The Asian biotech and pharma industries, by establishing itself in several key niche markets have seen significant growth in the recent years and have taken giant steps in the global biopharmaceutical arena.
Dedicated to innovation and research, Asia is rapidly establishing itself as a leader in biotechnology.
Government initiatives, economic liberalization, increased intellectual property protection, developments in drug markets,access to infrastructure, networks and clusters and ability to form alliances all have helped the growth of the biotech sector in these nations. Companies in this region are focusing on competitive niches in segments such as contract research and contract manufacturing, vaccines, information technology and bioinformatics.
Among high-tech industries, one of the most remarkable fields is the biopharmaceutical industry, which combines biology and the traditional pharmaceutical industry.
Overall biotechnology is at the threshold of tremendous growth and India is emerging as an important player in the global sector. The Indian biotechnology sector valued at $ 2.86 billion in 2007- 2008 is one of the fastest growing knowledge-based sectors and is expected to play a key role in shaping India's rapidly developing economy. With a remarkable growth of 30 per cent over the last few years in the biotech sector, India has started attracting the global Attention especially in the field of clinical trials, contract research & manufacturing and other services of biopharma segment. Besides, India is the leader in global vaccine market contributing to over 33 per cent of the global market.
Availability of quality manpower and knowledge base, good network of research laboratories and Institutions,Rich Biodiversity in animal, plants and human races, Well developed base industries such as pharmaceuticals, bulk drugs, seeds, etc, access to intellectual resources of NRIs in this area, extensive clinical trials and research facilities- access to vast & diverse disease populations, India's human gene pools offer an exciting opportunity for genomic studies.
Major contributors to the sector have been vaccines, biopharma (protein drugs) products, contract research and manufacturing and clinical research. The biopharma sector in particular has witnessed rapid growth over the past few years and is poised for even greater growth over the next decade.
One of the key driving factors for this growth is the expiry of a number of patents for protein drugs over the next few years. The market for such drugs could be as high as $80 billion over the next few years and owing to their lower costs of development and production,Indian firms are favourably placed to mop up a significant part of this.
According to some estimates, India is likely to get 15 per cent of the $23 billion worldwide market for clinical testing by 2015.
According to Biocon chief Kiran Mazumdar-Shaw, one of the leading figures in India's biotech industry , the field is positioned to more than double in size over the next five years as more companies in the subcontinent tap in on the potential for opportunities in clinical trials, manufacturing and more. India is well positioned to profit from the shift in R&D and trial work from Europe and the U.S. to Asia, she adds.
Kiran Mazumdar-Shaw predicts that biotechnology will grow to a $5 billion business in the subcontinent by next year and then double to $10 billion by 2015. The industry has achieved a "critical mass" that has positioned biotech to achieve exponential growth, she adds.
Over the past few years, China and India have both been wooing major biopharma organizations interested in taking a share of the growing Asian market for new therapies. But while India has been hampered by a bitter feud over IP rights, China has been signalling that it is determined to clear the path for rapid development. And recently China has been winning over some key players.
The biomedical industry in China is developing rapidly, and new biological drugs are increasing their share of the pharmaceutical market based on people's needs. China is the largest producer and user of vaccines in the world, but the existing production of vaccines is far from enough to meet the needs of the market. The entire market of biological drugs in China is still smaller than that for traditional medicines and chemicals. Therefore, the biopharmaceutical industry has the potential to be the rising star in the pharmaceutical market in the future.
China has seen double-digit growth in its biotechnology industry and has gone from being one of the slowest to one of the fastest nations in the adoption of new biotechnologies. The biotech sector is seen in China and internationally as a core area of national scientific and economic development.
China's biopharmaceutical industry is gradually expanding due to such favourable factors as rapid economic growth, people's higher income, and increasing understanding of and demand for biopharmaceutical. The biopharmaceutical industry has begun to play a more important role in national economy, drawing more attention from investors - both private and public.
According to the "The Outlook for Pharmaceuticals in South East Asia to 2013" report, eight South Asian countries are the next big emerging markets for life sciences firms looking for growth opportunities.
The report points out the business opportunities in Asian pharmaceutical markets are very different from a few years ago. These economies, characterized by economic growth, free market environment, developed industry and investment in health and health infrastructure have travelled a long way from the financial instability and economic downturn in the 1990's.
These markets that had hitherto excited little investor interest, have emerged as areas of opportunity for suppliers and service companies alike. Various factors such as deregulation and better trade links to improved access and the rise of medical tourism are seeing markets such as Malaysia and Vietnam take an increasingly important role in the region. With established western markets maturing, attention is being paid to the countries where manufacturers see significant long-term growth prospects.
The Malaysian biotechnology market is likely to grow at a CAGR of around 21 per cent during 2010-2012, says a new research report “Emerging Biotech Sector in Malaysia” by RNCOS. The report has noted that Malaysia has emerged as one of the fastest growing biotechnology markets in the world. With the launch of National Biotechnology Policy, the market is expected to contribute significantly to the country’s GDP by 2020. The growth in the market can be attributed to strong government support and high investments.
The report has identified that there is a gradual increase in foreign investments in the industry. Healthcare and industrial biotechnology have attracted a lot of investments over the last few years and this trend will continue to be the same in next few years. Despite slowdown in the world economy and drying up of funding for new projects and research, Malaysia is pushing ahead with its plans to promote and make use of biotechnology to broaden the base of country's economy.
The research report demonstrates the role of government and regulatory environment in the development of industry. It also discusses all other factors that will boost the Malaysian biotechnology market in the forecast period.
"The Outlook for Pharmaceuticals in South East Asia to 2013" the report has estimated the current growth in the Malaysian pharma market to be 11.1 per cent per year. This would see the market surpass the $1 billion mark by 2009, and reach $1.4 billion by 2012, or $47 per capita. Having weathered the aftermath of the 1998 economic crash better than most, market growth accelerated considerably in the following years, as imports in particular continued to increase and dominate the market.
According to the report ,the Indonesian market for pharmaceuticals was valued at $1.9 billion in 2008, equal to just under |$7 per capita. In overall terms, the market is similar in size to that of Egypt or Colombia, whereas in per capita terms, the total is similar to that of Vietnam. Indonesia spends an estimated 16.1% of its total health expenditure on pharmaceuticals, and around 0.4% if total GDP. The domestic pharmaceutical manufacturing industry is strong and the country has become an attractive base for many multinational producers to operate. This is largely down to a cheap labour force and generally inexpensive production costs.
In recent years, the global pharmaceutical industry has pinned its hopes on growing demand in emerging nations such as the Philippines to make up for slowing growth in more mature markets such as the U.S., Japan and Europe. The Philippines has high drug prices compared with some neighbours in large part because the generic market there is comparatively underdeveloped, leaving consumers little choice but to buy name-brand drugs.
According to the Pharmaceutical and Healthcare Association of the Philippines (PHAP) ,sales of medicines and other pharmaceutical products are expected to go up by five to six per cent this year.
Singapore is riding on biomedical sciences (BMS) and to spectacular effect. Six of the world’s top 10 pharmaceutical companies have located their manufacturing facilities here. The country is going all out pursuing knowledge and innovation intensive growth. According to some estimates, the Singaporean pharma market is expected to exhibit annual average growth of around four per cent, with impressive economic indicators being tempered by the limited population size. Based on this rate, it is estimated the market will reach $809 million by 2012, equal to $176 per capita. The manufacture of pharmaceuticals is dominated by multinational companies and the government has indicated that it wants at least ten multinational manufacturing facilities operational in Singapore by 2010.
The government and private sectors in Taiwan are making efforts in promoting the biotech sector that has brought in investments in the biopharmaceutical industry . The number of biotech and biomedical companies in Taiwan exceeds well over 1,100.In 2007, the government also announced that up to $900 million will be invested in building a National Biotechnology Park. Besides, it is planning to build two further communities of leading biotech enterprises to attract major biotech companies, vaccine manufacturers, pharmaceutical companies, electronic and telecommunications-based medical equipment manufacturers, and animal laboratories and manufacturers of dental and orthopaedic equipment, scalpels, and micro-electromechanical systems.
In addition, the government has designated the biotechnology industry for further development into a key industry in its Two Trillion, Twin Stars Plan and Challenge 2008 National Development Plan. Taiwan’s biotechnology sector is poised for rapid expansion after a decade of increasing investment.
The pharmaceutical market is expected to expand slowly in Vietnam over the next few years. The government hopes to boost per capita spending to $10-15 by 2010, through a major development program, although this figure looks ambitious. Opportunities exist within the Vietnamese market in terms of specialist pharmaceutical production.
South Korea has been ranked the 12th and the 15th in global biotechnology competitiveness, measured by number of science and technology papers and patented technologies, respectively. There have been noticeable achievements in research since 2000 and research outcomes are turning into new business opportunities.
Despite the global financial crisis, the Korean pharmaceutical industry continued to get the attention of the global players mainly because of the government support. In 2009, Korean government identified “biopharmaceutical and medical equipment” as one of the future engines for economic growth.
Biopharmaceuticals is the most significant sector of the Israeli biotechnology market. Israel's biotechnology is particularly strong in bio-therapeutics and dominant in areas of neurological disorders, cancer and autoimmune syndromes. About half of all university research projects in therapeutics and most of the biotech drugs in the pipeline, are in these areas. Recently Israel has become a global leader in the promising new therapeutic area of regenerative medicine and cell therapy.
Israel has the largest number of scientists per capita in the world and devotes 35% of its research activities to life sciences. Israel has a successful and well developed pharmaceutical industry. The focus of this industry is on the manufacturing and distribution of generic drugs. The industry is growing at a rate of 10 per cent annually. Biotechnology in Israel is booming.