Big drugmakers intend to expand their investments and operations in Asia in coming months despite concerns about corruption and patents, according to a survey by PriceWaterhouseCooper.

One third of the companies with bases in Asia intend to expand through acquisitions or by building sites in the region during the next year. Three-quarters of local pharmaceutical companies emphasise exporting outside their local market as an important goal.

The plans are made in the context of the region’s fast growth, which suggests Asia may be the world’s largest pharmaceuticals market in coming years, despite continuing competition.

The survey, based on interviews with 185 executives, shows that intellectual property rights and uncertainty about legal systems remain important concerns. The majority had seen improvements during the past five years, after new laws and enforcement.

Clinical trials were highlighted as the business activity most likely to be outsourced to the region, reflecting a response to both mandatory requirements for local trials in such countries as China, and the different ethnic make-up of people in the region and differing responses to drugs. Analytical services and formulation development were also ripe for outsourcing to Asia.

Singapore, which houses 30 biotech companies, saw $1.3bn (€955m, £650m) in investment by big pharma in recent years. The survey also highlighted South Korea, with the fourth-highest healthcare spending in Asia after Japan, China and India.

Source: The Financial Times (subscription required)[tags]China, India[/tags]