Pharmaceutical Distribution APAC Market Intelligence

Pharmaceutical Distribution APAC Market Description

In the APAC region, Japan is leading with the highest value of total pharmaceutical sales, followed by China and Australia while the least value of sales was recorded in Singapore. Majority of the nations under consideration follow the percentage of sales pricing models except for Japan, the Philippines, and Indonesia which use a fee for service model. The maximum wholesaler margin is in India, standing at 10-30 percent, followed by Singapore with a wholesaler margin of 20-25 percent. The least wholesaler margin is in Japan with 6-8 percent, followed by South Korea and Vietnam with 6-9 percent.

The report provides a comprehensive overview of the pharmaceutical wholesale distribution market in the APAC region, examining the market dynamics, total pharmaceutical sales, pricing models and wholesaler margin. The report analyzes in detail the pharmaceutical distribution in China, Malaysia, Singapore, Taiwan, Thailand, Vietnam, Philippines, Indonesia, Australia, India, South Korea, and Japan. For each of the individual countries discussed in the report, the engagement models and distribution services are analyzed. The report also examines the sales incentives, distribution margins, and licensing authorities in each of the 12 countries and presents an analysis of the top pharma wholesalers at a regional level.

Report Coverage

Top Pharma Whole salers
Pricing Model
Pharmaceutical Wholesale Distribution Dynamics

Pharmaceutical Distribution APAC Market Trend, Analysis & Forecast

Category Intelligence on Pharmaceutical Distribution APAC covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Executive Summary
Pharma Distribution: China
Pharma Distribution: Malaysia
Pharma Distribution: Singapore
Pharma Distribution: Taiwan
Pharma Distribution: Thailand
Pharma Distribution: Vietnam
Pharma Distribution: Philippines
Pharma Distribution: Indonesia
Pharma Distribution: Australia
Pharma Distribution: India
Pharma Distribution: South Korea
Pharma Distribution: Japan

Pharma Distribution: China

The industry is expected to have higher bargain and negotiation power as the market is highly fragmented. Also, implementation of two-invoice system in 2018 is expected to bring down the distributor margins

Manufacturers adopt percentage of sales as a prevalent pricing model by engaging with full-line wholesalers for the distribution of pharmaceutical product.

Engagement Model

The multi-channel wholesaler model is the predominant channel used by pharmaceutical companies
China has launched the two-invoice system where manufacturer's must engage with first-tier distributors to ensure geographic coverage by restructuring second- or third- tier distributors as first-tier distributors

Distribution Services

Percentage of sales is the most widely adopted pricing model by the pharmaceutical companies for engagement with wholesalers

Wholesaler/Distribution Margin

Distributor margin ranges between 8–12 percent

Licensing Authority

National Development and Reform Commission (NDRC)

Shelf Life

Most imported products should have at least six months remaining of their shelf life

Pharma Distribution: Malaysia

Industry is expected to have higher bargaining power as the market is fragmented and also most of the companies prefer to engage with regional distributors such as Zuellig Pharma and DKSH

General practice is to engage with a single national distributor; however, international manufacturers deal with more than one distributors, based on the product portfolio.

Engagement Model

Foreign pharmaceutical companies who do not have local subsidiaries prefer to outsource distribution services and manage product registration in-house
Multinational companies outsource their complete operations by engaging with single national distributor

Distribution Services

Engaging with distributor for Full-line distribution services, commission as percentage of sales value is adopted

Wholesaler/Distribution Margin

Distributor margin ranges between 5–15 percent

Sales Incentives

On complete outsourcing of the distribution pharmaceutical companies offer incentives on sales target achievement, which is fixed at the beginning of the year

Licensing Authority