ITIS: Taiwan's drug exports to see big growth in 2006

November 25, 2005

The value of Taiwan's western drug exports has risen 126% from NTD 640 million in the first half of 2004 to NTD 1.45 billion in the same period this year, according to the MOEA Industrial Technology Intelligence Services. Based on this performance and other developments in the market, ITIS predicts Taiwan's pharmaceutical exports will experience even greater growth in 2006.

The value of Taiwan's drug imports in the first six months of the year is NTD 16 billion, about he same as in the same period in 2004. Taiwan imports most of its pharmaceuticals from Europe, with Great Britain and Germany its two top European sources. France, Switzerland and Ireland are also major drug exporters to Taiwan.

Taiwan's drug exports to Australia received a major boost from US pharmaceutical company Wyeth's decision to begin using Taiwan to fill export orders from Australia. In fact, this move has resulted in Australia replacing Japan as Taiwan's top export market for pharmaceuticals.

These increased exports to Australia have come because Wyeth has been transforming Taiwan into its Asia Pacific logistics center over the last few years. Also under this strategy, Wyeth has shifted from Germany to Taiwan production of 500 million tranquillizer tablets, 100 million anti-depression drug capsules and 5 million units of injection drugs intended for the Japanese market.

Some other factors that bode well for the future of Taiwan's drug industry are the establishment of an export association among Taiwan's drug makers and revisions earlier this year to Japanese pharmaceutical laws that permit Japanese drug companies to outsource manufacturing to other countries.

Another piece of positive news about Taiwan's pharmaceutical industry is Frost and Sullivan's presenting of an outstanding enterprise award to local drug maker ScinoPharm Taiwan. US drug maker NexMed has also decided to develop new Alprox products in Taiwan due to the quality of Taiwan's pharmaceutical materials makers.

Also, beginning this fourth quarter, many classes of over-the-counter drugs, including cold and stomach medicines, will no longer be covered by National Health Insurance. Drug companies expect to this change to bring greater profits than under the previous policy.

(United Daily News, Central News Agency)

E-mail this page.