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Double-digit Growth Rate of the Pharmaceuticals Industry in Asia Pacific Boosts the API Market, Finds Frost & Sullivan

- Low costs of operation attract foreign investors to the API contract manufacturing market in APAC region

SINGAPORE, Dec. 4, 2012 /PRNewswire/ -- The pharmaceuticals industry in the Asia Pacific is thriving on the back of escalating population and increasing incidence of lifestyle diseases. Its success has a direct bearing on the region's active pharmaceutical ingredients (API) market, which is drawing considerable attention from foreign investors.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Active Pharmaceutical Ingredients Market, finds that the market earned revenues of $1.12 billion in 2011 and estimates this to reach $1.79 billion in 2018.

"The focus on healthcare has enabled Australasia to corner a large share of the global pharmaceuticals market, compelling market majors to train their spotlight on emerging countries," said Frost & Sullivan Research Analyst Tridisha Goswami. "This bodes well for the regional API market, as pharmaceutical companies' checklist for contract manufacturing includes low cost of production, and favorable geographic locations."

Labor costs are low in countries such as Vietnam, Indonesia, and Malaysia, making API contract manufacturing feasible in these countries. However, the limited resources and lack of technologies tarnish their attractiveness. Further, China and India, with their better developed contract manufacturing market, pose stiff competition to these countries; the higher influx of generic drugs drives volume demand but curbs revenue growth. This is majorly due to the high prices of innovative drugs, which gives a major boosts to API revenues.

Market participants can gain investors' confidence by focusing on quality and therapeutic applications in cancer and lifestyle-mediated diseases. The increasing focus on biological API in treating cancer and immune-mediated diseases will also bolster the market and cause a shift in pharmaceutical companies' preference from synthetic to biological API.

"Innovation, quality assurance, and investments in improving technologies will benefit participants in this emerging market and help them enlarge their footprint in the global API contract manufacturing market," noted Goswami.

If you are interested in more information on this research, please send an email to Jessie Loh, Corporate Communications, at jessie.loh@frost.com, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.

Analysis of the Active Pharmaceutical Ingredients Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research on other related markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61-(02)-8247-8927
F: +61-(02)-9252-8066
E: djeremiah@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65-6890-0942
F: +65-6890-0988
E: jessie.loh@frost.com

http://www.frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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