For large pharmaceutical companies, investing in the Asian continent can be a solution to offset the economic losses caused by the expiration of patents on best-selling medicines, the so-called blockbusters. This is what emerges from a report by the Economist Intelligence Unit (EIU), supported by the Singapore Economic Development Council.
According to the study reported by the PharmaTimes newspaper, the shift of investments towards Asia will continue in the coming years thanks to the favorable geographical position of this continent and its role in the production of low-cost generic drugs, with production costs cheaper than those of other countries and rapidly growing markets. The research also took into account factors such as the increase in incomes in the various Asian countries, the growing public health expenditure and the increase in the incidence of chronic pathologies associated with changed lifestyles. All elements that contribute to increasing the demand for medicines.
The EIU expects drug sales in Asia to rise from $214.2 billion in 2010 to $386 billion by 2016, an increase of more than 13%. In Asia, the entire pharmaceutical sector is in turmoil and the total number of listed companies between 2004 and 2009 grew by 34%, from 276 to 370 companies. Revenue nearly tripled from $27.4 billion to $73 billion in the same period.
Until a few years ago, Asia was seen only as a place to relocate low-cost production, while now it is also becoming attractive for research and development activities. However, it remains a very fragmented market and there will be opportunities for European and American companies that intend to expand.
The Economist Intelligence Unit (EIU) is an independent business within The Economist Group. This company does market research and industry analysis which it then sells to companies interested in acquiring this information. The company produces monthly reports for the most important countries, 5-year economic forecasts, risk analyzes for individual countries, as well as sector analyses.
http://www.pharmastar.it/index.html?cat=6&id=7620 17/03/2012
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