Wan Amir-Jeffery Wan Abdul Majid

Chief Operating Officer

Duopharma Biotech Berhad

2 March 2019

Addressing the Muslim Market Demand of Halal Pharmaceuticals

Key topics

Introduction Halal Malaysia

Industry and

Duopharma Biotech

Halal Milestones

1 2 3 4 5

Halal value

proposition for

pharmaceutical

products

Duopharma

Biotech Halal

Initiatives

Strengthening the

Halal Pharmaceutical

Value Chain

2

Introduction

• Differentiating Factor

• Market opportunities

• Confidence for Muslim

consumer through Informed

Choice.

• Duopharma Biotech’s Fardhu

Kifayah Commitment

• Production of “Safe”,

“Efficacy”, “High Quality”,

“Hygienic” and “Halal”

Products

3

Increased awareness on different communities requirements

Ref: Informed choice in

medicine taking – Drugs

of porcine origin and

clinical alternatives”

published by National

Prescription Centre

United Kingdom (2002)

State of Queensland

Health, Healthcare

providers’ handbook

on Muslim patients

Informed choice in medicine taking

• Medicines advise for patients observing a halal diet.

• Patients want and need to understand about the

origins of their proposed medication. It is part of

“Informed Consent” and a first step of showing

respect to their beliefs

• Patients should be encouraged to make informed

decisions regarding their treatment.

4

Halal Pharmaceuticals Industry – a sustainable growth

Factors supporting growth of Halal Pharmaceutical industry:

Ref:State of the Global Islamic Economy Report 2018/2019

2017USD 87 Billion

2032USD 131 Billion

1. Increased spending on

pharmaceutical products by Muslim

consumers 70 72 75 78

8387

0

10

20

30

40

50

60

70

80

90

100

2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

State of the Global Islamic Economy Report (USD Bn)

Pharmaceuticals

Overall, State of the Global Islamic Economy Reports observed a steady

growth on Muslim spending on pharmaceutical products

5

Halal Pharmaceuticals Industry – a sustainable growth

Factors supporting growth of Halal Pharmaceutical industry:

Ref:State of the Global Islamic Economy Report 2018/2019

2. Increased in Halal pharma certified products

• Dong-A ST (South Korea) and Rooyan Darou (Iran) partnership

in biopharmaceuticals

• Ildong Pharmaceuticals (South Korea) product, Biovita was first

certified Halal by the Korea Muslim Federations

• MC Biotech (under Mitsubishi Corporation, Japan) announced

interest to be certified Halal for Brunei market

3. Increased investment and interest in the Halal

market by other countriesAmong companies certified Halal by JAKIM: DUOPHARMA

BIOTECH, UPHA PHARMACEUTICALS, IDAMAN PHARMA,

PHARMANIAGA, XEPA-SOUL PATT,ROYCE, HOE PHARMA,

RECKITT BENCKISER, SANOFI-AVENTIS, KOTRA PHARMA

As of end Jan 2019, more than 4,000 pharma products

certified Halal under the Halal Malaysia Pharmaceutical

scheme.

Ref: www.halal.gov.my

6

Halal Malaysia and Duopharma Biotech Halal Milestones

First pharmaceutical company to obtain the Malaysian HALAL

certification - health supplements under the brands CHAMPS,

Flavettes, Proviton and Naturalle –MS 1500

Obtained HALAL

certification from LPPOM MUI

Indonesia

First pharmaceutical company

to obtain the Malaysian HALAL

certification – MS 2424:2012 for

OTC productsFirst pharmaceutical company to

obtain the Malaysian HALAL

certification for Prescriptive

Medicines based on MS 2424:2012

Duopharma Biotech Halal Milestones

Halal Malaysia

MS 1500:2000

Halal Food MS 2424:2012

Halal PharmaceuticalHalal Industry Master

Plan 2008-2020

MS 2200:Part 2:2015

Islamic Consumer Goods

(Animal bone, skin and

hair)

MS 2400:2010

Halal Logistics

MS 2200: Part 1:2012

Islamic Consumer

Goods (Cosmetics and

Personal Care)

Halal Malaysia

Certification Procedure

Manual

Establishment of Majlis

Halal Malaysia

1999 2000 2005 2008 2010 2012 2013 2014 2015 2016 2017 2019

Expecting

new Halal

standard on

Medical

Device

7

Adherence to strict requirements

• Malaysia’s highly regulated industry - Strict Certification Process by 2 Government Bodies

Primary Assurance: Safety,

Efficacy and QualityAssurance of Shariah, Halal, Toyyib

(Hygiene)

The Pharmaceutical Inspection Convention

and Pharmaceutical Inspection Co-operation

Scheme – international organisation

harmonize inspection procedures through a

common GMP standards

Malaysia was the 1st OIC country and 2nd

ASEAN country admitted as PIC/S member in

2002

GOOD MANUFACTURING

PRACTICES FOR

PHARMACEUTICALS

MS 2424

Malaysian Standard on Halal

Pharmaceuticals developed

by Department of Standards,

Malaysia

8

Halal Built-in, Not Tested For

2

ManagementR&D

(incl.

sourcing)

Registration PurchasingPackaging

MaterialsPackaging Storage

Other

Materials

Ingredients

Sales &

Marketing

Finance

Legal

Human Resource

Internal Audit

Administration,

etc

PRE-PRODUCTION PRODUCTION POST-PRODUCTION

HALAL CONTROL

QUALITY CONTROL

SAFETY AND EFFICACY CONTROL

9

Halal products not only benefit Muslims but benefits EVERYONE

✓ SAFE for consumption and use

✓ Assurance of product EFFICACY

✓ QUALITY standard of production & ingredients/materials

✓ HYGIENICALLY manufactured

Because of the WHOLESOMENESS (“THOYYIBA”) :

SAFETY & QUALITY REQUIREMENTS

Halal value proposition for pharmaceutical products

10

• Biological Target Identification

• Screening• Optimization• Patent Application

Storage & Distribution

• Product Storage• Product

Distribution

Sales & Marketing

• Sales to Consumers• Customer Support• Regulatory Support

• Formulation Development

• Dosage Form Manufacturing

• Packaging

• Formulation Development• Pre-clinical and Clinical Trials

(Phases I, II & III)• Submission for Approval• Phase IV

ManufacturingClinical & Product

DevelopmentDrug Discovery

HALAL ISSUES AND CHALLENGES

HALAL PHARMACEUTICAL VALUE CHAIN

Managing

perception on

Halal

PharmaceuticalsDevelopment of alternatives

Restriction on use of Halal Logo -

as to date, halal logo is allowed

for Food Supplements, and OTC

as indicator for products that is

halal compliant

Market Access – Halal legislation

in importing countries

Market Access –

Trend and

acceptance

Technology developments

Availability of raw materials

e.g. gelatine

Strengthening the Halal Pharmaceutical Value Chain

11

Proposed initiatives to be strengthened

INITIATIVES

FOCUSSED ON HALAL

PHARMACEUTICALS

OBJECTIVES

❑ Awareness /

knowledge sharing

platforms

❑ Communication

campaign

DESIRED OUTCOME(1) Wider acceptance of Halal pharmaceuticals

(2) Strengthening the Halal supply chain

✓ Increase awareness

✓ Development of

KOLs

✓ Develop capable vendors

and suppliers

✓ Develop halal centric

community pharmacy

✓ Applied R&D

✓ Address

Shariah issues

✓ Halal

Pharmacopoeia

❑ Industry-Academia

R&D

❑ Industry-Shariah

Roundtable

❑ Industry enablers

❑ Vendor Development

Program

❑ Halal Knowledge and

Capacity Building Program

(for pharmacists,

entrepreneurs)12

Duopharma Biotech Halal Initiatives

❑ Halal Pharmaceutical Symposium & Forum

Some of key takeaways from the Halal Pharmaceutical

Symposium held in 2016 and 2018:

• Muslim patient rights and informed choice – Tuan Haji Amrahi

Buang, President Malaysia Pharmaceutical Society

• Consumers are getting more aware and paying more attention

to the ingredients of their medicine – Brigadier General Dato’

Dr A Halim Hj Basari, Health Services Division, Malaysian

Armed Forces

• Halal Pharmaceuticals is the new frontier for Malaysia’s global

halal hub – Halal Industry Development Corporation

• Halal logo as a “marketing tool”, “market value”, “trade” for

industries and “informed choice” for consumers – Hub Halal

Division, JAKIM13

Duopharma Biotech Halal Initiatives

❑ Bumiputera Vendor Development Program ❑ Halal Pharmapreneur

• Collaboration with M’sian Productivity Corp, CEDAR

and Koperasi Farmasi Muslim in 2017

• Introduced in 2017 to equip community pharmacists

with better financial, human resources, marketing and

other soft skills in order to improve their business

performance

• In third year and third batch of implementation

• Duopharma Biotech as Anchor Company to support

Government’s efforts to help develop successful Bumiputera

entrepreneurs and businesses

• Focused on strengthening Halal Pharmaceutical Supply

Chain.

14

Duopharma Biotech Halal Initiatives (3)

❑ Duopharma – Academia Collaboration

Activities:

▪ GSB-UKM Halal Pharmaceutical Business Initiatives – Applied

research on Halal Pharmaceuticals.

▪ Jalinan Antara Universiti Dan Industri (“JATI”) – To train and groom

pharmacy undergraduates on entrepreneurship in community retail

pharmacies

▪ CEO@Faculty –to intensify industrial sector participation in the

system of higher education by sharing the experiences and expertise

of industry leaders.

▪ UMP – Study on Improving the Integrity of Halal Supply Chain

Management Through Blockchain Technology

15

Conclusion

❑ Halal is a standard that enhances the quality of pharmaceutical

products.

❑ Halal Pharmaceutical is a competitive advantage to the national Halal

Agenda.

❑ Collaborative effort is important in raising awareness towards wider

acceptance of Halal Pharmaceuticals.

❑ We have only just begun….

16

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