Bayer Report Asia Pacific Growth

By Allison Proffitt  

March 25, 2011 | SINGAPORE—Earlier this week, Bayer HealthCare Pharmaceuticals reported 5.8% sales growth for Asia Pacific, compared to global growth of 0.9%. Company representatives listed a strong pipeline, double-digit growth in several emerging Asian markets, and a secure patent situation as foundations for the company’s position.    

Speaking at an annual media roundtable in Singapore, Alok Kanti, regional head of Bayer HealthCare Pharmaceuticals for Asia Pacific, said that partially thanks to growth in the region, Bayer hopes to rise from its number 14 global pharma position to a spot in the top 10 in the next five years.  

Kanti referenced the IMS Health "Pharmerging Shake-up“ 2010 study, which listed Bayer as the top performer in "pharmerging markets", a phrase IMS uses to refer to emerging markets including China, India, Brazil, Vietnam, Thailand, and Indonesia. Bayer realized over 20% of its revenue in 2009 and over 20% CAGR 2003 to 2009 from these markets compared to 9.4% of the revenue of the other top 15 pharmas. IMS predictions from October 2010 foresee “pharmerging” markets growing at 15-17% in 2011. 

Kanti reported Bayer sales growth of 40% in Vietnam, 27% in Singapore, 20% in Malaysia, and 19% in India over the past year. For business reporting purposes, the company distinguishes between markets in China and the rest of Asia Pacific.    

Kanti believes that Bayer’s strength in the region is thanks to a long history and a practice of involving Asia early in the development and clinical testing processes. Bayer has been active in the region for more than 100 years, he says. 

The company has a policy of shifting resources to where the growth is, he further explained. Bayer’s Asia business is organized with regional heads for Asia Pacific, China and Japan. The company currently has 42 sponsored clinical studies in Asia Pacific and China, 40 studies testing new indications, and 120 sponsored investigator grants across the region including several in Singapore announced last December.    

Over the next three to five years, the company sees two distinct opportunities in the large and hugely diverse Asia/Pacific region. It expects growth across all its therapeutic areas in emerging markets, such as India, Vietnam and Indonesia, where the plan is to make investments across the board. The other opportunity comes from more mature countries, such as Australia, Korea and Taiwan, which hold attractive potential for the company’s innovative drug development candidates.    

Kanti said that the company hopes to further encourage growth in the region with “organic and inorganic” growth opportunities. Bayer has funds available for acquisitions, but Kanti did not comment on any specific plans or acquisition strategy. “When opportunities arise,” he said, “we’ll take them.”    

The company has several currently-successful late stage partnerships. Positive results from Phase III trials for VEGF-Trap Eye, developed with Regeneron Pharmaceuticals, have shown an advantage over current treatments for wet age-related macular degeneration and a new Phase III trial has been launched to investigate the compound’s efficacy for treating pathologic myopia.    

In India, Bayer HealthCare Pharmaceuticals signed a joint venture agreement with Indian company Zydus Cadila on January 28 this year to enhance its presence in the fast growing pharmaceutical market in India. With this newly established marketing and sales enterprise from the Indian joint venture, Bayer aims to build a stronger presence in one of Asia’s emerging markets. Each party will hold 50 percent of the shares of Bayer Zydus Pharma, and be equally represented on its management board.