ABOUT DATAMONITOR HEALTHCARE 2
About the Strategic Pharmaceutical Analysis Team 2
1. Executive Summary 3
Strategic scoping and focus 3
Key Findings 4
Socioeconomic comparison - Indonesia has a larger patient potential but the Philippines is more attractive in the short-term due to greater healthcare access 5
Pharmaceutical market comparison - the larger market size, growth rate and brand preference makes the Philippines an attractive market for multinationals 5
Regulatory comparison - both Indonesia and the Philippines have difficult regulatory environments 6
Related reports 7
Table of Contents 8
2. The pharmaceutical market in Indonesia 9
Despite a large patient potential, the requirement for a domestic manufacturing hub impacts the many foreign players 9
Demographic trends in Indonesia 12
Summary of socioeconomic environment in Indonesia 13
Political environment - the Democratic party fostered stability and economic growth 13
Gross domestic product (GDP) growth has been increasing but from 2009 it will be affected negatively by the financial turmoil 14
The healthcare system in Indonesia 15
Healthcare expenditure in Indonesia is low, but set to increase 15
Health insurance does not cover the whole population despite the availability of several different schemes 17
Universal health insurance aims to improve health outcomes and cover all Indonesians by 2013 18
Funding healthcare reforms 19
Indonesia's transition to universal healthcare coverage 19
Regulatory issues in Indonesia 21
Protection of intellectual property rights are weak and counterfeit drugs are a major problem 21
Registration of drugs aims to protect the local industry 21
Pricing and Reimbursement in Indonesia 22
Continuous price cuts incentivize generics and pose a threat to multinational branded pharma companies 22
Drug labeling now required to include price and generic name 22
Rising costs of raw materials has resulted in escalating drug prices 23
Reimbursement is very limited 23
Pharmaceutical market dynamics 25
Branded generics dominate the Indonesian market 26
Top pharmaceutical companies in Indonesia 27
Top international pharmaceutical companies 30
Bayer 30
Novartis 30
Pfizer 31
Analysis of top domestic pharmaceutical companies 32
Kalbe Farma 32
Sanbe 33
Dexa Medica 33
Soho 33
Pharos 34
Kimia Farma and Indofarma 34
Top therapeutic areas by sales value 35
Top pharmaceutical brands 39
3. The pharmaceutical market in the Philippines 42
Government-imposed price cuts and measures to boost generics are creating a more challenging environment for Big Pharma 42
Demographic trends in the Philippines 45
Summary of socioeconomic environment in the Philippines 46
Political environment - approaching stability but more disruption anticipated in the short-term 46
Gross domestic product (GDP) growth has been subject to a steep decline from 2008 47
The Healthcare system in the Philippines 48
The Philippines's healthcare system is highly fragmented 50
FOURmula One combines four reforms to tackle inequities and fragmentation in the healthcare system 53
Regulatory issues in the Philippines 54
Foreign firms fear pharmaceutical IP will weaken through the Cheaper Medicines Bill 54
A revamped regulatory body expands its powers to seize counterfeit drugs 55
Pricing and Reimbursement in the Philippines 56
Pricing: the Philippines has shifted from a free-pricing approach to an increasingly regulated market 56
GlaxoSmithKline's landmark move reflects its long-term commitment to making medicines affordable to more Filipinos 58
Reimbursement is limited but the government is now looking to expand financial protection 59
Pharmaceutical market dynamics 60
Branded generics are set to see an increase in market share 61
Top pharmaceutical companies in the Philippines 62
Top international pharmaceutical companies 65
GlaxoSmithKline 65
Pfizer 65
Abbott 66
Analysis of top domestic companies 66
United Labs 66
Pediatrica 67
Pascual 67
Natrapharm 67
Gx International 68
Top therapeutic areas 69
Top pharmaceutical brands 73
4. Bibliography 76
Publications and online articles 76
About Datamonitor 79
About Datamonitor Healthcare 79
Datamonitor consulting 79
Disclaimer 81
List of Tables
Table 1: Key comparators: Indonesia versus the Philippines 4
Table 2: Demographic indicators for Indonesia, 2006 12
Table 3: Top 10 causes of death in Indonesia, 2006 13
Table 4: Key economic indicators for Indonesia, 2000-09 14
Table 5: Health expenditure indicators for Indonesia:, 2006 16
Table 6: Type and coverage of the current health insurance system in Indonesia, 2009 18
Table 7: Sales growth for the top 15 pharmaceutical companies in Indonesia ($ and %), 2008 28
Table 8: Volume growth for the top 15 pharmaceutical companies in Indonesia (IMS Standard Units and %), 2008 29
Table 9: Kalbe Farma's recent deals expand its presence in the value chain, 2006-09 32
Table 10: Sales growth according to therapy area in Indonesia ($ and %), 2004-08 36
Table 11: Volume growth according to therapy area in Indonesia ($ and %),, 2004-08 37
Table 12: Sales growth for the top 15 pharmaceutical brands in Indonesia ($ and %), 2008 39
Table 13: Volume growth for the top 15 pharmaceutical brands in Indonesia (IMS Standard Units and %), 2008 40
Table 14: Demographic indicators for the Philippines, 2006 45
Table 15: Top 10 causes of death in the Philippines, 2006 46
Table 16: Key economic indicators for the Philippines, 2000-09 47
Table 17: Health expenditure indicators in the Philippines, 2006 49
Table 18: Sales growth for the top 15 pharmaceutical companies in the Philippines ($ and %) , 2004-08 63
Table 19: Volume growth for the top 15 pharmaceutical companies in the Philippines (IMS Standard Units and %) , 2004-08 64
Table 20: Sales growth according to therapy area in the Philippines ($ and %), 2004-08 70
Table 21: Volume growth according to therapy area in the Philippines IMS Standard Units and $m), 2004-08 71
Table 22: Sales growth for the top 15 pharmaceutical brands in the Philippines ($ and %), 2004-08 74
Table 23: Volume growth for the top 15 pharmaceutical brands in the Philippines (IMS Standard Units and %), 2008 75
List of Figures
Figure 1: Key macroeconomic factors and healthcare system characteristics in Indonesia, 2009 9
Figure 2: Pharmaceutical market dynamics in Indonesia, 2009 10
Figure 3: Drivers and barriers for multinationals wishing to enter Indonesia, 2009 11
Figure 4: Indonesia's transition to universal healthcare coverage, 2009 20
Figure 5: Sales and volume of the Indonesian pharmaceutical market ($m and IMS Standard Units), 2004-08 25
Figure 6: Sales growth for the top 15 pharmaceutical companies in Indonesia (%), 2004-08 27
Figure 7: Pharmaceutical sales by therapy class in Indonesia (%), 2004-08 35
Figure 8: Key macroeconomic factors and healthcare system characteristics in the Philippines, 2009 42
Figure 9: Pharmaceutical market dynamics in the Philippines, 2009 43
Figure 10: Drivers and barriers for multinationals wishing to enter the Philippines, 2009 44
Figure 11: Structure of the Philippine healthcare system, 2009 51
Figure 12: The Philippines Health Sector Reform Agenda (HRSA) consists of five interrelated reform areas 52
Figure 13: Reforms to lower prices of drugs have not lived up to expectations in the Philippines 56
Figure 14: Sales and volume of the pharmaceutical market in the Philippines, 2004-08 60
Figure 15: Sales growth for the top 15 pharmaceutical companies in the Philippines (%), 2008 62
Figure 16: Pharmaceutical sales by therapy class in the Philippines (%), 2004-08 69