As pharmaceutical companies expand their presence in emerging regions’ middle-class markets, they are incorporating new categories of products, including large-molecule biologics (i.e., monoclonal antibodies), and new gene and cell therapies. The biologics market is forecast to jump to $278 billion by 2020, a 71.6% increase from 2014. According to a survey of 254 pharmaceutical executives, 80% of companies are optimistic about bringing their new drugs to the global market, with 48% already in the process or considering beginning development of “novel therapies.” The same percentage of companies also indicated that novel therapies resulted in a better ROI in the past five years than invested capital. These new therapies are expensive to develop, and 32% of firms cite regulatory uncertainty and 25% cite lack of funding as major concerns. Asia is a major region for pharmaceutical companies, with 40% of companies planning new operations in Indonesia, 44% planning them in South Korea and 42% planning them in Taiwan.

Source: The Economist Intelligence Unit