Search

Pharmerging Markets “We Sail in the Slipstream of Our Core Customer Base”

| Editor: Doris Popp

Experts including Fette Compacting CEO Olaf J. Müller expect that growth dynamics will change considerably in the pharmaceutical industry.

Related Company

Driam CEO Oliver Nohynek: “The standard machine markets in India and China are generally the playing field of local competitors”.
Driam CEO Oliver Nohynek: “The standard machine markets in India and China are generally the playing field of local competitors”.
(Picture: VDMA)

For a long time, the pecking order in the international pharmaceutical markets appeared to be cast in stone. North America was the largest market followed by Europe, Japan and the rest of the world. However, impressive growth rates in China and India are reshuffling the deck in the markets. Experts including Fette Compacting CEO Olaf J. Müller expect that growth dynamics will change considerably in the pharmaceutical industry.

“Asia in particular (i.e. China and India) will become leaders in tomorrow’s pharmaceutical market,” he predicted. IMS-Health agrees with that view. Several years ago, wordsmiths at the company coined the term Pharmerging Countries. IMS-Health analysts expect that this group of nations will increase its share of the global pharmaceutical market from 18% in 2010 to 28% in 2015. However, the rules of the game are different in the new markets. While turnover potential is significant, the products tend to be drugs for the mass market rather than expensive new active ingredients such as antibodies to treat cancer.

Oliver Nohynek, CEO at Driam and Deputy Chairman of the VDMA Pharmaceutical and Food Processing Machinery Trade Group, outlined the challenges ahead for pharmaceutical machinery producers in Asia: “From the machinery manufacturing perspective, the standard machine markets in India and China are generally the playing field of local competitors”. In spite of that, he sees considerable potential. As production capacity is ramped up, German pharmaceutical machinery manufacturers will benefit primarily from investments made by international pharmaceutical companies which impose stringent internal quality standards. “We sail in the slipstream of our core customer base,” he added. In his opinion, the best opportunities are likely to result from investments made to substitute imports of drugs which are difficult to produce. As a general rule, suitable machinery is not available from local sources.

(ID:34199830)