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Trends and Challenges - Generic Drugs in Malaysia

Marhalis Hasan Group Chief Pharmacist KPJ HEALTHCARE BERHAD

Pharmaceutical Drug - Overview

Year 2014 Global pharmaceutical market Asia Pacific market Year 2014 Malaysias pharmaceutical market Prescription drugs : USD $1.1 trillion : 7%
(IMS Health)

: USD $1.82 billion (Frost & Sullivan) : 75%

Generic Drug Business - Overview

Year 2009 Global pharmaceutical market Year 2014 Global pharmaceutical market : USD $84 billion

: USD $168.7 billion

Generic Drug Business - Overview

Year 2010 Malaysias pharmaceutical market Spending on generic drugs Spending on patented drugs : USD $1.46 billion (Frost &Sullivan) : 21.7% (IMS Health) : - 0.7% (IMS Health)

Malaysia: Proprietary vs Generic Drugs

70% of total market: Patented drug 234 drug manufacturers registered with DCA. 67 are licensed to produce prescription medicines Relies heavily on imported patented drugs

Current Trends in Generic market

Penetration into oversea market South East Asia, Middle East countries (eg. Halal-certified products) Diversification into Nutraceutical & Food supplements Emphasize on R&D discovery of new actives from natural products, drug delivery and processing method

Generic Drug Business - Current trends in KPJ Hospitals

Spending on generic drugs Growth per year 2011 usage (estimation) : 93% of total purchase : 0.2% : RM13.9 million

YEARLY USAGE (RM'000) PATENT vs GENERIC

180 160 140 120 100 80 60 40 20 0 2009 2010 FORECAST 2011 10.8 12.4 13.9 PATENT GENERIC 127.8 144 157.3

Factors affecting the selection of Generic Drugs

Efficacy Affordability

CLINICIAN
Efficacy Safety Patients choice

Efficacy Safety Patients choice Inventory management

PATIENT

HOSPITAL

PERCEPTION of generic drugs

Familiar with the term Generic Drug Stated that quality of Generic drug is inferior Stated that Generic drug causes more side effects Understand that Generic drug is cheaper

: 29% : 39% : 32% : 64%

A pilot survey on perception and knowledge of generic medicines among consumers in Penang (Al-Gedadi, Hasali, Shafie, Pharmacy Practice 2008 Apr-June, 6 (2): 93-97)

Generic Drug Business - Current trends in KPJ Hospitals

Approval of generic drugs via recommendation from Pharmacy and Therapeutic Committee (Bioavailability study, efficacy, safety, price) (No duplication: 1 generic drug at any one time) Near future Priority to Bio-equivalence certified drug Halal-certified drugs (JAKIM)

Moving forward
Add new products in the pipeline and increase market share Enter niche market in sectors with low competition eg. Anti-smoking drugs Targeting on specialist- driven therapy eg. oncology

Moving forward
Conduct bio-equivalent tests to establish quality acknowledgement AWARENESS and PERCEPTIONS - Generic drugs

THANK YOU