Ranbaxy taps into Malaysian growth with second facility
pharmafile | August 9, 2013 | News story | Manufacturing and Production |Â Â ASEAN, Ranbaxy, asian, malaysianÂ
Indian drugmaker Ranbaxy has signed a deal to construct a new $35 million manufacturing facility in Malaysia that will triple its production capacity in the country.
Ranbaxy’s Malaysian subsidiary said the new plant would increase its output from 1 billion to 3 billion doses a year when it is fully operational, and will serve not only the domestic drug market but also export to ASEAN countries, the Middle East, Europe, Sri Lanka and China.
The greenfield development is Ranbaxy’s second facility in Malaysia and will be located at Kulim Hi Tech Park, a state-owned site located in Kedah. Once completed it will cover an area of 15 acres and employ around 200 people, said Ranbaxy in a statement.
Malaysia is seen as having strong growth potential in the pharmaceutical sector, as the government recently introduced measures to boost healthcare provision for the country’s 30 million inhabitants.
In the 2012 budget, the government liberalised investments into the healthcare sector to encouraged foreign companies to locate in Malaysia, including tax holidays, duty exemptions, and other incentives for large projects.
In May of this year, recently-appointed health minister Datuk Seri Dr S Subramaniam unveiled a package of new initiatives, including a review of healthcare services, a crackdown on communicable diseases and revisions to the pharmaceutical pricing structure.
The country is also emerging as a focal point for medical tourism, and is a regional leader in the production of halal medicines, according to Business Monitor International, which notes that the domestic drugs market was around $1.96 billion last year and is expected to grow about 8% in 2013.
“Ranbaxy established its foothold in Malaysia three decades back and since then has been offering high quality, affordable generic medicines to the Malaysian healthcare system,” said Jeyabalan Thangarajah, managing director of Ranbaxy Malaysia.
“The new greenfield facility reinforces our long term commitment,” he added.
Malaysia’s home-grown manufacturing capacity is also gathering pace, with a $100 million project to set up a vaccine manufacturing plant by 2016 announced last month by the health ministry. The facility is a joint venture between Malaysian Biotechnology Corporation and AJ Pharma.
Phil Taylor
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