by: Sarah Joson
Monday, February 11, 2013 | Outsourcing News |
It appears that more and more pharmaceutical companies from all over the world are planning to expand not only their market share, but also their operations in Asia.
ArabianGazette.com dissects the Global Life Sciences Cluster Report done by Jones Lang LaSalle, a commercial real estate services company. The report stated that the growing patient pools and consumer demand are pushing pharmaceutical firms to increase their infrastructure and broaden operations across Asia.
According to Asia Pacific Regional Director for Industrial and Logistics at Jones Lang LaSalle David Wilton, the market opportunities that Asia has for science and clinical companies are driving up costs for the formulation of new drugs and treatments. However, it was also found that facility and real estate expenses are relatively high. The industry was also seen calculating every real estate move more meticulously – choosing areas that are equipped with industry resources, capital, and are highly-susceptible to innovation.
According to Industrial Services Head at Jones Lang LaSalle, Nirav Kothary, India is one of the countries in Asia that is working aggressively to tap more investors for biotechnology. In fact, the Indian government, along with Exim Bank, considered providing INR 2,000.0 crore ($365.6 million) worth of venture capital fund to finance pharmaceutical research and development in the country.
Moreover, Nirav Kothary noted that the Indian finance ministry has approved nearly INR 180.0 crore ($333.0 million) in foreign investments, allowing investors to own up to 49% of established Indian firms.
Other important notes in the report are:
• New players are looking to expand while mature markets are downsizing.
• Pfizer, Novartis, Sanofi, and GlaxoSmithKline were seen gaining three times more in non-traditional markets.
• Life science organizations are working to become leveled with their Western counterparts,which means that they are expanding and maximizing resources.
• Providers in Asia are now focusing on R&D instead of manufacturing.
• Some countries such as India, China, and Singapore were able to provide R&D services while allocating resources to intellectual capital, business parks and incubator centers.
• India and China are seen providing programs to protect intellectual property while promoting the return of Western-trained scientists for the development of the country’s economy.
• Japan, the country that ranks second globally for drug sales and prescription, was seen to have acquired more in the international market.
• In 2016, China is predicted to overtake Japan and become the second largest pharmaceutical market globally. Even if the country’s losing its cost advantage with increasing salaries and valuation of the country’s currency, its ability to provide a large talent pool and the ample support it gets from the government make it an ideal R&D investment.
• The maturing middle class in India propels its life sciences industry, making it a suitable candidate in becoming a major pharmaceutical destination.
• Indonesia is also expected to make a mark as the 6th largest pharmaceutical market by 2016, with the impending revisions in laws and regulations.
• Singapore is set to offer a more advanced research and innovation to the life sciences industry. The country also presents favorable traits such as strict intellectual property protection laws, tax policies, and stable political structures.