Industry Trend Analysis - Agreements Will Aid CCM Reverse Declining Pharmaceutical Sales - JUNE 2017

BMI View: CCM's agreement with Biocon will allow it to tap into an advantageous generic oncology market , which will be vital in helping to battle costs from more expensive branded cancer products as the incidence of the disease continue to rise. This is a strategic investment for CCM, and, coupled with the agreement now formalised with Biocon for insulin products, will aid CCM's establishment as a key pharmaceutical player in Malaysia and the wider Asian region. CCM's pharmaceutical revenues have suffered in recent quarters; the firm will look to these developments to help reverse its fortunes.

CCM Duopharma Berhad (CCMD), a subsidiary of Chemical Company of Malaysia Berhad (CCM) has entered into a strategic alliance with Natco Pharma and Biocon to offer affordable cancer and insulin therapies in Malaysia. CCMD and Natco entered into a 15-year partnership through a consultancy service agreement, a technology transfer agreement and a supply agreement to build Malaysia's first high active potent ingredient (HAPI) drug manufacturing facility to produce generic oncology medicines.

Through the strategic partnership, Natco will provide a facility design and manufacturing technology transfer agreement as well as the active pharmaceutical ingredients necessary to localise the manufacturing of eight cancer products in Malaysia over the next seven years. The project has been proposed for the Entry Port Project under the National Key Economic Areas by the Government of Malaysia's Performance Management & Delivery Unit (PEMANDU). The project will see CCMD allocate a total investment of MYR34.0mn (USD7.7mn). The HAPI plant will enable CCMD to widen its product portfolio capabilities in offering generic oncology drugs to treat breast, lung, colorectal, cervical and blood cancer.

Cancer Deaths In Malaysia Rising
Selected Cancer Death Rates
Source: World Health Organization (WHO)/BMI

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