Pharma industry expected to see 10-15% growth

The association made the forecast at the recent “Myanmar Medi-Pharm Expo 2014”, signaling confidence in the growth of the nascent now estimated to be worth about US$100-120 million.

During the past three years, the government has tripled expenditures in the healthcare sector. This, according to the association, will certainly accelerate the industry’s growth. In addition, spending by individual consumers will also rise in line with the country’s growing economic.

Like other sectors, the pharmaceutical industry had long been starved during the country’s closure, but liberal economic policies have provided room for foreign investors as well as local companies to increase businesses.

Currently, the industry heavily relies heavily on foreign medicine, with more than 90 per cent imported. Indian pharmaceutical companies have the largest share of this market, at 35.42 per cent, with the rest taken by manufacturers from Thailand, China, Pakistan, Bangladesh, South Korea and Indonesia. About 60 per cent of all products are sold in Yangon and Mandalay.

There are only 10 domestic manufacturers. The government allowed local companies to apply for pharmaceutical production licenses in January 2012.

Although the industry is still in its infancy, there are signs that foreign companies are keen to enter the market. The seminar provided an overview of the industry and explained how to register medicines in Myanmar.

The exhibition was the second of its kind organised by Minh Vi Exhibition and Advertisement Services. Exhibitors from 14 countries, including India, Taiwan, Singapore and Thailand, attended. They described the event as a platform to enter Myanmar’s emerging market. Local companies saw it as an opportunity to find partners.

“We are satisfied with the result of this year’s exhibition as we recorded 927 visitors on the first day alone. Last year, we only had that many for the entire event,” said Nguyen Ba Vinh, director general of Minh Vi Exhibition and Advertisement Services.

Most exhibitors participated in the exhibition to taste the water rather than to strike business deals. Chemical trading firm Asia Chemie (Thailand) Co’s product and export manager Natchakot Sukamongkol said that he joined the event for the first time just to observe the market. Likewise, Thai 3B Scientific Co, the distributor of scientific models and simulators from Germany, looked to explore opportunities to market the products aimed at educational purposes in Myanmar.  “If we get customers here, the products may be sent directly from our parent firm,” said Chatchapat Prasetphol.

“At the present, there is limited spending from private investors so we mainly receive businesses from international organisations or investors that have already started projects here,” said a