The pharmaceutical industry worldwide is witnessing a sea-change trend with increasing importance and dominance of the developing countries in terms of market-size and manufacturing. When the industry is growing at 15-20% in India over the years, the industry growth rate in China is also around the same rate. One of the suggestive indications of pharmaceutical industry growth in two countries can be estimated by looking at the participation at the United Business Media (UBM) India’s fifth edition of CPhI, P-MEC, BioPh and ICSE India-South Asia’s biggest pharmaceutical event being held in Mumbai from 1 to 3 December, 2010.
The event is in partnership with Pharmaceuticals Export Promotion Council (Pharmexcil). About 52% participants in the event are from India and 40% from China. It is noteworthy that the number of participants from other countries has not gone down but the numbers from China have gone up relatively. Last year the same event witnessed 66% participants from Asia, 20% from Europre, 7% from Africa, 6% from North America and 1% from South America. Similarly, in 2008, out of 537 participants, 181 were from other countries. The number of participants is more than 800 this from across the globe.
According to a recent report on pharmaceutical industry by PriceWaterhouseCooper, ‘China arguably ranks as the best pharmaceutical outsourcing destination among all Asian territories (China, India, Singapore, Japan, Australia, Korea, Taiwan, Malaysia, Thailand, Indonesia and the Philippines) when looking at the multiple factors of cost, risks and market opportunities. Significant savings in labour and laboratory set-up costs, as well as strong government incentive programmes such as tax holidays, tax cuts and value-added tax (VAT) exemptions (for a more detailed overview of China’s current tax situation. While most experts estimate that clinical trials costs in China are roughly 30% of costs in Western countries, conservative estimates will also include hidden costs such as geographic distance, communication, quality assurance and management, which suggest cost savings of around 50%.’
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