2011 Scrip Asia 100 - Flexibility the key to riding Asia's emerging giants
This article was originally published in Scrip
Executive Summary
The new Scrip Asia 100 analysis, published this week at scripasia100.com, has a far broader geographical scope than last year's launch edition, providing an opportunity to compare the key changes going on in Asia's two largest emerging markets, China and India. On the surface there are a number of similarities: large, mostly rural populations, an emerging middle class demanding better healthcare, and fast-growing pharma markets driven by the "Westernisation" of diseases. While both countries offer robust domestic markets, Indian firms appear to have a head-start in terms of establishing an overseas focus. Among other factors, this is partly because the Indian market, which grew at about 18% in 2009-10, generates good cash flows. By contrast, Chinese firms appear to have been hit over the years with many annual and biannual price cuts, which have reduced their profitability and their ability to grow abroad.