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Biotech and
Applied Health Sciences
Biotechnology forces continue to penetrate Asia-Pacific, as companies and governments across the region focus on this emerging sector acknowledging its tremendous growth potential and wishing to exploit their cost advantages relative to developed countries. However, as in other parts of the world, growth has originated mostly from the success of a few big companies.
Asian governments also see biotech as a natural fit because it is a technology-based industry. Over several decades, several East Asian economies, including Japan, Taiwan, Singapore and South Korea, experienced rapid growth by developing competitive strengths in high technology industries. But in recent years, many of these sectors have seen shrinking margins due to commoditization and intense price competition. Biotechnology is viewed as the next big thing - an industry which creates highly educated highly compensated jobs with tremendous promise in the decades ahead.
However, beyond the excitement of the science, biotech needs a radically different business model due to a fundamental problem with its traditional financing source. Venture funds like to see quick returns, usually within five years, but the science involved often takes 15 to 20 years to come to fruition - if at all. By some measures such as revenue growth, biotech is indeed booming, however, the industry as an aggregate has yet to turn a profit since its birth 30 years ago, and will likely have to converge with big pharma if it is to gain needed funding.
Let Clearstate help you manage your entry into new markets, help you maximize your channel efficiency, facilitate branding initiatives, and implement state of the art operational processes.
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