The pharmaceutical industry is expected to maintain resilient despite global market growth is said to be at its slowest in a decade.

Whether the economy is good or not, the industry is fairly recession-proof and defensive in nature.

Pharmaceutical and healthcare stocks are always a good buy, with the industry growing in line with greater healthcare awareness while the population ages.

Just like most healthcare stocks, pharmaceutical stocks enjoy resilient demand for their services and products, thus making them good defensive equity options amid uncertainties.

There are five pharmaceutical companies listed on Bursa Malaysia namely Pharmaniaga Bhd, Apex Healthcare Bhd, Duopharma Biotech Bhd, YSP Southeast Asia Holding Bhd and Kotra Industries Bhd. 

On another matter, the Health Ministry is currently working with other relevant ministries to regulate medicine prices, with the aim of curbing expensive patented drugs and make treatments more affordable.

However, the exercise is not expected to have a major impact on companies like Pharmaniaga Bhd and Duopharma Biotech as both companies are producing affordable generic medicines.

Pharmaniaga is confident its 10-year medical supply concession which is slated to end this November will be extended by the government.

It had earlier dismissed claims that the company is monopolising the supply of medicines to (MoH, saying only 33% of the ministry’s supplies come from the group.

Source: LinkedIn Azlan Abu Bakar