The pharmaceutical industry has been a highly profitable industry, showing steady growth with attractive
yields. However, there has been an increase in pressure on the industry in recent years. Although profit
margins are still high, global earnings are under enormous pressure due to many factors including
regulatory and compliance issues, research and development expenditures and the length of time it takes
for drug approvals and licenses to be granted.
However, with the explosion of emerging markets comes a lamentable side effect where a significant
percentage of people who are adopting Western lifestyles unfortunately acquire Westernized
diseases.Today, China is experiencing an outbreak of diabetes and other health issues. This, in turn, will
benefit drug companies who will be well positioned to treat increasing numbers of patients.
These markets will safeguard the welfare of larger companies, but smaller operations could benefit greatly
from investments for these locations.