Some Frequently Asked Questions
Q How is WTOPharma different from the
traditional Brick and Mortar business?
Where is WTOPharma.com incorporated and
how is WTOPharma operated?
Traditional Brick and Mortar business is restricted by time constraints and
geographical boundaries, which are alleviated by WTOPharma.com
of an exchange floor, the buyer’s ability to influence a seller’s price is
limited by quality purchased and geographical locations. Now by participating in
a global buying scheme, the average buyer is able to buy products at prices that
are on an international level.
incremental investment in either having a local presence, a manufacturer and
seller can access any buyer in any country. This indicates that a seller can now
go from doing business in a few countries to doing business in any country.
Sellers can gain access to global markets, also eliminating time
would be incorporated at a time that would affect the operation of WTOPharma to
the minimum in terms of convenience of financial operation and legal procedure.
location of operation would be in the form of a virtual organization that has
their activities distributed to many locations around the globe. All of the
activities of WTOPharma would be carried out by utilising applications on the
Internet as such we are a virtual organization mapping the globe.
Q Am I going to incur cost when using
WTOPharma to buy and sell pharma products?
is no registration fee. Buyers are charged no transaction fee. Suppliers are
charged a transaction fee of 3-8% only on successful completion o the
Q Why do we need another Business- to- Business
(B2B) where we already have so many organizations on the Internet, region wide
as well as locally?
Ans. Most of
the existing exchange portals are horizontal, vertical and laboratory chemicals
and consulting in nature. More than 90% of the portals are avenues for sellers
to publicise their company profiles by showcasing their product catalogues and
stating their contact information. This is especially prevalent in China and
India. Daily or weekly electronic newsletters are distributed as well.
is a unique B2B trading site that provides a platform to facilitate sellers and
buyers to trade on a neutral platform. With the soon to implement, reverse
auction, it will create a proactive matching of sellers and buyers in real time
in an anonymous, secure environment.
why a neutral trading Exchange makes sense for the
Pharmaceutical Industry: Technology
is changing many industries, including pharmaceutical raw materials, the
industry is inherently volatile, there are many products which are now
commodities, therefore products are standardized,
and distribution is fragmented and contained inefficiencies.
Non-transparent pricing affects a product’s value and industry players are
also familiar with trading exchanges. As such, buyers
break free and gain purchasing power and sellers increase market access
does WTOPharma.com charge a 3 % to 7% transaction fee on the product categories?
The reason margin varies on product category basis is because some are commodity products and have lower profit
margins, others are specialized products with higher brand building and
Q Who are behind the formation of
factors inspired and transpired Zagro Group to implement WTOPharma.com?
formation of WTOPharma is the result of the effort of Mr. Poh Beng Swee, Chief
Executive Officer of Zagro Group.
devastating fire gutted and destroyed Zagro’s flagship plant and corporate
Headquarters in Singapore in August 1999. Ironically, the fire disaster proved
to be somewhat of a blessing for it was a “catalyst” that made Mr. Poh reviews
his business and revenue model. He
realized that with deep industry knowledge and the awesome power of the
Internet, he could run a big segment of his business, without having his own
factory. He has a knowledge-based
business that has no physical borders.
Via the Net, he could transform, scale up, connect and compete in the
one - year time frame, he conceived and founded three portals, which are
Agroconnect. Com, Vetsquare.com and WTOPharma.com.
Who are your key management team?
We are a team of e-pharmaceutical specialists with plans to expand globally. We
have core values to make a significant contribution to mankind.
Q How is WTOPharma related to the Zagro Group?
The Zagro Group is WTOPharma.com’s founding member.
more than a decade, Zagro Group carried out brick and mortar pharmaceutical raw
material business. In 1999, Zagro Group
turnover was S$62 million.
Group has excellent parentage, which can be tracked back to the 1960s when there
is a joint venture between British Petroleum Nutrition and Gold Coin
Limited. Since then, we have
accomplished country presence in more than 20 countries.
Q What is a Founding Member?
status of founding member would be honored to members who has conceived and
spawned WTOPharma.com. Founding members essentially would mean potential Venture
Capitalists and Investors, Strategic and alliances partners of WTOPharma.
Which kind of market opportunity that this
portal will be addressing?
combined target market size of WTOPharma.com is US$337.2 Billion.
target market size is increasing at an exponential rate. Our combined market
growth is 11% in constant local currency dollars. We believe that we can achieve
a Compound Annual Growth Rate of 8.4% between the calendar year 2000 to 2004.
the working model like? How are transactions executed?
What is your business model like? How much
of it is revenue based, transaction
based or advertisement based?
Ans. It is a
transaction fee based model. Buyers and sellers post their offers on the site
and all details and specifications of products can be viewed. Only the identity
of the buyer and seller is withheld. A person who would like to buy from a
seller, who has posted on the site or vice versa, would click on the bid and a
successful bid is executed.
has a revenue-based model wherein we collect fees for successfully completed
transactions and for services that we provide such as tech transfer.
Q What is the current manpower base?
Currently, we are a team of 30 with plans to grow on a need basis.
How many new areas will the exchange be
operational in? What is the time frame?
Ans. We are
already operational globally. We are growing at an exponential rate as we work
to achieve our goal of becoming the world’s leading B2B Exchange for the
Pharmaceutical Raw Materials industry. We aim to achieve a membership base in
120 countries by the year-end.
What kind of WAP and SMS services does the
Ans. We use
SMS occasionally and would include WAP when deemed necessary.
How has WTOPharma raised the funds? Is it
through VC funding?
WTOPharma is an extension of our current brick and mortar business and we are
currently internally funded.
What is the company’s current equity holding
Ans. WTOPharma would be promoted by a Consortium of
Industry Players and venture capitalists with in-depth knowledge of the
Pharmaceutical Raw Materials market space. The Vertical portal is managed by
industry veterans with an immense understanding of global product prices and
further clarification, do get in touch with