(s)/female15–64 years: 1.03 male(s)/female65 years and over:0.89 male(s)/femalesTotal population: 1.03 male(s)/female (2012 est.)

Infant mortality rate 14.57 deaths/1,000 live births (2012 data)Life expectancy at birth Total population 74.04years(at 1:1 male

to female ratioMale 71.28 years (2012 data)Female 76.99 years (2012 data)

Total fertility rate 2.64 children born/woman (2012 est.)

Birth rate 21.08 births/1,000 population (2011 est.)

Death rate 4.93 deaths/1,000 population (July 2011 est.)

Urbanization Urban population: 72% of total population (2010)

Rate of urbanization: 2.4% annual rate of change (2010-15 est.)

Literacy Total population 88.7%Male 92%Female 85.4%

Health expenditures 8% of GDP (2009)

Hospital bed density 1.82 beds/1,000 population (2009)

Government Policies And Actions on Health care:

The Malaysian government places importance on the expansion and development of health care, putting 5% of the government social sector development budget into public health care —an increase of more than 47% over the previous figure. This has meant an overall increase of more than RM 2 billion. With a rising and aging population, the Government wishes to improve in many areas including the refurbishment of existing hospitals, building and equipping new hospitals, expansion of the number of polyclinics, and improvements in training and expansion of tele health. A major problem with the health care sector is the lack of medical centres for rural areas, which the government is trying to counter through the development of an expansion of a system called "tele-primary care". Another issue is the overperscription of drugs, though this has decreased in recent years. Since 2009 the Malaysian Health Ministry has increased its efforts to overhaul the system and attract more foreign investment. The country generally has an efficient and widespread system of health care. It implements a universal healthcare system, which co-exists with the private healthcare system. Infant mortality rate in 2009 was 6 deaths per 1000 births, and life expectancy at birth in 2009 was 75 years.

Key Points of Health Care:

The Malaysian health care system requires doctors to perform a compulsory three years service with public hospitals to ensure that the manpower in these hospitals is maintained.

Recently foreign doctors have also been encouraged to take up employment in Malaysia.

There is still, however, a significant shortage in the medical workforce, especially of highly trained specialists; thus, certain medical care and treatment are available only in large cities.

Recent efforts to bring many facilities to other towns have been hampered by lack of expertise to run the available equipment.

The majority of private hospitals are in urban areas and, unlike many of the public hospitals, are equipped with the latest diagnostic and imaging facilities.

Private hospitals have not generally been seen as an ideal investment—it has often taken up to ten years before companies have seen any profits.

However, the situation has now changed and companies are now exploring this area again, corresponding with the increased number of foreigners entering Malaysia for medical care and the recent government focus on developing the health tourism industry.

The Government has also been trying to promote Malaysia as a health care destination, regionally and internationally.

Legislation & Regulations:

The manufacture and marketing of pharmaceutical products in Malaysia are as heavily regulated as in most developed countries.

All medicines marketed in Malaysia are required to be registered by the Drug Control Authority (DCA) of the Ministry of Health. All manufacturers, importers and wholesalers are required to the licensed by the DCA.

The registrations of prescription and OTC medicines, requires proof of efficacy, quality and safety, and are subjected to stringent screening and testing as well as regular and random post-marketing surveillance and testing. All manufacturers in Malaysia are subjected to regular and random inspection by DCA inspectors.

To be licensed, manufacturers must be in full compliance with the Code of Good Manufacturing Practice, which is currently based on the PIC Code as Malaysia is currently a PIC/S member.

Medicines are regulated under the Poisons Act, the Dangerous Drugs Act and the Drugs Act. Medicine advertisements require prior approval by the Medicines Advertisement Board.

Malaysia is a member of the VVTO and has acceded to the TRIPS agreement. Patents are registered and copyrights are protected.

Some of the initiatives that the Government has implemented to develop the industry are financing schemes for R&D, The Industrial Master Plan 3 (IMP3, 2006-2020), the PICS, and Intellectual Property protection. General incentives include allowances for industrial building, infrastructure and import duty exemptions for raw materials/components equipment and machinery.

Drug Control Authority:

The Drug Control Authority (DCA) established under the Control of Drugs and Cosmetics Regulations 1984 is the authority responsible for pharmaceutical regulatory control in Malaysia. The National Pharmaceutical Control Bureau (NPCB) as its secretariat is the agency that develops and implements the regulations concerning the quality, safety and efficacy of drugs. The DCA shall concurrently enforce these legislations and regulations with the pharmacy enforcement units.

The DCA shall liaise with relevant departments and organizations involved in the implementation of this policy. Inter and intra-agency coordination, cooperation and information sharing between the public and private sectors shall be enhanced for the development and implementation of pharmaceutical regulations. The DCA shall play a prominent role in facilitating regional and international harmonisation of drug regulations in Malaysia.

Size of Pharmaceutical Market and Characteristics:

The potential of the domestic pharmaceutical industry has been recognized by the Malaysian government which has identified it as a strategic industry which should be promoted.

Pharmaceutical products manufactured by the Malaysian pharmaceutical industry can be broadly categorized as:

Prescription Over-the-counter (OTC) Traditional medicines Health and Food supplements

Prescription medicines comprise patented and generic drugs, the sale and transaction of which are confined to doctors and pharmacists. OTC, traditional medicines and health/food supplements may be sold by non-professional outlets and sold freely to members of the public.

The Malaysian pharmaceutical industry has the capability to produce almost all dosage forms, including sterile preparations such as eyes preparation, injections (both large and small volume), soft gelatine capsules of various sizes and shapes, time release medications and powders for reconstitution.

Since 1986 when drug registration was started, the cumulative total number of applications received by the Drug Control Authority (DCA) as at the end of 2005 were, 16,554 for poisons (controlled medicines); 12,529 for non poisons; 28,546 for traditional medicines and 87,532 for cosmetics. As at the end of 2005 the number remaining on the register were 3,711 for prescription products (controlled medicines); 2,831 for OTC products (non poisons); 1,112 for traditional medicines and 82,792 for cosmetics.

Over 100 pharmaceutical companies Most of the world largest pharmaceutical companies are represented Total market estimated at MR 1.4 billion Growth in 2000 of over 15%

Growth Rate:

Over the last decade, the Malaysian pharmaceutical market grew at between 8 to 10% annually. The 2009 market size was estimated to be about RM4.5 billion for prescription and OTC medicines. The market for traditional medicines together with health and food supplements was estimated to be about RM3 billion. However the market still relies, to a significant extent, on imports for innovator products.

There are currently 250 manufacturers in Malaysia licensed by the Drug Control Authority. Of these, 74 are licensed to produce pharmaceuticals. There are also another 176 manufacturers licensed to produce traditional medicines and 207 for cosmetics.

Exports:

Another significant development in the industry is the growth in pharmaceutical exports. The increasing awareness by local manufacturers of the export potential of Malaysian pharmaceuticals had resulted in an average growth of 10% annually.

Research & Development:

A significant development of the industry over the last decade is the strong emphasis placed by local manufacturers on research and development, particularly in areas of product innovation and improvement as well as in bio-pharmaceutics and natural products with resultant patents.

Support by the Government:

1. Some of the initiatives that the Government has implemented to develop the industry are financing schemes for R&D, The Industrial Master Plan 3 (IMP3, 2006-2020), the PICS, and Intellectual Property protection.

2. General incentives include allowances for industrial building, infrastructure and import duty exemptions for raw materials/components equipment and machinery.

Health Expenditure:

Government expenditure on health programs are as follows (2011)Total expenditure on health as a percentage of gross domestic products - 5 %General government expenditure on health as a % of total expenditure on health - 44.8%Private expenditure on health as a percentage of total expenditure on health - 55.2%Social security expenditure on health as a % of general government expenditure on health - 0.9%Per capita total expenditure on health (USD $) - US $ 307Number of physician’s density per 10000 populations - 9Nursing and midwifery personnel density (per 10 000 population) - 27

Top 10 Pharmaceutical Companies:

1).Y.S.P. Industries2). GSK3). Hovid berhad4). SM pharmaceuticals

5). Ranbaxy6). Duopharma Biotech 7). Xepa- Soul pattinson8). Kotra pharma9). Kotra Pharma10). Hovid Berhad

Asthma in Malaysia:

The death rate of asthma and other diseases are represented in a graphical form:In Malaysia the death rate is high due to the coronary heart disease.

Coronary

Heart

Disease

Stroke

Influenza

& Pneumonia

Road Tr

affic A

cciden

ts

HIV/AIDS

Tuberc

ulosis

Lung C

ancer

s

Diabete

s Mell

itus

Lung D

isease

Kidney Dise

ase

Asthma (

22nd position)

0

5,000

10,000

15,000

20,000

25,000

Population in number affected by disease

S.No Disease Population in number

% of total deaths

Death rate/100000

1. Coronary heart disease 22,701 22.18 138.752. Stroke 11,943 11.67 75.813. Influenza and

pneumonia9417 9.20 65.08

4. Road traffic accidents 8,031 7.85 34.53(poor)5. HIV/AIDS 5665 5.53 23.156. Tuberculosis 4.061 3.97 17.827. Lung cancer 3,309 3.23 17.938. Diabetes Mellitus 3,205 3.13 18.999. Lung disease 2,834 3.14 19.0910 Kidney disease 2,571 2.51 5.05

11 Asthma(22nd position) 988 0.97 5.32

According to the latest WHO data published in April 2011 Asthma Deaths in Malaysia reached 988 or 0.97% of total deaths. The age adjusted Death Rate is 5.32 per 100,000 of population ranks Malaysia 79 in the world.

Death % Rate World Rank988 0.97 5.32 79

Economic report:

Labour Force by Occupation:

Agriculture: 15% Industry: 29% Services: 57%

Unemployment:- 3.4% Source: World Bank Data

Economic 2011 2010 2009

GDP (US $ billion nominal) 247.7 237.9 192

% Real Growth 5.2 7.19 -1.64

% Inflation 2.10 1.71 0.58

Per capita(US $) 14,700 14,730 13,852

Demographic 2011 2010 2009

Population 28,728,607  28,401,017 27,949,395

% Growth Rate 1.6 1.61 1.6

% under 15 years 29.6 30.34 30.75

% 15 – 64 years 62.9 64.89 64.61

% 65 years 4.8 4.77 4.64

Health expenditure 2011 2010 2009

Total (US $ billions) 12.35 12 9.23

% government 44.8 55.5 55.7

% Private 54.2 45.5 45.3

% GDP 5 5 4.81

Per capita (US $) 307 310 300

Physicians 25855 25,560 25,154

Pharmaceutical Market 2011 2010 2009

Value at retail price (US $ billion) 2.43 2.33 2.24

% Growth rate 7.30 7.30 7.30

Respiratory drug market (US $ mn) 91 85 78

STATISTICS:

GDP (PPP) - US $ 443 billion (2011)GDP growth rate - 5.2% GDP per capita - US $ 14,700 GDP by sector Agriculture 10% Industry 48% Service sector 42%Population living below poverty line - 3.6%

SWOT ANALYSIS (Investor)

Strength:

Well established expertise local market composed of domestic and MNC players. 3rd largest economy in South East Asian countries. Well established infrastructure and transportation system connects every corner. Float currency exchange regime and no measurable risk from US subprime crisis. High health care per capita expenditure. High cost of drugs availability.

Weakness:

The size of pharmaceutical industry is far less than its competitors and greatly influenced by traditional medicines.

Low penetration power resulted from traditional medical industry and ayurveda. Low standard intellectual property rights. High cost of labour

Opportunities:

Malaysian government promotes private investment by liberalizing many industries and eased entry barriers for foreigners.

Increasing sophisticated pharmaceutical demand. Majority of the pharmaceutical demand is met by importation. Lack of raw material availability.

Threats:

Government seeking compulsory license for patented products. Competitive industries from BRICS(Brazil, Russia, India, China and South Africa) and

civets(Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa) has seen as potential threat for emerging pharmaceutical industry.

Possible introduction of price ceiling on essential medicines. Over the next years many companies are losing patent rights for generic drugs which is

an opportunity for local manufactures.

Taiwan:

Republic of China (ROC), officially known as Taiwan is a partially recognized state located in East Asia. The technology advanced island located on south-eastern coast of china hosts its economic and cultural center at Taipei. Taiwan has experienced rapid economic growth and industrialization during the latter half of the 20th century and is now an advanced industrial economy. It is one of the Four Asian Tigers (Hong Kong, Singapore, Taiwan and South Korea) and a member of the WTO and APEC. The 19th largest economy in the world, has surpassed in advanced technology and played a crucial role in transforming the economy. Taiwan is ranked highly in terms of freedom of the press, health care, public education, economic freedom, and human development.

KEY POINTS

Taiwan is the 19th largest economy and one among four Asian tigers.

It is 50th largest populous country in the world.

Cancer is the leading cause of death in Taiwan with 28 % of total deaths.

Asthma is the 12th leading cause of death.

Geography and Cultural:

Taiwan is a multi-ethnic society, where waves of settlement and encounters with other civilizations have bequeathed it as a diverse cultural heritage and making Taiwan as an incubator of diverse art forms that not only coexist, but blend with or influence each other.

Taiwanese themselves associate mostly with the three colours of the national flag blue white and crimson which stands for three principals of people: nationalism, democracy and social well being. At another level, the colours embody qualities that evoke other concepts enumerated in the Three Principles: the blue signifies brightness, purity, and freedom, and thus a government that is of the people; the white, honesty, selflessness, and equality, and thus a government that is by the people; and the crimson, sacrifice, bloodshed, and brotherly love, thus a government that is for the people.

Economy:

Taiwan continued to play a dynamic role in the global economy in 2010. According to World Trade Organization statistics, it was the world’s 16th-largest exporter and 17th-largest importer of merchandise, while ranking No. 24 and No. 28 in export and import of commercial services, respectively. One of the most powerful players in the global information and communications technology (ICT) industry, it is also a major supplier of other goods across the industrial spectrum, from chlorella health food supplements to powered wheelchairs. The 19th

largest economy in the world has surpassed in advanced technology and played a crucial role in transforming the economy.In 2012, its industrial production index declined by 3.4% year-on-year, with increases in competition and outsourcing to developing countries like India, China and global euro crisis added to this had an negative effect on industrial production irrespective of modern economy.

Small and medium-sized enterprises (SMEs) have continued to play a critical role in the economy. According to the Ministry of Economic Affairs (MOEA), SMEs in Taiwan numbered about 1.25 million at the end of 2010, accounting for 97.68 percent of all enterprises. They employed 8.19 million workers, or 78.06 percent of the total work force.

Increasingly sharp economic competition as well as new opportunities stemming from globalization and the rise of newly industrialized economies has underlined the imperative for Taiwan’s businesses to place greater importance on innovation.

Demographic Features:

Taiwan encompasses a mixture of different aged population as of 2011 the island holds 23,071,779 with a population growth rate year on year of 0.193. The age characteristics are as follows

16%

73%

11%

Age characterstics % of population

under 15 years 15 to 64 years

65 +

(Data as of 2011)

Gender AgeMedian age total 37.6 yearsMale 36.9 yearsFemale 38.3 years (2011 est.)

Government Policies and Drug Regulations:

Health expenditure:The Republic of China’s National Health Insurance system provides high-quality, affordable health care to virtually all citizens. Since the government-administered system was launched in 1995, overall health levels have improved, and life expectancy has risen with a steady rise in

the standard of living and advances in the health and medical sciences. Notwithstanding its success, the system is facing challenges of an aging population and rising costs.

Health spending as a share of gross domestic product rose to 7 percent in 2011 while spending per capita was US$1,126. Rising living standards and changing lifestyles have given rise to a new set of health challenges. Chronic cardiovascular diseases have replaced communicable diseases as the major serious illnesses among adults. In 2010, the 10 leading causes of death in Taiwan accounted for 75.4 percent of all deaths. Malignant tumours have remained the No. 1 killer for 29 consecutive years, causing 28.4 percent of all deaths in 2010.

05

06

07

08

09

10

11

0 200 400 600 800 1000 1200 1400

760

813

773

799

847

931

1002

6.2

6.3

6.2

6.4

6.9

7

7

% shareof GDP expenditure on health care US$

Health care expenditure as % GDP

In 2010, there were 508 hospitals and 20,183 clinics operating in Taiwan. These included 82 public hospitals and 461public clinics. Medical institutions had a total of 158,922 beds, or 68.61 beds per 10,000 people nearly 205,000 medical professionals were working in Taiwan.

Number of physicians per 10,000 people - 19.08 (including physicians of Chinese medicine). To control the quality of medical practice, Taiwan limits the number of new doctors entering the system to 1,300 per year.

GOVERNMENT POLICIES:

In 2010, private investment played an important role in the economy’s recovery, with a year-on-year rise of 33 percent. To make Taiwan a more attractive investment destination for both foreign and domestic interests, the Executive Yuan and the Legislative Yuan have given priority to such broad measures as removing barriers to investment, improving the tax environment and modernizing public infrastructure.

The Company Act was revised in July 2010 to simplify procedures for starting businesses and to strengthen corporate governance. A one-stop service for online application for business registration was launched in May 2011. Other regulatory revisions in 2010 include lowering of the corporate income tax rate from 25 to 17 percent and adjustment of the scope of tax credits for research and development expenditures. A single-window service center was set up to match investors with business opportunities, address overseas businesses’ operational and investment concerns, and provides customized service.

Drug Regulations:

Taiwan’s Department of Health (DOH) was the main health agency in Taiwan until the consolidation of the Bureau of Food Safety, the Bureau of Pharmaceutical Affairs, the Bureau of Food and Drug Analysis and the Bureau of Controlled Drugs in January, 2010. This marked the establishment of the Taiwan food and drug administration (TFDA). The TFDA is now the body which ensures drugs, medical devices and other health products are regulated to meet quality, safety and efficacy standards. It works alongside the DOH, whose responsibilities are now relegated to overseeing access and quality of public health services.

Taiwan’s health authorities have begun to promote current good manufacturing practices (CGMP) in the pharmaceutical industry, and manufacturers that win such certification are subject to routine and impromptu inspections. As of 2010, 164 manufacturers were CGMP-certified.The DOH maintains a regularly updated listing of authorized vendors for the reference of medical care institutions. Victims of severe drug side effects may seek compensation from a relief fund set up by the DOH and supported by fees levied on pharmaceutical companies in accordance with a sliding scale based on their revenues.

Rare Disease Control and Orphan Drug Act Controlled Drugs Act/Illicit Drug Hazards and Prevention Act 。 National Health Insurance Act: Pharmaceutical Benefit Scheme, NHI Contract

Pharmacy Statue for Control of Cosmetic Hygiene, Act Governing Food Sanitation, Health Food

Control Act, etc.

Size of Pharmaceutical Market in Taiwan:

After many years of building up an impressive resource base, from world-class research institutes, universities, and scientists to pharmaceutical entrepreneurs and internationally competitive companies, the Pharma industry in Taiwan is finally ready to take advantage of the wave of enthusiasm and interest surrounding Pharma and biotech that is sweeping the nation.

Many multinationals are present, although the majority of them only have sales and marketing operations as they are deterred from establishing manufacturing operations due to the unequal drug pricing system. Taiwan is heavily dependent on the imports of medicaments, which represented approximately over three-quarters of the total imports in 2010. With limited

exports, the balance of pharmaceutical trade will remain considerably negative and the deficit is likely to increase in the forecast period. According to the DoH, there were around 500 GMP-certified pharmaceutical manufacturers in 2011, including API, Western pharmaceutical and TCM companies. 

About 80% of Taiwan’s pharmaceutical products are sold through hospitals. Local pharmacies account for 15% of Taiwan’s pharmaceutical sales, and clinics comprise the remaining 5%. A large percentage of Taiwan’s drugs come from domestic manufacturing facilities owned by international pharmaceutical companies. Less than half of Taiwan’s drugs are imported. These imports come mainly from the US and Europe.

Market size and value:

The Taiwanese pharmaceuticals market had total revenue of $4.1 billion in 2010 and expected to reach US $ 4.4 billion in 2011, representing a compound annual growth rate (CAGR) of 6.1% for the period spanning 2006-2010.The other therapeutic purposes segment was the market's most lucrative in 2010, with total revenue of $2 billion, equivalent to 50.1% of the market's overall value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 6% for the five-year period 2010-2015, which is expected to drive the market to a value of $5.5 billion by the end of 2015.

Taiwan pharmaceuticals market value: $ million, 2006–10

Year $ billion NT $ billion %growth2006 3.3 107.7 4.02007 3.5 115.1 4.12008 4.7 124.6 8.22009 3.9 130.5 4.72010 4.1 135.0 8.52011 4.4 150.0 6.0

Source of data : data monitor

Other therapeutic purpose is the largest segment of the pharmaceuticals market in Taiwan, accounting for 50.1% of the market's total value. The alimentary/metabolism segment accounts for a further 13.7% of the market.

Policy and Perspective:

The key buyers of prescription drugs are mostly medium- to large-sized buyers, such as hospitals, managed care organizations (MCOs), government agencies, and drug retailers. The nature of the market tends to be high-risk, time-consuming and expensive as a result of

stringent regulations concerning safety and efficacy. These pose as substantial barriers to entry. However, there is a high degree of proprietary knowledge and patent protection which allows players to benefit from market exclusivity for a short time period, allowing them to recoup development expenses and ensuring profitability. Such investments and high fixed costs strengthen competition amongst incumbents.

The Taiwanese healthcare system is well-developed, with a National Health Insurance Scheme that covers every Taiwanese citizen. A good understanding of the Taiwanese healthcare regime will enable international pharmaceutical companies to thrive in Taiwan. Around 60% of Taiwan's healthcare spending is public sector. The National Health Insurance system (NHI) is funded by employee and employer contributions and general taxation. National Health Insurance law mandates reimbursement to healthcare providers (hospitals & GPs) at transaction costs. It is not enforced, thus allowing generics producers, with no R&D costs to recover the ability to offer significant discounts to the reimbursement rate.

50.1

13.7

12.4

9.2

7.4

7.8

Category % share of Drug Market

General prescription drugs

Alimentary/metabolism

Cardiovascular

Oncology

Respiratory

Central nervous system

Asthma Disease Epidemiology:

S.no Disease Population in numbers % of total deaths

1 Cancer 44,800 28

2 Heart disease 16,690 10.6

3 Cerebro vascular disease 11,680 7.3

4 Pneumonia 9,440 5.9

5 Diabetes 9,280 5.8

6 Road accidents 8,320 5.2

7 Chronic respiratory disease 5,600 3.5

8 Chronic liver disease 5,600 3.5

9 Suicide 4,640 2.9

10 Nephritis 4,480 2.8

Asthma is the 12th leading cause of death.

Top Pharma Companies:

Astellas Pharma Daiichi Sankyo Co., Ltd Pfizer Inc Jiangsu Yangtze River Pharmaceutical Group Yung Shin Pharmaceutical Industry Co., Ltd ScinoPharm Taiwan, LTD Cipla Ltd Piramal Healthcare (PHL) Ranbaxy Laboratories Limited

The market is fragmented, with the four major players accounting for just 16.8% of the total market value, with Pfizer Inc holding the maximum market share of 6.1% followed by Glaxo smithKline Plc of 4.6%, scion Pharma LTD -4.2% and Yung shin Pharmaceutical industry Co Ltd of 1.9%.

Economic Report:

Labour Force by Occupation:

Agriculture : 5.2 % Manufacturing : 35.9 % Service : 58.8 % as of 2011Unemployment : 4.4 %

Economic 2011 2010 2009

GDP (US $ billion nominal) 503.94 430.58 377.45

% Real Growth - 1 % 11.0 -6.0

% Inflation 1.5 1.2 0.5

Per capita (US $) 21,409 18,475 16,325

Demographic 2011 2010 2009

Population 23,161,779 23,120,123 23,043,150

Growth Rate % 0.193 0.34 0.35

Under 15 years 15.6 15.65 17.10

15 – 64 years 73.4 73.61 73.40

65 years 10.9 10.74 10.50

Health expenditure 2011 2010 2009

Total ( % GDP) 7 7 6.9

% Government 65.7 66.10 64.00

% Private 34.3 33.90 33.00

Per capita (US $) 1126 1100 1074

Physicians 4389

Pharmaceutical Market 2011 2010 2009

Value at retail price (US $ billions) 4.4 4.1 3.9

% Growth rate 6.1 6.1 6.1

Respiratory drug market (US $ mn) 422 385 359

Source: WORLD BANK DATA

Statistics:2011 GDP (nominal) US$430.10 billion2011 GDP per capita (nominal) US$18,5882011 GDP growth - 1 %( negative growth)2011 Unemployment rate, average 5.21%

SWOT Analysis (Investor):

Strength:

Taiwan is the 19th largest economy in the world and one of the shinning market in South East Asia.

Expertise and leading player in global informatics and communications technology. Well recognized health care policy clubbed with reimbursement policy. Well established domestic players and majority of the market is composed by foreign

investors. Taiwan has good Infrastructure and Logistic facility. Taiwan pharmaceutical market is very small and highly reliant on API imports

Weakness:

Taiwan pharmaceutical market is very small and highly reliant on API imports Market has been stagnant and has low growth opportunities. Pharma market is fragmented and Top 4 players accounts 17% of the total

pharmaceutical market.

Opportunity:

Largest economic contribution is done by foreign domestic players.

Taiwan’s new policies to make it as superior destination for medical tourism and biopharmaceutical manufacturing industry.

Taiwan itself promotes as a test market for investors before entering Chinese market. High standard intellectual protection rights presence of many innovator drug

manufacturers.

Threat:

Taiwan is partially recognized state and has unique political situation. Pricing of drugs is greatly influenced by NHI. China poses as a potential threat for Taiwanese industry with high workforce at low

cost factor.

VIETNAM:

Socialistic Republic of Vietnam (Vietnam) is a densely-populated developing country located in south eastern Asia. It is the worlds13th most populous and 8th most populous Asian country. The country’s economy remains dominated by state owned enterprises (SOEs), which still

produce about 40% of GDP. Government had implemented structural reforms needed to modernize the economy and to produce more competitive export driven industries.

Vietnam is the 58th largest economy, largely dominated by state owned enterprises.

Vietnam is 13th most populous country in the world.

Non communicable disease accounts for 75 % of all deaths.

Heart stroke is the leading cause of death which accounts for 23% of total deaths.

Asthma accounts for 1.5 % of total deaths.

In the aftermath of the Vietnam war, the unified communist nation was politically isolated and economically backward. In 1986, the government initiated market based economic and political reforms which began a path towards integration into the world economy. Its economic growth has been among the highest in the world since 2000. Vietnam has the highest global growth generators index among 11 major economies, and its successful economic reforms resulted in it joining the world trade organization in 2007. However, the country still suffers from relatively high levels of income inequality, disparities in healthcare provision, and poor gender equality.

Geography and Cultural aspects:

The culture of Vietnam is an agricultural civilization based on the cultivation of wet rice, is one of the oldest in East Asia. Due to the long-term Chinese influence on its civilization, in terms of politics, government and Confucian social and moral ethics, Vietnam is considered to be part of the East Asian cultural sphere.

The communist influence people associate red colour as the symbol of revolution and blood and its national flag represents 5 pointed yellow stars depicts the unity of workers, peasants, intellectuals, youth and soldiers in building socialism.

ECONOMY:

Vietnam is a densely-populated developing country which has largely recovered from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy had made the country worsen. While Vietnam's economy remains dominated by state-owned enterprises (SOEs), which still produced about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. The largest contributor of GDP is manufacturing industry of 40% and agricultural sector of 22%. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector.

Demographic Features:

After the reunification of northern Vietnam and southern Vietnam in 1976 there has been increase in population statistics. The country recorded a population figure of 91,519,289 leaving 13th largest populous country in the world growing at a rate of 1.1% with a median age of 27.8 years. It has a population density of 259/ sq.km. for much of Vietnamese history, Mahayana Buddhism, Taoism and Confucianism have been the dominant religions, strongly influencing the national culture. About 85% of Vietnamese identify with Buddhism. Non communicable diseases accounts for 75% of all deaths.

The country enjoys the highest literacy rate of 92.5% of adults as of 2008. Birth rate and death rates are 17.07 and 5.96per 1000 population respectively. 

Percentage of population according to the age characteristic

AGE Percentage of populationUnder 15 years 24%15 to 64 years 66%65 and above 10%

Government Policies on Drug Regulations:

Industrial Progress:

The pattern of Vietnamese industrial growth after reunification was initially the reverse of the record in agriculture; it showed recovery from a depressed base in the early post-war years.

24%

66%

10%

Age characterstics % population

under 15 years15 to 64 years65 +

National leadership objectives during the immediate post-war period included consolidating factories and workshops in the North that had been scattered and hidden during the war to improve their chances of survival and nationalizing banks and major factories in the South to bring the financial and industrial sectors under state control. Economic reforms undertaken in 1977 gave factory management some independence in formulating production plans, arranging production resources, and containing production expenses. Since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries.

A huge investment of 40% during the 3rd five year plan had controlled the deflation of industry. food processing, garments shoes machine building mining coal steel cement chemical fertilizer glass tires oil mobiles phones are some of the major contributing industries for country GDP. Vietnam industry had recorded a 7.5% growth rate placing it 30th fast growing country by industry growth rate. Since 2008 the government devalued it’s currency in excess of 20% through a series of small devaluations. Foreign donors pledged nearly 8$ billion in new development assistance for 2011 however the government’s strong growth oriented economic policies have caused it to struggle to control one of the region highest inflation rates, which reached as high as 23% in august 2011 and averaged 18% for the year.

Health Expenditure:

Health Policy Initiative (HPI) Vietnam is a five-year (2008-13), US$10  million project  funded by USAID / President’s Emergency Plan for AIDS Relief (PEPFAR) and implemented by Abt Associates Inc. in partnership with the Government of Vietnam, civil society organizations and other stakeholders. HPI works for adoption of HIV/AIDS laws, policies, and programs that are based on scientific evidence and international best practice, that protect the rights of all, and that draw on the substantial and growing capacity of civil society and people living with HIV/AIDS (PLHA). HPI works with government, civil society, and other stakeholders to develop, review, and refine decrees and circulars under the HIV/AIDS and  Drug Control Laws.HPI develops resource needs estimates and scenarios for sustainable HIV/AIDS programs, providing valuable input to HIV/AIDS strategic plans at national and provincial levels

Government had initiated various health schemes and invested an huge amount on public health care the statistics are as follows

Total expenditure on health as % of gross domestic product - 7.2%General government expenditure on health as % of total expenditure on health - 38.7%Private expenditure on health as a percentage of total expenditure on health - 61.3%Social security expenditure on health as % of general government expenditure on health -32.2%Per capita total expenditure on health at average exchange rate (US$) - 80

Infrastructure - Hospital beds /10000 - 29Nursing and midwifery personnel at a density of 10 per 10000 - 10(Data -2011)

GOVERNMENT POLICIES:

The Vietnamese government still pursues more interventionist industrial policy than most other emerging markets. This includes indicative five-year plans and yearly priorities for industrial development and investment. At the time of writing, government policy is in particular concerned with promoting sectors such as telecommunications, software development, and shipbuilding. In the wake of increasing competition for foreign investment in South-East Asia, the Vietnamese government provides many investment incentives. Corporate income tax is low compared to other countries in the region (Since January 2004, the standard rate is 28 % and preferential rates range from 10% to 20%). Foreign investors can be exempted from import duties to create fixed assets, such as machinery, means of transport, and construction materials that are not produced locally. Further exemptions are available for raw materials, spare parts, parts and materials imported for production of goods for export.

Drug Regulations :

Under Vietnam's Ministry of Health (MOH), the Drug Administration of Vietnam (DAV) is responsible for the regulation of pharmaceuticals, and the Department of Medical Equipment and Health Works (DMEHW) is responsible for the regulation of medical devices. The DAV evaluates pharmaceutical applications for their compliance with the 2005 Pharmaceutical Law and issues licenses accordingly. The DMEHW handles product registration and evaluation for medical devices.

With the aim to unify the government management over production and sale of drugs to ensure the safety, efficacy and quality of drugs the ministry of health of Vietnam had formulated a regulatory body under the name of drug administration of Vietnam.

In Vietnam drugs are regulated by the drug administration of Vietnam (DAV) and must be registered prior to marketing of any drug. Medical devices that are on a restricted list must be registered with department of medical equipment and health works (DMEHW). In addition the ministry of science and technology performs some regulatory functions relevant for domestically made medical devices. Depending on your regulatory strategy the Vietnamese government may or may not require local clinical trials on your medical products. These clinical trials are usually done at government hospitals and conducted by the government itself. Government price controls are also a risk to be considered.

PHARMACEUTICAL MARKET SIZE:

The pharmaceutical business is a fast growing sector of the Vietnamese national economy. As one of the developing markets in Asia there exist greater tendencies for large financial turnovers. There are indigenous pharmaceutical factories that produce medicines for local

consumption. However, numerous preparations are either under produced or not manufactured at all because of lack of the necessary facilities. According to latest statistics report given by Vietnam’s ministry of health that the actual annual supply of essential imported medical products is far less than the demand. Therefore there is room for foreign pharmaceutical companies to market their products successfully in Vietnam.

Vietnam pharmaceutical market has been continued to grow over recent years and holds significant potential. With a population of more than 91 million, total expenditure on medicines increased from US$1.426 billion in 2009 to US$1.707 billion in 2010 and is forecast to reach US$2.05 million in 2011. Irrespective of market potential Vietnam pharmaceutical industry is still at a medium level of development. Although a domestic pharmaceutical industry exists, almost all materials are imported. Vietnamese made medicines make up just 50 percent of the market, while it imports around 90 percent of the active pharmaceutical ingredients (APIs) used in drug production. As at the end of 2009, consumer spending in the market accounted for just 1.6 percent of GDP.

Vietnamese Pharma market is known for its oriental medicine because of long standing development of traditional Vietnamese medicine and peoples preference for herbal products. The state owned central pharmaceutical monopoly is the Vietnam Pharmaceutical Corporation (Vinapharm) and reports directly to the MoH. These Vinapharm and provincial/municipal companies serve the so-called mid-level market. By contrast, companies of local governments are better in virtually all respects, but have poor product innovation and market penetration outside their local area. They serve the low-end market, but are seeking to move into the mid-level market. Because of market failure from Vinapharm's excessive bureaucracy, many of its companies have been unprofitable.

It has been recently reported that just three multinational distributors - Zuellig Pharma, Mega Product and Diethelm - dominate the Vietnamese pharmaceutical market through a complex network which enables them to control the volume, thus prices, of drugs distributed in the country. Most healthcare expenditure is out-of-pocket in Vietnam, with national health insurance only covering a small section of the population. Private expenditure is estimated at around 67.6%. Health expenditure is estimated at US$5.8 billion in 2009 and is projected to reach US$10.9 billion by 2014. Per capita health expenditure should reach US$116 from an estimated US$66 in 2009.

Market Size and Share:

Vietnam pharmaceutical market value in 2011 increased from US$1.115 billion in 2007 to US$2.05 billion. The Drug Administration of Vietnam (DAV) expects it to reach US$2.05 billion this year (2011), representing growth of 20 percent year-on- year (y-o-y).

Most pharmaceuticals produced domestically are generic drugs, produced and distributed without patent protection, so domestic companies cannot meet consumer demand. Because of

their lower prices, domestic drugs are often used in state-owned hospitals and clinics. Many Vietnamese people, however, prefer imported products over their domestic counterparts. Analysts estimate that domestic drugs only have some 50 percent of market share at the moment.

2008

2009

2010

2011

0 500 1000 1500 2000 2500

1115

1425

1710

2050

Vietnam Pharmaceutical Market's value in (US $ millions)

Data source as IMS health

Non communicable diseases accounts for 75% of the deaths. Asthma is the 17 th leading disease with a mortality of 8000 people at a rate of 11 per 100,000 populations.

40%

14%8%3%

10%

16%

9%

PROPORTIONAL MORTALITY (% OF TOTAL DEATHS, ALL AGES 2010)

CVD (40%)

CANCERS (14%)

RESPIRATORY DISEASES (8%)

DIABETES (3%)

OTHER NCD's (10%)

COMMUNICABLE,MATERNAL,PERINATAL AND NUTRITIONAL CONDITIONS (16%)

INJURIES (9%)

Death statistics of asthma by age Estimated total deaths (2011)

65 plus

15 to 64 years

under age 15 years

500 1500 2500 3500 4500 5500 6500 750065 plus 15 to 64 years under age 15 years

Females 2301 1404 265

Males 3914 1954 408

Total 897 3358 6215

Asthma Mortality Cases

ASTHMA IN VIETNAM:

S.no Disease Population in numbers % of total deaths death rate/100,0001 Stroke 120,236 23 173.04 (poor)

2 Coronary heart disease 78,352 10 112.50

3 Lung disease 32,415 6.20 46.57

4 Tuberculosis 29,692 5.68 38.91

5 Liver cancer 21,748 4.16 29.73 (poor)

6 Influenza & pneumonia 21,511 4.12 29.63

7 Road traffic accidents 21,087 4.03 26.01

8 Lung cancers 17,583 3.36 24.74

9 Diabetes mellitus 16,456 3.15 23.89

10 HIV/AIDS 13,655 2.61 16.37

11 Asthma (17th) 8,084 1.5 10.74

According to the head of the Vietnam Pharmaceutical Management Bureau the number of foreign enterprises in the field increased by 58 in 2007 bringing the total number to 370 in 2011

Most of these are small- and medium-sized enterprises and primarily Asian. India tops the list with 81 enterprises, followed by South Korea and China. Since last year, many European and US pharmaceutical groups such as Sanofi-Aventis (France), GSK (UK), Servier (France), and Pfizer (US) have dominated the domestic market in specific drugs and are penetrating deeper into the generic drug segment.

Policy and Perspectives:

Vietnamese regulators face great challenges after the country’s entrance in to WTO. Foreign companies have been given the right to open branches in Vietnam and to import medicines directly, although they will still be barred from distributing their products. As part of membership, Vietnam also committed to set import duties at less than 5 percent on pharmaceutical products and duties are expected to average just 2.5 percent five years after accession. Under WTO commitment at the end of 2010 only enterprises meeting Good Manufacturing Practice (GMP-WHO) standards will be allowed to continue production and such enterprises will have the right to organize, manage and operate a pharmacy chain. This will present an obstacle for many domestic companies while opening up huge opportunities for foreign investors.

The large number of Vietnamese people living in rural areas with low living standards and high demand for cheap drugs presents a good opportunity for expanding the market share of domestic pharmaceutical companies. Living standards for most people are increasing, and they care more about their health, so demand for pharmaceuticals is rising. This will also assist the development of Vietnamese pharmaceutical industry. There are approximately 57,000 pharmacies in Vietnam, or 6.6 per 10,000 people, which is impressive for a developing country. But there is a lack of qualified pharmacists. The Ministry of Health has set a target of 1.5 pharmacists per 10,000 people. At the end of 2009, the government announced its aim of ensuring that 60 percent of domestic demand is met by local pharmaceutical companies in 2010. Source: WHO

Top Companies: Merck & Co Novartis Pfizer Sanofi – Aventis Vidipha central pharmaceuticals joint stock company Vietnam OPR pharmaceuticals Co Vietnam pharmaceuticals corporation (vina pharma) Vietnam pharmaceuticals joint stock company ( Ampharco)

Economic Reports:Labor Force by Occupation : Agriculture: 48% Industry : 22.4% Services : 29.6% (2011)

Unemployment Rate - 2.3%

Economic 2011 2010 2009

GDP (US $ billion nominal) 118.56 103.5 93.16

% Real Growth 5.8 6.78 5.32

% Inflation 13.46 9.20 6.71

Per capita (US $) 3,300 3204 3008

Demographic 2011 2010 2009

Population 91,519,289 86,936,464 86,024,600

Growth Rate % 1.1 1.05 1.05

Under 15 years % 25.2 23.60 24.13

15 – 64 years % 69.3 70.40 69.89

65 years % 5.5 6.0 5.98

Health expenditure 2011 2010 2009

Total (%) 7.2 7.25 7.2

% Public 38.7 38 38

% Private 61.3 62 62

Per capita (US $) 85 80 79

Physicians 107131

Pharmaceutical Market 2011 2010 2009

Value at retail price (US $ billions) 2.05 1.71 1.43

% Growth rate 20 20 20

Respiratory drug market ($ mn) 115.4 97.04 87.21

Source: WORLD BANK DATA

Statistics:

2011 GDP - US $299.2 billions

2011 GDP growth rate - 5.8%2011 GDP Per capita - US $3,300GDP share – Agriculture - 22% Manufacturing - 40%

Service - 38%

SWOT Analysis: (Investor)Strength:

Vietnam is the 13th largest populous country in the world. Country is endowed with rich oil reserves and made it as 3 rd largest producer of oil in

South East Asia. Only enterprises meeting GMP-WHO are eligible for manufacturing drugs in Vietnam. High densely populated country in South East Asia. Imports around 90 percent of active pharmaceutical ingredients (APIs). Strong appetite towards foreign imported drugs.

Weakness: Vietnam still suffers from economic disparities in health care provisions. Low Infrastructure facilities shambles the industry growth and output. Country suffers from low foreign exchange reserves and undercapitalized banking

sector. High borrowing costs are one of the burden barriers.

Opportunity: High demand for cheap medicines Annual supplies of import drugs are far less than demand so there is a room for foreign

pharmaceutical companies to tap the market. Demand for pharmaceutical are rising Tax fee exemption for foreigners on imports. Vietnam pharmaceutical industry is at nascent stage compare to its competitors.

Threat:

Herbal industry is one of the potential threat about 30% of people are being treated with traditional medicines.

Low standards for intellectual property rights. State owned enterprises play a major role in economic output

MARKET SCENARIO

MARKET SCENARIO:

INHALATION MARKET:

According to world health statistics non communicable diseases accounts for majority of deaths stated of April 2011. One of the common prevailing diseases that prevail in every one irrespective of age is asthma. Asthma cases vary from country to country. From the past 40years there has been growing trend in mortality of asthma deaths and increased in parallel with that of allergy. Mortality seems to be high countries where access to healthcare and essential drugs are low. Geographic and environmental factors play a major role in developing asthma symptoms.

According to WHO reports almost 90% of COPD deaths occur in low and middle income countries.

It is estimated that there may be additional 100 million people suffering with asthma. The overall asthma and COPD market is estimated to be at $ 29 billion as of 2011.

The largest segment asthma market was valued at $ 17 billion in 2011 and is projected to reach $ 18 billion in 2014 growing at a CAGR of 1.2%.

Global market for asthma and COPD drugs

2007 2008 2009 2011 20140

5000

10000

15000

20000

25000

30000

35000

14200 15600 16000 16800 17200

900010000 10200 11000

14000

asthma drug market COPD drug market

Source: WHO data bank

Sales in the COPD drug market amounted to $10 billion in 2008 remained flat in 2009, but projected to increase to $14 billion in 2014, for a 5-year CAGR of 6.1%.

Global market for pulmonary drug delivery inhalers

2010

2011

2016

0 5 10 15 20 25 30 35

12.5

14.4

29.8

6.6

7.5

13.4

0.5

0.700000000000001

0.9

Nebulizers DPIs MDIs

Source: WHO data bank

The global pulmonary drug delivery technologies market which is around $22.5 billion by 2011 is projected at $ 44 billion by 2016 growing at a compound annual growth rate of 14.3%.The market for metered dose inhalers (MDIs) was $12.5 billion in 2010 and will reach $14.4 billion by the end of 2011. BCC forecasts this market will grow to $29.8 billion by 2016 at a CAGR of 15.7%. The market for dry powder inhalers (DPIs) was $6.6 billion in 2010. This market is expected to increase to $7.5 billion in 2011 and reach $13.4 billion by 2016 at a CAGR of 12.3%.

MOLECULES:

Formeterol Fumerate and Budenoside Inhaler:

Brand name: symbicortInnovator: Astra ZenecaAction: Reliever and controller

Combination: anti inflammatory corticosteroid (budesonide) and long acting selective beta2agonist (formeterol fumerate).

Innovator price: symbicort turbuhaler: 100/6 mcg, 120 doses: - USD $ 78.00

200/6 mcg, 120 doses: - USD $ 85.00

Description:

Budenoside is an anti inflammatory corticosteroid in addition to formeterol a bronchodilator which helps in reducing inflammation in bronchi’s and mucus formation in the lungs. This combination is marketed by Astra Zeneca under the name of Symbicort. This mixture is used to reduce bronchospasm in people suffering from asthma and chronic obstructive pulmonary disease (COPD).

Side Effects:Some of the common symptoms associated with symbicort are chest pain, wheezing, throat irritation, choking, pounding heart beats, nervousness etc. their also exists worsen situations like dangerous high blood pressure, white patches in mouth etc.

Country Brand name Manufacture InnovatorIndonesia Symbicort Astrazeneca AstraZenecaMalaysia Symbicort

ForacortAstra Zeneca

CiplaAstrazeneca

Philippines Symbicort Zuellig Pharma Astra ZenecaTaiwan Symbicort Astrazeneca AstrazenecaVietnam Symbicort Astrazeneca Astrazeneca

Source: MIMS

Fluticasone Propionate and Salmeterol

Brand name: AdvairInnovator: Glaxo Smith KlineAction: control of mucus productionInnovator price: Advair: 125/ 25 mcg, 120 Doses: - USD $ 75.00 250/ 25 mcg, 120 Doses: - USD $ 99.00

Description:

The combination of a bronchodilator beta-2 agonist (salmeterol) and anti-inflammatory corticosteroid (fluticasone) used to treat asthma and chronic bronchitis. Bronchioles a narrow passage through which air moves in and out in lungs. These bronchioles have a greater chance of accumulation of mucus or spasm of muscles that surrounds’ these airways which lead to asthma attack. These beta-2 agonists are medications that will attach to beta-2 receptors on the smooth muscle cells that surround the airways, causing the muscle cells to relax and open airways. Fluticasone propionate is a synthetic corticosteroid akin to natural hormone, cortisols or hydrocortisone, produced by the adrenal gland. Gluco corticosteroids have potent anti inflammatory actions which reduces mucus production and inflammatory of airways.

Side Effects:

With use of these drugs have side effects like headaches, nausea, vomiting, diarrhea, throat candidiasis and musculoskeletal pain. Widely noticeable one side effect is upper respiratory tract infection.

Country Brand name Manufacture InnovatorIndonesia Seretide Glaxo smith KlineMalaysia Seretide Glaxo smith KlinePhilippines Salmeflo

SeretideInnogen pharmaceuticalsGlaxo smith Kline

Taiwan Seretide Glaxo smith KlineVietnam Seretide diskus

Esiflo transhalerFluairesSeretide evohalersSeroflo

GSK operations UKLupinLaboratories Pablo cassaraGSK operations UKLBS

GSK

Cipla

Source: MIMS

Budesonide:

Innovator: AstraZeneca Category: Gluco corticoid steroidAction: Reduces inflammation of airways caused by asthmaInnovator price: Pulmicort flexi haler: 100 mcg, 60 Doses: - USD $ 140.00

: 200 mcg, 60 Doses: - USD $ 181.00

Pulmicort turbuhaler: 200 mcg, 200 Doses: - USD $ 63.00

: 400 mcg, 200 Doses: - USD $ 89.00

Description:

Budenoside is a Gluco corticoid steroid widely available as inhalation powder / aerosol form. Gluco Corticoid steroids such as budesonide or cortisols have potent anti inflammatory characters that reduce inflammation of airways caused by asthma.

Side Effects:Most common side effects that are coupled with budesonide are mild cough and thirst. Hoarseness or sore throat observed 1 in 10 persons with usage of oral corticoid steroids. High doses of inhaled Gluco corticoid steroids may decrease the formation of bones and might lead to osteoporosis and fractures. High doses may hinder the natural production of glucocorticoids production from adrenal gland. Hypersensitivity reactions such as anaphylaxis, rash, contact dermatitis, itching, angiedema and bronchospasm have been reported with use of inhaled budesonide.

Country Brand name Manufacture InnovatorIndonesia Budenofalk

InflammideObucort swinghalerPulmicortRhinocort aqua

Darya variaBoehringer IngelheimOtsukaAstra ZenecaAstra Zeneca

Malaysia Besonin aquaBudecortBudenaseBudenideBudesonideBudiairButacortEltair aqua

SynmosaCiplaCiplaHoe PharmaGlen markChiesiAlpha PharmaDouglas

Philippines AsmaventBudecortBronexBudecort aqua nasal sprayBudenofalkBudesonide cyclocapsDenecortObucortPrimavent

United labsZuellig PharmaEuro midZuellig PharmaZuellig Pharma, invidaNew market linkPhil Pharma wealthZuelligMetero drug

UAPAstra ZenecaEuro midAstra ZenecaFalkpharmachemieCiplaotsukaBoehringer Ingelheim

Taiwan AllercortBesoninBudesBudeson aquaBunoDuasmaGionaNeo rinactiveObucortPulmicort

StandardSynmosaPanbioticWeidarJohnsonSynmosaOrionAlconOtsukaAstra Zeneca

Vietnam BudenaseHanlimdenosaInflammideNarita SprayPulmicortRhinocort Aqua

L.B.SPhil internationalBoehringer IngelheimSamchun dang PharmaAstrazenecaAstrazeneca

CiplaHanlim Pharma

Tritropium Bromide:

Brand name: SpirivaInnovator: Boehringer IngelheimAction: ControlInnovator price: Spiriva: 18 mcg, 30 rotacaps: - USD $ 70.00

Description:

Tritropium bromides is a long acting bronchodilator used as a reliever for patients who have regular symptoms of asthma neither relieved by selective therapy of short acting inhaled beta-2 adrenergic agonist. Tritropium bromide is prescribed to patients with symptoms from moderate to severe COPD. Bronchodilation usually lasts for more than 24 hours.

Side Effects:There are minor noticeable side effects with excessive use of tritropium bromide some of them are blurred vision, constipation, dry mouth, runny nose, sinus inflammation or infection, sore throat, vomiting or stomach ache. Worsen symptoms are urinary retention with prostatic hyperplasia.

Country Brand name Manufacture InnovatorIndonesia Spiriva

Spiriva respimatBoehringer Ingelheim

Malaysia SpirivaSpiriva respimat

Boehringer Ingelheim

Philippines Spiriva Boehringer IngelheimTaiwan Spiriva Boehringer IngelheimVietnam Spiriva Boehringer Ingelheim

Source: MIMS

PRICING

PRICE:

Price is defined as the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.

PRICING METHODS:

Basically there are 3 types of pricing methods followed by new entrants to enter a market in other terms penetration pricing the two pricing methods are

Value based pricing (setting pricing based on consumer perception) Good value pricing ( setting a fair price for right quality and quantity) Cost based pricing ( set price based on cost)

Product pricing is finalized after several make ups such as manufacturing markup price, import taxes/ export taxes, transportation, wholesale markup price, retail markup price and VAT/ TAX. The markup percentage varies from country to country and company to company. The general pricing markups are as follows.

25

5

6

20

30

14

Pricing Markup

manufacturing price (25%)import taxes (24 %)trasportation (6%)wholesale markup (20%)retail markup (30%)VAT/TAX (14%)

Pricing strategy:

Pricing stragey varies with product life cycle charaterstics. Some companies start with high pricing (price skimming) as a tool to enter the market and reduce price as market matures. Companies generally changes prices at various stages of their product life cycle. Price wars are introduced by competitors inorder to grab the market share. The general pricing principle followed by companies in accordance to their market position/age.

Product Life Cycle Vs Pricing:

Characterstic Introduction Growth Maturity DeclinePrice Use cost plus Price to penetrate Price to match or

beat competitorsCut price

Indonesia:

Molecules Brand name Dosage Price(USD $)Salmeterol and fluticasone propionate

Seretide 25 + 125 mcg 28.50

Tritropium Bromide

SpirivaSpiriva respimat

18 mcg X 10’s 15.20

Budesonide BudenofalkInflammide

Obucort swinghalerPulmicort turbuhaler

Rhinocort aqua

100 mcg X 300 puffs200 mcg X 300 puffs200 mcg X 200 doses X 1’s100 mcg X 200’s200 mcg X 100’s200 mcg

11.7016.50

16.6016.0014.80

Formeterol fumerate and budesonide

Symbicort 6 + 200 mcg 28.40

Parameters:

Salmeterol and fluticasone propionate, Formeterol fumerate and budesonide and Tritropium bromide are the molecules having less competition in the Indonesia pharmaceutical market (ASTHMA MDI) so they can be sold at the same price as if the competitors are selling or can go for Premium Pricing if the company is strong technically.

Budesonide is the molecule having more competition with large number of brands so it better to enter the market with penetration pricing.

Penetration pricing:

Indonesia is the 4th largest populated country. The market potential of this country is huge. Wide availability of counterfeit drugs and selling through illegal means makes pharma market at stagnant position. With increase in appetite towards western medicines and preference for branded drugs had given enough room for new comers to explore the market.

Drug Dosage Average price (USD$) Penetration price(USD$)

Salmeterol and fluticasone propionate

25/ 125 mcg25 / 250 mcg

28.50 27.00

Tritropium bromide 18 mcg 15.20 14.45

Budesonide 200 mcgX 100(DPI)200 mcgX 100(MDI)400 mcgX 100(MDI)

16.5015.40

15.6514.60

Formeterol fumerate and Budesonide

6 + 200 mcg6 + 400 mcg

28.40 27.00

Philippines:

Country Brand name Dosage Price(USD $)Salmeterol and fluticasone propionate

Salmeflo

Seretide

25/125 mcg25/250 mcg25/125 mcg (120 doses)25/250 mcg (120 doses)

11.501613.819.40

Tritropium Bromide

Spiriva 18 mcg 1’s 4.88

Budesonide AsmaventBudecort (MDI)BronexBudecort aqua nasal sprayBudenofalk

Budesonide cyclocapsDenecortObucortPrimavent

200 mcg X 100200 mcg X 100

400 mcg X 100200 mcg X 100

26.3027.50

31.0028.60

Formeterol fumerate and budesonide

Symbicort 6 + 200 mcg6 + 400 mcg

23.330

Parameters:

Salmeterol and fluticasone propionate, Formeterol fumerate and budesonide and Tritropium bromide are the molecules having less competition in the Philippines pharmaceutical market (ASTHMA MDI), So that we can enter the market at the same price as if the competitors are selling or can go for Premium Pricing if the company is strong technically.

Budesonide is the molecule having more competition with large number of brands so it better to enter the market with penetration pricing.

Penetration pricing Range:

Companies do involve in pricing their products below their competitors value in order to penetrate into new markets. The price used by companies to enter into the market is called penetration pricing. Generally it would vary from 5% - 15% of the average market price. In this scenario a penetration price of 5% is used to differentiate our product from that of competitors.

Drug Dosage Average price (USD$) Penetration

price(USD$)Salmeterol and fluticasone propionate

25/ 125 mcg25 / 250 mcg

12.6517.70

12.6518.00

Tritropium bromide 18 mcg 4.88 4.50Budesonide 200 mcgX 100(DPI)

200 mcgX 100(MDI)400 mcgX 100(MDI)

26.90 26.00

Formeterol fumerate and Budesonide

6 + 200 mcg6 + 400 mcg

23.3030

21.0028.00

Taiwan:

Country Brand name Dosage Price(USD $)Salmeterol and fluticasone propionate

Seretide 25 + 125 mcg 18 MG pack25 + 250 mcg 18 MG pack

36.0036.00

Tritropium Bromide

Spiriva 9 mcg X 60 doses 51.30

Budesonide AllercortBesoninBudesBudeson aquaBunoDuasmaGionaNeo rinactiveObucortPulmicort

200 mcg X 200 doses200 mcg X 200 doses

200 mcg X 200 doses200 mcg X 200 doses

13.3513.10

15.5016.60

Formeterol fumerate and budesonide

Symbicort 6+ 200 mcg6+ 400 mcg

42.6042.60

Parameters:

Salmeterol and fluticasone propionate, Formeterol fumerate and budesonide and Tritropium bromide are the molecules having less competition in the Taiwan pharmaceutical market (ASTHMA MDI) so they can be sold at the same price as if the competitors are selling or can go for Premium Pricing if the company is strong technically.

Budesonide is the molecule having more competition with large number of brands so it better to enter the market with penetration pricing.

Penetration pricing:

The practically recognized state is the 19th largest economy in the world. With close cultural and demographic characteristics of china Taiwan had entered into market with a strategic marketing principle. Taiwan had opened its market for investor for testing before entering into Chinese market. Taiwan is posing confidence with their well established local pharma industry.

Drug Dosage Average price (USD$) Penetration

price(USD$)Salmeterol and fluticasone propionate

25/ 125 mcg25 / 250 mcg

36.0036.00

34.0034.00

Tritropium bromide 9 mcg X 60 doses 51.30 48.50Budesonide 200 mcgX 200(DPI)

200 mcgX 100(MDI)400 mcgX 100(MDI)

14.63 13.80

Formeterol fumerate and Budesonide

6 + 200 mcg6 + 400 mcg

42.6042.60

40.5040.50

Malaysia:

Country Brand name Dosage Price(USD $)Salmeterol and fluticasone propionate

Seretide 25 + 125 mcg 120 doses25 + 250 mcg 120 doses

90.00120.00

Tritropium Bromide

SpirivaSpiriva respimat

18 mcg – MDI 30 doses 9.00

Budesonide Besonin aquaBudecortBudenaseBudenideBudesonideBudiairButacortEltair aquaPulmicort turbuhaler

100 mcg X 200 200 mcg- MDI

200 mcg 400 mcg DPI

200 mcg DPI400 mcg DPI

20.63

48.00

58.0045.00

Formeterol fumerate and budesonide

SymbicortForacort

6 + 200 mcg MDI 120 doses6 + 400 mcg MDI 120 doses6 + 200 mcg MDI 30 doses6 + 400 mcg MDI 30 doses

85.0085.0020.0035.00

Parameters:

Salmeterol and fluticasone propionate, Formeterol fumerate and budesonide and Tritropium bromide are the molecules having less competition in the Malaysia pharmaceutical market (ASTHMA MDI) so they can be sold at the same price as if the competitors are selling or can go for Premium Pricing if the company is strong technically.

Budesonide is the molecule having more competition with large number of brands so it better to enter the market with penetration pricing.

Penetration pricing:

Malaysia is one among the developed country in South East Asia. Malaysia is the hotspot for retail investment. The country has one of the highest per capita health care expenditure of USD $ 310. Majority of the formulated and dosage drugs are being imported in to the country. Irrespective of high growth rates and developments in every sector pharmaceutical industry is still at nascent stage. Traditional medicinal industry dominates the total health care industry market.

Drug Dosage Average price (USD$) Penetration price(USD$)

Salmeterol and fluticasone propionate

25/ 125 mcg25 / 250 mcg

Tritropium bromide 18 mcgBudesonide 200 mcgX 100(DPI)

200 mcgX 100(MDI)400 mcgX 100(MDI)

Formeterol fumerate and Budesonide

6 + 200 mcg6 + 400 mcg

Vietnam:

Country Brand name Dosage Price(USD $)Salmeterol and fluticasone propionate

Seretide diskusEsiflo transhalerFluairesSeretide evohalerSeroflo

25 + 125 mcg MDI25 + 250 mcg MDI

Tritropium Bromide

Spiriva 9 mcg – MDI

Budesonide BudenaseHanlimdenosaInflammideNarita SprayPulmicortRhinocort Aqua

200 mcg- MDI

200 mcg 400 mcg DPI

Formeterol fumerate and budesonide

Symbicort 6 + 200 mcg MDI6 + 400 mcg MDI

Penetration pricing:

Drug Dosage Average price (USD$) Penetration price(USD$)

Salmeterol and fluticasone propionate

25/ 125 mcg25 / 250 mcg

Tritropium bromide 18 mcgBudesonide 200 mcgX 100(DPI)

200 mcgX 100(MDI)

400 mcgX 100(MDI)Formeterol fumerate and Budesonide

6 + 200 mcg6 + 400 mcg

ANALYSIS

PHILIPPINES

The 12th largest populous country which meets most of its pharmaceutical demand through imports of API has a market size of USD $ 2.8 billion. According to consumer price index the cost of medicines in Philippines are the highest in the region, next to Japan. Around 14% of the population is living below the poverty line. The economic constraints in Philippines made country most expensive country (In terms of cost of essential drugs) Economic conditions:

The average per capita health care expenditure is USD $ 22, the least among the South East Asian countries. According to WHO, only 50 – 80% of the population have access to essential drugs. Low purchasing power and inadequate infrastructure and logistics persuaded many MNC’s to limit their presence to marketing. Reimbursement policy is one of the government initiative schemes to attract foreigners invade the untapped market.

Respiratory Drug Market:

Asthma:

Asthma is the 10th leading mortality disease. There are 6 million people being diagnosed every year. Approximately 10,500 people die every year at a death rate of 19/100,000 population. According to WHO Philippines have higher asthma prevalence rate among South East Asian countries. Highest asthma mortality cases are registered in age group 60+. Environmental and geographic conditions are one of the major triggers for asthma.

Philippines respiratory drug market (Formulation drugs ready to use):USD $ million

2009 2010 2011 2012eValue 265 297 336 365Growth 12 11.98 11.9 12.1

With increased appetite towards western medicines there has been growing trend in imports of respiratory dosage drugs year on year.

Opportunity:

With steady growth rate of 11% y-o-y and 6 million asthma suffers made the country an concern destination for expanding business into asthma market. High population with low pharmaceutical market size made country as one of the favourite asthma destination.

Indonesia:

Indonesia is the 4th largest populous country with high density population. The pharmaceutical market is estimated to be at USD $ 4.4 billion growing at a rate of 10% over the year. Asthma prevalence cases are high in countries those adapted to western style of civilization. With increased urbanization and polluted environment there has been a increased concern respiratory problems in Indonesia.

Economic conditions:

The 15th largest economy is well equipped with local industry holding nearly 70% of the production. The pharmaceutical market in Indonesia is mainly relied on imports of API’s. With well established infrastructure, distribution network (11,000 pharmacies) and low competition made country one of the investors favorite destination.

The high domestic consumption has sufficed negative investor parameters such as low per capita health care expenditure and price ceiling policy. Government policies in dismantling monopolies, liberalization of economy and low cost of labour availability had shown positive environment.

Respiratory Drug Market:

Asthma:Asthma is the 21st leading mortality with 2.6 million populations is being diagnosed every year. Asthma accounts for nearly 14,600 deaths. The death rate of asthma is recorded at 8/100,000 population. Disease prevalence cases are high in males aged 15 above.

Indonesia respiratory drug market (Formulation drugs ready to use):USD $ million

2009 2010 2011 2012e

Value 155 170 221 232Growth rate 11 9.6 30 5

Respiratory disease accounts for 7% of total deaths. There has been a constant growth rate in imports of medicaments.

Opportunity:

With increase in imports of API’s(In particular to asthma dosages), high growth rate of respiratory drug market, large population suffering from asthma(about 2.6 million) and high distribution network of 11,000 pharmacies had created investment opportunity for asthma medications to enter this market.

Malaysia:

Malaysia is the 3rd largest economy in South East Asia and one of the leading destinations of Foreign Direct Investment. Malaysian pharmaceutical market is valued at 2.43 billion reiterating a standard growth rate of 6%. The middle income country had succeeded in eradicating poverty. Only 3.6% of the entire population is living under below poverty line.

Economic condition:

Malaysian pharmaceutical industry is one of the shinning sectors posing an average growth rate of 6%. Till recently the pharmaceutical market is dominated by traditional medicine market. With increased apatite towards western civilization and increased urban population Malaysians are showing keen interest in western treatments and medications. According to latest statistics traditional market holds same percentage as of modern market.

Malaysian pharmaceutical industry is backed by strong infrastructure facility. Low penetration power and pricing ceiling on many essential drugs made investor to neglect the market. The modern Malaysian pharmaceutical market is yet to develop both in horizons and verticals.

Respiratory Drug Market:

Asthma:

Malaysia has highest asthma prevalence cases next to Philippines in South East Asian countries. There are more than 1.4 million people suffering from asthma. Irrespective of highest per capita health care expenditure USD $ 307 asthma accounts 1% of total deaths every year. Respiratory diseases account for 7% of the overall death cases.Malaysia respiratory drug market (Formulation drugs ready to use):USD $ million

2009 2010 2011 2012

Value 78 85 90.5 96Growth rate 8 9 6.5 6

Malaysia imports all the API and formulated dosages(Ready to use). Imports accounts for majority of the budget.

Opportunity:

Malaysia has the highest asthma prevalence cases next to Philippines. Around 1.4 million people are suffering from asthma. Low Respiratory market size, high health care expenditure and low competitive presence made Malaysia as a hotspot destination for asthma drug market.

Taiwan:

Republic of china officially known as Taiwan is a partially recognized stated located on southern sea of china. The 19th largest economy in the world is dominated by service sector which accounts for majority of economic output. Taiwan is still dominated by small and medium enterprises. Only 50- 80% of people are accessible to essential medicines in Taiwan.

Economic conditions :

Taiwan is the 19th largest economy in the world with a pharmaceutical market size of USD $ 4.4 billion. Small and medium enterprises accounts for majority of contribution. Taiwan health care policy is unique of its kind making everyone accessible to health care benefits. More competition and rely on imports of API are posing as a potential threat for new entrepreneurs to enter the market.

Respiratory Drug Market:

Asthma:

Asthma is the 12th leading cause of death. As of 2011 there are 0.6 million people are suffering from asthma attack. Respiratory diseases accounts for 7% of the total deaths. The present market share of respiratory market is 7.4% of total pharmaceutical market. It is envisaged that high median age of country 35 years will create demand for age related drugs.

Taiwan respiratory drug market (Formulation drugs ready to use):USD $ million

2009 2010 2011 2012

Value 78 85 90.5 96

Growth rate 8 9 6.5 6

Opportunity:

Considering the drawback of country’s domestic pharma market and high median age created opportunities for new players. With having considerable asthma cases 0.6 million and high pharmaceutical market size compared to South East Asian countries, very low competitive presence made country investor destination.

Vietnam:

Vietnam is the 13th largest populous country in the world. Manufacturing sector is the highest contributor to GDP. About 40% of total economic output is met by manufacturing industry followed by service and agriculture sector. According to WHO statistics only 50-80% of the population are accessible to essential drugs. Hospitalization of asthma cases are high in countries were access to essential drugs are low.

Economic conditions:

Vietnam economy continues to face challenges from low foreign exchange reserves and undercapitalized banking sector. The estimated size of pharmaceutical market is USD $ 2.05 billion and expected to grow at a rate of 10 % over the year. The per capita expenditure on health is USD$ 80 which is higher than average rate in South East Asian countries. Respiratory market accounts for 7% of total pharmaceutical market.

Respiratory Drug Market:

Asthma:

Every year 1 million people are being diagnosed and about 8000 people die at a rate of 11/100000 population because of asthma. It the 17th leading cause of mortality. Vietnam has the highest male smoking population with an estimated number of 3 out of every 4 men are smokers. Reparatory diseases accounts for 8 % of the total deaths.

Vietnam respiratory drug market (Formulation drugs ready to use):USD $ million

2009 2010 2011 2012e

Value 700 600 700 770Growth rate 10% -14% 16.6% 9%

Opportunities:

Vietnam’s pharmaceutical market is small and stagnant market. Considering the respiratory market a huge growth rate of 30% made investors to look after the market. Irrespective lo small and stagnant market Vietnam is still considered as one of the investors destination because of one million asthma suffers. But new entrepreneurs have to burn their pockets in order to survive in this highly competitive market.

OBSERVATIONS

OBSERVATIONS:

Countries like Philippines, Vietnam, Malaysia, Indonesia, Taiwan and etc are some of the investor’s favorite destinations among South East Asia countries.

These emerging countries are well renowned for their investor friendly environment and high market potential.

Unlike any other products medicines will have continuous demand and increases as population increases.

The present global respiratory market is worth 29 billion of which asthma medicines accounts 17 billion share and rest is by COPD drug market.

The prevalence of asthma symptoms varies from country to country. It is generally observed that higher prevalence rates are being found in more affluent countries. With increase urbanization and adoption to western civilization it is likely that the number of asthmatic cases increases. The greatest burden of asthma cases are generally identified in countries having low hygiene environment, high smoking population and high pollution.

According to WHO there are 300 million asthma suffers are being diagnosed every year and it is expected to increase to 400 million by the end of next decade. Highest asthma prevalence cases are registered in Philippines. Asthma cases increased more than 5 times over a period of 20 years in Taiwan which shows a growing concern. Asthma mortality cases vary with age group. It is identified that majority of mortality cases are registered in the age group 60+ and these cases are particularly high in countries where accesses to essential medicines are low. Because of this due fact many MNC’s like Glaxo Smith Kline, Pfizer, Boehringer Ingelheim, Astra Zeneca etc and Indian companies like Hetero, Dr.Reddys, Cipla are trying to capture these untapped markets.

Major macroeconomic parameters like size of pharmaceutical market, GDP, low cost of labour, high density population had created positive environment for investment in countries Indonesia, Taiwan. Whereas high health care expenditure, low pharmaceutical market size, high median age, lack of access to essential medicines had created opportunities in countries Vietnam, Malaysia and Philippines. High competitive environment prevails in countries Malaysia and Vietnam.

In contrast to high demand and market share of inhaled corticosteroids in world pharma market, there exists very low presence in these countries. The market share of formulation drugs is very low due to the dominance of traditional medicinal market in countries like Malaysia, Philippines and Indonesia which created investment opportunity in these markets.

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