THE DISAPPEARING DISCONNECT
With South East Asia's seemingly never-ending boom expected to drive the numbers of the Asian middle class from around 500
million to 3.2 billion by 2030, figuring out how to optimally capture the massive opportunities that come with it is one of
the hottest topics on Australia's national agenda.
While bringing ample opportunities, the explosion of Asia's markets & middle classes also causes less favorable developments,
such as an inevitable descent of Australia down the global ladder of most sizable pharmaceutical markets. "Australia still
stands up very well against other mature markets across the dynamics that IMS looks at, but the issue is that it does not
stand up as well as it used to in terms of growth potential and market issues," said Andy Jackson, general manager of IMS
Australia. "The investment divide is already there: the pharmaceutical industry opts for China, India—the Pharmerging markets.
The Australian market has grown 6-7 percent on a compound annual growth basis in recent years, while the forecast has dropped
to 2-3 percent for the next five years."
Dr. Martin Cross, Chairman, Generic Medicines industry Association (GMiA)
But, "Australia has a very strong R&D capability and is an amazing country for start-ups," according to Dr. Martin Cross,
chairman of the Generic Medicines industry Association (GMiA). "It is a knowledge-based country, and under-recognized as a
matter of fact, and that is to the detriment of many companies that could come here and get really good leads."
Chris Hourigan, Managing Director, Janssen-Cilag
However, this notion of a disconnect seems to be disappearing. Pharmaceutical companies have been concluding many agreements
with biotech industry and research institutes for their R&D, demonstrating a set of new relationships that requires sophisticated
partnering. "Indeed Australia is considered a high-potential R&D opportunity particularly in the biotech sector, and the secret
is out. Many of the world's top pharmaceutical companies have caught on to the fact that Australia offers a lot of pipeline
potential," said Chris Hourigan, managing director of Janssen-Cilag.