Asia’s races ahead in R&D, biotech

The biotech sector in Asia-Pacific region has grown tremendously in comparison with its performance in other parts of the world, according to the Ernst & Young Global Biotech Report 2006. The sector has recorded a revenue growth of 46 per cent in Asia.

In 2005, Asia-Pacific has become the first region to reach aggregate profitability in the biotech sector. China and India have continued to attract a lot of global attention and deals. India's generic firms are gearing up to play an important role in the evolving biogenerics market. With the advantage in IT and access to well-trained and less expensive human capital, India is well poised to become a hub for processing and managing clinical data.

Singapore has emerged as a major player in this area. The Singapore government has allocated a USD 8 billion budget for the five-year period from 2006 to 2010 to further strengthen research and development (R&D) capabilities in the country and to continue its focus on the biomedical sector. Last year, the country’s biomedical manufacturing output reached USD 11.4 billion. Singapore has positioned itself as an excellent destination for biomedical R&D and clinical trials, as well as pharmaceutical and medical devices manufacturing, due to its world-class capabilities in drug discovery, product development, clinical research, manufacturing and healthcare delivery. Currently, more than 20 companies, including Eli Lilly, GlaxoSmithKline and Novartis, have established drug discovery operations in Singapore.

Malaysia too is picking up, though a late entrant in this sector. Several international firms attending the ongoing Bio Chicago 2006 international biotechnology convention are interested in exploring opportunities that Malaysia has to offer in the biotechnology sector. These firms are keen to invest by either bringing their technology, doing R&D or manufacturing their products in Malaysia. Burrill & Company, a life sciences merchant bank, had singled out Malaysia as one of the countries besides China and India that offered good prospects for biotechnology initiatives.