Big Indian pharmaceutical company names such Ranbaxy, Cipla, Dr Reddy’s Labs, Biocon and Strides Arcolab has started operations in Malaysia.
The Malaysian government, in the future might provide benefits in the form of faster registration of products and market access opportunities under the umbrella of specified entry point project, which is attracting Indian pharma companies. Indian pharmaceutical companies are encouraged to open their operations in Malaysia, mainly due to their reliable infrastructure, and promised growth in the emerging market, according to business daily.
Malaysia is seeking attention from Indian pharmaceutical companies. In the near future, the country would be called as a major manufacturing hub for Indian pharmaceutical companies and a cost-competitive country, especially for exports to Southeast Asian countries.
The country has provided a 10-year tax holiday, duty exemptions, customised incentives for large investments, access to Asian markets through free-trade agreements and no restrictions on equity. Thus many of the Indian pharmaceutical companies are attracted to open their operations in Malaysia.
Ranbaxy, an Indian drug manufacturing company, has a subsidiary in Malaysia named as Ranbaxy Malaysia Sdn Bhd is now working on a second unit. The company recently announced approval for setting up its second manufacturing facility in the country with an investment of US$40 million, mainly due to Malaysia’s promising market, according to Arun Sawhney, CEO and Managing Director of Ranbaxy.
Sawhney also said that, Malaysian government provides free medication in all its hospitals and polyclinics for innovator and generic products and this new facility will further boost the company’s production capacity. He also added that, the government of Malaysia will also provide a favourable climate to the generic pharmaceutical industry as there is a switch from innovator drugs to generics due to patent expiry.
In the past six months, other companies such as Biocon and Strides Arcolabs have also announced investments in Malaysia. Biocon is setting up its first overseas operations in Malaysia and also claims that its proposed facility in Malaysia will be Asia’s largest integrated insulin production unit, whereas Strides had entered into an agreement with Bio-XCell of Malaysia in 2011 to build a facility to manufacture biopharmaceuticals and sterile injectibles.
Lupin is eyeing Malaysia as a favoured market for future. Ramesh Swaminathan, Chief Financial Officer said that Lupin is the largest supplier of anti-tuberculosis drugs to the country and want to have their presence in other therapy segments as well.