Reader Feedback: the Generics Market in 2013
"We have to develop new formulations to differentiate ourselves. This effort will be intensified in 2013." --C S Liew, Managing Director, Pacific Agriscience, Singapore
December 19, 2012
Farm Chemicals International: How do you see your business prospects in 2013? What about the prospects of Indonesia and ASEAN countries as a whole?
C S Liew: From the standpoint of generics, 2013 will be more challenging than ever. The generic market sector has been over-serviced for the past several years and will continue to be so for the years to come. In the case of China, the largest producer of generics, although the government is making moves to tighten pollution control and shutting down some plants, more new plants, production capacities and producers are coming into the market. These new plants do have better technologies and better facilities to treat waste. Being over-serviced, competition is intense and margins are thin. In light of this trend, we have to develop new formulations to differentiate ourselves and this effort will be intensified in 2013. In the specialty agchem front, we will also put in extra efforts to market these products on a worldwide basis.
The Indonesian and ASEAN market as a whole will continue to grow but margins for generics will continue to be thin. New registration rules will also mean that more resources and efforts need to be devoted to meeting the new requirements. On-going efforts to harmonize the registration requirements within ASEAN will hopefully come into fruition soon as this can help reduce workload and investments in product registrations.
Do you agree with Mr. Liew?
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