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SINGAPORE : Market players are optimistic about the growth prospects for the global biopharmaceutical manufacturing services industry.
The sector is expected to grow by an average of 10 to 15 per cent annually over the next five years. And the market is estimated to be worth about US$4.3 billion in 2011.
The pharmaceutical industry has been increasingly outsourcing its drug development and manufacturing processes. And this trend is set to continue.
At an industry conference on Tuesday, market watchers said more companies could set up contract manufacturing organisations in Asia to make high-level drugs like cancer cures and insulin.
The region currently accounts for less than 5 per cent of the global market share.
William Downey, president, HighTech Business Decisions, said: "The big issue now is that it is an emerging market; the science is not well-known.
"A lot of the work being done in the bio-contract manufacturing area is in pre-clinical or clinical work. So a lot of times, a drug developer wants to be close to where his drugs are being manufactured."
But as the industry grows, experts said drug developers will start looking East to markets like China, India and South Korea.
Apart from the growth prospects, there are also cost savings to be reaped.
Singapore, in particular, could be a choice location.
It has already attracted contract manufacturing organisations like Lonza Biologics.
Mr Downey said: "First of all, they do have the infrastructure in place, there are very sophisticated facilities, they do have an educated workforce, and they have already invested a lot in capital in the biotechnology area, so those items are positives to people."
All in, the global biopharmaceutical contract manufacturing industry raked in US$2.6 billion last year. - CNA/ms
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