Pricing Strategy for Generic Immunology Drugs in APAC

The market for generic immunology drugs in the Asia-Pacific (APAC) region is witnessing rapid expansion, driven by increasing healthcare access, rising chronic disease prevalence, and cost-containment measures by governments. 

As more biologics go off-patent, pharma companies are moving quickly to introduce affordable generic and biosimilar alternatives across key APAC markets.

If you are planning to enter or expand in this space, pricing is one of the most critical levers for success. A well-aligned pricing strategy not only helps in capturing market share but also ensures regulatory compliance, reimbursement viability, and long-term profitability in a highly diverse region.

And, with each APAC country having its own regulatory landscape, cost controls, and purchasing patterns, a one-size-fits-all approach rarely works. 

At Consainsights, we help global pharma companies navigate this complexity through data-driven market intelligence and region-specific pricing insights. Connect with our experts if you need help with the same. 

Overview of the APAC Generic Drug Market

The generic drug market in the Asia-Pacific (APAC) region is growing steadily, with a strong push from governments to make healthcare more affordable. Within this, the generic immunology drug segment is seeing significant traction due to rising cases of autoimmune diseases and the need for cost-effective treatment options.

According to Consainsights’ recent research, the overall APAC generic drugs market is expected to grow at a CAGR of around 8.3% from 2024 to 2030, reaching a value of over USD 145 billion by the end of the forecast period. 

The immunology-focused generic segment is projected to grow even faster, fueled by increased demand for therapies treating conditions like rheumatoid arthritis, psoriasis, and inflammatory bowel disease.

India and China are leading the region’s growth. India, known as the "pharmacy of the world," is a top supplier of generic drugs both locally and globally. The country has a strong domestic demand and is also a major manufacturer of biosimilars and low-cost immunology drugs. China, through its Volume-Based Procurement (VBP) program, has significantly lowered prices and boosted the use of generics in hospitals and public healthcare systems.

Japan, with its aging population and high healthcare spending, has also pushed for higher generic penetration. The government targets an 80% usage rate of generics in prescriptions, creating more opportunities for immunology brands that can meet quality standards.

Southeast Asian countries like Indonesia, Vietnam, and the Philippines are emerging as high-potential markets. These countries are expanding public healthcare coverage and adopting procurement-driven approaches to improve access to essential medicines. 

While their regulatory processes may vary, the demand for affordable treatment options remains consistent.

Core Pricing Models for Generics in APAC

While pricing your generic immunology drug for the APAC region, it’s important to understand the core models that different countries follow. 

Pricing strategies vary not only by regulation but also by procurement practices, insurance coverage, and market maturity. You can check these commonly used pricing models to plan your market entry and positioning more effectively.

1. Cost-plus Pricing

Cost-plus pricing is one of the most straightforward methods used by manufacturers across APAC. In this model, companies calculate the total cost of producing a generic drug. This includes raw materials, manufacturing, packaging, regulatory compliance, and logistics. A fixed profit margin is then added on top to arrive at the final price. 

This approach gives manufacturers a stable baseline for pricing but does not always account for market demand, competitor pricing, or willingness to pay. 

While commonly used in India and Southeast Asia for domestic supply, it may not be competitive in highly price-sensitive tenders or when reference pricing caps apply.

2. Reference Pricing

Reference pricing is a widely adopted method where governments set a ceiling price for a drug based on prices in other countries or within therapeutic groups. This approach is meant to control costs and standardize drug prices across healthcare systems. 

For example, China and South Korea use internal reference pricing to benchmark new generics against existing options. The challenge for pharma companies is that reference pricing often leads to downward pressure, especially when multiple generics exist in the same category. 

Companies must stay updated on pricing databases and policy changes to avoid pricing their product out of reimbursement eligibility.

3. Value-based Pricing

Value-based pricing is still limited in APAC but is gaining traction in more regulated and developed markets like Japan and South Korea. 

In this model, the price of a drug is linked to the clinical value it provides such as better outcomes, improved patient quality of life, or reduced long-term costs for the healthcare system. 

It often involves health technology assessments (HTAs) and real-world evidence to support the pricing level. While more complex to implement, value-based pricing can allow higher prices for drugs that deliver proven benefits. For generics, this model may apply more to biosimilars or specialty immunology drugs with measurable therapeutic advantages.

4. Tender-based Pricing

Tender-based pricing is common in many APAC countries, especially in public healthcare systems that purchase drugs in bulk. Governments or public hospitals issue tenders inviting suppliers to bid, and the lowest or most competitive bid usually wins. 

This model is prevalent in countries like Indonesia, Malaysia, and the Philippines. While it ensures volume sales for the winning bidder, the profit margins are often tight. Pharma companies need to carefully manage costs, supply chain efficiency, and compliance to remain profitable. Strategic partnerships with local distributors and timely regulatory approvals are also essential to qualify and succeed in tender-based markets.

Country-Specific Pricing Insights

To dive further, let us look at how some of the key APAC countries approach pricing for generic immunology drugs. Each market has its own structure, rules, and pricing pressures. Understanding these local insights is important before setting your strategy.

Strategic Recommendations for Pharma Players

Entering the APAC market with generic immunology drugs requires more than just competitive pricing. Pharma companies need a pricing strategy that adapts to market realities, complies with evolving regulations, and aligns with long-term access goals. 

Below are key recommendations to help build a sustainable and scalable pricing model.

1. Adopt a Tiered Pricing Approach

Not all APAC countries have the same healthcare budgets or pricing regulations. A one-price model across the region often leads to missed opportunities or compliance risks. Tiered pricing allows pharma companies to adjust prices based on country income levels, disease burden, and public vs private healthcare dynamics.

• Use World Bank income groupings as a starting point

• Offer differentiated pricing for institutional vs retail channels

• Consider out-of-pocket vs reimbursed market segments

This approach balances access with profitability while aligning with global best practices in equitable pricing.

2. Invest in Local Partnerships

Strong local relationships are key to navigating procurement processes, distribution logistics, and regulatory expectations. In countries like Indonesia, Malaysia, and the Philippines, local distributors are often required to participate in government tenders.

By investing in long-term local partnerships, pharma companies can:

• Improve visibility into tender schedules and evaluation criteria

• Gain faster regulatory clearance through experienced local agents

• Build physician and hospital trust for better market adoption

Local expertise also helps in adapting to cultural and institutional decision-making patterns, especially in fragmented healthcare systems.

3. Monitor Regulatory Updates Constantly

APAC countries frequently revise their healthcare policies, price caps, and drug approval frameworks. China’s volume-based procurement rules, India’s NPPA price ceilings, or South Korea’s HTA decisions can all affect your pricing in real time. 

Establishing an internal or external regulatory monitoring system ensures that no critical update is missed. This helps maintain eligibility for tenders, stay compliant with local laws, and adjust pricing proactively before enforcement becomes an issue. 

A responsive regulatory strategy is especially important when launching or renewing high-value immunology molecules.

4. Use Competitive Intelligence Tools

Keeping up with pricing shifts and competitor activity is essential. Market dynamics in APAC can change quickly, especially when policies tighten or new players enter.

To stay ahead, pharma companies should:

• Track recent price movements and tender outcomes across countries

• Benchmark competitor strategies for launch timing and discounts

• Monitor volume-based procurement outcomes and pricing pressure trends

Using the right intelligence tools helps you adapt your pricing without waiting for quarterly reviews or policy updates to hit margins.

Ready to Refine Your APAC Pricing Strategy?

Consainsights provides in-depth pricing strategy research tailored to each country’s regulatory framework, market dynamics, and competitive landscape. Get in touch with our experts to explore how we can support your next market move.