Small Retail Pharmacies likely targets of Larger Chains in Malaysia Retail Pharmacy Market: Ken Research

Malaysia News

Key Findings

MCO movement in Malaysia amidst COVID-19 reduced number of operating hours of Pharmacies but resulted in an increase of ~15% in online delivery for product categories majorly Personal Care, Sanitizers and Nutrition & Health Supplements.

The Malaysian Cabinet with aim of reducing costs to customers introduced External Reference Pricing policy in May ‘19 to benchmark drug prices at wholesale and retail levels. However, the policy reduced trade margins for drugs in the country and led to a cascading effect to all the pharmacy players in the country.

Healthcare spending in 2019 accounted for 10% of total budget of Malaysia wherein government’s goal is to achieve the long term growth to be aligned with the WHO recommended healthcare spending of 7% of GDP.

Growing Number of Licences issued: Cumulative number of License A/B/E and NaOH issued under the Poison Act 1952 by the Pharmacy Enforcement is persistently increasing from approximately 9,000 in 2017 to more than 10,000 in 2019 wherein more than 50% of the total license issued in 2019 was accounted by License A, which is issued to a pharmacist to import, store and deal generally by wholesale and retail or by wholesale only or by retail only.

Consolidation of Pharmacies: Larger and mid-sized pharmacy retail chains in the industry are expanding organically by acquiring or merging with smaller chains and independent stores either to enhance their geographical presence or to increase their product & service portfolio. Some recent mergers include Health Lane Family Pharmacy Sdn Bhd buying over Kumpulan Farmasi Vitacare Sdn Bhd and acquisition of Caring Pharmacy by 7 Eleven group in Malaysia.

Collaborations & Partnerships: Partnerships of pharmacies with online consultation & e-prescription companies are growing in Malaysia as Telemedicine Blueprint envisioned that by 2020, the healthcare system of the country would be transformed with developments of advanced health systems by harnessing the power of information & multimedia technologies. Amidst the COVID pandemic, health care providers observed a shift in consumer behaviour, where people are now accepting more digital services such as tele consultation, medication delivery & Covid-19 screening services.

Analysts at Ken Research in their latest publication “Malaysia Pharmacy Retail Market Outlook to 2025- By Market Structure (Organized & Unorganized), By Location (Mall Based & High Street),  By Product Sales (Prescribed Drugs, Generics, Non Pharmaceutical Products, Medical Equipments), By Drug Type  (Patented & Generics) and By Therapeutic Areas”,  the Malaysia Retail Pharmacy Market has been increasing due to increasing geographical presence of pharmacy outlets, rising number of pharmacists along with expansion in value added services offered by major players to sustain and increase their user base in the country. The market is expected to register a positive CAGR of 9.3% in terms of revenue during the forecast period 2020-2025.

Key Segments Covered:-

By Market Structure (Number of Pharmacy Outlets & Revenue in USD Mn)

Organized

Organized Mall Based

Organized High Street Stores

Unorganized

Unorganized Mall Based

Unorganized High Street

By Location (Number of Pharmacy Outlets & Revenue in USD Mn

Mall Based

Prescribed Drugs

Over-The-Counter

Non Pharmaceutical Products

Medical Equipments

High Street

Prescribed Drugs

Over-The-Counter

Non Pharmaceutical Products

Medical Equipments

By Product Sales

Prescribed Drugs

Over-The-Counter

Non Pharmaceutical Products

Medical Equipments

By Sales

Patented Drugs

Generics

By Region

Selangor

Johor

Kuala Lumpur

Sarawak

Others

By Therapeutic Areas

Anti-Infective

Cardiovascular

Pain/Analgesics

Vitamins/Minerals/Nutrients

Antibiotic

Respiratory

Gastro Intestinal

Gynaecology

Neuro

Others

Companies Covered:-

Watsons Malaysia

Guardian Pharmacy

Caring Pharmacy

Alpro Pharmacy

Healthlane Pharmacy

Multicare Pharmacy

AM PM Pharmacy

Cosway Farmasi

Aeon Wellness

AA Pharmacy

Key Target Audience:-

Pharmaceutical Manufacturing Companies

Pharmacy Retail Companies

Independent Pharmacies

Industry Associations

Regulatory Bodies

Telemedicine Companies

Pharmaceutical Distributors & Wholesalers

Time Period Captured in the Report:-

Historical Period – 2013-2019

Forecast Period – 2020-2025

For More Information on the research report, refer to below link:-

Malaysia Pharmacy Retail Market

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