|
|
May 24, 2007: The pharmaceutical
industry in the Asian region is poised to be the
centre of the global market. Most pharmaceutical
companies in China and India expect this shift to
happen rapidly as the region is poised to become
the world's largest market for medicines and a
powerhouse for both production and research, says
a report from PricewaterhouseCoopers.
The report, Gearing up for a Global Gravity Shift,
is based on in-depth interviews with senior
pharmaceutical executives across nine different
territories in the region; China, India, Malaysia,
Philippines, Singapore, South Korea, Taiwan,
Thailand and Vietnam.
According to the survey, majority of the companies
believe the centre of gravity of the global
pharmaceutical market will be in Asia rather than
North America and Europe in the near future, a
confidence shared by domestic companies and
multinational companies (MNCs) alike.
76% of multinationals surveyed expressed concerns
over IP issues and 60% over corrupt practices in
the region. Nevertheless, a third of
multinationals plan to expand in the region over
the next 12 months with the acquisition of their
own 'greenfield' sites.
Domestic companies, meanwhile, were found to be
'hungry' for cash to invest and 36% would consider
selling all or part of their company to foreign
investors in order to raise funds seeking "to
expand their geographical footprint and become
pan-regional or global players." Scope for mergers
and acquisitions is considerable and a period of
consolidation among domestic companies can be
expected.
China and India top the list of target countries
for expansion, with Singapore and South Korea
next.
Both international and domestic companies said
there had been a welcome improvement in patent
protection in key Asian markets, which was
critical to successful development of the
pharmaceuticals sector.
Around three quarters of executives polled said
they had seen an improvement in intellectual
property rights protection in the past five years,
primarily as a result of the introduction of new
laws and a stronger government emphasis on patent
rights.
With the prices of new medicines a growing
headache for governments and insurers in North
America and Europe, Asia can play a pivotal role
in building a lower-cost supply chain. So far much
of the focus has been on outsourcing drug
manufacturing but companies are increasingly
turning their attention to conducting research in
the region as well, the report noted.
BY OUR PHARMA CORRESPONDENT
|
