Edge Weekly Scramble for dispensing pie

by **Cals** Sun 22 Mar 2015, 22:56

Edge Weekly
Scramble for dispensing pie

By Surin Murugiah / theedgemarkets.com | March 21, 2015 : 9:38 AM MYT

KUALA LUMPUR (March 21): The Edge weekly in its latest edition has said that while the debate on dispensing separation (DS) — which will essentially divide the professional responsibilities of doctors and pharmacists — waxes hot and furious, money has been pouring into the community pharmacy industry.

It said this was no surprise as the pharmaceutical market as a whole was estimated at RM8 billion — and growing.

The weekly’s Vasantha Ganesan wrote that these investors were pinning their hopes on the eventual implementation of DS.

The Edge reported that big names like Boots and Chemist Warehouse were said to be eyeing a slice of the Malaysian pie — one of the few countries in Asia that have yet to implement DS.

It cited [size=14]Business Monitor Research, an international market research organisation, as putting the value of the Malaysian pharmaceutical market (encompassing MNC R&D companies) at RM6.5 billion in 2013.

It added that the channels through which these pharmaceutical products are distributed were: government (40% or RM2.6 billion), community pharmacies (23% or RM1.5 billion), clinics (20% or RM1.3 billion) and private hospitals (17% or RM1.11 billion).

Another 30% or roughly RM1.95 billion is said to encompass local generic manufacturers and generic imports, which brings the total size of the pharmaceutical market size in Malaysia to about RM8.45 billion in 2013.

The Edge said that Malaysia’s community pharmacies, also referred to as retail pharmacies, number a little over 2,000, with major names like Caring, Guardian, Watsons, Cosway and Vitacare controlling a sizeable number of stores. Others include Tigas, Aeon Wellness, Alpro, Constant, Health Lane Family and Multicare.

It is the market share held by the clinics that the community pharmacies are eyeing. Should DS be implemented, community pharmacies could grab as much as RM1.7 billion from the clinics, bringing their total revenue to RM4 billion, based on 2013 figures.

DS is said to have been generally agreed upon by the professional bodies representing the doctors and pharmacists. Associations representing community pharmacies and pharmacists voiced their hope several weeks ago that the “doctors diagnose, pharmacists dispense” would be implemented as early as April 1 — the same day the Goods and Services Tax (GST) takes effect.

The weekly however also wrote that Health Minister Datuk Seri Dr S Subramaniam has since come out to say that no decision had been made and that the dialogue between the stakeholders was ongoing.

Just two weeks ago, on March 12, Subramaniam said what works elsewhere may not be applicable to Malaysia, as far as DS is concerned, said The Edge.

The magazine said two new players recently entered the community pharmacy market in anticipation of DS, explaining that pharmaceutical and medical devices distributor Zuellig Pharma Group last month acquired 24-year-old Johor-based My Pharmacy (M) Sdn Bhd, which operates 15 stores.

“With rising health awareness and increasing momentum to separate drug prescribing and dispensing, community pharmacies will play a crucial role in primary healthcare provision in Asia. Zuellig Pharma believes the acquisition of My Pharmacy represents a compelling opportunity to becoming a key player in the community sector in Malaysia,” the weekly said that the company said in a statement to The Edge.

Meanwhile, The Edge also said that Symbion International LCC — a private investment vehicle of Datuk Dr Jennifer Low, who is co-founder of the Quill Group of Companies — has put into motion plans for two unique business models that are new to Malaysia.

It said these were a warehouse concept pharmacy called Super Pharmacy Megastore and MEDICO clinic and pharmacy, detailing that both concepts aim to provide consumers and patients with the convenience of obtaining their prescriptions.

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For more details on the readiness of the country for the DS model as well as the challenges it brings, read the full story in the latest weekly edition of March 27 to March 29 available at newstands now.
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