Nepal - Drug manufacturers expand operations in Nepal

Kathmandu (The Kathmandu Post/ANN) - The market share of medicinal drugs from third countries has been growing in the Nepali market.

Among the 14 foreign companies that were granted licenses to sell their products in Nepal, six are from India while the rest are from China, the US, Mexico, France, Belgium and Germany, according to the Department of Drugs Administration (DDA). No new Nepali company received a license in the last fiscal year.

"Third country medicinal drug manufacturers are entering the Nepali domestic drug market to offer life saving drugs," said Pan Bahadur Chhetri, an officer at the import section of the DDA. "We have not permitted them to import and supply essential drugs."

According to the DDA, these pharmas have registered their products in the categories of anti-cancer, large volume parental, contraceptives, vaccines and anti-retro viral drugs. Chinese pharmaceuticals have been mainly exporting vaccines in the domestic market, according to Chhetri.

Chhetri said that the government has a policy of allowing sales of even essential drugs made by companies from third countries that sell their products in the US and Europe.

Domestic products have a 40 perc ent share in Nepal's market worth 14 billion rupees (US$173 million) annually, according to the DDA. Indian drugs have a market share of 50 per cent and third countries account for the rest.

Mahesh Gorkhali, president of the Association of Pharmaceutical Producers of Nepal, said the growing import of life saving drugs could be considered good as it would help increase access. "However, the government should encourage domestic entrepreneurs to manufacture these types of drugs." While domestic pharmaceutical companies have been increasing their share in the domestic drugs market, foreign manufacturers have been equally keen contenders.

According to the DDA, there has been an increase in the number of licenses issued to foreign companies to enter Nepal in the last three years. There were 14 foreign companies in 2010-11 compared to 10 in 2009-10.

The department had registered eight foreign pharmaceutical companies in 2008-09. Likewise, 505 new foreign brands entered the domestic pharma market in the last fiscal year.

By the end of the last fiscal year, 7,092 allopathic medicinal brands from 257 foreign companies were registered at the department. Only 31 of them are from outside South Asia and China.

According to the DDA, the market is also awash with local brands of general medicines. Domestic drug makers registered 948 new brands in the last fiscal year.

All of their products belonged to the general medicines category, according to the DDA. "Domestic drug manufacturers have been coming up with diversified products in the general medicines category," said Gorkhali.

As of last year, 11,769 brands of medicinal drugs were registered at the department, according to the DDA.

Foreign manufacturers registered in 2011-12

1. Akums Drugs and Pharmaceuticals Ltd, India

2. Nacto Pharma Ltd, India

3. Biomed Pvt Ltd, India

4. Naprod Life Science Pvt Ltd, India

5. Celon Laboratories Ltd, India

6. Axa Parenterals Ltd, India

7. Sinovac Biotech Co Ltd, China

8. Lanzhou Institute of Biological Products, China

9. Hospira Inc, USA

10. IPR Pharmaceuticals Inc, Puerto Rico

11. Products Roche, SA; De CV, Mexico

12. Delpharm Life Science, SAS France

13. Zen Pharmaceuticals, Belgium

14. Fehrring International Centre, Germany

Rajesh Khanal in Kathmandu/The Kathmandu Post | ANN

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