ESolutions in Hong Kong Vietnam's OTC growth potential Diabetes care management in Taiwan Views from around the region
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■ eSolutions in Hong Kong ■ Vietnam’s OTC growth potential ■ Diabetes care management in Taiwan ■ Views from around the region
Welcome to the latest edition of The co-organized by Zuellig Pharma
Market Partner, which highlights Taiwan’s Patient Solutions team that
In the news what is new at Zuellig Pharma and in looked at how integrated solutions
Events and people making news healthcare throughout Asia. could improve and complement the
at Zuellig Pharma Asia Pacific In this issue, our Feature Story national diabetes care program.
looks at changes impacting In addition, I am delighted to
healthcare in Hong Kong and how bring you a selection of other news
Zuellig Pharma is reshaping the about Zuellig Pharma from around
industry through an innovative new the region. This issue includes the
The changing Hong Kong suite of eSolutions, covering online celebration of the 30-year anniversary
healthcare market ordering, tender management, of subsidiary APL in Indonesia,
An aging population and redressing, product returns, a comprehensive cooperation
regulatory moves are creating
merchandizing, and track & trace of agreement signed with Sanofi in
fresh opportunities
deliveries. Vietnam, and a successful employee
OTC specialist Nicholas Hall & donation campaign, organized by
Company analyzes Vietnam’s OTC Zuellig Pharma Korea as part of their
market, including the effects of rapid “Zuellig with Love” corporate social
Room to grow in Vietnam
urbanization, the government’s responsibility program.
The outlook for the OTC market
appears bright efforts to support domestic I wish you all the best for a
pharmaceutical manufacturing, and productive autumn!
the expected solid growth of this
product category.
John Davison
Meanwhile, a spotlight article Chief Executive Officer
Singapore’s secret summarizes a recent workshop Zuellig Pharma
How has the island state
developed such a cost-effective
healthcare system?
in house Views from the region
Our country managers in Asia
Pacific discuss the latest issues in
their location
& Company
Information about Zuellig Pharma
Issue 67, September 2015. Entire contents © Copyright, 2015. Zuellig Pharma Asia Pacific.
All rights reserved. Reproduction in whole or part without express written permission is prohibited.
It is hereby expressly stated that neither Zuellig Pharma Asia Pacific nor any of its subsidiaries,
affiliates or their respective directors, employees or representatives makes any representations
or warranties, expressed or implied, with respect to any information or materials contained in this
publication. No liability whatsoever, whether in contract, tort or otherwise and including liability for
negligent misstatement, is accepted by any member of Zuellig Pharma Asia Pacific for accuracy or
completeness of any of the information provided or opinions expressed by or on behalf of Zuellig
Pharma Asia Pacific or for any errors, omissions or misstatements.
The Market Partner is published by Zuellig Pharma Asia Pacific Corporate Office.
Editor: Mr. Oliver Mueller, Tel: +852 2845 2677, omuller@zuelligpharma.com
Design: Blackstone Concepts Co., Hong Kong
Please address any comments to our office: Zuellig Pharma Asia Pacific, Corporate Office, 13th Floor
Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong, Tel: +852 2845 2677, Fax: +852 2877 5647
www.zuelligpharma.com
CEO speaks at UBS Asia healthcare summit
Zuellig Pharma CEO John Davison was invited
to speak at the recent UBS Asia Healthcare
CEO Summit in Singapore. The event brought
together some 200 senior executives, investors
and journalists at the Four Seasons Hotel to
exchange views on trends and opportunities
in the sector’s fast-changing landscape.
Mr. Davison spoke about the importance of
compliance and quality, particularly in cold
chain management of vaccines, noting that
half the vaccines manufactured worldwide
failed to reach their destination, leading
to an estimated 1.5 million child deaths
each year. Mr. Davison highlighted Zuellig
Pharma’s strong pedigree in this area. He
also elaborated on recent investments that
the company had made in patient services
and payor solutions as part of its strategy to
connect key stakeholders in the healthcare
market and help clients drive prescription Zuellig Pharma CEO Mr. John Davison (second left) took part in a panel in Singapore discussing trends,
adherence and top-line growth. opportunities and challenges in the pharmaceutical sector in Asia.
Strategic partnership Lei Va increases storage capacity
with Sanofi in Vietnam
Lei Va, a subsidiary of Zuellig Pharma Hong Kong
In June, Zuellig Pharma and Sanofi concluded a in Macau, has undertaken a major expansion of its
strategic partnership agreement in Vietnam, in supply chain network by doubling air-conditioned
cooperation with local partners Phytopharma and storage capacity to support its existing and new
Signing ceremony with Sanofi and Zuellig Pharma clients and customers. The company moved to a
Sapharco. The partnership marks the beginning
senior executives.
of expanded collaboration between the largest new office and warehouse in December 2014.
healthcare logistics provider and largest healthcare Both companies’ commitment to Vietnam is
manufacturer in Vietnam. Both parties have a long evident, with Zuellig Pharma’s recent investment
history in the country and deep understanding of in the country’s largest and most sophisticated
its healthcare market. They are thus well positioned pharmaceutical warehouse, due to open in January
to ensure patients’ access to safe, high-quality 2016, and Sanofi’s US$75 million investment in its
medicines at affordable prices. third manufacturing plant.
Vietnam coverage expands
Zuellig Pharma Vietnam initiative provides clients with a 60% increase in
has launched a “Reach and pharmacy coverage, and patient access at city and
Access” initiative to enable district levels.
clients to accelerate The company implemented the revised delivery
Daily, 100% of the province growth and enhance schedule on July 1, dividing Vietnam into three
Daily to the main city, twice the company’s service zones. The key urban areas comprising Zone 1 are
per week in the districts
(>80% population in each
excellence. It will served daily. In the Tier 2 provinces within Zone
province) involve an estimated 2, main cities are served daily and at district level
Twice per week to US$1 million annual twice per week. In Zone 3, main cities in Tier 3
the main city
investment in sales and provinces are served twice per week. The sales team Core values, mission and vision statements are
delivery coverage. The new has expanded to support the delivery network. highly visible to visitors at Lei Va’s new workplace.
Full logistics services start for Roche Korea Donations raised at
Zuellig Pharma Korea
Zuellig Pharma Korea held a ceremony to mark the
success of the Angel Money Donation Campaign at
its main office in Yongsan-gu, Seoul, and to present
a US$15,600 cheque to the Korea Childhood
Leukemia Foundation.
The campaign, one of Zuellig Pharma Korea’s
corporate social responsibility activities, was
launched in 2011. During the program, employees
made a voluntary monthly contribution from their
salaries, with matching funds provided by the
company. Donations have been collected for the
past four years, with more than 90% of employees
participating in the campaign.
The Korea Childhood Leukemia Foundation
will use the donation to support treatment
for children suffering from leukemia and rare
From left: Zuellig Pharma Korea's Head of Logistics Ms. Soo Yoon Byun, Senior Executive Operations Director
Mr. Jay Leong and President Mr. Christophe Piganiol, Roche's Finance Director Mr. Daniel Pluess, and other incurable diseases and to provide information
Roche staff. about the diseases to their families. The recipient
organization was chosen by an internal survey.
Zuellig Pharma Korea began its full warehouse and with the highest quality assurance standards and Under Zuellig Pharma Korea’s corporate social
logistics services for Roche Korea Co. Ltd. on July 1. related service regulations for all Roche products in responsibility theme of “Zuellig with Love”,
Services include pharmaceutical warehousing, Korea. Zuellig Pharma Korea expanded its Ansung employees have participated in a variety of programs,
distribution and inventory control in compliance Distribution Center to create a dedicated space for Roche. including a breast cancer prevention campaign,
baking bread for low-income families and other
voluntary services benefitting the local community.
Licensing agreements reached with Boryung and EffRx
Kanarb licensing agreement signing ceremony. Mr. Christophe Piganiol, President, Zuellig Pharma
region, with particular focus on Indonesia, Malaysia, Korea (left), and Mr. Suh Sun-Won, Secretary
Philippines, Singapore, Thailand and Vietnam. An General, Korea Childhood Leukemia Foundation.
It has been an active time for licensing opportunities additional agreement for Kanarb combination drugs
at Zuellig Pharma, with two significant agreements (Diuretics, CCB, Rosuvastatin) is planned.
completed recently. Established in 1963, Boryung Pharmaceutical Zuellig Pharma also signed an exclusive licensing
The company signed an exclusive licensing is one of Korea’s leading pharmaceutical agreement for 13 Asian countries with Swiss specialty
agreement for 13 Asian countries with Korean manufacturers. In 2014, sales reached 360 billion pharmaceutical company EffRx Pharmaceuticals SA
pharmaceutical company Boryung for won (US$308 million) and the company has more for the anti-osteoporosis product Binosto. The product
antihypertensive drug Kanarb. It is the largest than 1,000 employees. The signing ceremony is the first and only buffered solution for treatment of
licensing agreement for the product anywhere in the was attended by leading members of the Korean osteoporosis in post-menopausal women that reduces
world. Zuellig Pharma will launch Kanarb across the healthcare industry. the risk of fractures and improves adherence to therapy.
30th anniversary celebrations in Indonesia
PT Anugerah Pharmindo Lestari (APL), Zuellig
Pharma’s subsidiary in Indonesia, celebrates
its 30th anniversary this year. In 1985, Dr.
W. Biantoro Wanandi started APL as a small
company, which has since grown into one of
the largest and most respected pharmaceutical
distributors and healthcare services providers in
Indonesia. The celebration, held on June 6, 2015,
was attended by 700 employees and Dr. Wanandi.
Employee creativity was on display in the
Divisional Booth Competition and Anniversary
Video Contest. The memorable evening gave staff
a great opportunity to appreciate the company’s
history and achievements.
From left: Mr. Chris Eberle, APL President Director,
Dr W. Biantoro Wanandi, APL Commissioner,
Ms. Lanny Anggraeni, Vice President Human
Capital, Mr. Michael Wanandi, APL Director,
Mr. Hendra Halim, CFO, Mr. Nyoman Sukertha,
Vice President Sales 1.
Jakarta branch visits for APL senior management Management trainees
gain all-round insight
APL senior executives Mr. Djagad
Prakasa Dwialam, Chief Operating In August, APL welcomed eight management
Officer, and Ms. Lanny Anggraeni, trainees, who will undergo a comprehensive
Vice President Human Capital, 18-month program. The training provides
visited Jakarta Distribution Center on-the-job experience in the areas of sales,
on August 19 and APL’s Jakarta operations, quality, finance, and human
branch on August 25 under the APL resources to equip participants with fundamental
Branch Safari Program. This regular understanding of the business, and prepare them
program provides a platform for to be future APL leaders. Each is assigned a
employees and APL management mentor and will work on a specific project at the
to engage in direct interaction and end of the program.
communication. The program starts
with an office/warehouse tour,
followed by a business update, and
ending with a Town Hall meeting.
APL has 27 branches covering the
Indonesian archipelago.
Mr. Harry Istianto, Jakarta Distribution Center
Manager, gives APL senior executives a tour.
Managers and supervisors at the Jakarta APL management trainees who joined the company
Distribution Center. in August.
Zuellig Pharma Taiwan teams up with Taisho Pharmaceutical Hospital event looks ahead to
Asian Economic Community
Zuellig Pharma Taiwan entered a
commercialization agreement with Taisho
Pharmaceutical. In May, the commercialization
team held a nationwide sales meeting to launch
Taisho Pharmaceutical’s Pabron Cold and Flu
Granules. Pabron is a popular Japanese cold and
flu remedy.
The product is expected to win consumer
trust and acquire a significant market share in the Focus on the future at annual hospital customer meeting.
competitive and fragmented cold remedy category
in Taiwan, worth more than US$67 million On July 11, Zuellig Pharma Thailand held its annual
annually. hospital customer gathering, focusing this year on
“As the biggest Japanese cold and flu “Connect. Healthcare. AEC.”, in preparation for the
medication brand, we are proud to be development of the Asian Economic Community.
represented by Asia’s best in distribution and The event was led by Mr. Yves Hermes, Vice
promotion,” Mr. Kohei Doi, President of Taisho Zuellig Pharma Taiwan Chief Executive President Thailand/Indochina. Over 220 doctors,
Pharmaceutical Taiwan, said. “We are very Mr. John Chou (left) and Taisho Pharmaceutical pharmacists, financial personnel and others from
Taiwan President Mr. Kohei Doi at the launch more than 120 hospitals joined the event.
excited about this product. We plan to bring
ceremony.
many more products into the Taiwan market and Two key seminars were given on “Connect
believe in having the right partner to work with,” treatments Kampo Ichoyaku, laxative Colac, Healthcare to AEC” by Dr Somporn Kumphong,
he added. energy drink Lipovitan D, hair-regrowth treatment CEO of the Healthcare Expert Group (Thailand),
Taisho’s comprehensive line of OTC products RiUP, and the Livita series of functional nutritional and “Managing the New Workforce, Generation Y”
includes cold remedy Pabron, gastrointestinal supplements. by Dr Sumontha Tonvongval, Associate Judge and
Mediator at the Central Labor Court. Two lifestyle
talks, “Happy Life with Dhamma” by Phra Maha
Sompong and “Preparing Ourselves for AEC” by
YesChain promotes diabetes health management Khun Jatupon Chomphoonich, were also presented.
YesChain, Zuellig Pharma’s community
pharmacy chain in Taiwan, launched the
YesChain Healthcare Volunteers Day in July
to promote diabetes health management in
long-stay medical and retirement centers.
The team of volunteers was led by Ms.
Kerry Lee, General Manager, and comprised
members of YesChain’s management
team, store pharmacists and managers,
and nutritionists. Together they set out to
introduce a holistic diabetes healthcare
program of drug use, exercise, massage,
bone density and body mass index (BMI)
tests, and chronic disease management
consultations.
YesChain is seeking to organize the
Healthcare Volunteers Day annually at 35
centers located near its pharmacies to encourage Volunteers visit Chung Shan Retirement Center
healthy lifestyles and drug compliance. The in Taipei.
initiative forms part of the company’s corporate
social responsibility activites. the launch of YesChain Diabetes Care Pharmacy
YesChain also plans to organize a 90-day Diabetes Solutions. The chain expects to recruit 2,000 YesChain General Manager Ms. Kerry Lee measures
Care Volunteers Crusade in Q4 2015 to promote diabetes patients into the program. blood pressure.
Zuellig Pharma Specialty Solutions Group (ZPSSG) ZPSSG’s depot in Beijing, which operates at global Unparalleled depot network of
continued to expand its interaction with the quality and compliance standards, is well equipped 17 depots, 14 countries
healthcare community in Greater China, with and positioned to support the influx of more studies
participation in two major events in Mainland into Mainland China.
China and Taiwan respectively. In July, ZPSSG staff attended BioTaiwan 2015, a
In May, ZPSSG joined the annual Drug conference focused on Taiwan’s booming biotech Beijing
Information Association (DIA) meeting in industry. ZPSSG has a long history of partnering with Seoul
Shanghai for the second time. This is the largest leading Taiwanese biopharmaceutical companies in Shanghai Kobe
industry event for clinical trials in Mainland conducting early and late-stage trials in Asia-Pacific. Dhaka Taipei
China, with over 2,000 industry experts and Taiwan’s biotech industry has grown rapidly in recent Mumbai
Hong Kong
leaders attending the three-day gathering. years, supported by the government’s strategic plan Bangkok
Those taking part were able to meet ZPSSG to boost the sector, launched in 2009. Biotech parks, Ho Chi Minh City
senior managers during the exhibition. ZPSSG modern infrastructure, favorable and predictable Kuala Lumpur
Singapore
participants also joined many of the events and regulations supporting fast clinical trial approvals and
Jakarta
forums, including dialogues with the China proximity to other major markets have helped make
Food and Drug Administration (CFDA). The Taiwan one of the top destinations for clinical trials
event included news of the administration’s plan in Asia. Central depots
Local depots
to increase staff by 2020 in order to shorten ZPSSG’s depot in Taiwan is an ideal springboard
review timelines for new trial applications, a key for Taiwanese biotech companies to extend local trials
concern for sponsors considering multinational into other regional markets, supported by ZPSSG’s Adelaide
trials in the country. regional depot network.
Clinical Reach solutions A network of local and central depots enables The company continues to expand its
sponsors to customize their clinical supply chain footprint, with recent additions including a
Zuellig Pharma Specialty Solutions Group maintains set-up for each study, taking into account start- subsidiary and depot in Mumbai, India. It
a network of 17 clinical trial depots in 14 countries up timelines, regulatory considerations, risk actively consults clients to find the best set-
and territories across Asia-Pacific, offering integrated aspects, required shipment turnaround times, up for trials, leveraging its network, experts,
storage, distribution/returns, repackaging and a product quality, geographical focus with an aim and experience of over 1,000 successfully
comparator drug-sourcing service. to balance study objectives against cost. completed trials.
Zuellig Pharma Thailand organizes ‘Football for Kids’
In June, Zuellig Pharma Thailand organized a “Zuellig Pharma Football for Kids” has been
further “Zuellig Pharma Football for Kids” event, organized for three consecutive years to give
led by Mr. Kovit Ophascharoensuk, Vice-President students of schools located near the Distribution
Corporate Affairs, other members of the management Center the opportunity to learn about football
team, and staff. The corporate social responsibility from professionals and to promote Zuellig
activity took place at the Z1 Sports Center at the Pharma’s brand awareness among parents in the
Distribution Center in Bangsaothong, Samutprakarn. surrounding community. To date, 10 schools
Seventy students from a local school participated, and over 700 students have participated in the
with training given by former Thai national football program. Sports equipment is also provided to all
team coaches and Zuellig Pharma Thailand staff. participating schools. Sporting chance for 70 local students in Thailand.
covers and the level of support it offers chronic
sufferers, several significant areas of opportunity
remain. These include the difficulty of creating a
standardized care protocol, the inability to cover
individuals’ total care, and gaps in the provision
of necessary regular treatment tests while still
meeting reimbursement criteria. A direct result
of these challenges is that only 40% of diabetes
patients are currently enrolled in the Diabetes
Shared Care System.
Another potential contributing factor to low
enrollment is that patient education and follow-up
care from healthcare professionals is reimbursed
by the NHI program only if certain criteria are
met. For example, there are limits on the number
of times newly enrolled patients, even those who
may require more intensive interventions, can
receive services that are eligible for reimbursement.
A chief complaint among patients and providers
is that quality, individualized patient care requires
manpower and resources that are constraining
and inefficient for healthcare providers in terms of
time, labor, and expense. Further complicating the
Informative presentations and lively discussions took place during the workshop.
issue is a lack of patient enrollment and education
channels beyond qualified hospitals/clinics
A workshop for key opinion leaders to discuss among other initiatives, formulate a feasible and (pharmacies are excluded), as well as conflicts of
integrated solutions to enhance Taiwan’s Diabetes scalable project relating to third-party engagement interest among key stakeholders.
Care Program was organized in July by National in collaboration with healthcare providers focused The solution proposed during the closed-door
Yang-Ming University Institute of Health and on diabetic care. discussion was to introduce a neutral third-party
Welfare Policy, The Diabetes Association of the The key focus of the discussion was Zuellig charged with overseeing holistic programmatic
Republic of China, Taiwanese Association of Pharma’s introduction of an integrated solutions integration and management. Not only would
Diabetes Educators, and Pharmaceutical Society of model to better address chronic-disease this potentially increase enrollment and iron out
Taiwan. The event, sponsored by Zuellig Pharma’s management for diabetes, complementing Taiwan’s a complex reimbursement structure, it would
Patient Solutions, sought to identify opportunities public Diabetes Shared Care System. The system also allow for more streamlined navigation and
for the integration of quality-based and evidence- is part of its National Health Insurance (NHI), diffusion of conflicts created by divergent interests
based patient care as a means of optimizing patient a mandatory single-payer scheme overseen by of key industry players.
health outcomes, covering a broader patient pool, Taiwan’s Ministry of Health and Welfare. Now The workshop concluded with a commitment
and decreasing government healthcare costs. in its 20th year, the program insures more than to map out a pilot, modeling a more integrated
Workshop participants comprised providers, 99% of the country’s population and provides a approach. This includes following up via
industry suppliers, and stakeholders, with the event comprehensive range of benefits. in-depth interviews with select stakeholders, visits
concluding with a closed-door advisory discussion Although the Diabetes Shared Care System is to government officials engaged in the bidding
among selected key opinion leaders who hoped to, largely successful, particularly in the broad care it process, and extended data analysis and reporting.
to joining Zuellig Pharma, Ryan Disneyland and Li & Fung Group. In his
worked for DB Schenker, where he role at Zuellig Pharma, he will review
led the engineering and innovation all aspects of operations, work closely
teams and operations efficiency with internal and external customers
The new Market Partner talents who are responding to program. Ryan will work closely to provide logistics solutions, and
with the different teams in country improve the quality of service, cost
the demands of our ever-expanding businesses operations, value realization, and control and inventory accuracy. He
quality and procurement to drive reports to Mr. Chapman Lam, Director
and support the delivery of best of Operations.
practices and productivity in the Ms. Rita Ho has expanded her role
company’s operations. He has a to include wholesale dealer license
Bachelor’s degree in Industrial deputy responsibilities
Engineering combined with nearly and has a new title
20 years of practical application in of Senior Client
both manufacturing and logistics Service Manager.
companies. Ryan reports to Mr. She continues to serve
Darren Wedding, Senior Vice as Lead for the Client
President Operations. Service Team, seeking to enhance
the quality service provided to
Hong Kong clients. In addition, she has become
one of the key members to ensure
Ms. Kevina Chan has full compliance with regulatory
been appointed Patient requirements for the Distribution
Solutions Manager at Center’s wholesale dealer license.
Zuellig Pharma Hong She still reports to Mr. Chapman Lam,
Kong. Kevina will focus Director of Operations.
on offering patient- Mr. David Hui has been appointed
centered services that Sales Force Effectiveness and
address the needs of Commercial Manager
patients throughout at PharmaLink in
their treatment journey Hong Kong. David’s
and assist manufacturers, previous experience
healthcare includes sales and
Regional insurance marketing, strategic
companies, planning and commercial excellence
Mr. Benjamin Belot has been self-insuring in multinational healthcare and
to the sales and marketing teams. pharmaceutical companies such as
appointed Corporate Projects corporations and
Before this, he worked in healthcare Wyeth Nutrition, Johnson & Johnson
Lead – North Asia. other payers to
consulting for five years, managing Co., and Pfizer Corporation Hong
He will support the realize optimum use of their brand.
strategic projects for pharmaceutical, Kong. In this post, he will work closely
development and This new service is aligned with
medical device and diagnostic with sales managers to attain related
implementation of Zuellig Pharma’s objective to develop
companies. He was also involved in sales operation and management
new strategic projects innovative solutions that expand
channel-based projects. He reports standards. He will also plan and
across multiple business beyond distribution. Prior to joining
to Mr. Tom Vanmolkot, Senior Vice conduct sales force training aligned
units and help consolidate regional Zuellig Pharma, Kevina worked in
President North Asia. with ethical standards and the code of
requests and reporting requirements. business development and market
Benjamin holds a Master’s degree in Mr. Ryan Cruz has been appointed analytics in the pharmaceutical sector. conduct. He reports to Mr. Daymond
Chemistry and Chemical Engineering, Head of Industrial Engineering Mr. Billy Wong has become Lee, Director of PharmaLink.
an INSEAD MBA, and has seven years’ and Continuous Distribution Center Senior Mr. Christopher Liu
experience in healthcare consulting Improvement. Ryan Manager. Billy has over has taken up the role
and the pharmaceutical sector. Prior will be responsible 15 years’ experience of Assistant Medical
to joining Zuellig Pharma, Benjamin for overseeing in the logistics Sales Manager,
worked for Johnson & Johnson as a development and industry, working leading the Contract
Business Intelligence Analyst, using implementation for multinational Sales Organization
data analytics to provide business of the new Zuellig Operational companies such as team in the provision of exclusive
and market access recommendations Excellence (ZOE) Program. Prior Kerry Logistics, Hong Kong services for clients. Chris joined the
company in 2013 and his drive to plan and in securing its position as Ms. Norulazami Abu Bakar engage with principals and manage
boost employee coaching has shown the preferred healthcare distributor (Ms. Norulazami) key accounts in the pharmacy channel
strong leadership capabilities over in Indonesia. Chris reports to the APL has been appointed and to implement sales strategies
the past two years. Prior to joining Board of Commissioners. Principal Services to achieve the desired sales results,
Zuellig Pharma, Chris worked for Manager. She among other on-going responsibilities.
Lyreco, Stiefel Laboratory, and Malaysia obtained her Bachelor’s He reports to Ms. Lee Lay Hoon,
Roche. In this new role, Chris reports degree in Science from the University Business Unit Manager.
to Mr. Daymond Lee, Director of Zuellig Pharma Malaysia of Iowa, US. She has more than 20 Mr Dave Lai has been appointed
PharmaLink. is pleased to announce years’ supply chain experience within Head of Business Development for the
the promotion of global fast-moving consumer goods Local Distribution Center,
Korea Mr. Deric Seow to and multinationals in industries Commercialization and
Senior Manager, ranging from manufacturing to Regional Distribution
Zuellig Pharma Value Added Services. third-party logistics. She reports to Center. Since joining
Korea welcomes Deric will head the Value Ms. Sharon Chua, Associate Director, the company in 2010,
Mr. Hyo Seok Added/Redressing Department, Principal Services Department. Dave has proven his
Ha as Marketing with responsibility for all key result ability to independently manage the
Director. He will be areas. He joined Zuellig Pharma in
Specialty Solutions Group Business Development Department.
responsible for developing 2012 as Inventory and Trade Returns With support from relevant internal
marketing strategies and marketing Manager. He reports to Mr. Graham Mr. Tan Chun Leng has been stakeholders, Dave has helped the
programs for downstream business Simpson, Operations Director. appointed Quality Manager at Zuellig company win numerous new contracts
development. Prior to joining Zuellig Mr. Rayhaan Dharmavilasan Pharma Specialty as well as renew major contracts.
Pharma, he worked at Boehringer Abdullah (Mr. Dharma) has also Solutions Group. In his expanded role, Dave will be
Ingelheim Korea. He built his career been promoted, taking up the role Chun Leng will responsible for building fresh business
in the marketing area, serving as of Senior Manager, be responsible opportunities and developing strategic
product manager and marketing Operations for the company’s partnerships. He reports directly to
manager. He was involved in primary Excellence. He joined regulatory affairs and Ms. Yvonne Cheah, Senior Director of
care brand marketing and gained Zuellig Pharma in quality management system. In Business and Client Development.
insights into ethical sales as a sales 2013 as Warehouse addition, Chun Leng will be the focal Mr. Taras Chan has taken up the
manager. He holds an MBA from and Business Process contact point for handling matters position of Business Unit Manager
So-Gang University in Korea, with Manager. He will now head up related to national and international for PharmaLink Commercialization,
a focus on marketing, and reports the new Operational Excellence regulatory bodies. Chun Leng holds covering the ethical channel. Taras,
to Ms. Sang-A Ryuu, Business Department that will drive a Bachelor’s degree in Electrical and who has previously
Development and Commercial continuous improvement, process Electronic Engineering from Nanyang worked at Pfizer
Excellence Executive Director. enhancements, value realization, and Technological University. He has and Novartis, will
improve the functional excellence 14 years’ experience, spanning the be responsible for
semiconductor, electronic device,
Indonesia of operations personnel. He reports
silicon wafer and light manufacturing
managing the medical
to Mr. Graham Simpson, Operations sales and marketing
Mr. Christian Director. industries. He reports to Ms. Chong Ai teams in driving growth of the
Eberle has become Ms. Rachel Yong has joined the Lian, Associate Director, Quality. designated pharmaceutical and OTC
President Director company as Principal Services lines in the ethical channel. He will
of PT Anugerah Manager. She holds lead the unit in ensuring development
Pharmindo Lestari (APL). Chris has an MBA from the
Singapore and implementation of effective brand
over 20 years’ experience at Zuellig University of Putra Mr. Wyman Loi has been promoted and channel strategies, and efficient
Pharma. He started his career as Malaysia. and to Sales Manager at execution of clients’ trade marketing
Distribution Manager at Zuellig has seven years’ Zuellig Pharma activities. This will involve provision
Pharma Hong Kong before moving experience in hospital Singapore. Since of prompt feedback on market and
to become Assistant Vice President pharmacies, inventory planning, joining the company competitive intelligence to clients
Operations at Metro Drug, Inc. in the operations and warehouse as an Associate Sales and promotion of relationships with
Philippines. Chris was then appointed operations. Her last role was Manager in 2013, Wyman existing and prospective customers.
Vice President Operations at Zuellig chief pharmacist in a private has shown strong leadership with He reports to Ms. Louisa Pang, General
Pharma Korea. His latest position hospital, coordinating pharmacy, regard to achieving targets with Manager of Commercialization.
was President & Chief Executive of medical services and operations. his team as well as building strong Ms. Janet Teo has become
Metro Drug, Inc. In his new role, Chris She reports to Ms. Sharon Chua, working relationships with both Sales Manager at PharmaLink
will drive the APL leadership team in Associate Director, Principal Services internal and external stakeholders. In Commercialization. In this role, Janet
refining and executing APL’s strategic Department. his new role, Wyman will continue to will be responsible for medical sales,client and key account Khun Parichut will Services Manager. She has Services and Support, CRC
management, be responsible previously spent 10 years in client Operational Analysis, and Database
leading a sales team for creating new handling and management, business and Order Management. She has
to achieve sales business solutions process improvement, and project worked at the company for over
and business targets and proposals for implementation for top two years as Customer Services and
for Merck Consumer Healthcare, existing clients as logistics companies, Support Manager. Prior to that, she
Becton Dickinson and Abbott well as generating new business such as Maersk/ had 10 years’ experience in customer
Diabetes across the ethical channel. opportunities. She comes on board Damco Logistics. and quality retention, as well as
Janet graduated from the National with over 15 years’ experience, She reports to Khun customer service areas at DKSH and
University of Singapore with a BSc in in Thailand and overseas. She Nuchree Phonpuntin, Loxley. Khun Salsaya reports to Khun
Microbiology. She joined the company has previously worked in sales Vice President Logistics and Kriengkrai Viasuwan, Vice President
with eight years’ experience in the operations and management, Principal Services. Customer Management.
pharmaceutical industry, covering project management and business Khun Patcharee Chayrassamee
sales, and product and key account development, among other roles, at has joined the company Vietnam
management. She reports to Mr. healthcare companies such as Siam as Material Manager.
Taras Chan, Business Unit Manager. Drug, McCormick Hospital, and DKSH. In this post, she will Mr. Jeff Folland has
She reports to Mr Yves Hermes, Vice be responsible for been appointed Sales
President Thailand/Indochina. redressing (secondary Director of Zuellig
Taiwan Khun Archawee packaging), inventory, Pharma Vietnam.
Zuellig Pharma Taiwan is pleased Suwannacheep has and spoiled goods. Khun Patcharee Jeff has 24 years’
to announce that Ms. Jean Hsu has been appointed has almost a decade’s experience commercial experience,
been appointed Business Finance Manager, in sales support, and warehouse with 14 of these years spent in the
Development Director. responsible for general and logistics operations, working in pharmaceutical industry. In his
Prior to joining Zuellig accounting, principal industries including medical products, new role, Jeff will be responsible
Pharma, Jean had accounting, treasury, and purchasing. freight forwarding, electronics, and for leading the Sales and Business
gained over 12 years’ She has over 13 years’ experience in automotive for companies such as Support Teams in the wholesale,
experience in consumer external audits, corporate accounting NYK Logistics, Panasonic, and Ford. pharmacy and hospital channels,
healthcare in Mainland China and and tax compliance. She has worked She reports directly to Khun Nuchree driving customer satisfaction
Taiwan in both fast-moving consumer with PricewaterhouseCoopers ABAS Phonpuntin, Vice President Logistics and sales force effectiveness. He
goods and OTC categories. She will and in the corporate accounting and Principal Services. has previously led sales teams in
bring her expertise to Zuellig Pharma field with Nokia and Microsoft. She The scope of responsibilities Australia for GlaxoSmithKline, Eli
Taiwan to help active promotion currently reports to Khun Pucknalin held by Khun Laksaman Choosiri, Lilly, Sanofi-Aventis and Amgen. Jeff
of services, to build higher brand Bulakul, Chief Operating Officer. Customer and Tender Manager, has reports to Mr. Robert Kruit, Chief
awareness in the market and to Khun Thanavit Wannavijit expanded to cover collection. His Executive, Zuellig Pharma Vietnam
develop new business opportunities. has joined the company as new title is Tender and & Cambodia.
Jean reports to Mr. John Chou, Chief Logistic Manager – Outbound Collection Manager. Ms. Pham Thi Hồng Vân has
Executive. (Pharmaceutical), Khun Laksaman joined the company as
responsible for has spent more Product Manager.
Mr. David Huang has been storage and than two decades in Prior to working at
appointed National Key Account replenishment, information technology, Zuellig Pharma,
Manager. David was picking, packing and warehousing, logistics and Hồng Vân worked for
previously a Business invoicing, nutrition, distribution, material planning, and Hoffmann-La Roche
Development and other products. He has purchasing in both commercial and Ltd. Representative Office
Manager in Tai Lung worked in process improvement, manufacturing environments. He for over five years. She reports to
Taiwan. He has over quality management, terminal reports directly to Khun Kriengkrai Ms. Martha Tolentino, Head of
15 years’ experience in and warehouse operations and Viasuwan, Vice President Customer PharmaLink Vietnam.
sales in the pharmacy and consumer management, and employee Management. Mr. Ho Tan Thanh
channels. He reports to Mr. Benjamin competency and engagement Khun Salsaya has been promoted has been appointed
Tan, Vice President, Value Innovation. development for TNT Express, APM to Customer Services Manager, with Area Sales
Terminals, and DHL Supply Chain. He responsibility for the Manager. Thanh
Thailand reports to Khun Nuchree Phonpuntin, Customer Services previously worked
Vice President Logistics and Principal Department and for Mega Lifesciences
Khun Parichut Srichoo has joined Services. covering the Order Company Ltd. and ADC Company Ltd.
Zuellig Pharma Thailand as Khun Anongnart Luevong-Ophas Center, Customer Thanh reports to Mr. Le Van Quang,
Business Development Manager. has been appointed Principal Care Center, Customer Business Unit Manager – BU6.F E A T U R E S T O R Y
The graying of the city’s population and regulatory changes offer opportunities for innovation
With population growth and an aging demographic, the Hong Kong Despite some resistance to change, there are innovative healthcare funding
pharmaceutical market is forecast to grow to over US$2 billion by 2019.1 The adjustments underway. These include tax rebates and deductions for enrolling
aging of Hong Kong is due to a combination of factors, including longer life in private healthcare insurance; allowing people of any age and in any health
expectancy and a low birth rate. to take out insurance; guaranteed
The launch of innovative drugs renewal for all members; and limiting
will drive growth in the market.2 of premiums for high-risk groups.7
Hong Kong is the leading choice The government has set aside over
for manufacturers of home-based US$1.6 billion to fund public hospital
equipment, hygiene-sterilized expansion and modernization, such
supplies, less-invasive procedure as adding hospital beds and other
equipment, orthopedic tools and treatment and diagnostic facilities.
devices, as well as devices and This will result in shorter waiting
supplies for high health-risk diseases times for healthcare services, as well
and injuries.3 as additional mental health services.8
The Hospital Authority will
Physician prescribed vs enhance its healthcare services
over-the-counter drugs for elderly patients, providing
In a physician-dispensing market barrier-free hospital facilities by
such as Hong Kong, retail 2016. Improvements will include a
pharmacists primarily focus on joint replacement center, as well as
over-the-counter (OTC) drugs. The enhanced geriatric rehabilitation
connection between drug prescribing and palliative care services. The
and dispensing continues to be Elderly Health Care Voucher Scheme
a lucrative source of income for doubled to US$256 last year and
physicians, clinics and hospitals.4 the number of vouchers increased
Separation between prescribing and to 640,000 for a total expenditure of
dispensing is unlikely due to the US$70 million.9
powerful doctors’ lobby in the city.5 In 2014, the Hospital Authority
launched pilot outpatient clinics in three districts to allow those with chronic
Public vs private healthcare debate diseases, such as hypertension or diabetes in a stable condition, to receive outpatient
The current healthcare system cannot continue to support the weight of the services from participating private doctors within their respective districts. The
rapidly changing age demographic. Projections forecast that people over government plans to expand the program to the remaining 15 districts.10
65 years old in Hong Kong will more than double from 13% to 30% of the
population by 2041. The strain of this increase will necessitate a 6.5% annual Emerging trends in Hong Kong healthcare
increase in public healthcare spending just to maintain services.6 The delicate Hong Kong’s health indicators rank among the best in the world. Like other
balance between private and public healthcare will have to change. developed countries and regions, the burden of the healthcare system has shiftedPharmaceutical market forecast (2010-2024) Pharmaceutical trade forecast (2010-2019)
4 0.6 4,000
3 3,000
0.4
2 2,000
0.2
1 1,000
0 2020f 0 0
2024f
2022f
2023f
2018f
2016f
2019f
2018f
2016f
2019f
2015f
2015f
2021f
2017f
2017f
2010
2010
2014
2012
2013
2014
2012
2013
2011
2011
Pharmaceutical sales, USDbn Pharmaceutical sales, % of GDP Pharmaceutical exports, USDmn
Pharmaceutical sales, constant exchange rate, USDbn Pharmaceutical imports, USDmn
f=BMI forecast Source: BMI
from communicable diseases to chronic diseases due to a more affluent lifestyle Retail pharmacists will continue to push for a greater role in healthcare,
and medical advances. Recent data from the Department of Health’s Center such as patient counseling and medication management. The government
for Health Protection concludes that over 28% of the population has a chronic is looking for ways to increase pharmacist training and development. The
illness such as hypertension (11%), diabetes (5%), high cholesterol (almost Hong Kong Academy of Pharmacy is encouraging quality certification and a
4%), coronary heart disease (2%), asthma (1.1%), and stroke (0.6%). Over 36% patient-centered approach to combat the sale of counterfeits.20
of the population are considered obese and this trend continues to grow. Both cost and epidemiological considerations make Hong Kong an
Cancer is by far the leading cause of death in the city, at 31%. Mortality attractive base for clinical research and development and medical trials.
rates from heart disease, cerebrovascular disease and chronic lower respiratory According to data from Clinicaltrials.gov, Hong Kong hosted 82 clinical
disease have all fallen in recent years. However, the infection rates of notifiable trials in 2013 and 91 in 2012. Of the 82 studies, there were 11 Phase I, 26
communicable diseases, such as HIV, continue to increase.11 Phase II, 38 Phase III and seven Phase IV trials. However, Hong Kong is still
As the population ages, so will the demand for equipment that facilitates considered a relatively small market with room for growth when compared
the prevention, detection, and management of illness. Treatment for to other markets such as Mainland China, Taiwan and South Korea.21
cardiopulmonary disease, diabetes and neurological disorders will see
rapid growth.12 Overcoming the challenge of regulatory changes
Hong Kong’s primary care system remains undeveloped. It will need to In response to a series of product scandals in 2009, Hong Kong enacted
improve to address the needs of its aging population in disease prevention and regulatory changes that affect the pharmaceutical market. In accordance
management of chronic diseases.13 with the Pharmacy and Poison Regulations Chapter 138A, Regulation
The high burden of non-communicable diseases presents strong revenue- 5, section 22, which went into effect on February 6, 2015, dealers
earning opportunities for both pharmaceutical and medical devices firms, licensed for wholesale are required to obtain a written order from the
due to the need for increased diagnosis and treatment.14 The compound purchaser before completion of a sale of Part I poisons, dangerous drugs
annual growth rate forecast from now until 2019 is 7.2%, reaching a total of or antibiotics. The regulation is part of an effort to avoid ambiguity or
US$2.2 billion.15 miscommunication that could lead to wrongful delivery. The written
The operating environment for the pharmaceutical industry in Hong Kong order facilitates tracing the source of the drug, minimizes errors upon
is likely to remain stable until 2018. Though market growth has slowed to delivery, and combats the illegal sale of drugs, which enhances public
single digits, Hong Kong will remain an attractive market, in large part due to safety.22
its proximity to Mainland China.16 The written order can be accepted in either paper or electronic
Patented hi-tech drugs will continue to be imported and this sector is format. Nevertheless, the impact of the mandatory requirement has
expected to grow.17 Hong Kong’s negative pharmaceutical trade balance is been felt in the pharmaceutical field since most purchasers were used to
expected to widen over the next five years, with 7.2% imported and 3.9% ordering drugs via verbal orders. eZRx, one of ZPHK’s six eSolutions,
exported by 2019. Cheap, off-patent drugs from Mainland China will increase provides an online ordering platform in full compliance with the written
this gap, highlighting Hong Kong’s need for less expensive pharmacueticals.18 order ordinance.
In contrast, pricing of generic drugs will continue to be forced down by the Other regulatory changes in the pipeline include the Hong Kong
Hospital Authority’s volume purchasing and prescribing policies. Multinational Guide to GMP for Secondary Packaging, which will be implemented
generic drug-makers will dominate the generics market, as well as local firms on October 1, 2015. The regulation states that secondary packaging can
with strict quality control. Eventually, generics from Mainland China will start only be undertaken by licensed manufacturers, who comply with Good
to enter the market.19 Manufacturing Practice requirements.Zuellig Pharma eSolutions
As part of Zuellig Pharma’s on-going commitment to service quality,
operational excellence and cutting-edge innovation, the company has
developed a series of internet-based tools to facilitate operational efficiency
across the supply chain, from order processing for purchasers to delivery of
orders to customers. Zuellig Pharma’s eSolutions suite provides a unique and
user-friendly solution for complete transparency in the order process, starting
from when a customer places an order all the way to when they receive the
product.
Zuellig Pharma Hong Kong is proud to introduce the following six new
innovative eSolutions to improve communications, supply chain transparency
and business efficiency and productivity: eZRx, eTender, eRedressing, eReturn,
eMerchandising and Z|P Track & Trace.
The eSolutions platform improves communication both internally and
externally, and increases productivity throughout the order fulfillment
process. Zuellig Pharma’s eSolutions offers customers complete transparency
so that they can clearly see where the order is and when it will be delivered.
The innovative web-based eSolutions platform brings visibility to the entire
order process cycle.
eZRx
Zuellig Pharma’s eZRx is an efficient internet-based, multi-functional B2B
ordering platform. eZRx is fully compliant with the Hong Kong Department
of Health’s written order ordinance. It is fully customizable and allows Local capacity grows
customers to make quick, easy, real-time order placements. Customers’ order
history, bonus terms, deals and quantities ordered are all retrievable. Access to Zuellig Pharma’s warehouse capacity in both Hong Kong and Macau
the order status is available at all times and multiple parties within a business has expanded. The main pharmaceutical warehouse in Macau has
can be connected to the order system. more than doubled. The main Hong Kong Distribution Center in Tsing
The system provides real-time order confirmation for customers and full Yi has increased by 70,000 square feet.
transparency. Invoice images can be captured for accuracy and reference while An automated order fulfillment system is being installed at the Tsing Yi
payment transactions sync to Zuellig Pharma’s ERP system. eZRx can also be Distribution Center.
developed into a marketing platform.
A new patient solutions service has been launched in both Hong Kong
and Macau, headed by Ms. Kevina Chan, Patient Solutions Manager.
eTender
eTender offers users an effective digitalized tender management process
with greater security, data centralization, workflow control, improved eRedressing
efficiency, real-time information availability and automated reminder alerts. This tool enables all parts of the redressing process to be tracked and traced.
It guides and monitors the entire tender management process to ensure full eRedressing provides stakeholders with real-time visibility of redressing job
accountability and confidentiality. status. It also improves the efficiency of shop-floor job management and
The administration tool records tender information for two years, ensuring production planning to ensure supply chain continuity.
an up-to-date tender library that provides instant access to key tender
information. This allows users to formulate a tender submission strategy. It is eReturn
also customizable and offers greater security in tender document preparation, eReturn is a highly efficient online tool that eliminates manual paperwork and
tender document clarification and contract follow-up. allows goods to be returned accurately and quickly. The solution saves time and
To ensure a streamlined process, eTender tracks and traces tender status ensures accuracy by automating many steps, enabling sales representatives to
in real-time. By creating an archive document whenever a user makes a spend more time in the field driving sales.
change, the system provides proof of document control. Each document The web-based system improves transparency while reducing lead times and
contains multiple archived versions, providing full document history. eTender the time required to process returns. The 100% paperless system allows searches
also includes user-only access and a matrix to define each user’s level of by customer, product and batch number. In addition, the status of any return
authorization. and its history can be fully tracked and traced.
The system improves work efficiency with a real-time to-do-list,
which helps users identify tasks that need to be completed. Over the long eMerchandising
term, eTender maximizes pricing strategy and provides comparative and eMerchandising is an innovative solution for chain outlets, providing a
pharmaceutical market trend analysis. comprehensive marketing and promotional tool that replaces inefficient paper-Zuellig Pharma Hong Kong eSolutions
Sales Warehouse Delivery Customer
Ordering Order processing Delivery tracking Execution
based systems with real-time online planning, synchronization of outlet References
promotions, and timely reporting. 1. Hong Kong Pharmaceuticals and Healthcare Report Q4 2015. (2015). BMI
The customizable system assists outlets in meeting a variety of needs, Industry Report & Forecasts Series, pp15-34. http://www.bmiresearch.com/.
including wider product scans and channel extension. It offers quick and Accessed August 17, 2015.
accurate solutions for common planogram issues, such as out of stock, 2. IMS Market Prognosis 2014-2018, Hong Kong. (2014). IMS Health.
3. Tsang, A. (2015). “Medical & Healthcare Equipment Industry in Hong Kong”.
side facing and empty boxes, as well as sub-optimal execution of display
HKTDC Research. http://hong-kong-economy-research.hktdc.com/business-
promotion programs and inefficient ad hoc promotions.
news/article/Hong-Kong-Industry-Profiles/Medical-Healthcare-Equipment-
eMerchandising also provides execution and instant monitoring of key Industry-in-Hong Kong/hkip/en/1/1X000000/ 1X00409R.htm. Accessed
chain promotional programs to increase growth opportunities. August 21, 2015.
4. Hong Kong Pharmaceuticals and Healthcare Report Q4 2015. Op. cit. pp73-76.
Z|P Track & Trace 5. IMS Market Prognosis 2014-2018, Hong Kong. Op. cit.
Getting the right product to the right destination at the right time is the key to 6. “Healthcare finance reforms debated again”. (2015). Economist Intelligence
top service. Zuellig Pharma’s Z|P Track & Trace is a pioneering tracking tool Unit.
that centralizes and standardizes communication between Zuellig Pharma 7. Ibid.
Hong Kong’s delivery and customer service teams, ensuring optimum delivery 8. IMS Market Prognosis 2014-2018, Hong Kong. Op.cit.
to the end customer. 9. “Progress of the General Outpatient Clinic Public-Private Partnership
Programme”, briefing paper. (2015). 1st ed. Hong Kong: Legislative Council
The Z|P Track & Trace handheld device can be used by all drivers and
Panel on Health Services. http://www.legco.gov.hk/ yr14-15/.../hs/papers/
delivery personnel. It offers reliable, real-time visibility of customers’ order hs20150316cb2-993-5-e.pdf. Accessed August 28, 2015.
status, such as delivered, cancelled, rejected, returned or redelivered. It also 10. Ibid.
facilitates communication through photographs. The system incorporates 11. IMS Market Prognosis 2014-2018, Hong Kong. Op. cit.
real-time notification for events such as damage or customer feedback, 12. Tsang, A. (2015). Op.cit.
enabling the customer service team to react immediately. 13. IMS Market Prognosis 2014-2018, Hong Kong. Op. cit.
The all-important last mile is effectively managed by notifying customers 14. Hong Kong Pharmaceuticals and Healthcare Report Q4 2015. Op.cit. pp49-65.
in advance of actual delivery to manage expectations for order delivery time. 15. Ibid, pp15-34.
16. IMS Market Prognosis 2014-2018, Hong Kong. Op. cit.
Our promise 17. Hong Kong Pharmaceuticals and Healthcare Report Q4 2015. Op.cit. pp15-34.
Zuellig Pharma’s commitment to collaboration, innovation and passion for 18. Ibid.
excellence are the keys to building strong successful partnerships with our 19. IMS Market Prognosis 2014-2018, Hong Kong. Op. cit.
clients and customers. eSolutions is the future of healthcare supply chain 20. Ibid.
21. Hong Kong Pharmaceuticals and Healthcare Report Q4 2015. Op. cit. pp49-65.
management.
22. Ibid.Challenges are rising for multinationals as the Vietnamese government promotes local players
but the outlook for OTC market growth appears bright
By Xiaowen Zhu, Researcher/Writer, OTC INSIGHT Asia Pacific ■ xiaowen.zhu@nicholashall.com
will reach US$116 compared with US$66 in
2008. The average annual income in Vietnam is
approximately US$2,000. This is 14 times higher
than in 1992. But the average monthly salary for
workers in Hanoi and Ho Chi Minh City is much
lower than geographically adjacent cities such
as Manila, Bangkok and Singapore, according to
the Japan External Trade Organization. As such,
the National Wage Council agreed to increase the
monthly minimum wage by 250,000-400,000 dong
(US$11.69-US$18.70) from January 1, 2015.
The development gap between urban and rural
areas also poses a challenge to the healthcare
market. Vietnam’s population is predominantly
rural and only around 32% live in urban areas. But
resources are highly concentrated in cities, resulting
in 56% of the rural population being without
healthcare access compared with 1% of urban
dwellers, according to an April 2015 study by the
International Labor Organization.
Local marketers: DHG leads the pack
• Government supports domestic marketers
• New law prompts increased focus on OTC
Looking at the top 10 OTC marketers in Vietnam,
just three are domestic companies: DHG,
Tradewind Asia and ICA. However, government
support for local players could see them take a
more prominent position in future. Following
the “Vietnamese Use Vietnamese Goods”
campaign, which aimed to encourage consumers
to purchase local brands, the Ministry of Health
announced a national strategy in December 2014
Economy: urban-rural gap defines market growth potential. In 2013, 6% of GDP was spent to develop the domestic pharmaceutical sector
on healthcare, according to the World Bank. This until 2020. One major objective is to see locally
• Public healthcare expenditure rises
figure is expected to keep rising as government manufactured medicines account for 80% of total
• Consumer spending power stronger
reforms seek to improve healthcare infrastructure medicine consumption, up from the current 20%.
Vietnam is one of the poorest countries in the East and access to medicine. The government will support the development
and Southeast Asia region, but rapid urbanization, One goal is to see 80% of the population covered of Vietnamese traditional medicines, with the
increasing public expenditure on healthcare, and by healthcare insurance by 2020. In 2015, industry Department of Health standardizing the materials
rising consumer spending power provide significant analysts estimate per-capita health expenditure used in such medicines.You can also read
