BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Pharmaceutical Sector Of Singapore

Despite its developed nature, Singapore’s pharmaceutical market has limited growth potential when compared to other similarly developed countries in the region, mostly due to its small size. At some 80% of the total market by value, prescription drugs dominate, with the segment expected to remain prominent in the future due to the support of private sector prescribing habits.

Singapore’s drug exports are performing well, on the back of strong European demand after a production slump earlier this year. An increased multinational presence and the country’s growing status as a regional R&D and manufacturing base will continue to be key export drivers, although the majority of finished medicines for the local market will remain imported. Manufacturing output has also fluctuated recently, with strong growth in the summer months failing to extend into autumn. The downturn has been reflected in the active pharmaceutical ingredients (APIs) sector, which has witnessed a contraction in production after a change in the sector’s product mix.

BMI expects growth in the domestic pharmaceutical market to be 4.5% in 2006. Market value is likely to exceed US$0.66bn in by 2010, up from US$0.53bn in 2005, boosted by changing demographics and rising healthcare spending. Market growth will also be supported by the pending consolidation of guidelines on pharmaceuticals, medical devices, traditional medicines and health supplements. In particular, stakeholders dealing with patent and data exclusivity protection - which had been complicated by the Singapore-US Free Trade Agreement signed in 2003 - will benefit from the expected changes.

In regional terms, Singapore will fail to perform as well as some other neighbouring markets, such as Malaysia. While presently on hold, the proposals to contain pharmaceutical expenditure through a variety of measures (such as the encouragement of parallel imports, the introduction of direct price cuts and the attempt to create greater collaboration between the public and private sectors) continue to pose a threat to the branded sector in particular. However, BMI’s adjusted Business Environment Rankings for Asia place Singapore in fourth place, given its excellent regulatory regime and economic and political outlook.

Foreign companies have been active on the market of late with UK-based drugmaker GlaxoSmithKline (GSK) recently revealing a SGD300mn (US$188.5mn) investment in a new vaccines plant in Singapore. Meanwhile, Japanese drugmaker Eisai has established a sales and marketing office in the country. US drug major Merck & Co is continuing its heavy investment in Singapore and has announced it is to open is to open a new US$100mn formulation facility during Q406 for the production of drugs that are currently in late-stage development.

Contents

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Chapter 1 - Executive Summary

Singapore Pharmaceuticals Industry SWOT

Singapore Political SWOT

Singapore Economic SWOT

Singapore Business Environment SWOT

Chapter 2 - Singapore: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics – Long-Term Risk

Politics – Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Singapore: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Issues

Pricing and Reimbursement

Chapter 5 - Industry Trends & Developments

Healthcare Sector

Table: Principal Causes of Death

Domestic Pharmaceutical Sector

Table: Looking Abroad- SciGen’s Recent Activity

Foreign Industry

Table: Singapore - Asia’s New R&D Hub

Research and Development

Clinical Trials

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Singapore Drug-Market Forecast Indicators

Key Growth Factors – Industry

Table: Singapore Health-Expenditure Forecast Indicators

Key Growth Factors – Macroeconomic

Table: GDP, Population & Output

Prescription Market Forecast

Table: Singapore Prescription-Drug Market Forecast Indicators

OTC Market Forecast

Table: Singapore OTC Market Forecast Indicators

Generics and Branded Market Forecast

Table: Singapore Generics and Branded Market Forecast Indicators

Export/Import Forecasts

Table: Singapore Import & Export Forecast Indicators

Other Healthcare Data Forecasts

Table: Hospital and Population Data Trends

Key Risks to BMI’s Forecast Scenario

Chapter 7 - Country Snapshot: Singapore Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Chapter 8 - Competitive Landscape

Overview

Table: Leading Pharmaceutical Companies in Singapore (2005e)

Company Profiles: Leading Foreign Manufacturers

Pfizer

Chapter 9 - GlaxoSmithKline

Merck & Co

Novartis

Sanofi-Aventis

Baxter

Indigenous Manufacturer

Haw Par Corporation Ltd

SciGen Ltd

Veredus Laboratories

Chapter 10 - BMI Forecast Modelling

How we generate our industry forecasts

Technical Process

Pharmaceutical Industry

Chapter 11 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

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BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: