Senior leaders from IMS Health in the region presented a wide range of insights on the Chinese and Southeast Asian markets
IMS Health recently hosted the Asia Conclave Conference in Mumbai to address the challenges and opportunities for Indian pharma companies in China and Southeast Asia. Around 50 stakeholders from pharmaceutical, private equity and other healthcare companies took part in the event.
Senior leaders from IMS Health in the region presented a wide range of insights on the Chinese and Southeast Asian markets as well as recommendations for companies looking to enter or expand in these geographies.
Of particular focus throughout the day was the current market and regulatory environment in China. Nitin Goel, General Manager, IMS Health South Asia and Meng Zhang, Managing Principal, IMS Consulting Group China, offered attendees an in-depth review of the country’s most pertinent dynamics.
To address these levers, IMS Health offered a range of recommendations for companies to maximise their investments and capture a strong position in China.
Key insights discussed
- Urbanisation is the primary driver of growth in the pharma market, affecting increases in patient affordability and access as well as overall government healthcare spending.
- In China’s primary healthcare market – hospitals – local companies continue to perform well, and are increasingly becoming strong competitors for MNCs.
- The recent slowdown in growth can be attributed to hospital cost contaminant, the expansion of the essential drug system, pricing pressures, and new provincial tendering trends.
- Anti-corruption initiatives are expected to increasingly regulate physician prescribing behaviour and require science-driven engagement strategies.
- Generic drugs are facing a wide range of regulatory challenges, from registration and pricing parameters, to branding and hospital listing requirements. The volume of this market, however, is still set to rise as a result of the recent patent cliff, opening significant opportunity for API manufacturers.
“To sustain success in China, understanding and responding to the unique market dynamics and needs is paramount,” asserted Zhang. “Here, proactive, creative and diverse models will be the winners.”
Shifting focus to Southeast Asia, Amit Backliwal, Vice President, Technology and Services, IMS Health China and South East Asia, presented a comprehensive evaluation of region, categorising it into four key markets: Mature, Maturing, Emerging and Frontier. Echoing his colleagues’ insights on China, Backliwal urged an informed approach to entering these markets, stressing the need to customise strategies to the potential and maturity of each. And, with familiar challenges on the horizon, including cost containment and pricing pressures, attendees were advised to take a long-term view of success.
Similar events will be conducted in coming months by IMS to unveil other potential regions (such as Latin America, CIS, Japan, etc.) for Indian companies.
EP News Bureau – Mumbai
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