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Geopolitical stability, gradually rising living standards and the introduction of universal healthcare systems is fuelling investor interest across South East Asia – particularly for Indonesia, which is home to the largest and fastest growing market.
The recent rule changes to foreign ownership in Indonesia – increasing from 75% to 100% – have meant that international pharma companies are looking for both regional partners and acquisition targets for a local manufacturing base. This, in turn, has increased the capital access for manufacturers across the region as investors look to “get in early” amongst the best facilities before a potential round of consolidation and an increased interest from multinational pharma companies.
Vietnam- and Philippines-based pharma companies are also regionalizing their approach to sales, with the Association of Southeast Asian Nations (ASEAN) economic community and the acceleration of local health insurance schemes contributing to confidence. Generics in both markets are reportedly benefiting, and sales are expanding at just under 10% in the Philippines, which is forecast to reach $7.9 billion by the close of the year.
These improving regional conditions are reflected at CPhI South East Asia (March 27–29), which returns to the Jakarta International Expo (JIExpo) in Indonesia for its seventh edition, with over 5000 attendees from 41 countries and 260 exhibitors. The event features an invitation-only Investment Forum to match the key international investors with top tier pharma companies now looking for reliable partners.
Chris Kilbee, Group Director, Pharma at UBM, commented: “It’s a very competitive market at present and whilst there is strong investment coming in, the middle-tier of manufacturers in Indonesia are competing to acquire increased scale and our visitors are looking to secure the most robust supply chains that can help them sustain growth in this expanding market. So, although the outlook for growth is very optimistic, it remains a crucial time to build the right supply chain infrastructure and partners.”
For more information please visit: http://www.cphi.com/sea/