With high sales of generic drugs in domestic market and rise in drugs exports, the Malaysian pharmaceutical industry is expected to grow 10% this year.
The Malaysian Organization of Pharmaceutical Industries (MOPI) have projected 10% growth for the Malaysian pharmaceutical industry that will reach US$ 1.1 Billion (RM 3.9 Billion) this year over the last year (2008), as reported by thestar
Domestic are expected to see growth of nearly 15% this year and next year on account of extensive use of generic drugs by consumers and medical fraternity over branded drugs to reduce cost.
However, over the counter products such as vitamins and non-prescription drugs are growing at slow pace because of less consumer interest to save cost.
With growing demand for medication, the Malaysian pharmaceutical sector is rapidly growing and will continue to grow in coming months. In fact, the sales of immune boosters have scaled up significantly over the past few months on fear of rapidly spreading A/H1N1 pandemic in the country.
Moreover, the pharmaceutical industry has shown resistance against recession and is very less affected by the economic slowdown than other industries. Hence, the after-effects of economic downturn will not much impact the sector.
The pharmaceutical sales will pick up on the back of export that is expected to rise between 15% and 30% in three years as domestic generic manufacturers are rapidly expanding their operation in foreign countries.
Apart from this, Malaysia has upgraded its pharmaceutical manufacturing standards and technology to a level that can meet the requirements of the European Pharmaceutical Inspection Convention Code, helping the country to raise generic drugs exports.
, a leading market research firm, has supported MOPI’s growth projection for the Malaysian pharmaceutical industry and said in its report “Global Pharmaceutical Market Forecast to 2012
” that healthcare spending in Malaysia will also rise in coming years. This will result in higher pharmaceutical sales and growth opportunities for other markets like health construction industry, pharmacies and health insurance.
According to a Senior Research Analyst at RNCOS
, “The Malaysian pharmaceutical industry is an attractive sector in the Asia-Pacific region. The government has shown interest in fostering drug production, particularly in the field of biotechnology and manufacture of off-patent drugs. Several steps have already been taken in this direction such as tax exemption for biotech companies.”
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