Pharmaceutical companies are expanding their presence into Southeast Asia, particularly Indonesia and Vietnam. There is a high preference for Korean products and a high growth potential in these markets, leading to strong optimism about the possibility of expansion. Among these countries, Indonesia stands out for its large population and robust growth prospects, making it a focal point for successive entries into the market.
According to pharmaceutical and biotech industry sources on Feb. 12, Yoo Young Pharmaceutical has recently completed registration for its hyaluronic acid injection for osteoarthritis, “Resinoone,” in Indonesia and has begun procurement. The company also plans to export to Chile and Hong Kong later this month. Resinoone is a treatment for osteoarthritis administered once in every six months. Yoo Young Pharmaceutical is currently in the process of registering Resinoone for approval in around ten Southeast Asian and Latin American countries, including Thailand, Vietnam, Mexico, and Bolivia.
In July of last year, HK Inno.N launched its reflux disease treatment, “K-CAB,” in Indonesia.
Indonesia is the fourth most populous country in the world, with a population of approximately 270 million people. The pharmaceutical market in Indonesia was estimated to be around 10.98 trillion won (US$8.24 billion) in 2017, making it the largest in the Association of Southeast Asian Nations (ASEAN). The market size for drugs used to treat peptic ulcers in Indonesia was approximately US$172.42 million as of 2022.
Daewoong Pharmaceutical has also designated Indonesia as a key country for expansion in Southeast Asia. The company has been investing in various initiatives, including establishing a joint bioprocess research institute with the University of Indonesia (UI) as well as participating in a credit-linked global master’s and doctoral training program.
SK Plasma and GC Biopharma are also entering the blood products market in Indonesia. GC Biopharma received approval from the Indonesian Ministry of Health in June last year for the construction of a blood products plant and technology transfer. It also signed a tripartite business agreement with Indonesian Red Cross and pharmaceutical companies.
SK Plasma also received approval from the Indonesian Ministry of Health in March last year for the construction of a plasma fractionation plant. The blood products plant being constructed by SK Plasma aims to process 1 million liters of raw plasma annually and is targeted for completion by 2025.
Chong Kun Dang Pharmaceutical has also been continuing its cancer drug production through its joint venture “CKD-OTTO,” established in Indonesia in 2015. Dongwha Pharm, on the other hand, entered into an agreement last year to acquire a 51 percent stake in Trung Son Pharma, a Vietnamese pharmacy chain operator, for approximately 39.1 billion won.
Trung Son Pharma operates over 140 pharmacy chains in the southern region of Vietnam, selling pharmaceuticals, health functional foods, and cosmetics. Medytox also entered the Southeast Asian market by signing a supply contract for its cosmetic product, Neuraderm, with the local distributor PCVN in Vietnam in July last year.
In addition, SK Bioscience signed a memorandum of understanding with the Thai government-owned pharmaceutical company, Government Pharmaceutical Organization, last year to establish infrastructure for domestic vaccine production and development in Thailand. This initiative aims to promote vaccine localization in Thailand and the ASEAN region and to build infrastructure to respond to new pandemics.
A pharmaceutical and biotech industry official stated, “Southeast Asia is the fastest-growing pharmaceutical market with an average annual growth rate of around 8 percent from 2015 to 2019. South Korean pharmaceutical companies are actively engaging in various strategies such as partnership agreements, collaborations, and acquisitions of local companies in the region.”