Our Business Model

The Malaysian Market

The IMS audit Malaysian Pharmaceutical Audit, 2008, valus the market at RM2.1 billion. However, this value does not include sales to government hospitals and institutions, supermarkets and non-pharmacy drugsotres and retail outlets. It is estimated that the value of the excluded market comprises 30% of the total market. Extrapolating this, the Malaysia Pharmaceutical market is valued at about RM3 billion.

Suppliers

In order for suppliers to gain entry into the Malaysian market, the various methods include
  • Direct entry (full set up of local subsidiary)
  • Representative office (local sales and marketing infrastructure with minimal support staff)
  • Agency/licensing (appoint and give rights to local company to represent supplier with no local direct cost)
While most of the major pharmaceutical companies, with sufficient local turnover would be able to opt for either one of the first two, there are yet many suppliers with good, innovative products wishing to enter the local market that can do neither, either due to cost constraints or lack of focus.

The third method allows such smaller companies or even larger companies who wish to maintatin their focus on their core products to still have local representation for their brands.

Regulatory Environment

In the 1980's, the Drug Control Authority was set up under the Food and Drug Act, and the National Pharmaceutical Control Bureau was set up to implement the requirements of the act. Even before this, there were already had several acts and ordinances in place to regulate the production, importation, sale and supply of pharmaceutical and medical products.

Suppliers who supply goods in the market will have to comply with the regulations of this country in order to ensure safety, eficacy and quality of the products sold, for the benefit of the citizens.

Somedico

With its long presence in the Malaysian market, Somedico knows the needs of the market and is familiar with the regulatory landscape in Malaysia. Using the knowledge and skills buil over the years, Somedico is well placed to ensure a cost-effective market entry into Malaysia, with expertise in the various areas required to succeed.

Our company infrastucture enables us to provide various services (see our services) to our partners (see our partners), and would be able to represent new suppliers that has a shared need and goal as Somedico.
Business Model