Government Policies and Booming Economies Propel Growth in Asian Biotechnology and Pharmaceutical Sectors
Opportunities for participants in the Asian pharmaceutical and biotechnology markets are immense, with this region poised for significant economic growth and housing over one third of the world’s population. Compared to other emerging markets such as Brazil, Mexico, Russia and Poland, India and China are emerging as economic strongholds for the pharmaceutical and biotechnology sector. Increased global and domestic demand and rising roles as supplier bases for active pharmaceutical ingredients (APIs) and intermediates are propelling growth. The Indian market is particularly primed for development in the pharmaceutical and biotechnology sectors with the expanding companies, larger product pipelines, patent filings, alliances and several product launches. China is also emerging as a hub for the drug industry as it undergoes massive social and economic restructuring.
This Frost & Sullivan research service offers an exhaustive strategic analysis of the opportunities for European pharmaceutical and biotechnology companies in Indian and Chinese markets. Market drivers, restraints, and industry challenges along with regional analyses have been included. This information will enable pharmaceutical and biotechnology sector participants to formulate strategic policies to effectively capitalise on all opportunities of growth.
Changing EU Regulations Benefit Asian Markets
Escalating research and development (R&D) costs and stringent European Union (EU) policies aimed at reducing healthcare expenditures are compelling European manufacturers to invest in other emerging and lucrative markets such as China and India. The expansive domestic markets, licensing and outsourcing opportunities have made India and China preferred locations for API and intermediates manufacturing.
"Multinational pharmaceutical and biotechnology companies from western Europe and the United States are using India and China for phase I, II and III studies," observes the analyst of this research. "Besides cheaper clinical trials and added benefits such as low labour costs and superior technical abilities are boosting foreign investments."
India and China Offer MNCs Immense Growth Opportunities
In India, pharmaceutical manufacturing hubs such as Delhi, Mumbai, Chennai, Hyderabad and Bangalore are fast improving their abilities to provide enhanced collaborative and outsourced R&D in drug development, biotechnology and chemicals. The recently amended patent laws in India are also driving foreign direct investment (FDI) with the entry of numerous contract research organisations (CROs). The expanding population with greater disposable incomes and rising levels of awareness is another attraction for MNCs seeking to breach the domestic market.
"In China, eastern coastal and southern cities such as Harbin, Shenyang, Shanghai, and Beijing are significant pharmaceutical and biotechnology locations," says the analyst. "The country’s positive policies, infrastructure as well as advanced chemistry and process engineering skills are encouraging foreign investments and private sector participation."
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