2013-09-15 09:27:48 - Fast Market Research recommends "Hong Kong Pharmaceuticals & Healthcare Report Q4 2013" from Business Monitor International, now available
BMI View: The attractiveness of Hong Kong's pharmaceutical market is dependent on its proximity to China as pharmaceutical firms are able to leverage on Hong Kong's relatively safe operating environment to expand into China. However, as China continues to advance in biotechnology and pharmaceutical, it will become a threat over the long term. Equally relevant is its domestic demographic, where is ageing and affluent population will continue to sustain demands for pharmaceuticals and healthcare services. Similar to Singapore, Hong Kong's long-term growth potential is nevertheless limited by its small market size.
Headline Expenditure Projections
Full Report Details at
- www.fastmr.com/prod/671005_hong_kong_pharmaceuticals_healthcare_ ..
* Pharmaceuticals: HKD10.31bn (US$1.33bn) in 2012 to HKD10.94bn (US$1.41bn) in 2013; +6.1% in local currency terms and +5.9% in US dollar
terms. Forecast broadly in line with Q312.
* Healthcare: HKD112.43bn (US$14.49bn) in 2012 to HKD120.53bn (US$15.51bn) in 2013; +7.2% in local currency terms and +7.0% in US dollar terms. Forecast broadly in line with Q312.
Hong Kong's Pharmaceutical Risk/Reward Rating (RRR) score for Q413 is 59.0 out of the maximum 100 in our newly improved RRR system. The country scored above average for most of indicators and subindicators including per capita pharmaceutical expenditure, sector value growth and pensionable population. Consequently with this high score, Hong Kong is ranked eighth, behind Malaysia but in front of India, among the 19 key Asia Pacific markets.
Key Trends And Developments
* In June, a licensed wholesaler of proprietary Chinese medicine (pCm), Hong Kong-based Beijing Tong Ren Tang Hong Kong Medicine Management Limited, has been directed to withdraw a batch of pCm from consumers. The order was issued by the Hong Kong Department of Health on June 4 2013. The move follows the discovery of nearly five times the level of mercury allowed by the local government laboratory in a sample
* In the same month, MMRGlobal reported that it is to receive Hong Kong Patent No. 1052295B. The patent, entitled: "Method and Composition for Altering a B-Cell Mediated Pathology" protects certain methods of manufacturing compositions for B-cell vaccines used in the fight against lymphoma and potentially other forms of cancer.
* In May 2013, DKSH Business Unit Healthcare and UK-based drugmaker GlaxoSmithKline (GSK) have signed a deal for the commercialisation of the latter's antibiotics in Hong Kong. Under the deal, DKSH will provide contract sales services in private clinics and trade channel for GSK's antibiotic product line.
BMI Economic View: Led by a slowdown in trade activity, particularly stemming from cooling demand from the mainland, the economic deceleration in Hong Kong that we have been expecting appears to be taking shape. Meanwhile, the softening in real estate transactional activity is likely to be reflective of a stabilisation within the property market and we expect scope for further price rises to be severely capped. However, we still believe that a normalisation in interest rates and a boost in the housing supply towards the end of 2014, will be the catalysts for a housing correction. Given the poverty of data, we have revised our 2013 and 2014 real GDP growth projections down to 2.4% and 3.0%, respectively, from 3.3% and 3.6% previously.
BMI Political View: While we believe Hong Kong will remain at or near the top of our political risk ratings table over the next decade, a number of risks could lead to rising political instability. The sluggish pace of democratic reforms will continue to cause anger among pro-democracy supporters, and there is the potential for large-scale public protests. A lack of affordable housing and rising income inequality also could pose threats to social stability.
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