Emerging market trends

Q: We know that big pharma is increasing outsourcing spend in emerging markets due to cost advantage with these regions. We would like to what is the current industry average (in percentage) of API and formulation outsourcing in emerging markets. Also we are interested in knowing your predictions for emerging market percentage spend after five years.

—Hariharan Baskaran, Beroe

A: Most of the major pharma companies have established their manufacturing sites in India, Singapore, and China to save costs. This trend will continue as the emerging markets grows, and the companies in the U.S. will either establish their own or partner with other companies in India and other Asian countries to lower their cost. Over 80% drugs marketed are generic, so the emerging countries will have an important role to play in future growth of generic drugs.

—Dr. Shaukat Ali, BASF