Healthcare Spending Indonesia, Indonesia Pharmaceutical Regulations - Ken Research
by Ashish Kumar Market ResearcherExpansion of product portfolio by major pharmaceutical
companies and increase in demand for generic drugs were the key factors driving
growth in Indonesia pharmaceutical Market.
The report titled “Indonesia Pharmaceutical Market Outlook to 2022 - By Therapeutic Segment
(Anti-Infectives, Gastrointestinal and Metabolism, Cardiovascular System,
Central Nervous System, Respiratory, Musculoskeletal, Dermatology,
Genitourinary and Hormones, Blood, Oncology), By Domestic and International
Players, By Generic and Patent Drugs, By OTC & Prescription Drugs, By
Region” by Ken
Research suggested a growth at a CAGR of 10.0% in revenue in Indonesia
Pharmaceutical Market by 2022.
Indonesia healthcare market has observed a favorable growth
in the last 5 years. The market is still under penetrated especially in the
tier 2 areas in Indonesia as of 2017.
The launch and execution of JKN scheme by the government has
led to surge in demand for primary healthcare facilities and increased generic
drug sale. The market has underscored various deregulation programs which has
stimulated foreign investment in the industry.
Indonesia Pharmaceutical market is dominated by domestic
players which controlled majority of the market in 2017. Recent favorable
government regulations have facilitated the entry of foreign players in the
space. There are 206 pharmaceutical companies (182 domestic and 24
international companies) located in Indonesia.
The market is driven by deregulation in FDI regulations in
pharmaceutical and favorable government policies leading to increase in sale of
generic drugs. Increased investment in innovation of new drugs with higher
margin led to increased profitability of pharmaceutical companies. Expansion of
major companies through mergers, acquisitions and alliances has enabled
companies to manufacture high end medicines and pharmaceutical products.
The local companies largely focus on generic drugs
manufacturing that are dependent on imported active pharmaceutical ingredients
(API), mainly from China and India.
As Jaminan Kesehatan Nasional (JKN) has prioritized the use
of generic drugs, the demand for unbranded generic drugs has grown as
Indonesians increasingly rely on generic drugs. This has augmented the domestic
players’ sales. But at the same time, the market has also witnessed an increase
in number of new players which has driven down the margins. Since the product portfolio of majority
domestic pharmaceutical companies is dominated by generic drugs, the sales have
gone up since 2014. Moreover, the prices of generic drugs are regulated and
consistent across Indonesia whereas the prices increase by 10% for branded
drugs annually. Domestic players have witnessed success in rural areas of
Indonesia. Due to inaccessibility and language barrier existing in the rural
areas, the domestic players have been better able to bridge the gap as compared
to international players. The domestic
players have also dominated the Over the Counter drugs which are driven by the
increasing self medication behavior of the population. Domestic players
dominate the Anti-Infectives, Gastrointestinal and metabolism and respiratory
therapeutic segments.
Indonesia biopharmaceutical industry is in the nascent stage.
There is a strong interest from research-based global biopharma companies to
conduct clinical research in Indonesia because of the large concentrated
patient populations and disease profiles. Furthermore, as the industry intends
to move towards self sufficiency, Indonesian government released the 11th
economic stimulus package with the aim of boosting the domestic production of
medicines' raw materials, particularly for five product categories namely
biotechnology, vaccines, herbal extracts, active pharmaceutical ingredients and
medical devices.
In order to tap the existing potential, large domestic
pharmaceutical companies have tied up with international players to manufacture
biopharmaceutical products for the treatment of chronic diseases such as
cancer, kidney failure and others
ProBioGen AG, a CDMO based in Germany, and Bio Farma, a
state-owned vaccine manufacturer in Indonesia, has signed an agreement to
develop a biosimilar to the monoclonal antibody (mAb) trastuzumab for cancer
treatment that will be produced in Indonesia.
Kalbe Farma has also launched biosimilar version of insulin
in Indonesia to treat diabetes mellitus which is 38% cheaper than the existing
insulin. Biosimilars are cheaper imitations of drugs known as biologics.
Kalbe Farma set up its biological drug factory, PT Kalbio
Global Medika in Cikarang, Bekasi, with an investment value that ranges between
USD 30 to USD 35 million. The factory is built under the joint venture between
Kalbe and a South Korean pharmaceutical company Genexine Inc, PT Kalbe-Genexine
Biologics
Key Topics Covered in
the Report:
Indonesia Dietary Vitamin Supplements Market
Pharmaceutical Market Size Indonesia
Indonesia Vaccine Market
Indonesia Pharmaceutical Regulations
Number of Pharmaceutical Companies Indonesia
Indonesia Pharmaceutical Market Players
Obese Population Indonesia
Generic Drug Market Size Indonesia
Number of Healthcare Centers in Indonesia
Budget Allocation on Healthcare Indonesia
Healthcare Spending Indonesia
Vitamin and Dietary Supplement Market Indonesia
For more information on
the research report, refer to below link:
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Created on Feb 22nd 2018 05:59. Viewed 506 times.