Dec 1, 2008: Hovid Berhad is a diversified pharmaceutical company based in Perak, Malaysia. Listed on the main board of Kuala Lumpur stock exchange Hovid (formerly known as Ho Yan Hor) has to its credit years of experience in the pharmaceutical industry.
Dating back to 1945 when the business was first established the company’s only product was Ho Yan Hor herbal tea, invented by its founder, Dr Ho Kai Cheong. Even today, the 68-year-old brand Ho Yan Hor herbal tea remains a favorite among many and it is much sought after to relieve body heat, nausea, indigestion, waning appetite and cold. The popularity of the tea has made the company a household name in Malaysia.
It was in the 1980s, that Mr David Ho, the present Managing Director of the company decided to build on his father’s work and lead the company into the new area of manufacturing excellence. From that point on, Hovid grew to become one of Malaysia’s leading pharmaceutical manufacturers of high quality and innovative medicinal preparations and health supplements of various dosage forms. In an e-mail interview with BioSpectrum, Mr David Ho talks about his company’s transformation and shares his views and plans. Some excerpts:
How was Hovid’s transition from a herbal tea manufacturer to a well-diversified pharmaceutical company?
The road to transform the family herbal tea business to a public listed company was not a smooth one. We strived through all the hurdles to overcome the challenges in human resource, technical operation, marketing, finance and R&D. With the belief in stringent quality controlled products we drive the company continuously to maintain the highest quality standards and innovate to strengthen its competitive edge.
The road to transform the family herbal tea business to a public listed company was not a smooth one. We strived through all the hurdles to overcome the challenges in human resource, technical operation, marketing, finance and R&D. With the belief in stringent quality controlled products we drive the company continuously to maintain the highest quality standards and innovate to strengthen its competitive edge.
Hovid Berhad was listed on the second board of Bursa Malaysia in 2005, and transferred to the main board in 2006.
Today, Hovid spells familiarity and quality among the healthcare providers. With the various divisions in the organization that have been established through years of experience, we are able to deliver speed, excellence and above all, "continuous innovation and quality".
What are your major offerings to the customers? What is Hovid’s USP vis-à-vis competition?
The Hovid Group’s pharmaceutical division manufactures and markets more than 350 different types of ethical drugs, health and dietary supplements. The product categories are divided into ethical drugs, OTC drugs, dietary supplements and consumer products.
The Hovid Group’s pharmaceutical division manufactures and markets more than 350 different types of ethical drugs, health and dietary supplements. The product categories are divided into ethical drugs, OTC drugs, dietary supplements and consumer products.
Hovid is proud to be the leader in the research and innovative development as we are active in the research activities such as in the special drug delivery system: controlled release, SupraBio, enhanced oral bioavailability and self-emulsifying drug delivery system.
We offer good packaging on the wide range of competitive products with excellent quality and at affordable price. Our manufacturing facilities and practices conform to the PIC/S’ GMP and Good Laboratory Practice standards.
Hovid’s strength lies in its R&D and export market that extends to 40 countries around the world. Hovid also prides itself on being the first to introduce Malaysian generic drugs overseas since 20 years ago, starting from South East Asia. It has successfully secured more than 700 marketing authorizations worldwide.
Our R&D is working constantly on developing new products and special delivery systems, an average of 12 new products are launched every year.
Hovid has filed patents in several countries, conducting numerous clinical and efficacy studies in several universities around the globe. One of the examples is the research on tocotrienols studies for cardio protection, neuro-protection, anti cancer and hair re-growth.
Are there any other countries where you see opportunity? What are the major steps Hovid has taken to expand into Asia Pacific?
There will be more Hovid subsidiaries coming up. We have taken over Hovid Hong Kong. In future, there will be Hovid Vietnam and Hovid India.
By forming joint ventures with local partners, Hovid is putting more marketing effort on higher margin products. We have offices in Singapore, Philippines and Hong Kong. Africa is the biggest market and we plan to set up an office there in the future as well.
By forming joint ventures with local partners, Hovid is putting more marketing effort on higher margin products. We have offices in Singapore, Philippines and Hong Kong. Africa is the biggest market and we plan to set up an office there in the future as well.
Besides, Hovid sees good opportunities in South America, European Union, the US and China and that’s where we are heading to.
There were reports of acquisition of an Indian pharmaceutical firm. Could you throw more light on it?
In January 2008, Hovid acquired a controlling stake in an Indian pharmaceutical firm, Biodeal Pharmaceuticals, as part of its overseas expansion plan.
India gives us the opportunity to grow fast with greater development in newer generic products due to production, availability of raw material, human resource and machinery all at a lower cost. The strength of continuous innovation lies in Hovid’s strong R&D capabilities, and the talent in India will contribute to Hovid’s R&D products.
What are the challenges and opportunities in the Malaysian pharma sector? What are Hovid’s strategies to tackle those challenges?
Malaysia is an open market with high competition. Doctors and consumers are very demanding. The opportunity to bring in the new generic products from an Indian operation will trigger the strong economy that promotes good growth and good market.
Hovid strives for enhancement and improvement on wider distribution to worldwide, good branding loyalty, good relationship establishment with customers, retailer, distributors and suppliers. We want a fast introduction of newer generic drugs, OTC products, health supplements and consumer products.
Do you foresee any changes in Hovid’s strategy due to the current global economic slump? What growth path do you envisage for your company for the coming years?
Hovid always minimize the waste and cost but to maximize the optimal results in performance and sales all year long. We practice this when the economy is good and we will continue the good discipline during the recession.
We at Hovid are investing in greener energy. We started an energy drive and brought in an expert to conduct an energy audit so we know where we are able to reduce our energy costs.
‘Lean manufacturing’ has been part of our practice since 2003. We have implemented ‘Lean’ in our manufacturing operations, general operations, quality control, administration, finance and R&D department. ‘Lean’ is the methodology to educate all employees in the company about wastage. We inform the people to perform better in their job as it affects their wage. The company has reduced its headcount over the past three years, but salaries are higher because its workers are more productive.
The margins for our pharmaceutical products have climbed to 18 percent from four percent and this is not because of the pricing power but it’s because we were able to squeeze more value out of our operations.
Hovid drives cost down with ‘Lean’ and implements more efficient R&D for faster products development with stringent quality control. Hovid is improving the R&D at constant for more products. We will market them when the economy is picking up, and will go for strategic alliances, joint ventures and look forward to the mergers and acquisitions opportunities in China and India.
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