India comes 2nd in Asian life science industry

NEW DELHI, INDIA: The Life Sciences industry in Asia clocked a growth of 3.4 per cent to record revenues of $110.89 billion in calendar year 2009, according to a survey by CyberMedia's publication, BioSpectrum Asia, the journal for life sciences industry in the Asia Pacific region, with nearly half the revenues - $54.24 billion - coming from the listed companies. The publicly listed companies grew at 24.03 per cent.

BioSpectrum Asia estimates the growth of Life Sciences, covering pharma, biotech and medtech segments, in 2010 to surpass that of 2009, even though the range is likely remain the same: 3-5 per cent, as the economic climate begins to change for the better.

The combined revenues of Indian life sciences companies was $21 billion taking India to the number two spot behind China. India accounted for 19 per cent of the total revenues in Asia Pacific. South Korea, Australia and Singapore followed India in terms of revenue.

This figure includes total revenues from sales, licensing, and service income of the companies in the Asia Pacific region, excluding Japan. General healthcare and equipment providers are excluded from this survey.

Executed over a period of two months starting in April-May 2010, the third BioSpectrum Asia survey was limited to publicly listed companies in the life sciences industry in the Asia Pacific region. A sample survey of private companies has been factored into the survey numbers.

With revenues of US$ 22 billion, Chinese publicly listed companies grew the fastest at 51.82 per cent, followed by Taiwan. With revenues of US$ 2 billion, Taiwan posted a robust 46.29 per cent growth. Indian publicly listed with revenues of US$ 14.59 billion grew the slowest, at 1.42 per cent.

Seven Indian companies were in the Asia’s Top 20 publicly listed life science companies, which accounted for 82 per cent of the overall revenues of publicly listed companies. These include Cipla, Ranbaxy Laboratories, Dr Reddy’s Laboratories, Cadila Healthcare, Lupin, Aurobindo Pharma and Sun Pharma.

The strong growth registered by the Indian economy helped drive its life sciences industry. India’s expanding middle class, with growing affordability and greater access to healthcare, were the main drivers for the current growth of the industry and economy.

Cipla became India’s No. 1 company, clocking revenues of $1.17 billion. It also became the one of the two Indian companies in the billion-dollar club. Last year, Ranbaxy held India’s top slot. The India Top 20 life sciences list comprises pharma companies with the lone exception of a biopharma - Biocon, at Rank 16.

In generics, the highly-competitive market in India continues to be dominated by Indian pharmaceutical companies, but remains fragmented. Medical devices and supplies market in India is expected to touch $1.7 billion in 2010, growing at the rate of 23 per cent annually.