Doors open for Strides Arcolab in S-E Asia
DHA (Drug Houses of Australia), Singapore’s buyout will allow Strides Arcolab to enter the markets of South East Asia, which account for just 3% of the company’s revenues.
DHA (Drug Houses of Australia), Singapore’s buyout will allow Strides Arcolab to enter the markets of South East Asia, which account for just 3% of the company’s revenues.
While Singapore accounts for the largest share of DHA’s revenues, it also exports over 20% of its products to countries like Malaysia, Hong Kong, Thailand, Sri Lanka, and Bangladesh. In the year ended December ’05, DHA’s revenues were $16.4bn (Rs 75.8 crore) and profit after tax was $2.7m (Rs 12.6 crore).
Singapore’s generic pharma market is estimated to account for close to 10% of the total pharma market in the country. However, given the limited market size, the market environment is highly competitive with about 20 generic manufacturers and distributors vying for a piece of the market.
Haw Par corporation’s sales from its generic business declined by 4% in the year ended December ’05. It sold the generic business in line with its plans to streamline its healthcare business. It will focus on branded proprietary over-the-counter products where growth potential is higher in the global markets.
However, while strong economic growth, a growing and ageing population could drive market expansion, Strides Arcolab would need to tighten costs to grow and be profitable in these new markets.
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