Global Biotech Firms Look East For New Markets

I’ve always been looking for a challenging yet exciting opportunity to serve in the field of healthcare, which help me to boost my career. Manufacturing science is one of my favorite area which emphasize on new product development, understanding process, and working on new dosage forms, etc. I always find it fascinating to work as a pharmaceutical scientist at a global platform.

The barrier to enter Biotechnology industry is high. The first barrier is the extensive requirements in funding coming from heavy expenditures in R&D, along with the risk of little to no returns or even heavy losses if the drug fails to reach the market. Regulatory environment partly contributes to the barrier as the new drug approval process can be time-consuming with relatively 89% of failure to pass through. The second barrier is specialization. Companies with knowledge in obscure diseases will enjoy low threat of new entrant for there are few experts in the field.

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

Developing and emerging markets present several challenges, which need to be overcome by multinational Pharma firms. Pharmaceutical managers consider market access to be their most important challenge.

Improvements in health care and life sciences are an important source of gains in health and longevity globally. The development of innovative pharmaceutical products plays a critical role in ensuring these continued gains. To encourage the continued development of new drugs, economic incentives are essential. These incentives are principally provided through direct and indirect government funding, intellectual property laws, and other policies that favor innovation. Without such incentives, private corporations, which bring to market the vast majority of new drugs, would be less able to assume the risks and costs necessary to continue their research and development (R&D). In the United States, government action has focused on creating the environment that would best encourage further innovation and yield a constant flow of new and innovative medicines to the market. The goal has been to ensure that consumers would benefit both from technological breakthroughs and the competition that further innovation generates. The United States also relies on a strong generic pharmaceutical industry to create added competitive pressure to lower drug prices. Recent action by the Administration and Congress has accelerated the flow of generic medicines to the market for precisely that reason. By contrast, in the Organization for Economic Cooperation and

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

The objectives and goals of Allstar are to look for new opportunities in emerging market with support from healthy and growing cash flow, to introduce new product, to maintain leadership and to maintain long-term profitability and market share in an increasingly competitive and changing environment.

Many large multinational companies are making a real play in the emerging Health technology market.

There are several rewards to consider with expansion of Biocon. Currently in India, there is a growing market for contract research organization and the growth of Biocon falls right within this opportunity. The growth is expected to last for more than few years with a rate that looks promising. Clinigene is expected to reap revenues much higher than the current Biocon and Syngene combined (Kalegaonkar A., Nov 4, 2008). It will take clinical studies to a higher level with better options in terms of drug manufacturing. With other countries ready to outsource the service of clinical studies, Clinigene’s future looks bright.

USA is the leader in Pharmaceutical industry. It can be noted that more than 80% of the total worlds research and development takes place in USA. Even most of the patents or highest numbers of patents are held by companies in USA. It employs about 272,000 people (source: Bureau of Labour Statistics).Even the bestselling drug in the world “Lipitor” which is a cholesterol drug is Produced by Pfizer which is a US company. Incidentally Pfizer is also world‟s largest Pharmaceutical Company. Pfizer has sales of more than 40,000 US million dollar.

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.

Bayer AG is fully committed to expanding its business operations through pharmaceuticals, consumer health, and crop science. Bayer AG understands that in order for the company to successfully expand its Pharmaceuticals department they must properly invest in research, development, and marketing of innovative medicinal products. In addition, Bayer AG is developing clinical programs, which will enable the company to provide various of its products to a greater number of people. Bayer AG ability to identify areas in medicine that remain untapped is crucial to the firm’s long term sustainability. For example, Bayer AG has identified the fields of cardiology, oncology, gynecology, and

The research and development of the pharmaceutical industry is very important as the industry relies on it to develop new products to maintain and sustain the growth of the industry (ALRC 2014). According to the Australian Government Law Reform Commission, every year, the total spending in research and development in pharmaceutical industry, which includes drug discovery, pre-clinical testing and clinical trials on drugs is around $300 million (ALRC 2014). Mergers and acquisitions are intensifying in the global pharmaceutical industry, especially over the last 10 years. With factors like exorbitant research and development costs, the relatively shorter product life cycles, and the rarity of discovering a new life-changing drug acting as catalysts, leading pharmaceutical companies now have more cause to step out and look for external collaboration. This results in an increasing number of smaller biotechnology companies merging with bigger pharmaceutical companies (The

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,

As the pharmaceutical giants from US, Germany and Japan take advantage of the knowledge clusters in China, India and Singapore, the domestic firms in these emerging economies also catch up through the knowledge spillovers and human resource poaching.