The Southeast Asian biopharma industry is home to a growing population of middle-class consumers with rising incomes, which is driving demand for high-quality healthcare products and services. In addition, the region has a strong pool of skilled scientists and researchers, as well as favorable government policies that are supporting constant innovation in the industry. On the other side of the coin, further growth is being driven by the increasing prevalence of chronic diseases, such as cancer, diabetes, and cardiovascular disease.
There is a growing number of domestic biopharma companies in Southeast Asia developing innovative products and services that are tailored to the needs of the region’s patients. As a result, companies are playing an increasingly important role in the region’s biopharma industry and have seen significant interest from foreign investors. Most investment dollars are going into Singapore, which has an established biotech and financial hub. However, more investors are looking at emerging regions such as Indonesia and Thailand for innovation and potential returns.
Growth in industry and popularity from investors is good news for patients as the growing availability of high-quality healthcare products and services is helping to improve the health and well-being of millions of people in the region. Furthermore, growth in the industry is creating new jobs for the region’s workforce and opportunities for savvy investors to pour capital into the region.
Below are some examples of Southeast Asian biopharma private innovation:
- PT Kalbe Farma Tbk (Indonesia): PT Kalbe Farma Tbk is one of the largest pharmaceutical companies in Indonesia. It is publicly traded on the Indonesia Stock Exchange (IDX) under the ticker symbol “KLBF.”
- PT Kimia Farma Tbk (Indonesia): PT Kimia Farma Tbk is another prominent pharmaceutical company in Indonesia. It is listed on the Indonesia Stock Exchange under the ticker symbol “KAEF.”
- Mega Lifesciences Public Company Limited (Thailand): Mega Lifesciences is a Thailand-based pharmaceutical company with operations in various countries. It is traded on the Stock Exchange of Thailand (SET) under the ticker symbol “MEGA.”
- Hovid Berhad (Malaysia): Hovid Berhad is a Malaysian pharmaceutical company that manufactures and markets a wide range of healthcare products. It is listed on Bursa Malaysia under the ticker symbol “HOVID.”
- PT Indofarma Tbk (Indonesia): PT Indofarma Tbk is a state-owned pharmaceutical company in Indonesia. It is publicly traded on the Indonesia Stock Exchange under the ticker symbol “INAF.
Despite challenges around high cost of R&D and regulatory challenges, the region has several factors in its favor and should remain a hotbed for R&D and investment in the coming years.