Updated on 9 July 2012
While overall growth in the India market has been at 4 percent but in terms of business mix and revenue split across the industry, it is most vibrant and sustainable of all Asian countries with Top 20 companies broadly accounting for 67 percent of industry revenue and the rest comes from other companies. The corresponding figure for China is 85 percent from Top 20 companies and in Australia this figure is 98 percent.
However, there is no doubt that India which was a shining story of growth until a few years ago has put on show a below expectation performance and in the next few years needs to buckle up and pick up pace of growth as competition is coming from even smaller players like Malaysia and Taiwan. Both these countries are building niche competencies.
On the other hand, in the last five years, China has improved its market share in the listed companies' revenue to almost 50 percent in 2011 from about 17 percent in 2007. According to BioSpectrum projections, from here on the pace of growth for China bioscience industry will slacken and a slowdown will hit it by 2015 or even year earlier. However, by then India will pick up pace and the emerging economies in Asis led by India will continue to grow in dominance.
As far as Top 20 revenue segment split is concerned 93 percent of the Top 20 companies' revenue of $44.66 billion came from pharma and the rest from medtech with biotech accounting for one percent of the overall industry share. Biopharma market share has been included in the pharma segment and in 2011 it has not recorded a significant shift from its 7 percent in 2010. This mix will continue to evolve in favor of biopharma over the decade.
Among the trends to watch out in 2012, dominant ones include, policy related developments that will drive the industry, structural shifts in the companies and their business composition and the increased consolidation activity. The bioservices segment of clinical research, contract research and contract manufacturing will also see the shifts in their relationships with sponsors. MNCs will reassess their risks of business in Asia and redefine their Asia strategy with a greater focus on consolidation of their business in Asia.
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