Research and Markets: Shake Up of Business Opportunities in the Asian Pharmaceutical Markets
Research and Markets (http://www. researchandmarkets. com/reports/c18880) has announced the addition of Pharmaceutical Markets in the Asia Pacific Region: All Change in the Tiger Economies? to their offering.
Dublin (PRWEB) June 14, 2005
Research and Markets (http://www. researchandmarkets. com/reports/c18880 (http://www. researchandmarkets. com/reports/c18880)) has announced the addition of Pharmaceutical Markets in the Asia Pacific Region: All Change in the Tiger Economies? to their offering.
Business opportunities in Asian pharmaceutical markets are very different from a few years ago. The traditional tiger economies, characterised by economic growth, free market environment, developed industry and investment in health and health infrastructure have had a long haul back from the financial instability and economic downturn in the 1990's.
The report analyses the following key markets:
Hong Kong; Hong Kong represents a mature, small pharmaceutical market. The healthcare system remains organised along similar lines to that in the UK, with similarly high levels of care. Cost containment measures, combined with general economic uncertainty, have slowed market development of this wealthy city state in recent years. There is a significant level of local manufacturing, although this is restricted to cheap generic products. Advanced drugs tend to be imported. The territory acts as a hub for trade throughout the region, and especially as a conduit for trade in and out of the People's Republic of China, although this role has arguably lost some of its importance due to the rapid business development on the mainland.
Indonesia; The pharmaceutical sector shows some encouraging signs, domestic mergers may improve the market as would further overseas investment from multinationals. Whilst drug prices remain high the black market continues to thrive although steps are being taken to address this problem. As the economy continues to recover, albeit slowly, the pharmaceutical sector should mirror this trend, with steady if unspectacular growth anticipated.
South Korea; South Korea's pharmaceutical market has not only rebounded from post-crisis slump in 1998/99, the prescribing and dispensing split, enacted in 2000, has made this previously promising but difficult market much more attractive for multinational companies due to a more level playing field vis-Ã -vis domestic companies. While the market is more attractive, several factors are slowing overall market growth. Rising patient premiums and co-payments have dampened demand, while strict pricing and low reimbursement levels for certain drugs have reduced value-added growth. Despite the need for cost containment, this will be counteracted by consumer demand for good healthcare and the market is expected to grow steadily, if not as high as in previous 'post - recovery catch up' years.
Malaysia; In recent years, Malaysia appears to have recovered from the Asian economic crisis better than most. The Malaysian healthcare system has grown rapidly since the 1980s, particularly in the private sector, although growth is not quite as spectacular in recent years. The government has attempted to improve standards of public healthcare, although schemes to boost the number of physicians and hospital facilities have so far met with varying degrees of success. With healthcare high on the list of government priorities the prospects for the pharmaceutical industry appear favourable.
Philippines; Government funding is low and the country continues to rely on international aid. In 2002, the Philippines allocated only 3.1% of its GDP to healthcare spending - below the 5% benchmark set by the World Health Organisation - and only 30% of this is used for public health. Poor co-ordination and planning of healthcare policy Administration of the health sector is devolved into local government units, making a cohesive provision of services difficult to co-ordinate. Drug prices are amongst the highest in Asia. With the generic market representing a negligible part of the market, drug prices remain high, especially considering the majority of the population live below in the low-income category.
Singapore; This pharmaceutical market remains strong. The continued increase of multinational investment plays an integral part in the continuance of this strength. Singapore is increasingly becoming a base for both regional and global pharmaceutical production for a growing number of multinational companies.
Taiwan; Taiwan is one of the richer 'Asian Tiger' economies. Per capita GDP is similar to New Zealand, and behind only Japan, Singapore, Hong Kong and Australia in the Asia/Pacific region. There is considered to be widespread overuse of services such as outpatient consultations and drug prescriptions. The government is looking at reducing this, in a further attempt to control health insurance bills. Over 70% of the market has been controlled by overseas multinationals since 2001. Over 100 generic drug manufacturers currently operate in Taiwan. An opaque regulatory process and discriminatory reimbursement practices exist. Legislation to bring the country more in line with international standards has been announced.
Thailand; While import levels for modern drugs are approaching pre-crisis levels again, the market remains dominated by generics. The OTC sector has profited in a similar fashion. The government's relationship with the international pharmaceutical industry continues to be uneasy, largely due to the country's lax patent laws and preferential treatment of domestic producers. How the Thai drug market will develop in the future will depend to a large extent on how the economy performs. Although demographic and epidemiological factors (especially AIDS) drive demand for pharmaceuticals, the low-middle income status of the Thai economy, coupled with a high share of out-of-pocket payments, will mean that demand is and will remain very income sensitive.
Vietnam; Large parts of Vietnam are poorly developed and relatively inaccessible. The healthcare system in Vietnam is partly funded through a national health insurance scheme, which is compulsory for all industrial workers and government employees. However, the system is far from comprehensive. As of the end of 2003, only 14% of employed people had social insurance and 21% had health insurance. Over half of the pharmaceutical market is supplied by imports. France, India and Korea are the leading suppliers, accounting for just over 40% of imports in 2003.
For more information visit http://www. researchandmarkets. com/reports/c18880 (http://www. researchandmarkets. com/reports/c18880)
Laura Wood
Senior Manager
Research and Markets
Press@researchandmarkets. com
Fax: +353 1 4100 980
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