Life science industry in the Asia Pacific region has rebounded and how!
From a measly 3.4 percent growth in 2009 the industry recorded
double-digit growth of 16.6 percent, clocking $128.26 billion in 2010.
Pharma made up the major chunk of this revenue with 92 percent segment
share, MedTech followed with 6.6 percent share and biotech made up the
rest. Interestingly, the biopharma share in the pharma segment has gone
up to seven percent of the pharma segment share. This is an improvement
over last two years, when it hovered at just about five percent. This
mix, it is expected will continue to evolve in favour of biopharma.
Biotech share in the overall revenue is just about one percent as
biopharma as a sub-segment in this survey has been combined with
pharma. If that is allocated to biotech, it will come to about
eight-to-nine percent of the overall revenue. The revenues of publicly
listed companies accounted for 48 percent of the overall market of
Countrywise, China with a market size of about $57 billion makes up for
44 percent of the overall market and along with India has been
responsible for this growth of 16.6 percent, recorded by the
BioSpectrum Asia Pacific Life Sciences Industry Survey 2010. Rising
prevalence of chronic diseases, booming population, economic growth,
improved regulations on foreign direct investment will continue to
attract foreign interest in China and consequently, market growth.
Multinational pharmaceutical companies are also increasingly investing
in research facilities in China indicating the improved business and
regulatory climate in China.
India in terms of growth is second only to China. Most of the companies
in India have grown in the range of 20-30 percent. On an average, the
publicly listed companies' revenue overall in India has grown by 26
percent over the last year. The year 2010 saw stepped-up activity in
Malaysia too, attracting foreign direct investment to give the life
science industry in the country a booster shot. India's biotech major
Biocon, which is ranked at No 20 in the country ranking in 2010
invested $161 million in Malaysia.
In Australia, the top three companies continue to dominate the market
with 85 percent market share.
While this survey has thrown up no surprises, it certainly establishes
that the growth in 2010 was back on track and better times are ahead.
The market capitalization (MCap) of the leading companies has increased
significantly. CSL from Australia has increased its MCap by 23 percent
to $14.81 billion. Cipla, one of India's leading companies has
increased its MCap by a whopping 87 percent from $3.48 billion to $6.54
billion. Another Indian company Biocon has gone up by 166 percent to
$1.86 billion in 2010 from $697 million in 2009.
In India and China, a number of companies have plans to go for an
initial public offering, which is a reflection of growth, the region
has witnessed. There is stepped-up activity and palpable enthusiasm
seen in the investments that the companies are making in the research
& development. The average R&D spend in Asia Pacific region in
2010 was recorded at 12.34 percent, an improvement over 9.44 percent
spent on R&D in 2009.
Publicly Listed Companies: % Growth
Australia & New Zealand
Revenue in $ million
Asia’s Top 20 Publicly Listed Life
Science Companies by Revenue (2010)