Asias Pharmaceutical markets to grow exponentially
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Pharma Tech Outlook: Pharma Tech Magazine

Asias Pharmaceutical markets to grow exponentially

Pharma Tech Outlook | Thursday, December 09, 2021

Asia’s pharma industry is growing day by day and is predicted to reach heights in a few years. Monitored investments are making it a profit-oriented industry.

FREMONT, CA: According to experts, global innovation is aiding pharmaceutical corporations in their pursuit of optimizing value. The market share of this industry will rise up to 159.4 billion dollars as seen from 2021, in the next 5 years. The growing budget for the industry has compelled the government to come up with a paradigm that can deliver budget-friendly healthcare dominance.          

The access to tech-friendly treatment and the growing interest in healthcare among people is driving the growth in Asia-Pacific's pharma industry. Market strength, pharmaceutical value chain, and supply chain analysis, technological trends, investment trends, government provision, are some of the factors on which the market relies on. To exhibit the production and quality, utilization of skill and talents is the key factor.

During the pandemic, APAC has witnessed unprecedented venture funding and M&A activity, indicating a bright future for healthcare in the area. The prediction of growth for the pharma industry has become certain. Pharmaceutical businesses are increasingly investing in Asian headquarters to benefit from a trained workforce, high ROI, low manufacturing costs, growing niches in specialized disciplines, excellent infrastructure, and shared services. Companies from Europe and the US are developing tailored localized strategies to integrate regional and global operations.

China (42%), Japan (32%), and India (14% ) have dominated market capitalization. Leading the way with 85,778 million dollars, China is followed by Japan and India with 77,458 million dollars each. China draws the most venture capital and PE funding. According to the experts, in the first quarter of 2021, China controlled the top 50 Asia-Pacific firms by market value. Ending Q1 2021, the aggregate market capitalization of the 50 APAC firms was 8,608.4 billion dollars, up 3.8% from 8,294.8 billion dollars in Q4 2020, with 28 Chinese companies accounting for 60% of the aggregate market cap.

The world's second-largest pharmaceutical market, Japan, is expanding. Foreign direct investments (FDI) have steadily increased in the Japanese pharma industry, enabling the nation to expand globally. The National Health Insurance (NHI) of Japan's particular medicine pricing scheme further enhances competition in a fragmented yet competitive market dominated by SMEs. The Pandemic has prompted Pharma businesses to develop new products, categories, and markets. Companies are expanding R&D investments, decreasing clinical research deadlines, automating industrial processes, and accessing the market in highly interwoven network frameworks. It is also becoming more difficult to distinguish between the pharma and biopharma industries due to common interests. Product, therapeutic, category or market exploration by APAC investors and manufacturers. Improved distribution networks may further support and encourage the growth of pharma and biopharma businesses.

Changes in regulatory framework, lack of stakeholder knowledge, and difficulties integrating solutions are among the obstacles to proactive, exponential development in most APAC growing pharma markets. Governments should also support M&A among SMEs, start-ups, and MNCs to advance the pharma industry. With an aging population and rising healthcare knowledge, it's critical to negotiate high-cost treatment costs to establish a comprehensive environment for the pharma business.

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