Pharmaceutical M&A in the Asia-Pacific Region - India and China drive regional activity but Japan still dominates high value transactions
Datamonitor, August 2010, Pages: 125
Introduction
Expanding 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.
Highlights
Sluggish 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.
1. Executive Summary
Strategic scoping and focus
Key findings
Key definitions
Company classifications
Acquisition types
Geographic classifications
Other
Related reports
Upcoming related reports
2. Overview of the APAC pharmaceutical markets
Key findings
Gaining government drug reimbursement is the key to success in Australia
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Chinese healthcare reforms continue to improve market access
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Hong Kong operates separately from mainland China
Indian government investments are needed to improve local market attractiveness
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Indonesia is still far from becoming a truly attractive market
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
The Japanese market is well-established and highly regulated
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Malaysia is a rising star within APAC
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
New Zealand offers only limited growth and a small market
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
The Philippines is a poor nation still struggling to provide affordable healthcare access
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
High-quality healthcare is available in the established Singaporean market
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
South Korea is relatively lucrative, but can be tricky to navigate
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Taiwan's regulatory environment is improving but still has some way to go
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
Thailand's large public sector is tightly controlled by the government
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
The pharmaceutical drug market grows amid a poor healthcare system in Vietnam
Government participation in healthcare
Key health concerns
Pharmaceutical market structure
3. Overview of M&A activity
Key findings
Drivers and resistors of APAC M&A
Stronger growth forecast in emerging compared to developed markets
Big Pharma look to emerging markets to replace lost revenue as the patent cliff threatens blockbuster sales
Product development costs are rising rapidly in developed markets, particularly for clinical trials
Changing socio-demographics create patient demand for better healthcare
Policy and regulation changes are creating a more certain business environment in APAC markets
Overview of M&A activity by geography
China was the most common target location for acquisitions by APAC-based companies
China was the most common location of APAC-based acquiring companies
India holds the greatest interest for leading pharma companies in terms of acquisition prospects
Half of all M&A deals involved both APAC-based acquirers and targets only
Overview of M&A activity by deal type and size
100% acquisitions are the principal deal type involving APAC companies
Majority acquisitions are a favored strategy of large generics players
Few minority acquisitions are pursued in APAC
Acquisitions of complete business units are the most common form of asset purchase
Many buyouts were performed by existing shareholders
M&A value was highest in 2008
Overview of M&A activity by healthcare sector and therapy area
Pharmaceutical manufacturers are the most common APAC M&A targets
Leading pharma players have preferences for specific sectors
Acquirers target highest value and volume therapeutic areas
4. Country specific M&A activity
Key findings
-Australia had a strong start to 2010
M&A summary
China showed mainly domestic M&A activity, although international deals are on the rise
M&A summary
M&A activity in India was particularly high in 2008, then dropped off again
M&A summary
Japan saw biggest deal of the region when it purchased Indian generics company in 2008
M&A summary
Most Malaysian M&A deals involved the broader healthcare industry
M&A summary
M&A activity in New Zealand slowed down considerably in 2009-10
M&A summary
Singaporean companies were particularly active as acquirers
M&A summary
M&A activity in South Korea is increasing consistently
M&A summary
The majority of M&A deals in Taiwan took place in 2008
M&A summary
Other APAC countries were involved in few M&A deals from Q1 2007-Q1 2010
Indonesia
Philippines
Thailand
Vietnam
Significant M&A in APAC has continued throughout the first half of 2010
Abbott acquires formulations business of India's leading pharmaceutical firm
Indian pharmaceutical industry grows wary of multinational dominance
GlaxoSmithKline focuses on small acquisitions in emerging markets
GlaxoSmithKline invests in South Korea
GlaxoSmithKline cannot find value in Indian acquisitions
Chinese CRO deal falters
International players continue to expand presence in APAC through means other than M&A
5. Bibliography
Publications and online articles
Company press releases
Datamonitor products
APPENDIX
Methodology
Key definitions
Company classifications
Acquisition types
Geographic classifications
Other
Exchange rates
About Datamonitor
About Datamonitor Healthcare
Datamonitor consulting
Disclaimer
List of Tables
Table 1: Comparison of key health indicators in the South-East Asian and Western Pacific regions with global indicators, 2006-08
Table 2: Australia - key demographic and health indicators, 2006-08
Table 3: China - key demographic and health indicators, 2006-08
Table 4: India: key demographic and health indicators, 2005-08
Table 5: Indonesia: key demographic and health indicators, 2005-08
Table 6: Japan: key demographic and health indicators, 2006-08
Table 7: Malaysia: key demographic and health indicators, 2006-08
Table 8: New Zealand: key demographic and health indicators, 2006-08
Table 9: Philippines: key demographic and health indicators, 2004-08
Table 10: Singapore: key demographic and health indicators, 2006-08
Table 11: South Korea: key demographic and health indicators, 2006-08
Table 12: Taiwan: key demographic and health indicators, 2001-2010
Table 13: Thailand: key demographic and health indicators, 2002-08
Table 14: Vietnam: key demographic and health indicators, 2006-08
Table 15: APAC - Top 10 highest value M&A deals, Q1 2007-Q1 2010
Table 16: APAC - focus of target companies acquired in M&A deals involving APAC-based companies, Q1 2007-Q1 2010
Table 17: Australia - summary of key M&A deals, Q1 2007-Q1 2010
Table 18: China and Hong Kong - summary of key M&A deals, Q1 2007-Q1 2010
Table 19: India - summary of key M&A deals, Q1 2007-Q1 2010
Table 20: Japan - summary of key M&A deals, Q1 2007-Q1 2010
Table 21: Malaysia - summary of key M&A deals, Q1 2007-Q1 2010
Table 22: New Zealand - summary of key M&A deals, Q1 2007-Q1 2010
Table 23: Singapore -summary of key M&A deals, Q1 2007-Q1 2010
Table 24: South Korea -summary of key M&A deals, Q1 2007-Q1 2010
Table 25: Taiwan -summary of key M&A deals, Q1 2007-Q1 2010
Table 26: Exchange rates to US dollars, July 8, 2010
List of Figures
Figure 1: Map of Asia-Pacific (APAC) region
Figure 2: Drivers and resistors of pharmaceutical growth in the emerging markets, 2010
Figure 3: APAC - total number of M&A deals by quarter and year, Q1 2007-Q1 2010
Figure 4: APAC - pharma M&A activity strategic rationale and future outlook, 2010
Figure 5: Forecast pharmaceutical sales growth (for the top 50 companies in 2009) for the main four geographic regions worldwide, 2009-2014
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
Figure 7: APAC - growth in gross domestic product (GDP) of Malaysia, Thailand, China, Indonesia, Philippines and Vietnam, 2004-08
Figure 8: APAC - M&A mix (acquirer/target) by quarter, Q1 2007-Q1 2010
Figure 9: APAC - key locations of M&A targets sought by APAC-based acquirers, Q1 2007-Q1 2010
Figure 10: APAC - key locations of acquirers seeking APAC-based targets for M&A, Q1 2007-Q1 2010
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
Figure 12: APAC - role of APAC-based companies in M&A deals, Q1 2007-Q1 2010
Figure 13: APAC - Deal type by quarter, Q1 2007-Q1 2010
Figure 14: APAC - M&A by deal type, Q1 2007-Q1 2010
Figure 15: APAC - M&A deals by value range, Q1 2007-Q1 2010
Figure 16: APAC - value of M&A deals by quarter, Q1 2007-Q1 2010
Figure 17: APAC - primary industry of M&A targets by region, Q1 2007-Q1 2010
Figure 18: APAC - focus of M&A by location and development status, Q1 2007-Q1 2010
Figure 19: APAC - target sectors of M&A deals by company sales rank, Q1 2007-Q1 2010
Figure 20: APAC - therapeutic focus of target companies for M&A deals involving APAC-based companies, Q1 2007-Q1 2010
Figure 21: Australia - number and value of M&A transactions by acquirer/target location and year, Q1 2007-Q1 2010
Figure 22: China and Hong Kong - role of Chinese companies in M&A transactions by year, Q1 2007-Q1 2010
Figure 23: China and Hong Kong - leading sectors targeted in M&A transactions, Q1 2007-Q1 2010
Figure 24: India - International markets targeted by Indian acquirers by year, Q1 2007-Q1 2010
Figure 25: India - most prolific Indian acquirers by target sector, Q1 2007-Q1 2010
Figure 26: Japan - foreign targets acquired by Japanese firms by country of headquarters, Q1 2007-Q1 2010
Figure 27: Japan - value of M&A involving Japanese companies by value range, Q1 2007-Q1 2010
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW6
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
