Asian formula instigates change within the pharmaceutical industryNovember 18, 2011 / By Anne Thoraval
Historically, pharmaceutical companies have based their operations in resource-rich regions, such as the US, Western Europe and Japan, where wealth and talent abound. Today’s life sciences map is being redrawn as global players are rebalancing their operations among all regions – right-sizing their facilities within established markets and adding resources within developing markets. Meanwhile, many domestic life sciences companies in developing countries are steadily growing, boosted by rising personal income, ambitious healthcare reforms, supportive legislation and industry consolidation.
Competition within Asian markets continues to intensify, but growth prospects are huge. Market demand in China and India over the coming years is expected to exceed demand from the US and European markets.
A new Jones Lang LaSalle report discusses such change across a selection of very diverse Asian markets – Singapore, Indonesia, China and India. Here are some of the trends that form part of the winning formula for the life sciences industry across Asia:
- – We see a shift from low cost manufacturing to high tech R&D. This is particularly obvious in China, where increasing pools of talent override the dwindling cheap labor lure and where government policies encourage funding from global industry leaders and local investors alike.
- – In addition to pharmaceutical products intended for international markets, local products are being manufactured on a larger scale to satisfy local demand. In some cases, such as jamu (Indonesian herbal medicine) locally developed products also contribute to exports, given the growing interest for alternative medicines throughout Western countries.
- – While Western international companies advance their pawns on the developing countries’ chessboard, Asian pharmaceutical groups are expanding beyond their immediate boundaries. Various Indian companies, for example, are already operating throughout all continents, with many others targeting a broader footprint worldwide.
Read more about these and other trends, and cluster-specific data in the Global Life Sciences Cluster Report 2011.