Hovid Berhad Case Study

1.0 Introduction

Background

Hovid Berhad which is pharmaceutical company in Malaysia. It established in 1940s, company’s headquarters is located in Ipoh, Malaysia. Hovid Berhad core business which is generic drugs and dietary supplements and certified by Halal which mean Muslim also can having this drugs as well. Hovid go through Initial Public Offering (IPO) in second board of Bursa Malaysia in 2005 then transferred to main board in 2006. Currently Hovid is become a globalization company because this firm serving more than 50 countries in worldwide.

Founder

The founder of Hovid Berhad is Dr. Ho Kai Cheong was born in Kuala Kangsar, Perak. He graduated in China Canton Wah Lam National Physicians Medical School at age 28. In order to help people

Its also provide the good learning environment for the talent employees. In order to make long term commitment with customer and suppliers, they willing cooperate with them which is key element to reinforce the relationship. They also will continuously develop more effective healthcare technology and product to the customers. Lastly, in order to deliver outstanding value consistently to their customers and suppliers, Hovid Berhad willing dedicate themselves to total customer satisfaction. Hovid berhad also will complying all the regulation and legislation as well.

Business activity and performance

There are more than 350 different types of drugs are produced by Hovid Berhad. Hovid’s product categories are divided into pharmaceutical ethical, dietary supplements and consumer products. In order to avoid any legislation or regulation perspectives issues, Hovid Berhad’s facilities and practices are commitment to PIC/S’ GMP and Good Laboratory Practice Standard.

Furthermore, Hovid’s strength is R&D department and export market is across around 50 countries in worldwide. Hovid Berhad which is the first pharmaceutical company that can introduce the generic drugs to overseas from 20 years ago. Hovid also secured more than 1200 marketing authorizations worldwide as

The ethical product, for instant anti-biotics, anti-diabetics, anti-hypertensives and etc are provided by Hovid Berhad. In the nutshell, the best-selling product among the Hovid Berhad which is Ho Yan Hor Herbal Tea and Tocovid SupraBio (Antioxidants).

The challenges encountered by Hovid Berhad

Free Trade Agreement which is under the ASEAN FTA’s rules stated that product originating from signatory countries will be free from tariff and non-tariff barriers. This might attract a lot of neighbor’s countries export their medicine product into our country and will be tightening the existing firms in Malaysia.

Low cost new comers such as India and China is hard to counter back from recent year. India and China have a long historical in developing drugs formula and method based on their unique ways. Besides that, China has high-end technology, large capacities and large labor force market advantages in pharmaceutical sector.

Regulatory hurdles also one of the challenges facing by Hovid Berhad. There is a tough process during Hovid Berhad want to registration of product, the duration of waiting approval is need to spend a several time. The stringent requirement on GMP and QC procedures also become the limitation of Hovid Berhad to develop a new