Generics may boost Malaysia pharma sales

Revenues for Malaysia's pharmaceutical sector may grow 15% this year, asconsumers switch from more expensive imported drugs to cheaper, domestically-produced generics, according to local sources.

Two of the country's largest companies in the sector, Pharmaniaga and Apex Healthcare, are already producing generic drugs and both could benefit from an expected price increase for imported drugs.

Analysts expect Pharmaniaga's revenues to top 600 million ringgits ($157.9 million) this year, mainly from government hospital contracts in East Malaysia. The company is also said to be negotiating a price increase for its products, and has locked in prices with suppliers for the next three years. Apex' turnover for 2001 is also expected to rise to 120 million ringgits, as the group increases the number of its pharmaceutical retail outlets.