Tuesday, November 22, 2011

Emerging markets in emerging countries growing more competitive

The United States, Europe and Japan continue to be the headquarters for Pharma companies.  The cost of hosting innovation headquarters is high, but worth the price due to the innovation and research that comes out of the areas.  However many companies are seeing the importance of expanding into regions with growing markets balancing traditional headquarters with emerging markets.  May of the countries seeing an increased interest from Pharma are Brazil, India, China, Asia and Latin America.  According to Lab Manager Magazine, these countries in emerging markets are encountering growing economies, large populations, rising personal income levels and progressive political policies.  These conditions make these countries rip for investment, manufacturing being one of the key focuses.

The need for brand name Pharma products is also fueling the growth according to David Wilton, Regional Director, Corporate Solutions for Jones Lang LaSalle in Asia Pacific.  He says “In most emerging markets, local consumers seek affordable drugs from known, trusted makers so early establishment in population-dense countries like China, India and Indonesia is vital to capture market share. Demand for drugs within these markets is increasing due to the shift in lifestyle created by the rise in personal income and purchasing power. This has resulted in a heightened awareness of traditionally Western diseases and associated treatments.”

This lends itself to the growing amount of clinical trials taking place in emerging markets.  Many companies expanding to Latin America and Asia to reach new populations of potential clinical trial participants.  The Partnerships in Clinical Trials conference series looks at many of these markets through their growing portfolio of global events - Partnerships in Clinical Trials, Partnerships in Clinical Trials Latin America and Partnerships in Clinical Trials Asia.

What are the benefits from a company expanding its resources and relocating parts/expanding of its business to emerging countries?

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