Outsourcing in Asia to shrink Japan's revenue share of APIs

Pharma’s interest in outsourcing, combined with rising industrialization in India and China, will mark a drop in Japan’s share of the continent’s revenue, says a new report from pharmaceutical industry experts GBI Research.

The latest report predicts Japan’s active pharmaceutical ingredients (API) Asia-Pacific revenue share to drop from a dominant 51% in 2011 to 34% by 2017, while less economically mature markets across the region expand their own.

Japan’s API market revenue grew from $9.9 billion in 2006 to $15.6 billion last year, but GBI Research expects this growth to slow substantially in the future, reaching $17.2 billion in 2017, at a modest compound annual growth rate (CAGR) of just 1.7% from 2011.