Pharmaceutical imports are expected to reach about $120 million for the 2007-2008 financial year.

THE import value of pharmaceuticals and medical equipment continues to rise due to ever increasing demand in the Myanmar market, according to industry sources based in Yangon.

Imports of pharmaceutical products and medical equipment increased from US$62 million in the 2005-06 financial year to $100 million for the 2006-07 financial year. Pharmaceuticals are now Myanmar’s seventh largest import item based on dollar value, according to statistics from the Ministry of Commerce.

This figure is expected to rise again when the 2007-08 financial year data is released. Officials from the Myanmar Pharmaceuticals and Medical Equipments Entrepreneurs’ Association (MPMEEA) estimates pharmaceutical imports will reach about $120 million for this period.

Since Myanmar introduced a market oriented economic policy in 1989, the private sector has been allowed to import pharmaceuticals from abroad.

Pharmaceuticals from India occupy the largest portion of market share and comprise more than 40 percent of total pharmaceutical imports, according to the statistics from the Ministry of Commerce.

“We mostly import pharmaceutical from neighbouring countries including India, Thailand, China and Bangladesh,” said Dr Maung Maung Lay, managing director of Ni Lay Naing Company Ltd.

“Almost all pharmaceuticals are imported from Asia and they have most of the market share in Myanmar. Imports from rest of the world, such as European countries, are very negligible,” he added.

There are about 6000 different kinds of branded pharmaceuticals registered with Food and Drugs Administration (FDA) by 300 companies all over the world.

“If we want to import a new brand of pharmaceutical or medical equipment, we must first of all send a sample of the drug to the FDA for testing. This may take up to one year, maybe longer. Only when we have FDA approval can the drugs be imported and distributed in the market,” said Dr Maung Maung Lay, who is also an ex-president and consultant of MPMEEA.

He said many pharmaceutical companies operating in Myanmar, including Ni Lay Naing Company Ltd, doubled as both importers and distributors.

U Zaw Moe Khine, managing director of A A Medical Products Ltd – the leading pharmaceutical distribution company in the country – said that over last decade foreign pharma-ceutical companies began to dominate the local market.

“Local companies have struggled to compete with the foreign distribution firms and have had to put in a lot of effort over several years developing capable logistics systems,” he said.

Foreign companies also have an advantage over local companies because of their marketing strategies, distribution tech-niques, maintenance and storage systems, he said.

“We national distributors used to find it difficult to compete with these multinational distribution companies that monopolised the biggest market shares in Myanmar,” U Zaw Moe Khine, also a secretary of MPMEEA said.

Since about 2000 national companies have been able to compete with them in distribution and importing, he said.

Myanmar has only three local pharmaceutical factories – in Yangon, Tat Kone and Pyin Oo Lwin – which are all operated by the Myanmar Pharmaceutical Industry (MPI) under the Ministry of Industry (1)

The factory in Pyin Oo Lwin became Myanmar’s third pharmaceutical manufacturing factory, opening in December 2007.

Industry experts estimate that, prior to December 2007, about 80 percent of local pharmaceutical products were imported.

“In accord with Trade Related Intellectual Property Rights set by World Trade Organization (WTO), Least Developed Countries are eligible to manufacture pharmaceuticals,” Dr Maung Maung Lay said.

He told The Myanmar Times that as Myanmar is classified a Least Developed Country it was eligible to manufacture pharmaceuticals under the TRIPR agreement. He said further expansion of local pharmaceutical manufacturing could be beneficial.

“If the private sector has a chance to manufacture pharmaceuticals in the country,” he said, “the price of medicine and medical equipment should decrease and be affordable for more people.”