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Reportlinker Adds Pharmaceutical M&A in the Asia-Pacific Region - India and China drive regional activity but Japan still dominates high value transactions

NEW YORK, Aug. 25 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

Pharmaceutical M&A in the Asia-Pacific Region – India and China drive regional activity but Japan still dominates high value transactions–--India-and-China-drive-regional-activity-but-Japan-still-dominates-high-value-transactions.html

IntroductionExpanding healthcare coverage in emerging Asia-Pacific markets, rapid economic growth and burgeoning middle classes are attracting foreign M&A as companies attempt to offset future losses from the looming threat of the 2011 "patent cliff" and slowing growth in major developed markets. As these markets develop, consolidation of the domestic industry is also driving M&A in the Asia-Pacific region.

Scope*Provides an overview of the healthcare systems and pharmaceutical markets of key countries within Asia-Pacific.

*Overview of drivers, resistors and trends within the Asia-Pacific M&A landscape.

*Analysis of the types of acquisitions and healthcare sectors targeted.

*Analysis of geographic M&A activity and transaction values.

HighlightsSluggish performance in the major pharmaceutical markets prompted by growing generic competition and increasing healthcare cost-containment are forcing companies to seek opportunities elsewhere. Massive populations, rapid economic growth and burgeoning middle classes make emerging Asia-Pacific markets particularly attractive to foreign companies.

Companies penetrating these markets often acquire local manufacturers and generics firms that provide a quick, cost-effective point of entry from which to later launch more expensive branded products. However, some Asia-Pacific countries are introducing or considering measures to protect the domestic industries from foreign domination.

Within the period analyzed in this report, the highest number of M&A deals involving APAC based companies was recorded in 2008. Strong recovery from the global financial crisis can be seen in late 2009. Furthermore, 2010 seems to be off to a good start, with a number of large deals involving APAC-based companies having been announced.

Reasons to Purchase*Gain insight into the number and Scope of M&A transactions in Asia-Pacific, and key drivers and resistors.

*Identify which are the most perused pharmaceutical sectors in terms of M&A deals, and which companies have been the most acquisitive in recent years.

*Identify which markets have been most frequently targeted through M&As, and which have attracted the attention of Big Pharma.


About the Healthcare Strategic Analysis Team 2

Geographic specific reports: 2

Global issue reports: 2

About the Healthcare Asia-Pacific Team 3

1. Executive Summary 4

Strategic scoping and focus 4

Key findings 5

Key definitions 6

Company classifications 6

Acquisition types 6

Geographic classifications 7

Other 7

Related reports 8

Upcoming related reports 8


2. Overview of the APAC pharmaceutical markets 10

Key findings 10

Gaining government drug reimbursement is the key to success in Australia 12

Government participation in healthcare 12

Key health concerns 12

Pharmaceutical market structure 13

Chinese healthcare reforms continue to improve market access 15

Government participation in healthcare 15

Key health concerns 16

Pharmaceutical market structure 16

Hong Kong operates separately from mainland China 18

Indian government investments are needed to improve local market attractiveness 20

Government participation in healthcare 20

Key health concerns 21

Pharmaceutical market structure 21

Indonesia is still far from becoming a truly attractive market 23

Government participation in healthcare 23

Key health concerns 24

Pharmaceutical market structure 24

The Japanese market is well-established and highly regulated 26

Government participation in healthcare 26

Key health concerns 26

Pharmaceutical market structure 27

Malaysia is a rising star within APAC 29

Government participation in healthcare 29

Key health concerns 29

Pharmaceutical market structure 29

New Zealand offers only limited growth and a small market 32

Government participation in healthcare 32

Key health concerns 32

Pharmaceutical market structure 32

The Philippines is a poor nation still struggling to provide affordable healthcare access 35

Government participation in healthcare 35

Key health concerns 36

Pharmaceutical market structure 36

High-quality healthcare is available in the established Singaporean market 38

Government participation in healthcare 38

Key health concerns 38

Pharmaceutical market structure 38

South Korea is relatively lucrative, but can be tricky to navigate 41

Government participation in healthcare 41

Key health concerns 41

Pharmaceutical market structure 42

Taiwan's regulatory environment is improving but still has some way to go 44

Government participation in healthcare 44

Key health concerns 44

Pharmaceutical market structure 45

Thailand's large public sector is tightly controlled by the government 47

Government participation in healthcare 47

Key health concerns 48

Pharmaceutical market structure 48

The pharmaceutical drug market grows amid a poor healthcare system in Vietnam 50

Government participation in healthcare 50

Key health concerns 51

Pharmaceutical market structure 51

3. Overview of M&A activity 53

Key findings 53

Drivers and resistors of APAC M&A 56

Stronger growth forecast in emerging compared to developed markets 57

Big Pharma look to emerging markets to replace lost revenue as the patent cliff threatens blockbuster sales 58

Product development costs are rising rapidly in developed markets, particularly for clinical trials 59

Changing socio-demographics create patient demand for better healthcare 59

Policy and regulation changes are creating a more certain business environment in APAC markets 61

Overview of M&A activity by geography 62

China was the most common target location for acquisitions by APAC-based companies 63

China was the most common location of APAC-based acquiring companies 63

India holds the greatest interest for leading pharma companies in terms of acquisition prospects 64

Half of all M&A deals involved both APAC-based acquirers and targets only 65

Overview of M&A activity by deal type and size 67

100% acquisitions are the principal deal type involving APAC companies 67

Majority acquisitions are a favored strategy of large generics players 68

Few minority acquisitions are pursued in APAC 68

Acquisitions of complete business units are the most common form of asset purchase 69

Many buyouts were performed by existing shareholders 70

M&A value was highest in 2008 70

Overview of M&A activity by healthcare sector and therapy area 74

Pharmaceutical manufacturers are the most common APAC M&A targets 74

Leading pharma players have preferences for specific sectors 78

Acquirers target highest value and volume therapeutic areas 79

4. Country specific M&A activity 81

Key findings 81

*Australia had a strong start to 2010 82

M&A summary 84

China showed mainly domestic M&A activity, although international deals are on the rise 85

M&A summary 87

M&A activity in India was particularly high in 2008, then dropped off again 88

M&A summary 90

Japan saw biggest deal of the region when it purchased Indian generics company in 2008 91

M&A summary 93

Most Malaysian M&A deals involved the broader healthcare industry 94

M&A summary 95

M&A activity in New Zealand slowed down considerably in 2009-10 96

M&A summary 97

Singaporean companies were particularly active as acquirers 98

M&A summary 99

M&A activity in South Korea is increasing consistently 100

M&A summary 101

The majority of M&A deals in Taiwan took place in 2008 102

M&A summary 103

Other APAC countries were involved in few M&A deals from Q1 2007-Q1 2010 104

Indonesia 104

Philippines 104

Thailand 105

Vietnam 105

Significant M&A in APAC has continued throughout the first half of 2010 106

Abbott acquires formulations business of India's leading pharmaceutical firm 106

Indian pharmaceutical industry grows wary of multinational dominance 106

GlaxoSmithKline focuses on small acquisitions in emerging markets 107

GlaxoSmithKline invests in South Korea 108

GlaxoSmithKline cannot find value in Indian acquisitions 108

Chinese CRO deal falters 108

International players continue to expand presence in APAC through means other than M&A 109

5. Bibliography 110

Publications and online articles 110

Company press releases 116

Datamonitor products 118


Methodology 119

Key definitions 120

Company classifications 120

Acquisition types 120

Geographic classifications 121

Other 121

Exchange rates 121

About Datamonitor 122

About Datamonitor Healthcare 122

Datamonitor consulting 122

Disclaimer 124

LIST OF TABLES Table 1: Comparison of key health indicators in the South-East Asian and Western Pacific regions with global indicators, 2006-08 11

Table 2: Australia - key demographic and health indicators, 2006-08 14

Table 3: China - key demographic and health indicators, 2006-08 18

Table 4: India: key demographic and health indicators, 2005-08 22

Table 5: Indonesia: key demographic and health indicators, 2005-08 25

Table 6: Japan: key demographic and health indicators, 2006-08 28

Table 7: Malaysia: key demographic and health indicators, 2006-08 31

Table 8: New Zealand: key demographic and health indicators, 2006-08 34

Table 9: Philippines: key demographic and health indicators, 2004-08 37

Table 10: Singapore: key demographic and health indicators, 2006-08 40

Table 11: South Korea: key demographic and health indicators, 2006-08 43

Table 12: Taiwan: key demographic and health indicators, 2001-2010 46

Table 13: Thailand: key demographic and health indicators, 2002-08 49

Table 14: Vietnam: key demographic and health indicators, 2006-08 52

Table 15: APAC - Top 10 highest value M&A deals, Q1 2007-Q1 2010 73

Table 16: APAC - focus of target companies acquired in M&A deals involving APAC-based companies, Q1 2007-Q1 2010 76

Table 17: Australia - summary of key M&A deals, Q1 2007-Q1 2010 84

Table 18: China and Hong Kong - summary of key M&A deals, Q1 2007-Q1 2010 87

Table 19: India - summary of key M&A deals, Q1 2007-Q1 2010 90

Table 20: Japan - summary of key M&A deals, Q1 2007-Q1 2010 93

Table 21: Malaysia - summary of key M&A deals, Q1 2007-Q1 2010 95

Table 22: New Zealand - summary of key M&A deals, Q1 2007-Q1 2010 97

Table 23: Singapore -summary of key M&A deals, Q1 2007-Q1 2010 99

Table 24: South Korea -summary of key M&A deals, Q1 2007-Q1 2010 101

Table 25: Taiwan -summary of key M&A deals, Q1 2007-Q1 2010 103

Table 26: Exchange rates to US dollars, July 8, 2010 121

LIST OF FIGURES Figure 1: Map of Asia-Pacific (APAC) region 7

Figure 2: Drivers and resistors of pharmaceutical growth in the emerging markets, 2010 53

Figure 3: APAC - total number of M&A deals by quarter and year, Q1 2007-Q1 2010 54

Figure 4: APAC - pharma M&A activity strategic rationale and future outlook, 2010 56

Figure 5: Forecast pharmaceutical sales growth (for the top 50 companies in 2009) for the main four geographic regions worldwide, 2009-2014 57

Figure 6: Deficit in global annual sales for the top 50 pharma companies (excluding generics companies) due to generic erosion of brands facing patent expiry from 2010 onwards, 2010-14 58

Figure 7: APAC - growth in gross domestic product (GDP) of Malaysia, Thailand, China, Indonesia, Philippines and Vietnam, 2004-08 60

Figure 8: APAC - M&A mix (acquirer/target) by quarter, Q1 2007-Q1 2010 62

Figure 9: APAC - key locations of M&A targets sought by APAC-based acquirers, Q1 2007-Q1 2010 63

Figure 10: APAC - key locations of acquirers seeking APAC-based targets for M&A, Q1 2007-Q1 2010 64

Figure 11: APAC - M&A deals targeting APAC-based companies and involving leading global pharmaceutical companies or their direct subsidiaries by year, Q1 2007-Q1 2010 65

Figure 12: APAC - role of APAC-based companies in M&A deals, Q1 2007-Q1 2010 66

Figure 13: APAC - Deal type by quarter, Q1 2007-Q1 2010 67

Figure 14: APAC - M&A by deal type, Q1 2007-Q1 2010 69

Figure 15: APAC - M&A deals by value range, Q1 2007-Q1 2010 71

Figure 16: APAC - value of M&A deals by quarter, Q1 2007-Q1 2010 72

Figure 17: APAC - primary industry of M&A targets by region, Q1 2007-Q1 2010 75

Figure 18: APAC - focus of M&A by location and development status, Q1 2007-Q1 2010 77

Figure 19: APAC - target sectors of M&A deals by company sales rank, Q1 2007-Q1 2010 78

Figure 20: APAC - therapeutic focus of target companies for M&A deals involving APAC-based companies, Q1 2007-Q1 2010 79

Figure 21: Australia - number and value of M&A transactions by acquirer/target location and year, Q1 2007-Q1 2010 83

Figure 22: China and Hong Kong - role of Chinese companies in M&A transactions by year, Q1 2007-Q1 2010 86

Figure 23: China and Hong Kong - leading sectors targeted in M&A transactions, Q1 2007-Q1 2010 86

Figure 24: India - International markets targeted by Indian acquirers by year, Q1 2007-Q1 2010 89

Figure 25: India - most prolific Indian acquirers by target sector, Q1 2007-Q1 2010 89

Figure 26: Japan - foreign targets acquired by Japanese firms by country of headquarters, Q1 2007-Q1 2010 92

Figure 27: Japan - value of M&A involving Japanese companies by value range, Q1 2007-Q1 2010 92

To order this report:Pharmaceutical Industry: Pharmaceutical M&A in the Asia-Pacific Region – India and China drive regional activity but Japan still dominates high value transactions

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