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Asia Pacific Pharma Companies Turning to High-Risk, High-Reward Drug Development, According to New Report from Thomson Reuters
Date:11/2/2010

PHILADELPHIA and LONDON, Nov. 3, 2010 /PRNewswire/ -- Pharmaceutical companies in the Asia Pacific region are increasingly adapting their business models from the production of generic drugs towards more high-risk, high-return research and development, according to a new report released today by CMR International, a Thomson Reuters business.

The changing picture is seen in the first edition of the 2010 Asia Pacific R&D Factbook, which finds increased clinical trial activity, patent challenges, and molecular development in the region.

"Whilst the proportion of global R&D expenditure allocated to Asia Pacific was less than 1 percent in 2009, these trends show a growing focus on these activities," said Hans Poulsen, head of life sciences consulting at Thomson Reuters.

Global figures for clinical trial recruitment highlight a dramatic shift away from the United States and toward Asia Pacific.  In 2002, 53 percent of patients recruited globally were in North America; in 2008 that figure was down to 32 percent.  Asia Pacific saw an increase from 6 percent to 11 percent over the same period, while Europe showed marginal growth from 14 percent to 17 percent.

Meanwhile, the number of new molecules in development by generic companies, particularly in India, reflects a strong inclination to invest in R&D.  

And the number of patent challenges in the region indicates an increasingly aggressive approach to securing market share. Patent challenges raised by Indian companies, for example, increased 60 percent from 2006 to 2009, underlining the shifting business model in the region.

"The benefits to Asia Pacific in moving towards increased clinical trials and more drug development are clear: attracting more investment to the local pharma industry, and earlier access to innovative medicines for the local population," Hans Poulsen said. "It is not clear however, if this trend will be seen a
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SOURCE Thomson Reuters
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