Asian Healthcare Boom or Downturn

CIO Review Europe | Sunday, February 07, 2021

The APAC biopharmaceutical market had a market value of $40.25 billion in 2021 and was expected to increase at a CAGR of 10% to $64.96 billion by 2026

FREMONT CA: Asia Pacific (APAC) has been advancing with innovations linking the APAC market with global trends. Amidst the pandemic, the growth of the research and development (R&D) fascinated both outward direct investment and foreign direct investment in bio-pharma sectors at an estimated size of $40.25 billion in 2021.

Asian countries, being known for their largest pharma market and the land of innovative therapeutic products, have a very competitive biopharmaceutical ecosystem compared to other countries. The advanced growth of the Asian population with increasing awareness has given space to open up the windows to generic drugs, biological drugs, and synthetic therapeutics. The APAC healthcare assets are also undergoing an increase in value and volume, expanding the endeavor capital zone and increasing the capital investments. A report by Market Data Forecast stated that the size of the APAC biopharmaceutical market observed a market dimension worth $40.25 billion in 2021 and was estimated to be growing at a CAGR of 10 percent reaching $64.96 billion by 2026.

The experts report revealed that investors’ interest pushed the sole focus on R&D through novel scalable technologies amidst the pandemic with a major influence on biopharma market trends and entrepreneurship. The trade has also been driven by increased investment in R&D, cost-effective manufacturing plants, bio parks, efficient logistics, an intricate supply chain, and a highly-skilled workforce at low expenditures.

In 2020, a report by Bain & Company stated that the healthcare financiers in APAC deployed $16.9 billion in capital, up from $11 billion the preceding year. The report clarifies that the biopharma sector safeguarded over half of this investment, with 86 dealt in 2020 as paralleled to 28 in 2019. While the APAC countries are striving to attain universal healthcare goals, healthcare sustainability and financial reserves requirements in the drug industry have faced funding stress. Besides this, the generic drug candidates also challenge a stiff Food and Drug Administration screening and the threat of counterfeit drugs. Whereas few traders and merchants are utilizing outsourcing as a policy to decrease their investment and asset, that will be beneficial to pharma corporations to a certain point.

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