■ Zuellig Pharma patient solutions

■ Asia’s oncology therapy market

■ Singapore OTC prospects
■ Views from the region

In the news
Recent events and people
making news at Zuellig Pharma
Asia Pacific
Closer trade ties
The impact of the new free trade
agreement between South Korea
and the EU
The full treatment
Finding the cure for patients who fail
to adhere to their medication
Roaring back
Singapore's OTC market is faring
well as the economy recovers
Tackling cancer
How should the rapidly growing
oncology market meet the
challenges of Asia Pacific?
in house Views from the region
Our country managers in Asia
Pacific speak out on the issues
that concern them the most
& Company
Information about Zuellig Pharma
Issue 51, December 2010. Entire contents © Copyright, 2010. Zuellig Pharma Asia Pacific.
All rights reserved. Reproduction in whole or part without express written permission is prohibited.
It is hereby expressly stated that neither Zuellig Pharma Asia Pacific nor any of its subsidiaries,
affiliates or their respective directors, employees or representatives makes any representations
or warranties, expressed or implied, with respect to any information or materials contained in this
publication. No liability whatsoever, whether in contract, tort or otherwise and including liability for
negligent misstatement, is accepted by any member of Zuellig Pharma Asia Pacific for accuracy or
completeness of any of the information provided or opinions expressed by or on behalf of Zuellig
Pharma Asia Pacific or for any errors, omissions or misstatements.
The Market Partner is published by Zuellig Pharma Asia Pacific Corporate Office.
Editor: Mr. Joshua Leung, Tel: +86 (21) 5306 0001, jleung@zuelligpharma.com
Design: Blackstone Concepts Co., Hong Kong
Please address any comments to our office: Zuellig Pharma Asia Pacific, Corporate Office, 13th Floor
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www.zuelligpharma.com
As we draw to the end of another
productive year, The Market Partner
takes a look forward to new services
and developing sectors of the
healthcare market that can create fresh
opportunities for principals in Asia.
One exciting prospect is a Zuellig
Pharma move to step up initiatives
on patient solutions, the subject
of our Feature Story in this issue.
The enterprising venture seeks to
improve outcomes for patients and
increase business for principals,
among other benefits.
With outcomes rather than products
likely to be a major driver in the years
ahead, pharmaceutical companies
will need to widen their collaborations
in order to deliver packages of care to
patients. As Asia’s leading distributor of
healthcare and pharmaceutical products,
Zuellig Pharma’s extensive regional
network, state-of-the art systems, and
local know-how in individual markets
puts the company in a strong position
to develop a comprehensive portfolio
of patient solution services. These may
include home nursing and alternate site
healthcare as well as patient monitoring
and self-management. In addition,
collaborative partnerships have long
been a part of our core strategy.
Oncology therapies are another
area with good growth potential,
as discussed in the article by IMS.
The sector is building globally, with
growth propelled by pharmerging
markets. In Asia, containment
measures have been appearing,
particularly in relation to drug
expenditure. Yet, prospects are still
promising for those who adopt smart
planning, take local conditions into
account, and strive for product launch
excellence to capitalize on the market.
OTC specialists Nicholas Hall &
Company explore the bright prospects
for the OTC sector in Singapore.
Government promotions to educate
and involve individuals in healthcare,
a strong-performing economy, and
a stable business environment for
multinationals to set up a regional
base are among the factors helping
to create the positive outlook. On
the economic front, the Economist
Intelligence Unit examines the impact
of the recently signed bilateral free
trade agreement between South Korea
and the European Union in light of
fears of growing competition between
exporting countries in the current
global climate.
At Zuellig Pharma, we have
launched our new group-wide Code
of Conduct and Compliance Program.
As a front-running company in Asia’s
healthcare supply chain, we believe
it is essential to adhere to the highest
ethical business behavior throughout
our operations. This move further
enhances our established reputation
for quality service and transparency.
After 19 successful years with the
company, we also pay tribute to Mr.
Fred Tsang, Chief Executive of Zuellig
Pharma Hong Kong, who retires at the
end of December.
In other Zuellig Pharma news, we
announced on November 29 that we
have sold all of our interest in Zuellig
Pharma China to the US healthcare
services company, Cardinal Health.
As Mr. Bill Meany, Chief Executive
Officer of The Zuellig Group, said in
announcing this sale: “We are proud
of the success of our pharmaceutical
wholesaling business in China, but
also very conscious of the extent of
resources required to participate
successfully in a market with significant
growth in volumes and consolidation
among industry participants. It is for
this reason that we believe Cardinal
Health has the resources, skills, and
commitment to take this business to
the next stage of its development.”
Zuellig Pharma remains very
focused on the development of its
operations throughout the Asia Pacific
region and it is investing in growing
its well-established healthcare-related
business both through strong internal
growth and through acquisitions. The
leadership of the company will be
shared between Mr. Roland Bruhin
and Mr. Rolf Steffen.
Wishing you all a successful year
in 2011.
Roland Bruhin
CEO Healthcare Distribution and
Commercialization
Rolf Steffen
CEO Healthcare Services and
Investments

VP Operations Mr. Suryadi Nagawiguna (left) and Customer Care Manager
Mr. Tjatur Donny at the awards ceremony.
Award-winning recognition for APLCare online
at Asia-Pacific expo
Congratulations to PT Anugerah
Pharmindo Lestari (APL), Zuellig
Pharma’s distribution company
in Indonesia, for its Best Human
Resources Program award at the Asia
Pacific Contact Center Association
Leaders Expo 2010.
The accolade is
recognition of the
achievements of the
APLCare online team
following the initiation
of an internal human
resources development
program to enhance
customer care in 2009.
Receiving the
honor on behalf of the APL team at
the award ceremony was Mr. Tjatur
Donny, Customer Care Manager. Mr.
Suryadi Nagawiguna, Vice President
Operations also attended the event.
The award indicates the leading
position of the APLCare online team
not only in Indonesia but throughout
the region.
At the Asia Pacific event, held
in Bali from October 20-21, APL
also presented the concept, strategy
roadmap, goals for improvement
and achievements for the human
resources program upgrade. The
enhancement project covered all
aspects of operations including
recovery, operations,
and training
In
February
2009, APLCare
online became
a member of the
Indonesia Contact Center
Association, providing the
opportunity to benchmark
themselves against others in the
field. In 2010, APLCare online
led the way at the national contact
center awards competition, winning
top honors for Best Manager of a
Contact Center below 100 seats and in
the Best Human Resources category
and a silver award for Best Teamwork.
This sterling performance
gave the APL team the chance to
represent Indonesia at the Asia
Pacific championships which saw
10 countries and regions taking
part. In the regional contest, teams
competed in three categories:
business contribution, technological
innovation and human resources.
Only one winner for each category
was selected.
Zuellig Pharma Vietnam races forward
The sixth anniversary of Zuellig
Pharma Vietnam’s participation in
the Fun Run in Ho Chi Minh City
drew more than 530 participants
from the company, a huge rise on
the 22 staff members who initially
took part in 2005. The healthy
turnout on October 3 is indicative
of the team spirit and willingness
to assist the community among
company employees and their
family members.
“We are very happy to see so
many of our staff joining the Fun
Run,” said Mr. Stefan Heitmann,
General, Director, Zuellig Pharma
Vietnam. “It is a great event for us
to sponsor and take part in given
its emphasis on health and fitness.
ZPV General Director Mr. Stefan Heitmann shares his thoughts on the race.
The Asia Pacific Contact Center
Association Leaders (APCCAL)
was set up in 2008 as an advisory
institute for contact centers in the
region. It fosters the exchange of best
practice, knowledge and experience
within Asia as well as networking
opportunities with practitioners in
Europe and the US.
In addition to the awards
presentation, the APCCAL Expo 2010
included exhibitions from contact
center technology vendors, outsourcing
providers, and a conference featuring
presentations from the leading contact
centers in Asia.
As a company, it gives us a chance
to contribute to the Vietnamese
community in a different way from
our daily work.”
Proceeds from the four-
kilometer annual Fun Run, which
is organized by the British Business
Group Vietnam (BBGV), go to a
number of different charities in the
country. The 2010 race raised a total
of US$50,000.
Zuellig Pharma Vietnam also
participates in the Terry Fox Run in
Hanoi, contributes to the Nguyen
Van Huong scholarship fund,
and has donated products such as
Aquatabs to assist in providing
clean water to remote regions and
areas affected by flooding.
To enhance Zuellig Pharma’s reputation for
top-quality service, trust and transparency, the
company has successfully launched its first group-
wide Code of Conduct and Compliance Program.
The launch was preceded by a comprehensive
development process that included an initial risk
assessment, developing a business-focused Code
of Conduct, producing related compliance policies
and procedures and creating targeted training and
communication tools.
Over 30 compliance project managers
and human resources managers attended
the inaugural region-wide train-the-trainer
conference led by the Corporate Office in Hong
Kong. To date, 7,000 employees across 16 business
units and over 10 countries and regions have
received a copy of the Code either in English or
an Asian language and have undergone training
on the related compliance requirements.
“Zuellig Pharma’s leading role in Asia’s
healthcare supply chain demands that we
uphold the highest standards of ethical
business behavior in all areas of operations,”
Mr. Rolf Steffen, CEO Healthcare Services and
Investments, said. “The launch of the Code and
compliance program ensures that the company
continues to preserve these values.”
Implementation will also enable Zuellig Pharma
to meet the continual changes in the risk and
compliance environment in which the company
and its business partners operate.

Group Compliance Program

Gifts, Entertainment
Speaking Up Policy
& Other Benefits Policy

Code Anti-Corruption Policy Conflicts of Interest Policy

Selection, Due Diligence &

Principal Response Protocol
Engagement of Third Parties Policy
Flexibility and adaptability that result in cost
optimization in the Asian market were the key
messages delivered by Mr. Georg Schulz, Business
Development Director of Zuellig Pharma’s Specialty
Solutions Group (SSG), at this year’s leading 8th
Annual Clinical Trial Supply East Coast 2010
conference, held in the US city of Philadelphia.
The October event, sponsored by SSG and the
premier conference of its kind, attracted more than
200 key decision-makers in clinical trial supply
chain management who shared strategies that have
resulted in cost savings and greater efficiency.
Mr. Schulz presented a case study illustrating
clinical trial supply chain agility and innovation
leading to cost optimization in Asia. He pointed out
that supply chain tactics have to remain flexible and
adaptive due to constantly evolving clinical study
dynamics. Such adaptations may include shifting the the Group’s innovative approach. In addition, the SSG is the leading provider of clinical supply
supply chain strategy from a central depot model organizers invited Mr. Schulz to share SSG’s view chain solutions in Asia, offering storage and
to a local depot model to suit the clinical site’s in a distinguished panel discussion focused on transportation services across its regional network
expectations on the lead time for supplies, timely supplying clinical trial medications to China, India of 14 depots in over 10 countries and regions. The
patient dosing, or to adhere to local regulations. and other emerging markets. The dialogue sought to Group has been the preferred partner for sponsors
Feedback to SSG showed that the address was highlight pitfalls and provide deeper understanding and clinical research organizations in more than 800
greatly appreciated by delegates who applauded of regulations and guidelines in these countries. clinical trials to date.

In a significant move, SSG has been granted a zero
goods and services tax (ZGST) license and Secure Trade
Partnership certification (STP) by Singapore Customs.
ZGST improves cash flow for SSG’s principals by
alleviating unnecessary goods and services tax pre-
payments, which is especially useful when many of the
imported goods are expected to be re-exported, as is
often the case in a regional distribution center operation.
With a ZGST license, a warehouse such as
SSG’s regional distribution center or central depot
is treated as an extension of the Free Trade Zone.
This means when goods are moved into a ZGST
warehouse from Free Trade Zones such as air
and sea ports or imported via land checkpoints,
Singapore’s goods and services tax (currently at 7%
of goods value) is suspended. The tax is similarly
suspended when goods are transferred from one
ZGST warehouse to another. It only becomes
payable when goods are moved from the ZGST
warehouse into the local market for sale.
Secure Trade Partnership is a voluntary
certification program consistent with the World
Customs Organization Framework of Standards to
secure and facilitate global trade. To be awarded
a STP certificate, a company must be a leader in
supply chain security management and related
matters. Under STP guidelines, companies
are required, among others, to have a security
management system, conduct risk assessments
of their business operations, and implement
the security measures stipulated under the STP
guidelines to secure their supply chain.
Certification provides an additional “quality
mark” for SSG services. Another key benefit is
that principals’ cargo is less likely be inspected or
may qualify for reduced inspection or expedited
clearance, where such certified status is recognized
by countries importing the products. This is
particularly advantageous if the cargo under
inspection contains cold chain products.
As the leading provider of regional distribution
center solutions in Asia, offering a range of value-
added services, product customization and anti-
counterfeit technology solutions to pharmaceutical
and healthcare companies, SSG will seek to
leverage these two milestones to further develop
innovative services for principals and enhance
operational excellence.
The new Market Partner talents who are responding to the demands of our
ever-expanding businesses
Hong Kong
Effective January 1, 2011,
Mr. Charles Tang will
take up the post of
Chief Executive for the
Zuellig Pharma Hong
Kong distribution business. Charles
replaces Mr. Fredrick Tsang who
has retired (see p.8). Charles joined
the company in September 2010
as Chief Operating Officer and has
been working with Fred on a smooth
transition of duties. Charles has
previously worked in the United
States, Taiwan, Philippines,
China, and Hong Kong for
Coca-Cola, Boeing, John
Deere and Caterpillar. During a
21-year career with The Coca-Cola
Company, his responsibilities included
general management, consumer
and customer marketing, sales and
distribution, wholesaler and distributor
management, and government affairs.
For the past 10 years, his focus has been
primarily on Greater China. He will
report to Mr. Mike Becker, Area Director.
Indonesia
We are happy to report
that Mrs. Liryawati
has taken up the post
of Vice President New
Revenue Streams at PT
Anugerah Pharmindo Lestari (APL),
Zuellig Pharma’s distribution company
in Indonesia. She previously worked as
General Manager at Beverage Partners
Worldwide, a joint venture between
Coca Cola and . In her new role,
Liryawati will lead a group focused on
generating new revenue across business
segments (ethical, consumer MDD,
agency, market research information,
customer care) and support regional
strategies for patient solutions and retail
management solutions. She reports to
Mr. Santiago Garcia, President Director.
Mr. Ebo Widarisman
has been appointed
Quality and Compliance
Manager. Ebo leads the
team in the areas of quality
management, operations enhancement
and compliance management. He
joins APL from Danone Aqua (PT Tirta
Investama), where his last position was
Scientific Regulatory Senior Manager
responsible for product registration,
compliance and relationship
management with regulatory bodies.
Ebo reports to Mr. Suryadi Nagawiguna,
Vice President Operations.
Malaysia
Mr. Nicolas Stadelmann
has joined Zuellig
Pharma Malaysia
as Medical Devices
Manager. He will be
responsible for the new Medical
Devices Business Unit comprising
medical devices warehouse
operations and logistics, technical
support services, and principal and
customer services. Nicolas joins
us from Zuellig Pharma Thailand
where he was previously Logistics
Manager (Outbound) at the Bangkok
Distribution Center. Nicolas has been
with the Zuellig Pharma Thailand since
2006. He reports to Mr Daryl Ong,
Director, Operations.
We are also delighted
to welcome Ms. Reine
Seow as Principal
& Customer Services
Manager (Medical
Devices). Reine has long experience in
customer services, focusing on order
processing, complaints management,
customer satisfaction/relationship
management and inventory
management. Her added
exposure to sales and marketing
for various industries will help
to support principals’ sales and
marketing teams. Reine reports to
Mr. Nicolas Stadelmann, Medical
Devices Manager.
Ms. Chin Pei
Ling has been
appointed Finance
Manager (Financial
Accounting). She will be
responsible for financial reporting for
Malaysia and Brunei. Pei Ling has 18
years’ experience in the field. Her last
appointment was with MOX-Linde and
prior to that she was with BASF Malaysia
for 13 years. Pei Ling reports to Ms. Lee
Kim Har, Financial Controller.
Our new Order
Fulfillment Manager is
Mr. Kenneth Pereira.
Kenneth has been
working in manufacturing
and warehousing for more than 15
years at various companies and his
experience with major ERP systems
such as Oracle 9i and SAP will be a
valuable addition. Prior to joining
Zuellig Pharma, Kenneth was employed
at GWIP in Port Klang as Planning
and Warehouse Manager in charge of
Procter & Gamble operations. Kenneth
reports to Mr. Pang Kim Sun, Associate
Director, Operations (Logistics).
Philippines
At Zuellig Pharma
Philippines,
Mr. Nilo P. Badiola
has been appointed
Vice President and Chief
Financial Officer. Prior to working
at Zuellig Pharma, Nilo was General
Manager of Transfarma. He was also
previously Finance Director for the
Pharmalink division of Zuellig Pharma
Corporation. Nilo reports to Mr. Mike
Becker, President and CEO, Zuellig
Pharma Philippines.
Mr. Gerardo (Gerry)
Hilario has become
Vice President for
Value Innovations in
the Philippines. He will
also support regional efforts on similar
initiatives. Gerry joined Zuellig Pharma
as Vice President for Modern Trade in
2005. He reports to Mr. Rolf Steffen, CEO
Healthcare Services and Investments and
Mr. Raymond Azurin, Chief Operating
Officer, Zuellig Pharma Philippines.
Also joining the Zuellig
Pharma team is
Mr. Manuel (Manny)
Concio III. Manny brings
19 years’ of diverse sales
and distribution experience
to his role as Assistant Vice President
– Sales Team 2. He has worked for
Johnson & Johnson, Del Monte, and
most recently held the position of Sales
Director at Beam Global Philippines.
Manny reports to Mr. Raymund Azurin,
Chief Operating Officer.
Mr. Rodrigo (Dei)
Bayna has been
appointed Commercial
Manager for the
GB Specialty Logistics
Business. Dei has over 20 years of
professional management experience in
healthcare and pharmaceuticals, with a
solid background in sales and marketing,
business development, strategic and
financial planning and customer
relations. He reports to Mr. Gerry Hilario,
Vice President for Value Innovations.
Metro Drug Inc (MDI) is pleased to
announce that Mr. Wilfredo (“Freddie”)
Madregallejo has become
Vice President for Sales
and Customer Service. In
this role, Freddie will look
after the overall direction,
supervision and control of the Sales and
Customer Service Division. Prior to MDI,
Freddie worked at Baxter, Sanofi-Aventis
and Asiafil Foods Corporation. He
reports to Mr. Christian Eberle, General
Manager, MDI.
Singapore
At Zuellig Pharma
Specialty Solutions
Group (SSG), Mr. Lucas
Tan has been appointed
Business Development
Manager for Pharma-BioLogistics. Lucas
brings with him five years’ experience in
logistics and supply chain solutions. Prior
to joining SSG, he was Senior Business
Solutions Manager at TNT Express.
Lucas will search for opportunities
among pharmaceutical multinationals
and be responsible for overseeing the
Diagnostics accounts and Japan-based
pharmaceutical multinationals.
Ms. Mayrin Hong has
joined SSG as Business
Development Manager,
Clinical Reach. Mayrin
has extensive logistics and
customer service experience which she
gained over the past 10 years within
third-party logistics companies. Mayrin’s
previous role was Clinical Trial Program
Manager, Asia Pacific at DHL Express
(S) Pte Ltd. Mayrin will initially be
responsible for developing clinical trial
accounts (sponsors and clinical research
organizations) with central depot
potential and will support off-shore
local depot needs. She holds a Bachelor
degree in Marketing and Management.
Lucas and Mayrin will report directly to
Mr. Georg Schulz, Business Development
Director, SSG.
Mr. Terrence Tan has
take up the role of
Logistics Manager at SSG.
In this position, Terrence
is responsible for driving the
efficiency and effectiveness of warehouse
activities to ensure prompt, reliable and
professional service to our principals
and to prepare the warehouse for future
challenges. Terrence has nine years’
experience in warehousing, inventory
management and customer services.
Prior to joining SSG, Terrence was the
Operations Manager for DHL Global
Forwarding (S) Pte Ltd. He reports to
Ms. Yvonne Cheah, Operations Director.
Mr Dave Lai has been appointed
Business Development
Manager, responsible
for planning new
business streams and
value initiatives. Dave
graduated from Nanyang Technological
University of Singapore with a Bachelor
in Engineering with Honors and obtained
a Master of Science in Biomedical
Engineering from the same university in
2006. He reports to Ms. Tan Yan Ann,
Commercial Director.
Ms. Kuar Leong Ngor, previously
Regulatory Affairs
Manager, has moved
to become Customer
Service Manager.
Her new responsibilities
include customer key account
management and managing key drivers
of productivity in the call center to drive
service performance. In addition, she
will oversee tender management to
ensure prompt and accurate retrieval,
preparation and submission of tenders
and quotations. She reports to Ms. Lee
Hwee San, Operations Director.
Thailand
We are pleased to report that
Khun Pairat Saudom
has been appointed
Vice President, Human
Resources at Zuellig
Pharma Thailand. Khun
Pairat was previously Human Resources
Manager at Thailand. Khun
Pairat has 21 years’ experience in the
human resources field in several leading
companies operating in commercial
office and manufacturing environments.
He reports to Mr. Yves Hermes, Chief
Executive, Zuellig Pharma Thailand.
Khun Kongpak
Tatiyathavornkul
has taken on the
role of Credit Control
Manager in the Finance
Division. Prior to joining Zuellig Pharma,
he worked as Credit Control Manager
at JohnsonDiversey (Thailand) Ltd.
Khun Kongpak has a Master’s degree in
Finance from Dhurakijpundit University.
He reports to Khun Pucknalin Bulakul,
Vice-President, Finance.
Khun Sommai Wong-
isara has become
ERP System Services
Manager. He has
a Bachelor degree in
Computer Science from Rajabhat
Institute Uttaradit and more than
16 years’ experience with leading
organizations, such as NEC Corporation
(Thailand), BPB Thai Gypsum, and
ThaiNamthip. He reports to Khun
Somchai Phawanaphon, Vice President,
IT & Business Excellence.
Vietnam
Ms. Dinh Thi Giang
Huong has joined
Zuellig Pharma Vietnam
as Customer Service
Manager. Huong has
previously held managerial positions in
companies such as the Mesa Group and
Colgate & Palmolive and has extensive
experience in supply chain management.
Promotions in the Inventory
Management Group of the Operations
Department have seen
Ms. Nguyen Thi Kim
Thoa step up to become
Inventory Manager.
Kim Thoa joined Zuellig
Pharma Vietnam in 2008 as Inventory
Supervisor. During the past two years,
she has proved her dedication to
delivering good services to internal
and external parties, and shown a
great attitude toward challenges and
solution-finding. In her new role, Kim
Thoa is responsible for overall inventory
management functions.
Both Huong and Kim Thoa report to
Ms. Ngo Hong Mai, Operations Manager.

Fred Tsang in 2010 and (right) at the same desk in 1992,
the year he joined Zuellig Pharma Hong Kong.
“Health is wealth” is the maxim that has driven
the professional and personal life of Mr. Frederick
Tsang (Fred), Chief Executive, of the Hong Kong
SAR distribution business of Zuellig Pharma. At the
end of 2010, Fred completes an impressive 40-year
career in the pharmaceutical industry, including 19
years with Zuellig Pharma. He has decided to retire
on December 31.
Fred was born in Mainland China and moved
to Hong Kong when he was two years old. He was
educated at a school run by the Salesians, a Roman
Catholic order. Part of the Salesians’ mission was
to educate children from poorer families so Fred’s
schoolmates came from diverse backgrounds. Fred
was deeply influenced by his school and says that
his pragmatic approach to life was formed during
his schooldays. He recalls discovering that some of
his fellow students came from wealthy backgrounds
yet students at this school did not show off their
wealth. Fred believes his reputation for being careful
with spending and vigilant on cost control may have
its roots in his schooldays!
Fred then went on to earn his Bachelor of Science
in Biochemistry from the University of Hong Kong
and his MBA from the Chinese University of Hong
Kong. With this combination of degrees and an
abiding passion for working in a health-related field,
it was an obvious choice to enter the pharmaceutical
industry. His first job was with the US pharmaceutical
company Warner-Lambert (now part of Pfizer) and
later Fred worked for Roche and Servier.
In 1992, Fred was recruited to become the CEO
for the Zuellig Pharma Hong Kong distribution
business. At that time, Fred had moved to Canada
where his extended family of four brothers, one
sister and his mother lived. However, when the
opportunity surfaced to return to Hong Kong, Fred
decided to take it. He was already familiar with the
company since Zuellig Pharma was the distributor
for Servier.
Fred recalls his first year with Zuellig Pharma
Hong Kong and the initial challenges to acquire
his first new principal. Near the end of those 12
months, Fred achieved his goal, describing it as one
of his most memorable moments. Fred’s excitement
and pride are still evident today and his passion is
a testament to his leadership. Zuellig Pharma Hong
Kong has been signing up new principals every
year since 1993 and sales are 12 times larger than
when he arrived. Zuellig Pharma is now the leading
distributor of pharmaceutical products in Hong
Kong and has been recognized by Watsons as the
“Best Distributor” for the past three consecutive
years in the “Watsons Annual Health, Wellness and
Beauty (HWB) Awards”.
Fred attributes the company’s success to the
combined efforts of all Zuellig Pharma personnel.
He speaks with great warmth about the team spirit
and total dedication of his colleagues. Everyone,
regardless of position, was always ready to go “that
extra step”. Fred believes Zuellig Pharma personnel
are the most important ingredient in propelling
the company forward and he feels everyone has
a sense of belonging. Over the years, Fred has
worked to build trust and rapport with all industry
stakeholders, including principals, customers, the
medical community, and the Department of Health.
Fred has also served on the Board of Directors of
the Hong Kong Association of the Pharmaceutical
Industry for many years.
So what does Fred plan to do in his retirement?
He will definitely keep in close touch with Zuellig
Pharma because he will continue to act as a Director
and Executive Advisor to the company. Fred also
has several leisure activities in mind including
golfing, listening to music, learning to play the
electronic keyboards, and photography.
Reflecting on his professional life, Fred notes that
while working “it is often not possible to do what
one would like to do and, equally, one often has to
do things that one would rather not do”. Therefore,
the bottom line during his retirement will be “to do
what he likes to do and not to do what he does not
want to do”!
Zuellig Pharma wishes Fred the best of luck in
his retirement and thanks him for his many years of
dedicated service. He will be succeeded in the role
of Chief Executive for Zuellig Pharma Hong Kong
by Mr. Charles Tang, previously with Coca-Cola.
With rising global fears about mercantilism, a new free trade agreement between
South Korea and the EU is a major initiative

After a year-long delay, a bilateral free-trade

agreement (FTA) between South Korea and the
European Union was finally signed in Brussels on
October 6, 2010. South Korea has signed several
FTAs, but the EU agreement is significant due to its
size and potential. It is the biggest tariff-elimination
deal yet for either side. At a time when international
economic relations are tense, at least with regard to
currencies, the new FTA is both substantively and
symbolically important. Jose Manuel Barroso, the
president of the European Commission, labelled
it “by far the most important trade deal ever
concluded by the EU with one country”.
South Korea, for its part, estimates that the
FTA will boost its real GDP by 0.6% on an annual
average basis over a 10-year period and add over
a quarter of a million jobs to the economy. The
signing of the FTA also marks the latest step in
South Korea’s strategic push to cultivate export
markets via agreements with many trading partners.
The new FTA with the EU is supposed to come
into effect on July 1, 2011. However, given past
difficulties with other FTAs, such as those with
Chile and the US, there must be some doubt as to
whether the two sides will ratify it promptly.
The deal itself looks straightforward. According
to the EU, the FTA is supposed to eliminate 98.7% of
industrial and agricultural duties within five years.
South Korea’s Yonhap news agency reported that the
FTA will eliminate 96% of tariffs on EU goods and
99% on South Korean goods within three years.
A key sticking point during negotiations was
the automotive sector. Some EU members (most
notably Italy) worry about the European market
being flooded with small Korean cars, and the new
FTA will liberalize this sector more slowly. Tariffs on
cars with engines over 1.5 litres will be eliminated
after three years, and those on cars with smaller
engines after five years.
Unsurprisingly given the sensitivities concerning
agricultural trade (and the vocal farming lobbies)
on both sides, the FTA also retains tariffs on some
agricultural goods, most notably rice. South Korea
will keep the right to impose safeguard measures
on imported beef. The FTA also proposes some

The recovery continues
South Korea’s GDP growth may have slowed
in Q3, to 0.7% quarter on quarter from 1.4%
previously, but this was better than had been
expected. Indeed, since the announcement
of the latest figures, Bank of Korea, the
central bank, announced that it has raised
its 2010 GDP growth forecast to 6% from
5.9% previously.
The domestic economy performed
strongly, with private consumption growth
accelerating to 1.3% quarter on quarter from
0.8% previously. Similarly, gross fixed-capital
formation growth climbed to 3.5% from 0.9%
in Q2. By contrast, government spending
fell by 0.6%, the first decline this year.
Meanwhile, exports of goods and services
rose by 1.8%, less than the 7.2% gain of the
second quarter. However, import growth also
weakened, to 2.3% from 7.4% previously.
Headline GDP was 4.5% higher than a year
earlier, easing from the 7.2% expansion of
the preceding quarter.
The strong economic recovery in South
Korea will be supported by improved business
and consumer confidence. The EIU estimates
real GDP growth in 2010 at 6.1%, boosted by
acceleration in private consumption growth,
Economic growth
% 2010
GDP 6.1
Private consumption 4.2
Government consumption 4.0
Gross fixed investment 7.0
Exports of goods & services 13.6
Imports of goods & services 17.7
Domestic demand 7.6
Agriculture -2.5
Industry 12.3
Services 2.7
Source: Economist Intelligence Unit forecasts
liberalization of services trade. However, according
to Yonhap, restrictions on foreign participation in
the education and medical sectors in South Korea
strong investment and a pick-up in demand will remain in place.
for South Korean exports. Real GDP growth
will decelerate to a more sustainable 3.9% Reaping the benefits?
in 2011. Growth in 2011 will continue to FTAs are invariably accompanied by estimates of
be driven by recovering consumption and how much the economies are likely to benefit as a
investment; the slower pace of expansion will result. This is an inexact science, but a widely cited
be largely owing to a negligible contribution South Korean estimate is that the FTA will boost
from stock-building, as the rate of restocking South Korean GDP by around 0.6% a year for 10
will fall relative to 2010. The contribution to years, creating 253,000 jobs in total. According to
GDP growth made by the foreign balance will IMF data, merchandise trade between South Korea
be negative in 2011, owing to strong growth and the EU totalled about US$79 billion in 2009.
South Korea runs a persistent trade surplus with the
in imports on the back of restocking by firms.
EU, which amounted to US$14 billion last year. In
Annual GDP growth will average 3.9%
comparison, South Korea’s trade with China totalled
in 2011-15 – a respectable rate, but below
US$141 billion in 2009, and its trade with the US
the trend rate of growth of around 5%
was worth US$67 billion.
in the years following the 1997-98 Asian
Exports of goods and services account for around
financial crisis, and far below the blistering
one-half of South Korean GDP, so the government is
rates of expansion notched up in the years
understandably anxious to promote this sector. From
immediately preceding the 2008-09 global a strategic point of view, many in South Korea are
financial crisis. The relatively subdued likely to regard FTAs as especially important given the
rate of economic growth from 2011 will increasing global prominence of large and ambitious
largely reflect the after-effects of the global Chinese exporters. South Korean policymakers also
financial crisis and the wealth destruction tend to feel that South Korea suffers competitively
that occurred in 2008-09. This will prevent from being squeezed between high-end Japanese
a strong recovery in domestic demand in exports and low-end Chinese ones, increasing the
other OECD markets, in turn damaging South motivation to establish and strengthen the country’s
Korea’s export prospects. footprint in external markets.
Prolific activity on the part of South Korean
trade negotiators would appear to reflect this.
According to the Ministry of Foreign Affairs and
Trade, the government has enacted FTAs with
2011 2012 2013 2014 2015 Chile, Singapore, ASEAN, India and the European
Free Trade Association (comprising Switzerland,
3.9 4.0 4.0 3.8 4.0
Norway, Iceland and Liechtenstein). In addition to
3.1 3.6 3.8 3.7 3.6 the latest pact with the EU, it has concluded, but not
yet ratified, FTAs with the US and Peru. FTAs are
2.9 3.7 3.7 3.5 3.5 also in various stages of discussion with many other
countries, including Canada, Mexico, Colombia,
5.4 3.8 4.1 3.8 3.9 Australia and Turkey.
Yet there are many potential obstacles between
5.5 5.9 6.4 5.9 6.1
signing a deal and seeing it implemented. The
6.8 5.5 6.6 6.0 5.7 breakthrough with the EU highlights the long-
running stalemate of South Korea’s FTA with the
4.5 3.7 3.9 3.7 3.7 US, which was signed in June 2007. Protectionist
lawmakers in the US are blocking the ratification of
2.4 2.0 2.0 2.0 2.0
the FTA as they believe the current deal does not go
far enough in terms of South Korea allowing in US
4.6 4.8 5.5 5.5 5.5
automobiles and beef products.
3.5 3.5 3.0 2.6 3.0
Seeking market share
Efforts to boost exports take on a special resonance
 Unlike many other countries,
South Korea has the luxury of
relatively strong fundamentals
that may lessen the
temptations of mercantilism
in the current global climate, given fears of
heightened competition between exporting
countries for international market share. In many
countries the prospects of domestic demand
driving economic growth in the next few years are
poor. That the global downturn has largely been
synchronized further raises the stakes for exporting
countries, increasing the temptation to regard trade
policy as a zero-sum game in which one country’s
export success is another’s failure.
Unlike many other countries, though,
South Korea has the luxury of relatively strong
fundamentals that may lessen the temptations of
mercantilism. The Economist Intelligence Unit
forecasts that domestic demand will grow by an
average of around 4% a year in real terms in the next
four years (see table on previous page). Moreover,
the fiscal position is far stronger than in much of
the West. South Korea’s budget deficit this year is
likely to be below 2% of GDP, and public debt is only
about 24% of GDP, giving the government scope to
EU-South Korea trade (US$bn)
provide further fiscal stimulus if needed.
Source: IMF/Haver Analytics Despite this, South Korean attitudes toward
100 free trade remain mixed. Protectionist instincts are
strong, especially among farmers and labor unions.
90 So the government has to tread carefully. South
South Korea Korea’s relatively high trade barriers compared with
80
trade surplus those of some of its partners further complicate
70 the picture, as they mean that the country stands
to give up more in FTA negotiations. For instance,
60 according to the World Trade Organization, South
Korea’s average applied tariff in 2008 was 12.2% in
50 total, and a stunning 49% for agricultural goods. In
© The Economist Intelligence Unit Limited 2010

contrast the EU’s average applied tariff was 5.6%,

40
and 16% for agriculture.
30
This article is excerpted from the Economist Intelligence Unit’s
20 ViewsWire service, and from the EIU South Korea Country Report,
November 2010. Queries may be sent to David Line, senior editor,
at davidline@eiu.com. The Economist Intelligence Unit is the world
10 leader in global business intelligence. It is the business-to-business
arm of The Economist Group, which publishes The Economist
0 newspaper. The Economist Intelligence Unit provides geopolitical,
economic and business analysis on more than 200 countries, as
00

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06
04
02

05
03

07

09

well as strategic intelligence on key industries and management

01
90

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practices. With over 300 full-time professionals in 40 offices

around the world, supported by a global network of more than 650
EU imports from South Korea (CIF) EU exports to South Korea Implied total trade contributors, the Economist Intelligence Unit is widely known for
its unparalleled coverage of major and emerging markets.
 F E A T U R E S T O R Y

Finding the cure for patients who fail to adhere to their medication could be
a major new source of revenue for pharmaceutical companies

By Jeff Weisel, Program Leader - Patient Solutions, Healthcare Services and Investments ■ jweisel@zuelligpharma.com

T he disease has been diagnosed,

the drugs prescribed and the
regimen carefully explained to the
company is stepping up initiatives
on patient solutions that can help
principals and other stakeholders
patient. All that is required now is move ahead in Asia.
that the person keeps on taking their “Zuellig Pharma’s unparalleled
medicine. Yet research has found that presence and experience in the
within 12 months, as many as 50 per healthcare sector in the Asian region
cent or more of patients with diabetes puts us in a leading position to
or many other serious medical develop new services and solutions in
conditions will have stopped taking this area,” said Mr. Rolf Steffen, CEO
their medicine as prescribed (see Healthcare Services and Investments.
Chart 1). “This exciting new venture seeks to
Patient adherence is among improve outcomes for patients and
the most difficult and expensive provide cost-effective outcomes for
problems that face healthcare systems payers, increase top-line business
worldwide. Adherence covers both for principals and enhance service
compliance – following the daily offerings for providers.”
treatment regimen as prescribed
– and persistence – staying on the Why patients fail to adhere
medication as long as required. Poor adherence to treatment is
Today, healthcare providers, payers caused by a number of factors,
and pharmaceutical companies are all both unintentional and intentional.
increasingly seeking ways to monitor The former includes forgetfulness
patients and keep them fully on track while the latter is usually driven
with their medication. The results of by perceptions or beliefs about the
not doing so are earlier death, greater disease and the medication held by
morbidity and wasted money. In 2004, the patients, caregivers and even the
Datamonitor found that the annual physician. To assist patients to be
cost of non-adherence to healthcare adherent, a variety of methods have
systems equated to US$380 billion been tried to provide support. Many
worldwide. of the solutions hitting the market
Solutions to the age-old challenge in recent years have focused on
could not only offer improved unintentional non-adherence despite
outcomes and patient safety but create this only accounting for 20%-30% of
more than US$30 billion of revenue variance in adherence.
a year in new sales for pharmaceutical companies, according to Pharma 2020: With regard to intentional non-adherence, support programs should aim to
Which Path Will You Take? a research report by PricewaterhouseCoopers. Now, understand and change a patient’s beliefs so that they balance perceptions of
as part of Zuellig Pharma’s drive to collaborate with business partners across disease and treatment and form the basis of personal health management by the
the healthcare value chain through innovative approaches to creating value, the patient. Patient reasons for non-adherence include:
As many healthcare systems in Asia are still evolving, Patient healthcare in the spotlight
they are in a position to leapfrog past the models of Patient solutions were the focus of the second RX Dialogue event held in
November 2010 by Zuellig Pharma Singapore. The successful event, entitled
care already established in Western countries “Patient Centered Healthcare”, brought together the pharmaceutical
industry and government to discuss the current and future trends in this
• Beliefs about extent of personal control (e.g. patient self-efficacy)
area of healthcare services, helping to foster dialogue and future links.
• Beliefs about timeline (e.g. length of treatment, chronic vs acute)
The RX Dialogue networking session featured presentations by
• Beliefs about consequences
Mr. Murali Gangadharan, Director, Health Industries Advisory, from
• Beliefs about treatment effectiveness and controllability (e.g. other drugs may
PricewaterhouseCoopers and Dr Loke Wai Chiong, Program Director,
interfere with effectiveness; some patients may not respond/develop resistance)
Health and Wellness Program Office, a joint initiative by the Singapore
• Lack of knowledge about disease and treatment
government’s Economic Development Board and Ministry of Health.
• Side effects
Mr. Gangadharan gave a thought-provoking talk on trends in relation to
PwC’s Healthcast Program, an in-depth market research program involving
In some Asian markets, affordability is also a significant factor in non-
healthcare leaders, consumers and other stakeholders in the healthcare
adherence as many patients with limited or no insurance coverage simply cannot
system. Dr. Loke then provided useful insight into government initiatives
afford to pay for the full treatment regimen and thus drop off or ration their
to improve healthcare standards and build more efficient allocation of
dosage to sub-therapeutic levels.
resources based on patient health outcomes.
The two speakers were later joined by Dr. Chow Weng Ho, Chairperson,
Supportive care
Marketing Practices Committee of the Singapore Association of
As pharmaceutical companies wrestle with the way to secure their business in
Pharmaceutical Industries (SAPI), for an interesting panel discussion
the era beyond the blockbuster drug, fresh attention is being paid to supporting
moderated by Mr. Jeff Weisel, Program Leader, Patient Solutions, at Zuellig
patients throughout their treatment not only to supplying the medicines to
Pharma. The panelists covered a range of topics including the greater role
tackle their condition. With strong competition among drug makers and the
of IT in shaping healthcare systems of the future, Singapore’s efforts to
constant threat of generics, giving the patient added-value service that supports
create a National Electronic Health Record system, and the potential for
or enhances a particular treatment increasingly appears a positive way to
customized services to improve the system.
increase brand loyalty.
In attendance were principals’ country heads, senior management in
Critically, more focus on long-term care and better patient understanding
sales and marketing and medical affairs, and representatives from SAPI,
of why it is necessary to stay on treatment could help to boost outcomes. For
Singapore’s Health Promotion Board, Economic Development Board, and
example, a drop-off in adherence frequently occurs when patients do not feel
PricewaterhouseCoopers.
symptoms of their disease, as is the case with hypertension or hyperlipidaemia,
The RX Dialogue is part of Zuellig Pharma Singapore’s drive to pro-actively
and the consequences of non-adherence are less immediate. When treatment
engage in activities to add value for its business partners in line with its market
appears to be going well, patients often stop feeling the need to continue their
leading position. The event provided a platform to bring partners together to
medication, a situation that may lead to more serious consequences. If solutions
talk about issues that are important to all and build understanding.
are in place to provide targeted messages and support throughout the course of
treatment – and with new communication technologies this is now much more
viable – such a situation could be improved. Chart 1 Patient adherence
Home nursing support is another area with great potential for development.
Today in most markets such services are often provided by small agencies Overall, 40% of patients will have discontinued the prescribed drug after 12 months
unable to ensure consistent quality standards or staff continuity with patients.
Source: Clinical Pharmacology and Therapeutics 2005
Pharmaceutical companies and hospitals also provide home nursing support 1.0
but often do not see this as core to their business and have expressed interest
in outsourcing to a quality service partner. Patient support call centers staffed 0.8
by nurses provide further support for programs ranging from home nursing to
Percentage of patients

patient adherence.
Looking more broadly, “alternate-site” care can reach patients at employer .06

sites, shopping centers and even as virtual support for GP clinics, as well in the
Osteoporosis
home. Nursing support can provide sustained specialty care for patients with 0.4
HIV
specific diseases, such as cancer or renal disease, or can deliver targeted health
Diabetes
events for institutions. Gastro-intestinal disease
0.2
An example of the latter is Zuellig Pharma’s Mass Vaccination Program Hypertension
introduced this year in the Philippines with expansion to other markets planned Central-nervous system
PKC: N~20'000 patients
for 2011. This program is underpinned by a web platform providing information 0.0
for patients and employers, payment facilities and scheduling of product delivery 0 100 200 300
and vaccination services. Time to dropout (days)

Chart 2 Pharma 2020: challenging business models
By 2020, the pharmaceutical, payer and provider value chains will be
much more closely intertwined
Outcome-based healthcare
Indeed, it is outcomes rather than products that are likely to drive healthcare
policy and pharmaceutical revenue streams in the future, according to a 2009
report by PricewaterhouseCoopers (Pharma 2020: Challenging Business Models)
that analyzed the latest sector trends.
Among the drivers are advances in technology that are opening up new
opportunities in outcomes solutions. Personal health management can move
online with software that can offer a patient platform and support other programs
and devices. Connectivity is adding to the mix, linking up monitoring through
communication devices such as smart phones. Providers and payers may also
provide platforms for managing personal health data and decisions, with the
emphasis shifting toward open platforms rather than proprietary systems.
Further developments have seen diagnostic devices becoming more
consumer-friendly, encouraging personal self-management and monitoring.
Devices that were traditionally based in the doctor’s clinic such as blood pressure
monitors, for example, have been redesigned for patients to use at home and
positioned as consumer products.
These trends are rapidly converging as can be seen, for example, with leading
blood glucose monitors now able to transmit patient readings directly into a
Microsoft Health Vault account or to an iPhone with diabetes management apps
installed to enable self-management by the patient.
In line with these trends, pharmaceutical companies will need to seek wider
collaborations with healthcare-based service providers to deliver such packages
of care rather than working on an individual enterprise basis as is usually the
case today.
Asia’s disease management challenge
In Asia, where health management systems are often still evolving when compared
with those in Western countries, there is the opportunity to proactively introduce
treatment support for patients as part of that evolution rather than through
restructuring and add-ons. This would enable better integration of people,
organizations and the technologies that will help to deliver patient solutions.
It is also expected that a growing number of people in the region will be in
need of individual treatment plans as populations in Asia age, incidences of
“Western lifestyle” diseases, such as hypertension, asthma and diabetes, grow,
and healthcare costs escalate.
The management of chronic diseases and expensive specialty disease areas,
such as cancer, represent one of the greatest strategic challenges for healthcare
systems and stakeholders in Asia.

Specific challenges include:

• Significant number of patients not adherent with the prescribed treatment
regimen for chronic diseases and cancer
• Insurance that pays by episode or not at all, with a reimbursement model
designed primarily for acute conditions and low predictability of costs and
little consideration of outcomes
• Fragmented patient and institution information, inhibiting analysis of
intervention costs vs outcomes
• Low level of collaboration between providers, suppliers, payers and patients,
including the highly unequal relationship between doctors and patients in Asia
• Concentration of healthcare delivery in hospitals which exacerbates cost
pressures on disease management.
Payer
Provider
Pharma
However, such challenges present openings for pharmaceutical companies
Source: PricewaterhouseCoopers
ready to seek early-mover advantages.

Patient solutions service portfolio
ƒƒ Home delivery from pharmacy
or prescribing physician
ƒƒ Scheduled home delivery
of products for chronic care
patients (e.g. dialysis solutions,
nutritionals)
ƒƒ Mail-in / drop-off diagnostics
Home Delivery
Zuellig Pharma Patient Solutions
Patient Monitoring
& Self-Management
ƒƒ Consumer-oriented monitoring
of diagnostic data for chronic
disease management (e.g.
blood pressure)
ƒƒ Remote monitoring / alert
response for invalid patients
ƒƒ Integration of patient records
with product data
ƒƒ Mobile health management
ƒƒ Basic treatment and counseling
services in home for specialty
care and chronic disease patients
ƒƒ Patient education and screening
at clinics, employer sites with
call center follow-on support
ƒƒ Health events management
ƒƒ Mass vaccination programs for
institutional customers
Home Nursing & Alternate Site
Healthcare
Patient Adherence
ƒƒ Health psychology-based
solutions to measurably
improve patient adherence to
prescribed treatments
ƒƒ Longer-term solutions to
deliver sustained adherence
support for patients, providers
and payers
As many healthcare systems in Asia are still evolving, they are in a position to
leapfrog past the models of care already established in Western countries. Just as
mobile phones quickly surpassed landlines as the main platform in many Asian
countries, it is expected that healthcare will see similar leaps of innovation in the
region. There are already examples of “frugal” innovation coming out of India in
areas ranging from eye surgery to ultrasound scanners that can radically change
the cost structure and delivery model for patient care. Patient support can thus
be built around the latest technology as well as innovative business models
rather than having to wait for products or services to be proven first in Western
markets before introduction in Asia.
With patient numbers set to expand, rising affluence and greater
sophistication enabling people to start to “shop” for the treatment they feel
will help them the most, there is a great opportunity to move patient-centric
solutions forward in Asia.
Collaborative solution-building
As noted by the PricewaterhouseCoopers 2009 report, moving away from a
product-centered strategy toward “healthcare packages” and outcomes should
encourage pharmaceutical companies to see the value of collaborative working
that can generate win-win situations for all the companies involved. The success
that can result from this mode of working has already become apparent in other
fields, led by companies such as Apple and Amazon. Shifts in the healthcare
sector, along with the global economy and technological advances, point to the
need for similar moves in the pharmaceutical market.
For Zuellig Pharma, collaborative partnerships have long been part of the
company’s strategic outlook and this is particularly true in the developing
market for patient solutions. With new strategic emphasis on patient solution
services, the Zuellig Pharma platform delivers a dynamic operational base to
explore opportunities in this area with specialized solution partners.
As Asia’s leading distributor of healthcare products, the company has an
unparalleled network that connects manufacturers with more than 200,000
hospitals, clinics and retail pharmacies across the region. Zuellig Pharma’s
growing presence in clinical trials services, retail pharmacy solutions
and medical devices and diagnostics also facilitates the development of a
comprehensive portfolio of patient solution services, ranging from home nursing
and institutional health programs to patient monitoring and adherence support.
Working collaboratively on patient solutions can provide pharmaceutical
companies with both a new business model and the potential to go beyond
the creation and selling of products to capture a wider share of the healthcare
market. It opens up significant new avenues for services, creates new
opportunities for organizations across the healthcare spectrum and above all
provides better support and improved outcomes for patients.
Outlook
“Patient solutions are an integral part of Zuellig Pharma’s strategic outlook and
are a natural fit for the company’s organizational presence,” Mr. Steffen noted.
“World-class customer service and quality management standards, underpinned
by state-of-the-art technology and a pool of professionals who combine local
expertise with international insight create a very strong foundation on which to
build an innovative raft of services. With 70 years’ experience in the healthcare
sector in Asia, Zuellig Pharma’s strategic intent is to support better outcomes for
patients, providers and payers as well as for our principals.”
For more details on Zuellig Pharma patient solution services, contact Mr. Jeff Weisel,
Program Leader – Patient Solutions on jweisel@zuelligpharma.com or +65-6548-1896.
Singapore's OTC market is faring well as the economy recovers from recession
By Catherine Blood ■ catherine.blood@nicholashall.com
While many countries are struggling to recover
from the global recession, recent economic
indicators have shown that Singapore appears to
have done well in 2010. This article looks at how a
soaring economic growth forecast and increased
consumer confidence may help the Lion City
improve on the OTC growth achieved in 2009.
Data in this report, full year 2009 (MSP): Nicholas Hall’s INSIGHT based on industry estimates and Nicholas Hall’s DB6 2010 OTC database, in partnership with Nielsen in specific countries.
Based on exchange rate of US$1 = S$1.36 on September 1, 2010 (www.oanda.com).
Economy: booming
• Consumer confidence up
• Economy posts strong growth
Although Singapore is small, it is the epicenter of
Asia and most top OTC players have based their
regional headquarters there, taking advantage
Socio-economic indicators
ƒƒ Area†: 697km2
ƒƒ Population*: 5.1mn
ƒƒ GDP per capita†: US$52,200
ƒƒ Real GDP growth**: -2%
ƒƒ Inflation rate**: 0.2%
Sources: †CIA World Factbook, *Population Reference Bureau, **IMF
of the pro-business policies of the Singapore
government. In July 2010, the government nearly
doubled its growth forecast for the city state’s
economy to 13%-15% after it soared by 18% in the
first half of 2010. This makes Singapore the front-
runner for the fastest-growing economy in Asia,
and potentially the world, in 2010. The growth was
attributed to new manufacturing and construction
projects as well as a good performance from the
pharmaceutical industry.
Also in July, Nielsen published its Global
Consumer Confidence Index, which recorded
consumer confidence in Singapore for Q2 2010
at 112 index points, close to the all-time high of
114 in Q3 2007 and a sharp increase from the low
of 80 points in Q1 2009. These positive economic
indicators point to a potential boost for the OTC
market, with a rise in consumer confidence linked
to increased consumer spending.
Government: promotes self-care
• Health Promotion Board involves consumers
• Self-care encouraged
Singapore’s Ministry of Health has stated: “Good
health is to a great extent the responsibility of
the individual. But the Ministry plays a major
role in educating and providing information to
the public on how they can maintain a healthy
lifestyle.” Singapore’s Health Promotion Board
runs campaigns to raise public awareness of

Sector overview
ƒƒ OTC sales 2009: S$165.8mn (US$121.9mn)
ƒƒ OTC index 09/08 (local currency): 105
ƒƒ OTC per capita spend: US$23.90
ƒƒ US$1.00 = S$1.36 (September 1 2010)
ƒƒ Regulations: medicines must be
registered with the Health Sciences
Authority, a division of the Ministry of
Health
ƒƒ Distribution: retail pharmacies and
chain drugstores dominate, e.g.
Watsons and Guardian
ƒƒ Advertising: any advertisement or sales
promotion that relates to, or is likely
to cause any person to believe that
it relates to, any medicinal product
requires prior approval from the Health
Sciences Authority
ƒƒ Price controls: none
ƒƒ Reimbursement: none for OTCs
Medicine classifications
ƒƒ POM: prescription-only medicine
ƒƒ P: OTC in pharmacies only
ƒƒ GSL: General sale list (OTC in any outlet)
health issues and encourages Singaporeans
to manage their own health. In July 2009, the
Board celebrated its 50th birthday by asking
residents to send in videos and pictures that
highlighted key milestones in public health over
the past half-century. The agency also rewards
citizens with prizes for getting involved in
health campaigns and has a Facebook page to
encourage greater interaction.
Health trends: TCM popularity grows
• More TCM centers opened
• Working with other countries to standardize
regulations
The OTC market is predominantly controlled
by Western medicines, but traditional Chinese
medicine (TCM) has been gaining popularity
in Singapore. From 2004-07, seven hospitals in
Singapore opened TCM centers, and according to
a 2009 article in The Straits Times, they have been
very well received. In August 2010, the newspaper
also reported figures from the Singapore
Traditional Chinese Medicine Organizations
Committee, which stated imports of TCM,
health supplements and related products such as
ginseng, rose by 45% from 2007-09, increasing
from S$1.5 billion (US$1.1 billion) to
S$2.2 billion (US$1.6 billion).
The popularity of TCM is evident by its
penetration of the mass market and pharmacies,
with Watsons and Guardian stocking brands such
as Eu Yan Sang, which also has its own retail outlets
and clinics. Blackmores struck a deal with Eu Yan
Sang in 2010, resulting in some of the Australian
marketer’s products being stocked in the TCM
specialist’s stores.
The government has recognized the growing
importance of TCM and is working with other
Asian countries to make sure such products are
standardized and regulated appropriately. In
November 2009, Singaporean and Chinese health
authorities signed the Fourth Plan of Co-operation
for the two countries to exchange TCM expertise.
Furthermore, in July 2010, Singapore and the nine
other member countries of the Association of
Southeast Asian Nations established regulations to
standardize the region’s traditional medicines and
food supplements.
OTC overview
The Singaporean OTC market grew by 5% to
S$165.8 million (US$121.9 million) in 2009, with
cough, cold and allergy (CCA) and vitamins,
minerals and supplements (VMS) the leading
categories. Multinationals remain dominant,
namely GlaxoSmithKline, Reckitt Benckiser and
Johnson & Johnson.
CCA: medicated confectionery popular
• Sore throat remedies and medicated confectionery
benefit from advertising and promotion
• TCM leads cough remedies
Cough, cold and allergy is Singapore’s largest
OTC category, garnering sales of S$58 million
(US$42.2 million) in 2009, with sore throat
remedies and medicated confectionery taking
the major share of S$37.3 million (US$26.5
million). Such products are marketed primarily
as refreshment rather than for the relief of throat
pain. They are often positioned by cash registers
to encourage impulse purchases.
Ricola (distributed by Shriro) is the category
leader, offering many flavors with different
positionings, such as soothing or refreshing.
The “I love Ricola” competition ran in mid-
2009 on website www.ilovericola.com and
social networking site Facebook. Consumers
were encouraged to buy a pack of Ricola and
upload a video, photo or journal entry on www.
facebook.com recording their favorite “Ricola
moment” for a chance to win prizes including
a trip to Switzerland. Other sore throat brands
include Strepsils (Reckitt Benckiser), which has
been extended recently with Strepsils Cool, and
Fisherman’s Friend (GBA Trading for Lofthouse).
Free samples of Läkerol’s new ice mint, peppermint
and lychee flavors (East Asiatic Company) were
distributed to consumers in the central business
district in July 2010.
In terms of systemic cold and flu treatments,
Panadol (GlaxoSmithKline) comprises several
stock keeping units including Cold Relief
caplets, Flu Max caplets and Children’s Cold &
Flu syrup. Some presentations, along with sister
brand Actifed, are limited to pharmacy-only
sale, depending on their formulation. This is
also the case for certain Decolgen Forte (United
Laboratories) stock keeping units while Lemsip
(Reckitt Benckiser) products – the majority of
which contain paracetamol and phenylephrine –
can be sold in any outlet.
King To Nin Jiom Pei Pa Koa (Nin Jiom) is
the leading cough remedy – an example of the
popularity of TCM. The brand has been promoted
with Mandarin television advertisements as well
as contests offering consumers the chance to win
prizes including tickets to Universal Studios in
Singapore. Woods’ Peppermint Cough Syrup
(Kalbe) is another strong contender while Breacol
(Invida) also competes.
In terms of allergy medications, Zyrtec
(licensed from UCB to GlaxoSmithKline) has
been promoted with print advertisements
and pharmacist detailing, while bilingual
advertising for Clarityne (Schering-Plough/
Merck) has featured on trains within the MRT
transport system.
VMS: fragmented
• Multinationals lead vitamins
• Blackmores, Kordel’s and Ocean Health popular
ranges
VMS sales grew by 7% in 2009 to S$44 million
(US$32 million). Bayer is a dominant player
fielding leading vitamin C brand Redoxon, as
well as multivitamin ranges Berocca, Nature’s
Way, One-A-Day, Supradyn and pediatric
ranges Flintstones and Bugs Bunny. The
company supports its brands with advertising
and promotion, including television and print
advertisements in English and Mandarin, plus
event promotion. For example, Berocca sponsored
the Men’s Health Urbanathlon endurance race in
Singapore in January 2010.
Following acquisition of Wyeth in 2009, Pfizer
markets Centrum multivitamins and Caltrate
calcium supplement. The company has used print
advertisements and offers such as coupons and
free trials at True Yoga health center to promote
Centrum, while special packs of Caltrate come
with a “flexercise” band and exercise DVD to
help consumers build strong bones and prevent
osteoporosis.
Popular longline vitamin and herbal ranges
include Blackmores (Blackmores), Kordel’s
(Cambert) and Ocean Health (Ocean Health).
The latter is the official supplement sponsor
for the Standard Chartered Marathon, held in
Singapore in early December 2010. In the run-up
to the event, the company promoted its signature
product, Joint-RX, as the recommended joint care
formula to help participants protect against wear
and tear.
Dermatologicals: sales of acne remedies shine
• Acne remedies biggest category
• Eye-catching advertising for Dettol
Dermatologicals generated around S$24 million
(US$18 million) in 2009 with acne remedies the
leading category. The success of the category can
be attributed to the advertising and promotion
budgets of the multinationals, with Clearasil
(Reckitt Benckiser) and Clean & Clear
(Johnson & Johnson) two of the main brands.
As in many Asian countries, Clean & Clear has
been promoted in Singapore with the Best Friend
modeling competition where winners from
regional heats were entered into the Asian final
to win the opportunity to star in a Clean & Clear
advertisement.
Dettol (Reckitt Benckiser) is both the leading
antiseptic and leading dermatological brand
overall. In April 2010, Reckitt collaborated
with the Health Promotion Board to teach
school children about the importance of hand
hygiene. Children received goodie bags holding
posters, activity books and Dettol samples.
Nizoral (Johnson & Johnson) is the leading
scalp treatment, Canesten (Bayer) and Daktarin
(Johnson & Johnson) are the main antifungal
players while Lactacyd (Sanofi-Aventis) leads
feminine washes.

Analgesics: Panaflex launched

• Three brands switched
• Patch segment spurred by launches

Key developments in the analgesic market are the

reclassifications from Rx to OTC (pharmacy-only)
of Voltaren Rapid tablets, Oracort E Dental Paste
and Keno Oral Paste.
Panadol (GlaxoSmithKline) is the leading
systemic analgesic, taking over 80% of category
dollars. Presentations include Extend for joint
pain, Actifast and Menstrual, although the most
recent line extension has been in the topical
analgesic category. Panaflex pain relief patch
was rolled out in early 2010 and is formulated
with camphor, menthol and vitamin E. It has
OTC sales by major category 2009 OTC sales 2007-2009 been promoted with Panaflex branded buses,
which have offered free rides across the city, plus
Panaflex samples onboard.
6% US$ million
7% 121.9 Haw Par Healthcare, marketer of No.1 topical
120 analgesic range Tigerbalm, reacted to the launch
12% 35% 116.6
by extending its patch offerings with Tigerbalm
115 Ultra Thin Patch, suitable for aches on smaller
areas of the body such as the elbows, knees and
15% 109.9
110 shoulder blades. Print and radio advertisements
feature the slogan “Feel the relief, not the patch”.
26% 105 Another significant entry is Salonpas, whose
marketer Hisamitsu sponsored the Singapore Bay
Cough, cold and allergy Analgesics 100 Run and Army Half Marathon in 2009 and 2010.
Vitamins, minerals and supplements Lifestyle OTCs 2007 2008 2009
Dermatologicals Gastrointestinals
Runners could receive sprays of Salonpas at aid
stations throughout the courses.
Gastrointestinals: Boehringer Ingelheim
launches Dulcofibre
• Omeprazole switched
• Dulcolax extended
Gastrointentinals is the smallest OTC category,
with sales flat at S$24 million (US$18 million).
In September 2009, omeprazole in oral solid
preparations containing no more than 20mg per
dose was reclassified from Rx to pharmacy-only.
The introduction of a proton pump inhibitor
to the market will provide consumers with
another option for treating heartburn. Current
offerings include Mylanta, Gelusil (both Johnson
& Johnson) and Eno (GlaxoSmithKline). The
most recent addition to Boehringer Ingelheim’s
Dulcolax range, Dulcofibre, will create greater
competition for leading laxative Fybogel
(Reckitt Benckiser), as the tangerine-flavored
prebiotic is available in dissolvable powder
format. Boehringer Ingelheim has advertised
the line extension on tables in busy eateries with
the tagline: “Give your digestive tract a daily
massage.” In terms of antidiarrheals, Lomotil
(Pfizer) holds the No.1 position, followed
closely by Imodium (Johnson & Johnson) and
Ultracarbon (Merck KGaA).
Lifestyle OTCs: public campaigns help
• Health Promotion Board runs obesity campaign
• Smoking campaign ties in with Ramadan
In 2009 and 2010, the Health Promotion Board
launched two campaigns to educate Singaporeans
on the dangers of obesity and smoking. Between
August-October 2009, an obesity campaign
included television and press advertisements
alerting Singaporeans to health problems linked
to obesity. The agency also ran the “Lose to Win”
weight loss challenge in the workplace, rewarding
participants with prizes worth up to S$3,000
(US$2,205). Another campaign planned for
2010 will incorporate community as well as the
workplace. Although the initiatives encourage
consumers to lose weight through exercise,
increased awareness of the dangers of being
overweight may have a positive effect on sales of
obesity treatments such as Roche’s pharmacy-only
Xenical (orlistat 120mg).
From June-August 2010, a smoking cessation
programme to help smokers quit in the run-
up to Ramadan. Between August-October 2010,
the Health Promotion Board ran the “Come
Together Quit Together” campaign to promote
a smoke-free environment in the workplace.
Quitters could also receive help by joining the
Nicorette Quitters 12-week program between
July-September organized by Johnson &
Johnson, which offered free clinics on smoking
cessation and information on Nicorette’s nicotine
replacement therapy products. At the end of the
program, participants were encouraged to join
in a 7.5 kilometer run to show quitters the health
benefits of stopping smoking.

Prospects
Singapore’s future looks bright. As many
companies look to emerging markets for growth,
Singapore’s stable economy attracts businesses
wishing to establish an Asian trading base.
This will continue to benefit the OTC market
as multinationals bring with them innovation,
experience and large advertising and promotion
budgets. However, the increasing popularity of
Rx to OTC (pharmacy-only) switches 2009/10 TCM is also likely to result in higher penetration
of the mass market for local marketers. Increased
Brand/Marketer Ingredients Category Date
consumer confidence within a society well
educated about health issues will mean greater
Triamcinolone acetonide 0.1% spending on OTCs.
Oracort E dental paste/Apotheca for Taro Oral pain 13/05/09
and lignocaine HCI 3%

Keno Oral Paste/TO Chemicals
Voltaren Rapid tablets/Novartis
Minoxidil Lotion/Sunward
N/a
Triamcinolone acetonide 0.1% Oral pain 01/12/09 OTC specialist Nicholas Hall & Company provides business
solutions for the worldwide consumer healthcare industry.
Systemic It operates globally and provides data & analysis, competitive
Diclofenac 12.5mg 06/01/10 intelligence and strategic advice to multinational companies and
analgesics
local laboratories. The company recently opened an Asia-Pacific
Minoxidil 3% Hair loss 15/09/09 Regional Office in Singapore, headed by Veronita Rusli
(veronita.rusli@nicholashall .com). Catherine Blood is a
Researcher/Writer at Nicholas Hall. She can be contacted at
Omeprazole 20mg or less Antacids (PPI) 30/09/09
catherine.blood@nicholashall.com. More company details are
available at www.nicholashall.com.
How should the rapidly growing oncology market meet the challenges of Asia Pacific?

By Claire Choquet, Product Manager, Oncology, Australia ■ claire.choquet@ au.imshealth.com

and David Twinberrow, General Manager, Business Line Management, Asia Pacific ■ davidtwinberrow@cn.imshealth.com

In the 2005 edition of Cancer and Its

Management, Robert Souhami, a medical
oncologist and professor at London’s University
College, noted that cancer would soon affect an
astonishing one out of every three individuals. It
is a statistic that science has steadily challenged
in relation to treatment in recent years, with
medicines ranging from cytotoxics and targeted
therapies to hormonal treatments. Today,
therapies such as Gleevec (Novartis) for chronic
myeloid leukemia, are measurably changing the
prognosis for patients – contributing to a 90%
five-year survival rate for those who take Gleevec
compared to a 41% rate over the same period of
time for those who do not.
While cancer is not a single disease and
incidence rates vary worldwide, oncology is an
area in which breakthroughs are still possible –
and the oncology market maintains its status as an
out-performer in a slowing global market. Those
who wish to make headway, though, need to pay
attention to new trends and possibilities.

What we know
Over the past five years, the global oncology
market has more than doubled its rate of growth.
In September 2004, according to IMS Health
MIDAS, worldwide sales of oncology products
totaled US$2.27 billion, a number that had reached
US$4.99 billion just five years later.
Those sales are not entirely attributable to the
predominant US, European, and Japanese markets.
Indeed, pharmerging markets now account for
6% of the sales up from 4% previously. Today, as
illustrated in Chart 1, the global oncology market
is growing by 3.7%, driven by a 10%-11% growth in
pharmerging markets.
Although targeted therapies such as Herceptin,
Avastin and Erbitux account for the majority
of global growth, standard cytotoxic therapies
lead the way in pharmerging countries. And
while many familiar multinational corporations
continue to dominate the global oncology market,
four major players have begun to experience a
decline, making room for new strategic entrants
(Chart 2).
Looking forward, the oncology market, driven
by targeted therapeutics, earlier detection, longer
treatment durations, and extended indications,
will grow to approximately US$75 billion by 2013,
according to IMS forecasts (Chart 3).
Of course, healthcare budget issues and patent
expiry of important brands could impinge on that
growth. So could increasing drug approval hurdles
and the growing demand, from many quarters, for
proof of substantial, incremental benefits.
Various containment measures are emerging
throughout Asia-Pacific with a focus on control
of drug expenditure. These include price cuts,
international reference pricing, patient co-
payment, generic substitution, hospital budget
capping, selective reimbursement, prescription
restrictions and health technology assessment.
These containment measures are a particular
concern for companies bringing relatively high-
cost oncology drugs to market.
Nonetheless, the oncology market deserves
careful attention, especially in Japan, China, and
Australia, which together represent more than 85%
of the oncology market share in the Asia Pacific
region. Some of the top players are detailed below.
China
Fortified by healthy economic development and
growing disposable income, China is home to an
especially strong oncology market, with a three-
year CAGR of 34.9%, according to IMS MIDAS
figures (Chart 4). Although only an estimated 70
million can currently afford modern medicines in
China, growing disposable income in both rural
and urban regions is enabling higher out-of-pocket
 for example, is set to lose its exclusivity within
Chart 1 Oncology market still on the rise the next five years, with sales value estimated
at US$32 million (US$19 million from Sanofi-
The global market is growing by 3.7%, driven by the pharmerging markets (10% - 11%) Aventis as direct sales plus US$13 million through
their partnership with Baxter Healthcare) at risk.
In 2006, the Australian colorectal market was
negatively impacted by the emergence of generics
that challenged Eloxatin.

Top 5EU Korea

US
US$ 136bn The situation in Korea is one of flux, with high-
CAGR
US$ 287bn 2009-2013: cost oncology therapies set against a rapidly
CAGR 2009-2013: 0.1% 2.2% Japan
US$ 85bn
changing pricing and reimbursement landscape.
CAGR 2009-2013: 4.4% Throughout the country there are ongoing
pressures to apply tougher pricing standards.
BRICKMT* IMS has also seen repeated re-pricing efforts
Emerging markets
US$ 95bn as well as an ongoing overhaul of the National
CAGR 2009-2013: 10%-11% Australia Reimbursement Drug List.
US$ 7bn
Rest of the world CAGR 2009-2013: 1.1% In Korea, pharmoeconomic (PE) evaluation
* BRICKMT: Brazil, Russia, China, US$ 143bn by the Health Insurance Review and Asessment
South Korea, Mexico, Turkey CAGR 2009-2013: 4%-5%
Service (HIRA) is key for reimbursement, and
Source: IMS Market Prognosis International 2010 pricing is decided by a system of reference
pricing, with partial access allowed to private
Chart 2 Major players in the global oncology market individuals for non-reimbursed products. The
National Health Insurance Corporation sets
Novartis is the second largest oncology corporation globally prices for new drugs. Distribution is carried out
Roche leads with high growth on a high base; four in decline via consolidated wholesalers, direct manufacturer
% Growth Constant US$ distribution to 100-plus bed hospitals, and
US$ bn % Market MAT Dec 3-Year franchised pharmacy chains.
Rank MAT Dec 2009 Share 2009 CAGR
Global Oncology Market 51.5 100% 5.8 14.0 Taiwan
1 Roche 15.7 30.5% 10.9 19.9 In Taiwan, new Bureau of National Health
2 Novartis 4.9 9.6% 10.5 17.7 Insurance (BNHI) reforms have resulted in a
3 Sanofi-Aventis 4.5 8.8% -10.5 3.4 challenging environment for multinationals. With
4 AstraZeneca 4.1 8.0% -6.9 3.2 the BNHI threatening to fix the payment price for
5 Lilly 3.5 6.8% 7.5 12.6 each disease requiring in-patient care, for example,
6 Pfizer 2.2 4.4% -11.2 2.4 hospitals grow ever keener to use more generic
7 Takeda 1.4 2.7% 12.9 13.4 drugs. With the Bureau utilizing PE studies when
8 Merck & Co 1.2 2.2% 3.6 13.5 setting reimbursement prices, the fate of branded
9 BMS 1.0 2.0% -4.0 0.4 drugs will rest on the strength of clinical data.
10 Johnson & Johnson 1.0 2.0% 3.4 27.3 And with a single reimbursement price for all off-
Top 10 39.6 76.9% 3.5 12.6 patent drugs, multinationals face the possibility of
rapid and substantial revenue losses.
Source: IMS Health, MIDAS; MAT Dec 2009

expenditures on healthcare and pharmaceuticals.
The future of the oncology market in China will
depend on the evolving reimbursement scenario,
as is true for markets around the world. However,
it should be noted that in China, randomly selected
key opinion leaders hold enormous sway over
reimbursement decisions, with the influence of
physicians, hospitals, patients, and others paling
in comparison. In China, a growing number have
also begun to advocate for differential pricing.
Australia
Throughout the Asia Pacific region, 50% of
oncology sales are derived from just 10 top
molecules – Leuprorelin, Tegafur, Imatinib,
Trastuzumab, Paclitaxel, Oxaliplatin,
Bicalutamide, Docetaxel, Rituximab and
Bevacizumab – and a number of key products are
now facing generic pressure.
Australia is among the countries to be impacted
by this new generation of generics. Taxotere,
Outlook
Clearly, new oncology products are launching
in a complex market – one increasingly defined
by generics competition, intensified by growing
pressure on costs and pricing, focused on specialty
products, inclined toward non-retail distribution,
and characterized by better informed patients who
seek compelling demonstrations of a product’s
value. There is still headroom for growth. But
multinationals will have to be very smart in their
approach to the Asia Pacific oncology market.
What we think
Chart 3 Oncology market drivers
Through our work with pharmaceutical companies
throughout the Asia Pacific region, IMS has identified The global oncology market forecast is ~ $75 billion by 2013
a number of effective approaches for gaining a Driven by innovative targeted therapeutics
meaningful foothold in its oncology markets.
80
One approach involves the intelligent pursuit of Hormonals Cytotoxics
70
extended indications for existing therapies. Such Targeted Non-Biotech Targeted Biotech
an approach demands the creation of a unique 60

Sales Constant US$ bn

value proposition for the extended indications, 50
the careful selection of comparators for clinical 40
trials, the application of proven tactics to 30
overcome market access and funding barriers, the
20
appropriate delineation of treatment pathways,
10
and collaboration with the right investigators and
patients for clinical trials. 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
For those entering the Asia Pacific region with
Other factors contributing to growth are earlier detection, increasing numbers of patients on
new therapies, the following success factors should chemotherapy, longer treatment durations and extended indications
be kept in mind:
Growth may be impeded by healthcare budget issues in the near to mid-term and patent expiry
of important brands
• Clinical trial strategy and execution (What Source: IMS Health, Oncology Forecast, Jun 2009
is the key opinion leader engagement model?
What is the clinical strategy to accelerate Chart 4 Leading Asian oncology markets
approval of the new drug in the APAC region?)
• Regulatory strategy and execution (What is In Asia Pacific, the top two countries generate 80% of oncology sales
the registration strategy? How will additional China high growth, Korea and Philippines declining
indications be achieved?) % Growth Constant US$
• Pricing and market access (What is the optimal US$ bn % Market MAT Dec 3-Year
price for the drug? What is the reimbursement Rank MAT Dec 2009 Share 2009 CAGR
APAC Oncology Market 9.77 100% 18.4 18.6
strategy? What pricing options will broaden access?)
1 Japan 6.44 65.9% 22.2 17.7
• Commercial readiness (How should the drug
2 China 1.46 15.0% 28.3 34.9
be launched? How will new opportunities be
3 Australia 0.58 6.1% 1.1 14.2
tapped? How will tracking and performance
4 Korea 0.40 4.5% -4.1 4.5
management systems be put in place? How will
5 Taiwan 0.36 3.7% 3.3 12.8
the right people be tasked with the right jobs at
6 Thailand 0.15 1.5% 7.0 20.2
the right time?)
7 Hong Kong 0.10 1.0% 15.5 23.9
8 Singapore 0.06 0.6% 8.7 18.7
Affordability is key and multinationals must
9 India 0.05 0.6% 18.5 33.0
therefore be prepared to answer a number of
10 Philippines 0.05 0.5% -7.5 15.1
questions by those who fit the bill in the Asia
Top 10 9.71 99.4% 18.6 18.7
Pacific region. Often, “payer” is defined as the
governmental agency. But patients and families Source: IMS Health, MIDAS; MAT Dec 2009

are increasingly paying, too. All will seek answers

to the following kinds of questions:
• What is the incremental value over the current
therapy, especially as it pertains to survival?
• What are the total costs of treatment?
• Can the governmental agency afford to pay for it
financially? Can it afford not to pay politically?
• Can the patient afford to pay, even with a co-
payment?
• Is there a cheaper alternative?
Lastly, whether launching a new indication
or an entirely new therapy, multinationals must
commit themselves to launch excellence. This
involves engaging with key decision-makers to
gain a full understanding of market-value drivers
and showcasing the right proof points. Companies
must be prepared to adapt to local market
conditions by developing and testing pricing/
volume models and by instituting a comprehensive,
locally optimized plan for key decision-makers.
They must align the organization and bridge silos
by conducting an evidence-based reconciliation
of local launch resource needs, perform a local
launch readiness audit, and link contingency plans
to implementable solutions. Multinationals must
also optimize and adjust throughout the launch by
creating a performance-tracking system focused on
forward-looking metrics that trigger appropriate
contingency plans.
IMS brings a team of multi-lingual, experienced, and
innovative market research experts to the complex oncology
™
market. Exclusive tools include our Oncology Analyzer , a
trademarked data source that features an extensive sample
size, strong geographic coverage and dedicated service, and
®
IMS’ proprietary Mapping and Modeling multivariate
analysis technique. Contact Claire Choquet at
claire.choquet@au.imshealth.com or David Twinberrow at
davidtwinberrow@cn.imshealth.com for more information.

A round-up of reports from our offices around the region outlining the news and events
that are shaping their businesses and redefining the healthcare industry
Hong Kong
City faces rapidly
aging population
The Chief Executive Mr. Donald Tsang
delivered his annual policy address in
October in which he pointed out that
Hong Kong faces the challenge of an
aging population. The proportion of
elderly people is set to rise rapidly over
the next two decades and at a much
faster rate than most other advanced
economies. This will have a far-reaching
impact on the economy, healthcare,
welfare and public finance. The
government has pledged to increase
public health expenditure and to enhance
healthcare services. Additional resources
allocated over the past few years have
reached HK$13.7 billion (US$1.7 billion).
The government will continue to work
toward its objective of increasing
healthcare spending to 17% of recurrent
government expenditure by 2012.
The public generally believes the
government needs to enhance the
sustainability of healthcare but has
reservations about a mandatory
supplementary healthcare financing
scheme. The Food and Health Bureau
has now put forward a proposal for a
voluntary health insurance scheme,
officially known as Health Protection
Scheme, which has been undergoing a
three-month consultation process.
The Health Protection Scheme will
provide the public with the choice
of government-regulated voluntary
private health insurance that offers
better consumer protection for those
who choose to subscribe and enables
them to have sustained access to
private healthcare services. Under the
Scheme, insurers must report annually
all costs, claims and expenses to an
independent monitoring body to keep
premium adjustments reasonable.
They cannot reject high-risk patients
and must guarantee renewal for life.
Policies are portable between insurers
views from the region
and employers and the maximum
premium would be capped. It will cover
at least half the cost of basic in-patient
services at private hospitals. Out-patient
consultations and cosmetic surgery will
not be covered.
The aim is to encourage people to
switch from reliance on public hospitals
to private healthcare, with the
proposed insurance scheme subsidized
by a government start-up fund of HK$50
billion (US$6.4 billion). Currently, about
2.4 million Hong Kong people have
health insurance. The government
scheme would be sustainable if
300,000 to 500,000 people enrolled.
If the Scheme obtains public approval,
it will be tabled in the Legislative
Council in 2013 and go into effect by
2014.
Frederick Tsang
ftsang@zuelligpharma.com
 Fast Fact
A voluntary government-regulated
health insurance scheme has been
proposed.
Korea
GDP, export
growth slows
GDP growth slowed as exports slowed,
with growth in Asia’s fourth largest
economy halved to 0.7% in Q3 from Q2
but growing 4.5% in the July-September
quarter from a year earlier (Bank of
Korea). The pace of export growth
dropped to just 1.9% from the previous
quarter, when it reached 7%, led by slow
shipments to China. On an annual basis, it
grew 11.5 % compared with 14.9% in Q2.
The Bank of Korea raised interest rates
in November in a move widely forecast
by economists. The rates went up from
2.25% to 2.5%. The increase reflects the
growing concern about inflation.
Market-based Active Trading Partners
(M-ATP) and low-purchase incentives to
hospitals confirmed that cancellation
of the unification law in 2011 is creating
views from the region
confusion in the market. Unpredictable
behavior in hospital bidding has already
been observed, and delisting activities
by hospitals based on price is also being
challenged legally by manufacturers.
Given other important reforms to
eradicate illegal rebates through dual
punishment, electronic tax invoicing
and strong coordination between
different government agencies, there
are many changes that will affect the
pharmaceutical market going forward.
As a direct consequence, prices of OTC
drugs are on the rise to balance an
expected reduction of drug prices.
The Korean Food and Drug
Administration is simplifying processes
for clinical trials, reducing phase one
trial timing and allowing submission
of documentation in English only. It
is also creating a database for new
drugs for trials conducted in Korea
and abroad. Korea, China and Japan
are strengthening cooperation and
comparing their clinical trial systems
to seek mutual understanding and
regulatory harmony.
Building on the work done with
our strategic partner KDS, Zuellig
Pharma Korea has engaged other top
distributors to conduct regular business
and operational reviews to improve
efficiencies and reduce waste. As a start
we have focused on sales performance
and the management of peak days.
We are also delighted to welcome
GlaxoSmithKline Vaccine as a new
principal.
Tom Vanmolkot
tvanmolkot@zuelligpharma.com
 Fast Fact
Clinical trial processes are being
simplified by the Korean Food
and Drug Administration.
Taiwan
GDP estimate
revised upward
2010 GDP growth has been revised
to 8.15% from the previous forecast
of 6.94%, with the sharp upward
adjustment mainly due to better-than-
expected growth in private consumption,
domestic investment and exports earlier
this year.
According to government statistics,
private consumption grew 4.4% from a
year earlier while domestic investment
jumped 30.8% in Q2. It is estimated
that full-year domestic investment
will rise by 17.3%, a high over the
past two decades. Strong domestic
investment was largely attributed to
government efforts to attract foreign
and overseas Taiwanese investors back
to Taiwan and the possibility of more
Chinese tourists after the signing of
the Economic Cooperation Framework
Agreement in June. The agreement
signaled further liberalization of trade
between Taiwan and China.
GDP growth for 2011 was modestly
estimated at 4.59% in light of worrying
unemployment and a slowing global
economy. Although unemployment fell
from 5.16% in Q3 to an estimated 5.06%
in Q4, it was estimated to average
5.29% for the whole year, which would
fail to meet the administration’s
commitment to contain the rate below
5% this year. It is expected to drop to
4.86% in 2011.
On the healthcare front, the Bureau
of National Health Insurance (BNHI)
and Department of Health continued to
urge the legislature to pass the second-
generation National Health Insurance
bill by year end. The bill has been
postponed due to a failure to reach
a consensus between the ruling and
opposition parties.
BNHI warned that total healthcare
expenditure would exceed the
NT$500 billion (US$16.4 billion) threshold
for 2011 and register per capita
expenses at NT$21,943 (US$800). Total
expenditure has more than doubled
from under NT$200 billion (US$6.5
billion) in 1995, the first year that the
National Health Insurance scheme
was implemented. BNHI attributed
the fast growth of expenditure to an
aging society with increasing numbers
of chronic disease patients and
heavy medical resources for patients
with serious illnesses. The Bureau
emphasized the passage of the bill of
the second-generation insurance was a
critical step for the system to improve
its financing capability to sustain
current quality.
John Chou
jcchou@zuelligpharma.com
 Fast Fact
Second-generation insurance bill
remains a key issue.
Singapore
Tourist arrivals
boost economy
Singapore’s GDP growth has been
revised upward to 13%-15% in 2010
based on strong first half expansion of
18%. The recovery is broad based across
all sectors, particularly manufacturing,
wholesale and retail, and financial
services. Retail growth has been
stimulated by high tourist arrivals. In the
first half of 2010, visitor numbers grew by
a strong 23% year on year assisted by the
global economic recovery and opening
of the integrated resorts. Consumer price
index inflation increased by 3.1% in Q2,
led by higher transportation, housing
and food prices.
The Biomedical Sciences (BMS)
Executive Committee has announced
that the government would invest
S$3.7 billion (US$2.9 billion) in
biomedical sciences research from
2011-15.
The 12% increase over government
investment for 2006-10 is a strong
signal that such R&D remains a priority
in Singapore’s long-term strategy to
boost its economic competitiveness,
achieve sustained growth and establish
the country as Asia’s innovation capital.
The BMS investment is part of the
Research, Innovation and Enterprise
2015 fund of S$16.1 billion (US$12.5
billion) committed to R&D over the
next five years. In line with the
fund’s strategies, BMS funding will
support better integration of research
performers across the BMS landscape;
greater emphasis on translational and
clinical research; and stronger focus on
economic outcomes.
In October 2010, Emergent
BioSolutions Inc., a US-based developer
and manufacturer of vaccines and
antibody therapies, launched its
Singapore operations.
EPIC Bio is a Singapore-based joint
venture with Temasek Life Sciences
Ventures Pte Ltd which seeks to develop,
manufacture and commercialize
pandemic influenza vaccines and
therapeutics.
Medtronic, the global medical
technology leader, has become the
first company to join the Singapore
Medtech IDEAS program. Medtronic,
in partnership with the Economic
Development Board, will establish
a training program at its facilities in
Singapore to provide business and
technical professionals with the skills
needed to assess and consider the
unmet clinical needs of customer
and patients in Asia to assist with the
design, development and manufacture
of medical devices.
Jessie Tang
jtang@zuelligpharma.com
 Fast Fact
Singapore-US joint venture set to
develop pandemic flu vaccines and
therapeutics.
Philippines
Mixed results
for Aquino
GDP rose by 7.9% in the first half of
2010, a 21-year high. Election-related
public works spending, the resurgence
of exports (up 25.2% in volume) and
strong growth in fixed investment
(up 21.1%) resulting from rising global
and domestic demand triggered the
robust performance of the economy.
GDP will likely slow for the rest of the
year, resulting in a whole-year average
growth of a still respectable 6%-7%.
The Philippine peso continued to
gain against the US dollar, closing
in on the P43: US$1 mark at the
end of Q3 from mid-46 at the start
of the year. Significant inflows of
remittances from overseas Filipino
workers and portfolio investment have
driven peso appreciation. Foreign
buying made the Philippine stock
market among the Asian region’s
best performers year-to-September,
even as the government’s first peso-
denominated global bond float raised
P44 billion (nearly US$1 billion) for
budget deficit financing. Strong dollar
inflows sustained the build-up in gross
international reserves to US$53 billion
at the end of September.
The first 100 days of the Aquino
government saw mixed results. He
started well with a record trust rating
and an honest drive toward good
governance. But huge challenges
arrived along the way including the
controversial handling of the Truth
Commission, the recall of “midnight
appointees” of the previous president,
and the August hostage crisis on a
tourist bus that led to the death of Hong
Kong tourists. These problems brought
his trust rating from a high of 83% to
60% at the end of his first three months
in office.
On the upside, President Aquino
brought home US$2.4 billion in
investments from a trip to the US
and finally gained approval for the
Millennium Challenge Corporation
Grant worth US$430 million.
In the Philippine pharmaceutical
market, government regulation
continues to weaken the industry
with a new policy that grants senior
citizens exemption from value-added
tax on practically all medicines and
nominated healthcare services.
This is on top of the existing 20%
Senior Citizen Discount they already
enjoy. The new administrative order
will impose compulsory rebates
and the sharing of burden of senior
citizens’ discounts among retailers,
manufacturers and distributors.
Taking into account the impact of the
expanded senior citizens policy and the
previous Maximum Drug Retail Pricing
scheme, the market is expected to post
between 0%-2% by end of the year
compared with 2009.
Zuellig Pharma Philippines
The company has continued to help
the drugstore industry modernize its
retailing practices through its Retail
Management Solutions service. Over
100 drugstores have signed up to
join this innovative program which
includes new store lay-outs, category
management, retail marketing and
retail skills training.
Raymund Azurin
razurin@zuelligpharma.com
 Fast Fact
Government regulation continues to
weaken the pharmaceutical market.
Vietnam
Inflation on
the rise again
Inflation started to accelerate toward
the end of 2010. While Vietnam
enjoyed some of its lowest consumer
price index increases in recent years for
much of 2010, food and related product
inflation are now driving monthly
rates up. The government announced
a number of activities to keep price
increases limited. Among these are
new measures which force foreign milk
producers to register their prices with
the authorities. Analysts have now
increased their consumer price index
forecasts to almost 9% for 2010, with
some suggesting 2011 will go back to
double-digit inflation.
In line with the government push
to stay within set limits, medicine
prices have not increased much over
2010. This and the three devaluations
between November 2009 and August
2010 are putting the pharmaceutical
industry – both domestic (most active
ingredients are imported in US dollars)
and international – into an increasingly
difficult situation. The government
has announced that it will not devalue
the Vietnamese dong further in 2010
from the official rate of 18,932 (with a
ceiling of 19,500) to the US dollar. By
early November, unofficial rates paid at
Ho Chi Minh City money changers had
soared beyond 21,000.
The gap between official and
unofficial rates is largely driven by
demand for US dollars to settle import
invoices due in Q4 2010. The trade
deficit is set to exceed US$1 billion per
month, leading to a huge lack of liquidity
in US dollars at commercial banks. As a
result, most banks are unable to supply
US dollars in any significant quantity at
ceiling rates, thus driving demand at
non-official channels.
Pricing of medicines is also being
discussed in a longer-term policy
setting. The Ministry of Health
circulated a draft which would subject
medicines to a maximum mark-up from
import prices to the price to trade.
The size of the mark-up would vary
based on the price of the medicines.
It would also allow only limited mark-
ups for locally manufactured products.
While this is still at the draft stage,
such mandated price intervention
would create major challenges for the
pharmaceutical industry.
Stefan Heitmann
sheitmann@zuellipharma.com
 Fast Fact
A draft government measure could
create a challenge for pricing of
medicines.
Malaysia
& Brunei
Budget seeks to
enhance healthcare
In the first half of 2010, Malaysia’s GDP
growth moderated to 8.9%, compared
with the strong uptrend of 10.1% in Q1,
due to softening in external demand.
On an annualized basis, the government
projects GDP will end the year at 7%.
Under the 2011 Budget, delivered
in October 2010, public-private
partnership (PPP) projects will be
intensified, among them the building
of an Academic Medical Center in 2011.
The project, a joint venture with Johns
Hopkins Medical International and the
Royal College of Surgeons in Ireland,
involves private investment of RM2
billion (US$625 million). It is expected
to promote “cross-fertilization” among
local and foreign medical practitioners,
attracting world-renowned doctors
to pass on knowledge to local doctors,
thereby raising Malaysia’s medical
standards and improving treatment.
In ensuring quality healthcare,
an allocation of RM15.2 billion
(US$4.75 billion) will be made to
build new hospitals and increase the
number of doctors, nurses and supplies
of medicines and equipment. The
government’s target is a ratio of one
doctor to 600 people by 2015 (current
ratio: 1: 900).
The Budget also addressed the
continuing need to provide affordable
healthcare services. Another 25 urban
1Malaysia Clinics for low-income earners
will be established, bringing the total
to 76. Medical services and medicine
are provided free. The latest Ministry
of Health initiative is to launch the
1Malaysia Mobile Clinic to serve remote
areas, estates and villages.
On the pharmaceutical front, the
market registered a drop in growth
for the first nine months of the year.
According to the Pharmaceutical
Association of Malaysia (PhAMA), total
year-to-date September 2010 sales for
participating multinational members
stood at RM2.06 billion (US$642.5 million),
an overall market decline of 2.5%.
Ethical sales reached RM1.84 billion
(US$575 million), a decline of
2.9%. For Zuellig Pharma Malaysia,
principals posted an overall positive
growth of 6.76%, while ethical sales
increased by 5.02% for year-to-date
September 2010.
The Ministry of Health recently
announced that private healthcare
providers (hospitals, clinics and
dental clinics) could now advertise
their facilities and services in all
media, locally and abroad, following
liberalization provisions under the
Medicines (Advertisement and Sales)
Act 1965. The move was in line with
the government’s decision to promote
health tourism in Malaysia and raise
the number of foreigners coming
to Malaysia by 20% annually from
336,000 visitors in 2009.
In Brunei, the IMF projected the
Sultanate’s economy would grow
by 0.5% this year and 1% by 2011 as
the world economy recovers from
recession.
Malaysia and Brunei have agreed
to make it easier for patients to move
across the border to seek treatment in
views from the region
emergency cases, particularly to the
Limbang district (northern Sarawak)
as the closest health facility handling
serious cases is located in Miri, Sarawak.
Maikel Kuijpers
mkuijpers@zuelligpharma.com
 Fast Fact
Another 25 1Malaysia Clinics for low-
income earners will be established.
Indonesia
Strong economic
prospects
The Asian Development Bank has raised
its Indonesian forecast to 6%, among
the highest of G20 members along with
China and India, but the slowest of the
region’s major economies. The consumer
price index reached 6.4% year on year
to August set against 6.2% at the end
of July. Food was still high at 13% but
down compared with July. In May, the
consumer price index stood at 3.9%.
Indonesia’s local currency bonds are
up 15% in 2010 after a 22% gain in 2009,
the best of Asia’s 10 largest economies
ex-Japan (HSBC Indices). With growth
over 6%, the rupiah strengthening,
foreign exchange reserves at historic
highs, direct investment levels steadily
increasing and commodity prices stable
to strengthening, the Indonesian
economy is strong and the prospects for
steady growth for the next two to three
years are high.
The IMF is calling on Bank Indonesia
to take a proactive approach to keep
rising inflation pressures in check. In its
annual review of Indonesia, completed
in October 2010, the multilateral agency
noted that inflation expectations for
2011 were currently at the top end of
the central bank’s 4%-6% target range
and could move higher, suggesting the
need to raise interest rates from their
current historical low of 6.5%.
So far, Bank Indonesia has opted
to raise bank reserve requirements
rather than hike rates to manage
inflation. The IMF also highlighted
the need for further financial sector
reforms to reduce risks from a future
global financial meltdown. It suggested
the need to quickly pass legislation
creating a new bank regulatory agency
separate from Bank Indonesia and a
financial system safety net law. Both
are currently under deliberation. The
agency also reiterated the importance
of reducing energy subsidies and
reallocating government funds for
infrastructure and social spending.
Kadin, the influential Indonesian
Chamber of Commerce and Industry,
elected Suryo Bambang Sulisto as the
new chairman at its national congress.
Suryo was previously head of Kadin’s
advisory board. He is currently president
commissioner of top coal mine company
Bumi Resources and founder of the
Satmarindo Group which has business
interests in oil and gas, mining, steel
manufacturing and palm oil. Following
his election, Suryo underscored his
intention to work with the government
to pursue policies that would support
the business community and regional
and national economic growth.
Santiago Garcia
santiago.garcia@aplcare.com
 Fast Fact
IMF calls for proactive measures to
manage inflation.
Thailand
Emergency
rules remain
Since the military crackdown on “red
shirt” protesters in May 2010, the
coalition government of Prime Minister
Vijjajiva Abhisit has continued its firm
hold over the country. Emergency
decrees have been extended in most
parts of Thailand, including Bangkok,
where emergency rule was prolonged
until December.
The appointment of General Prayuth
Chan-ocha, a strong monarchist, to
the post of army commander-in-chief
is expected to be followed by similar
announcements, which should provide
military unity and solid support for the
government in the next 12 months.
With elections due at the end of 2011,
the other key objective of the current
government is to gain sufficient popular
support to win office, a major challenge
considering the widespread support that
the “red shirts” enjoy outside Bangkok.
Strong economic recovery continues,
with good growth apparent in many
sectors. Consumer spending is up
5.5% on last year, fixed investment
has risen 12.5% over the previous
year while manufacturing is 20.4%
higher and construction shows a 7.1%
improvement.
The Thai baht’s appreciation against
the US dollar (+10% at the end of
October) may reduce GDP growth by
0.7%. But overall growth of 6.8% in
2010 is still expected if the impact
of recent floods remains below 0.1%
of GDP. However, the IMF has cut its
2011 forecast for GDP growth to 4%
from April’s 5.5%. This may reflect the
uncertainties ahead for Thailand as
well as the partial reduction of fiscal
stimulus disbursements.
More than half of state hospitals
are suffering from serious financial
problems. Many of them are operating
at a loss and unable to pay doctors’
salaries, reflecting the fact that the low
per-capita subsidy under the universal
coverage and social security schemes
does not cover the actual costs of
treating patients.
This situation may deteriorate
further if the government goes ahead
with its plan to let civil servants use
their benefits at private hospitals,
which would reduce profitable income
from the Civil Servant Medical Benefit
Scheme at state hospitals. At least
50 private hospitals have submitted
applications to join the scheme. The
Public Health Ministry permanent
secretary said he would urge the
National Health Security office to
allocate two billion baht to ease
the financial stress these medical
institutions currently experience, even
though this would not represent a long-
term solution to the under-funded
healthcare system in Thailand.
Yves Hermes
yhermes@zuelligpharma.com
 Fast Fact
Many state hospitals are operating
at a loss and cannot afford to pay
doctors’ salaries.
Bangladesh
FDI returns to
the country
GDP growth in the current fiscal year
may reach 6.3%, propelled by strong
domestic demand, according to an
Asian Development Bank report. The
government expects GDP to grow at 6.7%.
Export growth for the first two
months (July-August) of the current
fiscal year stood at 28.8% compared
with the same period last year. Imports
also expanded by 36% during the same
period, mainly due to more imports of
food grains, petroleum products and
capital machinery.
Foreign Direct Investment (FDI)
made a comeback in Bangladesh from
January-June, 2010, with an increase
of 23% year on year set against a 66%
drop from July-December in 2009. FDI
fell 34% over the entire fiscal year in
2009-10.
The inflation rate was 7.31% though
the government target had been
set for 6.5% in fiscal year 2009-
10. The rate was 6.68% in 2008-
09. Meanwhile, the bull run on the
country’s stock exchanges saw indices
touching new highs.
For the first time in 10 years,
remittances have taken a downward turn.
In the first three months of the current
fiscal year, remittances fell by about 2%.
Remittances had previously increased
every year since 1990, with the exception
of 2000-01. They have risen by 10%-32%
in the past 10 years. Last year, remittances
grew by 13% to reach US$11 billion.
In the healthcare sector, the domestic
pharmaceutical industry saw the
entry of one more local player, Novus
Pharma, and has continued its double-
digit growth.
Shailendra Bobhate
sbobhate@zuelligpharma.com
 Fast Fact
The domestic pharmaceutical industry
continues to strengthen.
Corporate Country offices
Zuellig Pharma Zuellig Pharma
Asia Pacific Bangladesh Singapore For information about Zuellig Pharma
1303, Shui On Centre Mr. Shailendra Bobhate Ms. Jessie Tang Asia Pacific or any of its business entities,
No. 6-8 Harbour Road General Manager Area Director please contact the Corporate Office:
Wanchai, Hong Kong Zuellig Pharma Bangladesh Ltd. Zuellig Pharma Pte. Ltd.
Tel: +852 2845 2677 Tel: +880 (2) 988 4454 Tel: +65 6546 8188 Zuellig Pharma Asia Pacific
Fax: +852 2877 5647 sbobhate@zuelligpharma.com jtang@zuelligpharma.com 1303 Shui On Centre
No. 6-8 Harbour Road
Contacts Hong Kong & Macau Taiwan Wanchai, Hong Kong
Mr. Roland Bruhin Mr. Frederick Tsang Mr. John Chou Tel: +852 2845 2677
CEO Healthcare Distribution and Chief Executive General Manager Fax: +852 2877 5647
Commercialization Zuellig Pharma Ltd. Zuellig Pharma, Inc. Email: help@zuelligpharma.com
Zuellig Pharma Tel: +852 2856 3632 Tel: +886 (2) 2570 0064
rbruhin@zuelligpharma.com ftsang@zuelligpharma.com jcchou@zuelligpharma.com

Mr. Rolf Steffen India Thailand

CEO Healthcare Services and Investments Zuellig Pharma (India) Private Ltd. Mr. Yves Hermes
Zuellig Pharma Tel: +852 2845 2677 Chief Executive
rsteffen@zuelligpharma.com help@zuelligpharma.com Zuellig Pharma Ltd.
Tel: +66 (2) 656 9800
Ms. Elaine J. Cheung
Indonesia yhermes@zuelligpharma.com
Chief Financial Officer
Mr. Santiago Garcia
Zuellig Pharma Asia Pacific
echeung@zuelligpharma.com
President Director Vietnam & Cambodia
P.T. Anugerah Pharmindo Lestari Mr. Stefan Heitmann
Mr. Douglas Stanton Tel: +62(21) 345 6008 General Manager
Chief Human Resources Officer santiago.garcia@aplcare.com Zuellig Pharma Vietnam Ltd.
Zuellig Pharma Asia Pacific Tel: +84 (8) 910 2650
dstanton@zuelligpharma.com Korea sheitmann@zuelligpharma.com
Mr. Tom Vanmolkot
Mr. Michael Becker President
Area Director Zuellig Pharma Korea Ltd.
Zuellig Pharma Tel: +82 (2) 2006 0600
mbecker@zuelligpharma.com tvanmolkot@zuelligpharma.com

Ms. Jessie Tang Malaysia & Brunei

Area Director Mr. Maikel Kuijpers
Zuellig Pharma Chief Executive
jtang@zuelligpharma.com Zuellig Pharma Sdn. Bhd.
Tel: +60 (3) 5566 2288
Mr. Joe Davies mkuijpers@zuelligpharma.com
Regional Logistics Manager
Zuellig Pharma
Philippines
jdavies@zuelligpharma.com
Mr. Michael Becker
Area Director
Mr. Giuseppe Leo
Zuellig Pharma Corporation
Chief Executive,
Tel: +63 (2) 908 2222
Specialty Solutions Group
mbecker@zuelligpharma.com
Zuellig Pharma
gleo@zuelligpharma.com Mr. Chris Eberle
General Manager
Mr. Jeff Weisel
Metro Drug Inc.
Program Leader - Patient Solutions
Tel: +63 (2) 837 8661
Healthcare Services and Investments
ceberle@metrodrug.com
Zuellig Pharma
jweisel@zuelligpharma.com
The Market Partner: company background

Zuellig Pharma Asia Pacific Affiliated Companies

With a history of more than 60 years in Asia, Zuellig zip-online® is our regional
Pharma has forged a reputation as the leading provider of principal information
distribution solutions for the pharmaceutical industry in the platform offering timely
region. Our cutting-edge services cover end-to-end supply sales and inventory Pharma Industries has a Invida is a leading
chain management, including inventory management, information, best practices long-established history in pharmaceutical and
warehousing, distribution and customer order management, in analysis and reporting, providing contract healthcare marketing
among others. Taking advantage of our extensive expertise, and diverse forms of manufacturing services to the specialist in the Asia Pacific
pioneering technological innovations and state-of-the-art benchmarking. Asian pharmaceutical region. The company is a
facilities allows manufacturers to focus on their own core healthcare industry through wholly owned subsidiary of
expertise. A scalable infrastructure supports the marketing its operations in Thailand Asia Pacific Pharmaceutical
drives of our principals and our collection services reduce and the Philippines. With Holdings, a joint venture
country risks for individual principals. a client base of over 50 between Interpharma
AsiaRx® is our exclusive
We provide the largest direct account coverage in all multinational companies, Investments Ltd, Quintiles
regional Internet-based
healthcare channels in Asia Pacific, employing over 1,000 and over 1,200 formulations Transnational Corp and
pharmaceutical marketplace
sales representatives to support the activities of our principals currently in production, Temasek Holdings (Private)
that connects customers
in the trade channel. Advanced information technology the Philippines plant Limited.
and principals in innovative
tools, such as zip-online, an innovative sales and inventory of Pharma Industries is
ways. For principals, it is a
tool, give principals full transparency for all transactions. the largest, most advanced
new connection to customer
Our world-class facilities operate in strict accordance with contract manufacturing
behavior, integrated
rigorous quality management standards, setting industry facility in Asia. The group’s
with other channels and
benchmarks of excellence. We continuously refine and Thai operations are certified
offering complete supply
implement the latest technological advances in our on-going to the same top GMP
chain information. For
drive to offer the best services to our principals and clients. standards, providing
customers, it saves them time
manufacturing services to over
and money, and gives them
30 research-based companies
the control necessary to run
from around the globe.
their businesses better.

The Specialty Solutions Group (SSG) is a pioneering

regional consultancy and bio-logistic services division of
Zuellig Pharma. Strategically based in Singapore, SSG
leverages Zuellig Pharma’s cutting-edge Regional
Distribution Center and pan-Asia coverage
to provide customized, added-value bio-logistics for
pharmaceutical, clinical trial, medical device, diagnostic
and other healthcare-related companies.

For more information about Zuellig Pharma,

please contact: jleung@zuelligpharma.com