Opportunities for European drug/biotech firms in India and China

Despite having over a third of the world's population, Asia accounts for only one fifth of global pharmaceutical drug consumption, according to a report from business consultant Frost & Sullivan. As income levels rise, demand from this large population base is set to burgeon, opening up new growth opportunities for pharmaceutical and biotechnology companies. Even as emerging markets such as Brazil, Mexico, Poland and Russia exhibit strong development potential, the most exciting growth prospects are forecast for two Asian powerhouses - India and China, the study notes.

As Europe grapples with rising R&D costs and declining drug outputs, and as governments attempt to contain spiralling health care outlays, European pharmaceutical and biotechnology companies are beginning to explore other emerging markets, which offer a low cost structure along with other potential benefits such as a sizeable domestic market and opportunities for clinical trials, licensing and outsourcing, it adds.

Partnership/M&A possibilities