Drug Manufacturers Doing Well
The Nepali pharmaceutical companies have been doing well in recent times. The way they are going at present shows that they have a bright future ahead. with their share Win the domestic drug market rising constantly for the past few years, the Nepali pharmaceutical companies are steadily decreasing the country’s dependence on imports. At present, the domestic companies share about 45 per cent of Nepal’s Rs 16 billion annual drug market. Five years ago, they could meet only 35 per cent of the annual market demand of Rs 12 billion.
“Nepali pharmaceutical companies are gradually tightening their grip on the domestic market, setting a credible benchmark of quality. The Nepali drug market has been growing at the rate of 18-20 per cent annually, whereas the annual growth rate in the US and Japan is just about 8 to 10 per cent,” informed Mahesh Gorkhali, President of the Association of Pharmaceutical Producers of Nepal (APPON). The number of pharmaceuticals and their products has been on the rise. Currently, there are 50 drug manufacturing companies registered in Nepal. Out of them, 42 are in operation while eight are in the pipeline. Together, they have employed more than 10,000 people and share about Rs 6.5 billion of the Rs 16 billion annual domestic drug market. Elder Universal Pharmaceutical Nepal Pvt Ltd (Elder Nepal) is the only drug manufacturing company that is in foreign joint venture.
“At present, the domestic companies have a share of about 45 per cent in Nepal’s drug market. We depend on imports, mainly from India, to meet the remaining demand.
Indian drugs have a market share of about 50 per cent in Nepal while the remaining five percent is imported from countries like Bangladesh, the UK and Germany,” informed Radha Raman Prasad, Director at the Department of Drug Administration (DDA). Most of the drugs imported from the third countries are life saving drugs, such as for diseases like cancer and HIV/AIDS, and vaccines and family planning drugs, he added.
The domestic drug manufacturers have been aggressively increasing their investments. As a result, domestic products have been gradually replacing foreign products in the general drugs category, said the DDA Director. According to the DDA, out of around 8,000 brands of medicinal products in the Nepali market, more than 3,500 brands are still from foreign companies. “However, a lot of domestic brands were registered at the DDA in the first six months of the current fiscal year,” said Prasad.
Nepal is totally dependent on imports for the raw material required to produce allopathic drugs. “We import most of the raw materials from India. Some raw materials are imported from other countries as well,” shared Gorkhali. According to Parash Mani Baral, President at Nepal Chemists and Druggists Association (NCDA), there are about 1,000 drug distributors at present in the country. DDA, which is the national regulatory body for drug market, has allowed manufacturers from the US, Canada, Europe, Australia and New Zealand to register their companies and products in Nepal. According to the DDA policy, meeting the Good Manufacturing Practice of the World Health Organisation (WHO/GMP) is a must for any company to be registered with the DDA.
But according to Gorkhali, not all pharmaceuticals are WHO/GMP certified. “Out of the 42 pharmaceutical companies in operation, only 22 are WHO/GMP certified,” he informed. “With the ever evolving domestic market, the competition is tough as the foreign companies, too, are competing for the market share. Both domestic and foreign companies are competing with each other to sell similar products. The domestic companies should diversify their products to grab the market opportunities,” suggested Prasad.
Agrees Gorkhali, “The market share of the domestic companies has been increasing. But foreign manufacturers are still keen contenders,” he says, “There is a tremendous opportunity for foreign companies in Nepal’s pharmaceutical industry such as technical collaboration, contract manufacturing and contract research.”
Nepal Pharma Expo-2012
Nepal Pharma Expo (NPE)-2012 is all set to begin from March 2-4, 2012 in Bhrikutimandap, Kathmandu. The Expo is being organised by Association of Pharmaceutical Producers of Nepal (APPON) in collaboration with Federation of Nepalese Chamber of Commerce and Industries (FNCCI), Department of Drug Administration (DDA), Department of Industry, Graduate Pharmacists’ Association of Nepal (GPAN) and Nepal Pharmaceutical Association (NPA).
The Expo aims to offer wide range of national and international products and services that encompasses pharma processing, manufacturing equipment, packaging materials and machineries, fine chemicals, bulk drugs, environmental control equipments(AHU/ HUZC), lab equipments, analytical laboratories service and supplies from single platform.
It also intends to enhance the knowledge sharing with the various scientific presentations and the sessions regarding latest advancement in medical and pharmaceutical fraternity with better technologies. NPE-2012 targets more than 25,000 potential visitors from various fields of the medical fraternity such as doctors and pharmacists, and also the entrepreneurs who are directly or indirectly related to the sector.
