Presented By:

International Marketing Mohammed Abdul Awal

Md. Alamgir E Islam
of Pharmaceutical products Sayed Abu Sufyan
Joyanta Saha
Asif Jalal Mahedi

Institute of Business administration,

University of Dhaka
Contents

1 • The Company & the current scenario

2 • The justification to go international

3 • Scanning of Global Market & Analysis

4 • Region & Country Selection

5 • PEST Analysis of the selected countries

6 • Final Selection and Rationale

The Company & Products
3A’s+J is one of the leading and fastest growing
pharmaceutical companies of Bangladesh. The Company
started its operation in 2006 and has developed a solid
market here in Bangladesh.
3A’s+J has the finest infrastructure & facilities developed
and engineered by world class consultants to conform
world class standards like WHO GMP. The company
manufactures more than 100 world class generic drugs.
International Expansions
WHY?
> Highly Competitive
Domestic Market

> To achieve Economy of

scale

> Opportunities for growth

and expansion

3 main products:
 Central nervous system medicine
 Respiratory medicine
 Cardiovascular medicine
Prospective Region for Pharma business

Estimated Population (in Mln)

630 625

509

411

• European Union (EU)

• Middle East
• ASEAN
• Latin America
EU ASEAN Middle East Latin America
Competitive Advantage to select ASEAN

 Huge Untapped Growth Potential of ASEAN

 Highly populated than other Region like of EU, Middle East
Why ASEAN?

 Regulatory Flexibilities
 No. of Patients are high
 Quite easy to serve the customer and perform the logistics
activities
 Rapid economic development in the region
 The growth of medical tourism (low cost, quality treatment
and shorter waiting times)
Country Analysis: General Information
Myanmar Indonesia Malaysia Cambodia
Particulars

Population (in million) 52.83 265.32 32.02 16.25

GDP (in billion U.S. dollars) 71.54 1005.27 347.29 24.14

GDP per capita (U.S. dollars) 1261 3876 9755 1380

Government health expenditure (%

4.79% 8.31% 8.23% 6.16%
budget)
Birth rate (childbirth per 1000 per
18.99% 17.79% 17.05% 23.30%
year)
Life expectancy (at birth) 69.19 66.61 75.3 68.98
Poor yet
Healthcare situation (subjective) Poor Improved Improved
improving

Source: World Bank, 2018; WHO Country Health Statistics, 2018

PEST Analysis: Myanmar
Political Economical Social Technological
 An underdeveloped  Myanmar has a  Myanmar is regarded  The overall level of
agrarian country ruled pressing need for as one of the most technology is still pretty
by an authoritarian foreign direct oppressive countries in low
military regime investment (FDI) the world
 Innovation level is
 The country's  Government  The local conflict in almost non-existent
government suppresses expenditure on Rakhine has become due to strict regulations
all expression of healthcare in Myanmar politicized, both within and lack on incentives
opposition to its rule was 4.79% Myanmar and imposed by
internationally government
 Government's inaction  The socio-political and
and silence on the economic situation in
Rohingya crisis Myanmar has affected
its health system as
well
Important fact:
• The industry is dominated by Indian pharma companies which are estimated to have ~40% of the market share.
PEST Analysis: Cambodia
Political Economical Social Technological
 A stable political  6.8% annual GDP  Cambodia had  Cambodia is way
environment in growth rate estimated population behind in their
comparison of past of 15.776 million in the technological sector
decades of war and  Sound macroeconomic year 2016 and growing
internal strife policies, political at a CAGR of 1.50%  Businesses needing to
stability has attracted transport goods into or
 In 2014, Bangladesh growing number of  Cambodia has some out of Cambodia are
and Cambodia agreed investors major health problems well served
to form a joint trade such as diarrheal
council  100% share holding diseases, acute  Cambodia has a well-
FDIs allowed respiratory infection, developed logistics and
 Cambodia’s corporate malaria and dengue freight forwarding
tax will experience a fever, and childhood industry
decline in future illnesses
Important facts:
• Drug product registration follows ASEAN requirements, is relatively inexpensive and takes only a year;
• There are no government controls or reimbursement systems for drugs;
• Almost 80% of pharmaceutical sales are in Phnom Penh and the surrounding region, making distribution relatively simple.
PEST Analysis: Indonesia

Political Economical Social Technological

 Political stability  Indonesia has  Indonesia is the world's  Making Indonesia 4.0
experienced significant fourth most populous strategy highlights the
 Foreign direct growth in its GDP over nation potential of technological
advancements
investment in the last five years
Indonesia has  Indonesia scores poorly
increased to 8.5% in  Government on many healthcare
2017 compared to an expenditure on parameters such as
increase of 8.4% during healthcare was 8.31% health status,
2016 infrastructure, access
 The world's 10th to medical services,
 Tax incentive for labor largest economy in quality, equity
intensive industries terms of purchasing
power parity
Important fact:
• Nearly 75 per cent of Indonesia's drug needs are met by domestic companies.
PEST Analysis: Malaysia
Political Economical Social Technological
 Malaysia is a multi-  Economic growth has  A mix of populations  Malaysia is still need to
party democracy averaged 7% per year gives Malaysia a rich develop its technology;
country; over last decades and vibrant culture;
 It continue to expand
 A high degree of  Malaysian location  Health-conscious and and attract world-
political stability makes it ideally placed healthy lifestyle leading companies
to engage in behavior;
 Corruption does exist in international trade;
the country; a barrier
to foreign businesses as  A large increase in
it adds to firms costs consumer incomes
and can cause and therefore demand
problems

Important fact:
• Malaysia has a fast-growing domestic pharmaceutical manufacturing industry.
• Nearly 67% of companies are producing traditional and herbal medicines; rest are producing generic drugs
Cambodia
Pharmaceutical Market: Cambodia ??
Cambodia Statistics
Population: 16.25 Million
GDP: 24.14 Billion U.S. dollars
Currency: Khmer Riels

Cambodian healthcare market is comprised of:

 Public health facilities
 Private hospitals
 Medical professional services
 Pharmacies [2,516 registered pharmacies]
 19 medical manufacturing institutions
 405 drug import/export companies

Govt. expenditure in the healthcare increased 16% in 2018 than 2017

Ref: https://2016.export.gov/industry/health/healthcareresourceguide/eg_main_108570.asp
Cambodia

Market Entry:
Cambodia allows 100% foreign ownership of businesses1
Import of Medicines 2014 2015 2016 F-2017
Total imports 104,876 119,353 123,266 136,825
Growth % 14% 3% 11%
* Unit: USD thousands
* Data Source: Ministry of Economy and Finance, Cambodia

• Long range forecast is for the market to reach US$ 516mn in 20192

• Annual growth of 11.2% over the 10-year period2

• Main Competitors regional pharmaceutical products: Thailand,
Indonesia, Malaysia, Pakistan & India

Ref: 1. https://2016.export.gov/industry/health/healthcareresourceguide/eg_main_108570.asp
2. https://www.businesswire.com/news/home/20100825006364/en/Research-Markets-Cambodias-Pharmaceutical-Market-Calculated-Worth
Cambodia: Key Reasons

Rationale for the choice:

 Growing market

 Feasible regulatory aspect

 Less local manufacturer: import dependent

 Feasible to transport (easier freight)

 Increased focus of Govt. towards quality medicine

Final Selection: Cambodia
Ready to fly!

Let’s visit Cambodia for direct experience !