Contents:

FOREWORD 15 OVERVIEW 16 The Global Market for Biotechnology Pharmaceuticals 16 Biotechnology Pharmaceuticals in the Global Market, 2007 16 Leading Biopharmaceuticals by Revenue, 2007 (US$ million) 17 Leading Biopharmaceuticals Ranked by US$ Revenue Growth, 2006/2007 (US$ million) 18 Global Pharmaceutical Sales by Region, 2008 19 Estimated Global Biopharmaceutical Sales by Region, 2008 20 Estimated South East Asian Biopharmaceutical Sales, 2008 20 Estimated South East Asian Biopharmaceutical Sales, 2008 21 Projected South East Asian Biopharmaceutical Sales, 2008-2013 21 Case Study: India?s Biopharmaceutical Market, 2002 22 South East Asia – Pharmaceutical Market Data 23 South East Asian Pharmaceutical Market, 2008-13 (US$ Millions) 23 South East Asian Pharmaceutical Market Per Capita, 2008-13 (US$)* 23 South East Asian Pharmaceutical Market AAGR, 2008-13 (%) 24 South East Asia – Demographic Data 24 South East Asian Population*, 2008-13 (Millions) 24 South East Asian Population Growth*, 2008-13 (%) 25 South East Asian Population*, Number Aged 65+, 2008-13 (Millions) 25 South East Asian Population*, % Aged 65+, 2008-13 26 South East Asia – Economic Data 26 South East Asian GDP*, 2008-13 (US$ Billions) 26 South East Asian GDP Per Capita*, 2008-13 (US$) 27 South East Asian Real GDP Growth*, 2008-13 (%) 27 South East Asia – Healthcare Expenditure 28 South East Asian Health Expenditure*, 2008-13 (US$ Billions) 28 South East Asian Health Expenditure Per Capita*, 2008-13 (US$) 29 South East Asian Health Expenditure as % of GDP*, 2008-13 29 South East Asia – Pharmaceutical Trade 30 South East Asian Pharmaceutical Imports, 2001-06 (US$000s) 30 South East Asian Pharmaceutical Exports, 2001-06 (US$000s) 31 BIOTECHNOLOGY IN SOUTH EAST ASIA 32 Selection of Biotechnology as a Key Strategic Area 32 BIOPHARMACEUTICALS IN SOUTH EAST ASIA 34 Biosimilars 35 Rapidly growing markets 35 Significant untapped demand 35 Less competition from originators 36 Greater acceptance from users 36 Regulatory barriers are likely to be lower 36 INDONESIA 37 Biopharmaceutical Market 37 Indonesia - Projected Biopharmaceutical Market 2008-2013 (US$ million) 37 Pharmaceutical Market 38 Summary of the Indonesian Pharmaceutical Market in 2008 38 Projected Pharmaceutical Market, 2008-2013 39 Market Environment 39 Government Biotechnology Initiatives 40 Biopharmaceutical Research Agencies 41 Indonesian Institute of Sciences (Lembaga Ilmu Pengetahuan Indonesia – LIPI) 41 Indonesian Biotechnology Consortium 41 Galang Island 42 Biopharmaceutical Manufacturing 42 PT Bio Farma 42 Partnerships 42 Kalbe Farma Biotek 44 Financials 45 Kimia Farma 46 Agreements 46 LIPI 46 Fraunhofer Institute 46 Financials 47 KOREA 48 Biotechnology Market 48 Korean Biotechnology Market 1994-2005 49 Government Biotechnology Initiatives 49 Korean Government Investment in Biotechnology R&D 1994-2006 (KRW billion) 50 Korea's 2007-2016 Biotechnology Development Strategy 51 Korea's 2006-2015 Biotechnology Development Strategy Targets (US$ billion) 52 Investment 53 Planned Investment in Korean Biotechnology 2007-2016 53 Employment 53 Biopharmaceutical Market 54 Korea - Projected Biopharmaceutical Market 2008-2013 (US$ million) 54 Pharmaceutical Market 54 Summary of the Korean Pharmaceutical Market in 2008 54 Projected Pharmaceutical Market, 2008-2013 55 Market Environment 55 Manufacturing & Research 57 Bukwang Pharma 57 Financials 57 Bukwang Pharmaceutical – Key Financial Data 2004-2006* (KRW billion) 57 Chemizon 58 Agreements 58 Korean Research Institute of Bioscience and Biotechnology (KRIBB) 58 Crown Bioscience 59 Takeda 59 Array BioPharma 59 Chong Kun Dang Bio 60 Agreements 60 Financials 60 Choongwae Pharma 61 CJ CheilJedang 62 Agreements 62 Neuralstem 62 Daewoong Pharma 64 Research 65 Daewoong Pharma - Biopharmaceutical Pipeline 65 Financials 66 Daewoong Pharma – Key Financial Data 2005-2007* (KRW billion) 66 Dong-A Pharma 67 Biopharmaceutical Product Portfolio 67 Dong-A Pharmaceutical - Biopharmaceutical Product Portfolio 67 Dong-A Pharmaceutical Export Plan for Biopharmaceuticals 69 Research 69 Dong-A Pharmaceutical – R&D Pipeline 71 DA-3031 71 HB-110 71 2008 Plans 72 Agreements 72 Ukraine 72 Financials 73 Dong-A Pharmaceutical – Key Financial Data 2005-2007* (KRW billion) 73 Dong-A Pharmaceutical – % of Revenues by Region, 2007 & 2012* 73 Dong-A Pharmaceutical – Biopharmaceutical Revenues, 2007* (KRW billion) 74 Green Cross 75 Product Portfolio 75 Blood Derivatives 75 Vaccines 75 R&D Pipeline 76 Green Cross – R&D Pipeline 76 Mogam Biotechnology Research Institute 76 Financials 76 Korea Stem Cell Bank 77 Kuhnil Pharmaceutical Company 78 Agreements 78 YM BioSciences 78 Viragen 78 LG Life Sciences 79 LG Life Sciences – Product Portfolio 80 Financial Overview 81 LG Life Sciences – Key Financial Data 2004-2006 (billion won) 81 LG Life Sciences – Revenue by Segment, 2006 82 Sewon Cellontech 83 Agreements 83 UCLB & RNOH 83 SK Chemicals Life Science 84 Yuhan Pharmaceuticals 85 MALAYSIA 86 Biopharmaceutical Market 86 Malaysia - Projected Biopharmaceutical Market 2008-2013 (US$ million) 86 Pharmaceutical Market 87 Summary of the Malaysian Pharmaceutical Market in 2008 87 Projected Pharmaceutical Market, 2008-2013 88 Market Environment 88 Government Biotechnology Initiatives 89 Phase I –2006-2010 “Capacity Building” 89 Phase II – 2011-2015 “Science to Business” 90 Phase III – 2016-2020 “Global Presence” 90 NBP Focus Areas 90 Creation of BioNexus 91 Tax Incentives 92 Eighth National Plan 2001-2005 93 Human Resource Development 93 Research and Development 93 Infrastructure and Facilities 93 Regulatory Framework 94 Public R&D Biotechnology Projects, 2001-2005 94 Private Sector Participation 95 Approved Biotechnology Manufacturing Projects, 2001-2005 (RM Million) 95 Ninth National Plan 2006-2010 96 Biotechnology Development 96 Building a Malaysian Brand 97 Regulatory Framework 97 Financial Infrastructure 98 Human Capital Development 98 R&D and Technology Acquisition 99 Institutional Support and Allocation 99 Development Expenditure and Allocation for Biotechnology, 2001-2010 (RM million) 100 Ministry of Science & Technology/BIOTEK 102 Malaysian Biotechnology Corporation (BiotechCorp) 103 Malaysian Bio-industry Organisation 104 Incubators 105 Manufacturing & Research 106 Actis Biologics 106 Actis Biologics – Pipeline 107 Alpha Biologics 108 Autoimmune Sdn Bhd 109 BioFact Life Sdn Bhd 110 Bio Molecular Industries Sdn Bhd 111 Bioven 112 EGF Cancer Vaccine 112 Biovic Sdn Bhd 113 CCM Duopharma Biotech 114 Financials 114 Inno Biologics 115 Agreements 116 GE Healthcare 116 InQpharm Asia 117 KL Biotech Manufacturing Sdn Bhd 118 StemLife Berhad 119 Stempeutics Research Malaysia Sdn Bhd 120 Synamatix 121 Agreements 121 Universiti Malaysia Sabah Biotechnology Research Institute 121 Emory University School of Medicine 121 454 Life Sciences 121 Malaysian Genomics Resources Centre 122 Vivantis Technologies Sdn Bhd (lab services) 123 SINGAPORE 124 Biotechnology Market Overview 124 Investment 124 Investment Commitments in Biomedical Manufacturing 124 Biopharmaceutical Market 125 Singapore - Projected Biopharmaceutical Market 2008-2013 (US$ million) 125 Pharmaceutical Market 125 Summary of the Singapore Pharmaceutical Market, 2008 125 Market Projections, 2008-2013 126 Market Environment 127 Government Biotechnology Initiatives 128 Biomedical Sciences Initiative 128 Singapore Economic Development Board 128 A*STAR 129 Biomedical Research Council (BMRC) 130 Biopolis 131 Bio*One Capital 132 Bio*One Capital Investment Funds 132 Singapore Bio-Innovations (SBI) 132 PharmBio Growth Fund/Life Sciences Investment Fund (PGF/LSI) 132 Biomedical Sciences Investment Fund (BMSIF) 132 BMS INC (Innovate „N? Create) 133 Manufacturing & Research – Multinational Investments 134 Genentech 134 GlaxoSmithKline 134 Lonza 134 Schering-Plough 135 Manufacturing & Research - Domestic 136 1st BASE 136 A-Bio Pharma 137 Agreements 137 Artisan Pharma 137 GSK Biologicals 137 AMRI Singapore 138 Agreements 138 Achaogen 138 Cystic Fibrosis Foundation 138 Financials 139 CellResearchCorp 140 Chakra Biotech Sdn Bhd 141 Chakragati Mouse 141 Novel Compounds 141 Agreements 142 Tikvah Therapeutics 142 University at Buffalo 142 ES Cell International 143 Agreements 144 Curis 144 Ortec International 144 Quark Biotech 144 Experimental Therapeutics Centre 145 i-DNA Biotechnology 146 Innogene Kalbiotech 147 Innogene Kalbio - Product Portfolio 147 Innogene Kalbiotech – Biopharmaceutical R&D Portfolio 148 LYNK Biotechnologies 150 MediLynk 150 Financials 150 Maccine 151 Agreements 151 MerLion 152 Agreements 152 Astellas Pharma 152 Banyu Pharmaceutical 153 National Cancer Institute 153 National Parks Board of Singapore 153 Novartis Institute for Tropical Diseases 154 Financials 154 Moleac 155 S*BIO 156 Research & Development 156 Clinical Trials 156 HDAC 156 Kinase Programme 157 S*BIO R&D Pipeline, 2008 157 Agreements 157 Genome Institute of Singapore 157 Karolinska Institutet 158 SciGen 159 Product Portfolio 160 Pipeline Products 160 Financials 161 SciGen Revenues by Geographic Breakdown, 2007 161 SingVax 162 Agreements 163 Crucell 163 OctoPlus 163 TAIWAN 164 Biotechnology Market Overview 164 Current Status of Biotechnology Development in Taiwan – 2005 165 Biopharmaceutical Market 165 Taiwan - Projected Biopharmaceutical Market 2008-2013 (US$ million) 166 Pharmaceutical Market 166 Summary of the Taiwanese Pharmaceutical Market in 2008 166 Projected Pharmaceutical Market, 2008-2013 167 Market Environment 168 Government Biotechnology Initiatives 169 Promotion Plan for the Biotechnology Industry 169 Bio-Tech Island Project 170 Biotech and New Pharmaceutical Development Statute 170 Investment 170 Research 171 Development Center for Biotechnology 172 Manufacturing & Research 174 Abnova 174 Agreements 174 Axela Biosensors 174 AbGenomics 175 AbGenomics – R&D Pipeline 175 ADImmune 176 Agreements 177 Empax Pharma 178 Agreements 178 Life Spring BioTech 179 Mycenax Biotech 180 Mycenax - Project Pipeline 180 NatureWise Biotech & Medicals 181 Products 181 R&D 181 PhytoHealth 182 ScinoPharm 183 Financials 183 Synmosa Biopharma 184 TaiGen Biotechnology 185 Agreements 185 P&G Pharmaceuticals 185 Academia Sinica 185 Chang Gung Memorial Hospital 186 BioXell SpA 186 Arena Pharmaceuticals 186 R&D 186 TG-873870 186 Nemonoxacin 187 Financial Data 187 TaiMed Biologics 188 Taiwan Liposome 189 Agreements 190 SRI International 190 Financials 190 TTY Biopharm 191 R&D 191 Agreements 191 TaiGen Biotechnology 191 Taiwan Liposome 191 YM BioSciences 191 THAILAND 192 Biotechnology Market Overview 192 Biopharmaceutical Market 194 Thailand - Projected Biopharmaceutical Market 2008-2013 (US$ million) 194 Pharmaceutical Market 194 BIOPHARMACEUTICALS IN SOUTH EAST ASIA Summary of the Thai Pharmaceutical Market, 2008 194 Market Projections, 2008-2013 195 Market Environment 195 Compulsory Licensing 196 Government Biotechnology Initiatives 197 TCELS 198 BIOTEC 198 Manufacturing & Research 200 Delphi Health Services 200 Immunitor 201 R&D Pipeline 201 APPENDIX – BIBLIOGRAPHY 202 APPENDIX – ACRONYMS 203 APPENDIX - EXCHANGE RATES 204

Summary:

Often overshadowed by commercial interest in China and India, the countries of SE Asia offer both a growing market for biopharmaceuticals and a research-driven environment for their development. The worldwide market for biotechnology pharmaceuticals was valued at an estimated US$80 billion in 2007, representing 9.6% of the total global pharmaceutical sales (prescription and OTC), which stood at approximately US$830 billion. In 2007, reported sales of 40 of the leading biopharmaceuticals sold by the major western manufacturers totalled US$71.6 billion, having risen by 13.7% over the previous year. Rapid double-digit growth and influence: The SE Asian market is forecast to climb to US$3.1 billion by 2013, a CAGR of 10.9%. Although at a slower pace than the global average, demand for biopharmaceuticals is still expected to outstrip pharmaceutical demand in general, which is expected to grow in South East Asia at a CAGR of 5.4% over the 2008-2013 period. From representing around 7.7% of the South East Asian pharmaceutical market in 2008, biopharmaceuticals are expected to increase as a proportion to 10% by 2013. Unique market requirements: South East Asia has a markedly different profile to, for example, the US or western Europe, in terms of the type of biopharmaceuticals consumed. Whereas erythropoietins, oncologics, anti-diabetics and auto-immune agents constitute the bulk of biopharmaceutical sales globally, the leading therapy classes in South East Asia are anti-diabetics and recombinant vaccines. The simple truth is that many biopharmaceuticals, such as oncologics, are simply too expensive for widespread distribution in countries with low healthcare expenditure. The market will be focused on local market demand (insulins, hepatitis B vaccines, tropical disease vaccines) and access to the more expensive treatments will continue to be restricted until they come off-patent and cheaper biosimilars become widely available. Biopharmaceuticals in South East Asia is a new, critical strategic management report which addresses key issues of concern. The 200+ page report is packed with authoritative statistics and comment, much of which is not readily available elsewhere. If you need to understand, manage or develop these markets then this report is essential reading. This detailed report analyses the market and research environments, assessing risk and identifying opportunity. Indonesia Espicom estimates the Indonesian biopharmaceutical market at US$101 million in 2008 and forecasts that it will rise to US$148 million by 2013. Growth over the 2008-2013 period is expected to average at a CAGR of 7.9%, in which time Indonesia’s share of the biopharmaceutical market in South East Asia is expected to slip from 5.4% to 4.7%. Malaysia The Malaysian government sees biotechnology as integral to future wealth creation and the attainment of its aim to become a “developed knowledge economy” by 2020. Espicom estimates the Malaysian biopharmaceutical market at US$75 million in 2008 and forecasts that it will rise to US$132 million by 2013. Growth over the 2008-2013 period is expected to average at a CAGR of 12%, in which time Malaysia’s share of the regional biopharmaceutical market is expected to show a marginal increase from 4% to 4.2%. Singapore Singapore’s intention is to become a hub for the biomedical sciences sector, not just for Asia, but globally. The country has traditionally been a trading hub for the Asian region and more recently has established itself as a prime location for biomedical operations. Singapore is an attractive location for multinational companies as it meets key criteria: political and economic stability, government-led commitment to the sector, a skilled workforce, a strong life sciences and logistical infrastructure, vigorous intellectual property protection and a favourable regulatory framework. Singapore’s biomedical sciences industry (which it classifies as pharmaceuticals, healthcare-related biotechnology, diagnostics and medical devices) had a manufacturing output of S$23 billion in 2006, an increase of 30.2% over 2005. Notable multinational investments have been made by GSK, Lonza, Genentech and Schering-Plough. South Korea South Korea’s close proximity to China and Japan make it well-placed as a gateway to two of the world’s most powerful economies. But partnering with Korean companies can be more than just a geographically strategic move, as the country has a strong research base in biotechnology and pharmaceuticals. Since 1986, more than 30 new drug candidates and related technologies developed by Korean companies have been licensed to the major players in the pharmaceutical industry. Furthermore, South Korean inventors rank 12th for biotechnology patents filed with the USPTO and account for 1% of total stem cell-related patents filed with the USPTO, close to the number filed by British and French researchers. These statistics are testimony to the Korean government’s promotion of biotechnology and stem cell research. Despite the blow dealt by the Hwang Woo-Suk scandal the biotechnology sector continues to flourish. Thailand The Thai government is keen to restore investor confidence and to promote investment in targeted industries. While biotechnology is one of the designated industries set to benefit from the funding on offer, the current furore over Thailand’s compulsory licensing of pharmaceuticals still makes the current environment an awkward one for those involved in the life sciences sector. While Thailand lags behind many other countries in the region in promoting biotechnology there is optimism this can be overcome due to the country’s wealth of skilled personnel with 1,000 trained professionals graduating from local universities annually. Strategies, policies and infrastructure created over the past two years are starting to pay off, with a number of multinational and local companies emerging in the biotechnology sector. Taiwan Taiwan's concerted policy efforts to develop research, development and production capabilities in the biotech sector have paid off in creating a wealth of investment opportunities. Biotech research at Taiwan's top academic institutions is gaining international attention, while development capabilities, fostered through joint industry and government support, are turning these research achievements into commercially viable products. Espicom estimates the Taiwanese biopharmaceutical market at US$425 million in 2008 and forecasts that it will rise to US$745 million by 2013. Growth over the 2008-2013 period is expected to average at a CAGR of 11.9%.

Companies Mentioned

PT Bio Farma 42 Kalbe Farma Biotek Kimia Farma LIPI Fraunhofer Institute Bukwang Pharmaceutical Chemizon Korean Research Institute of Bioscience and Biotechnology (KRIBB) Crown Bioscience Takeda Array BioPharma Chong Kun Dang Bio Choongwae Pharma CJ CheilJedang Neuralstem Daewoong Pharma Dong-A Pharmaceutical Green Cross Mogam Biotechnology Research Institute Korea Stem Cell Bank Kuhnil Pharmaceutical Company YM BioSciences Viragen LG Life Sciences Sewon Cellontech UCLB & RNOH SK Chemicals Life Science Yuhan Pharmaceuticals Actis Biologics Alpha Biologics Autoimmune Sdn Bhd BioFact Life Sdn Bhd Bio Molecular Industries Sdn Bhd Bioven EGF Cancer Vaccine Biovic Sdn Bhd CCM Duopharma Biotech Inno Biologics GE Healthcare InQpharm Asia KL Biotech Manufacturing Sdn Bhd StemLife Berhad Stempeutics Research Malaysia Sdn Bhd Synamatix Universiti Malaysia Sabah Biotechnology Research Institute Emory University School of Medicine 454 Life Sciences Malaysian Genomics Resources Centre Vivantis Technologies Sdn Bhd (lab services) A*STAR Biomedical Research Council (BMRC) Biopolis Bio*One Capital Singapore Bio-Innovations (SBI) PharmBio Growth Fund/Life Sciences Investment Fund (PGF/LSI) Biomedical Sciences Investment Fund (BMSIF) BMS INC Genentech GlaxoSmithKline Lonza Schering-Plough 1st BASE A-Bio Pharma Artisan Pharma GSK Biologicals AMRI Singapore Achaogen Cystic Fibrosis Foundation CellResearchCorp Chakra Biotech Sdn Bhd Chakragati Mouse Novel Compounds Tikvah Therapeutics University at Buffalo ES Cell International Curis Ortec International Quark Biotech Experimental Therapeutics Centre i-DNA Biotechnology Innogene Kalbiotech LYNK Biotechnologies MediLynk Maccine MerLion Astellas Pharma Banyu Pharmaceutical National Cancer Institute National Parks Board of Singapore Novartis Institute for Tropical Diseases Moleac S*BIO Genome Institute of Singapore Karolinska Institutet SciGen SingVax Crucell OctoPlus Abnova Axela Biosensors AbGenomics ADImmune Empax Pharma Life Spring BioTech Mycenax Biotech NatureWise Biotech & Medicals PhytoHealth ScinoPharm Synmosa Biopharma P&G Pharmaceuticals Academia Sinica Chang Gung Memorial Hospital BioXell SpA Arena Pharmaceuticals R&D TaiMed Biologics SRI International TTY Biopharm TaiGen Biotechnology Taiwan Liposome YM BioSciences