Updated on 9 July 2012
No. 1 company China's Sinopharm grew almost 60 percent in 2011
The bioscience industry in the Asia Pacific region, in 2011, got pulled back into a low growth cycle. In a replay of 2009 slowdown, it was a single digit show in 2011 too. The industry recorded a growth of 8.37 percent over 2010, clocking 139 billion in revenue, adding just a little over 10 billion to the overall revenue of 128.26 billion in 2010.
Some of the reasons for this are the trickle effect of global slowdown, recession in the West and the deepening crisis in Europe, the slow pace of ongoing economic reforms in the Asian countries itself and the weakening of the respective currencies against US dollar. All this and some other region-specific causes came together to result into a negative growth for a number of leading companies, most notably in India and Malaysia, followed by Australia and China.
One of the two leading bioscience markets in the region, India, recorded a mere 4 percent overall growth dragging down the outlook of the region. China continues to shine though. In fact, it improved its lead over India recording 33 percent growth over its 2010 publicly listed companies' revenue contribution. The country dominated the region's Top 20 tally with 10 companies, India followed with 5 companies, rest of the top 20 companies were from Australia, except a lone ranger from South Korea - Dong-A, which made it to the rank with a 28 percent growth over its 2010 revenue.
The No. 1 company China's Sinopharm grew almost 60 percent on the back of its rapidly expanding pharmaceutical distribution network while another of the region's biggie Australia's CSL at No. 2 recorded a 13 percent decline in the revenue. In fact, of the 417 publicly listed companies surveyed about 80 companies recorded a high double digit degrowth in 2011.
One of the major reasons for the decline across many of these companies is the strategy shifts, restructuring and realignments that these were executing to consolidate and reorient their businesses to deal with market uncertainties ands to address future growth concerns. In that light this decline is not a sign of coming degrowth but a sign of positive, sustainable business growth that will surface three years down the line.
The bright spot in the BioSpectrum Asia Bioscience Industry Survey 2011 was the Mesoblast growth story. This company from Australia took the top spot as the fastest growing company in Asia recording revenue of $37 million in 2011 a leap from its 2010 revenue of just over $1 million.
The number of billion-dollar companies at 11 remained the same as in Asia Top 20 list of 2010. However, the other 9 are also inching their way up and by 2014 all of Asia's Top 20 bioscience companies will cross the one-billion-dollar mark.
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