APAC local pharmaceutical firms challenge multinational dominance

This development is attributed to increased R&D investments and supportive government policies.

The Asia Pacific’s (APAC) pharmaceutical landscape is undergoing a shift as local companies begin to challenge the dominance of multinational drugmakers, said BMI.

This development is attributed to increased investment in research and development (R&D), growing healthcare demands, and the rise of chronic diseases in the region.

Moreover, supportive government policies are driving the sector’s advancement.

One key example is India’s “Make in India” initiative in 2014, which aims to encourage both multinational and domestic firms to manufacture their products within the market.

“The initiative also offers tax benefits, subsidies and simplified regulatory procedures to attract investments in the pharmaceutical sector,” the report said.

Meanwhile, Mainland China has come up with the “Made in China 2025” plan to move the region up the value chain in several industries, including pharmaceuticals.

Improved regulatory frameworks in APAC markets are also boosting the competitiveness of local companies.

Efforts to harmonise standards through initiatives like the Pharmaceutical Inspection Co-operation Scheme (PIC/S) and the APEC Life Sciences Innovation Forum are streamlining the region’s drug approval processes.

In line with this, the Association of Southeast Asian Nations (ASEAN) has been particularly active in working towards a unified regulatory environment for pharmaceuticals.

However, local firms still face significant challenges as competing with multinational corporations with advanced R&D capabilities and extensive supply chains remains difficult. 

Additionally, adhering to international quality standards, such as those set by the International Council for Harmonisation (ICH), demands substantial investment in quality control, R&D, and infrastructure.

“This can be a costly and time-consuming endeavour, especially for smaller companies with limited financial resources,” the report added.