(MENAFNEditorial)
The domestic pharmaceutical industry will continue to have conflicts with the South Korean government over price controls. As a result of these price controls growth of the pharmaceutical market will be limited and firms need to expand overseas to sustain their businesses.
Headline Expenditure Projections
* Pharmaceuticals: KRW16106.7bn (USD14.71bn) in 2013 to KRW16590.4bn (USD15.80bn) in 2014; +3.0% in local currency terms and +7.4% in US dollar terms. Forecast unchanged from Q414.
* Healthcare: KRW101399.1bn (USD92.60bn) in 2013 to KRW107708bn (USD102.6bn) in 2014; +6.2% in local currency terms and +10.7% in US dollar terms. Forecast unchanged from Q414.
Risk/Reward Indices
In Q1 2015 South Korea ranks second out of the 19 countries surveyed in the Asia Pacific region. South Korea's score for its Rewards variable is second only to Japan indicating the country's favourable longer-term standing in terms of its pharmaceutical market development. However we note that Risks - particularly in relation to pharmaceutical pricing and reimbursement - will remain present especially as the population ages and requires more public sector resources.
Full Report Details at
- http://www.fastmr.com/prod/951107_south_korea_pharmaceuticals_healthcare_report_q1.aspx?afid=101
Key Trends & Developments
* In October 2014 a report released by the Board of Audit and Inspection of Korea 'Management Status for the Public Healthcare System' showed that the Market Actual Transaction Price (M-ATP) system was effective in reducing unethical business practices. When the M-ATP and Dual Punishment System was introduced in 2011 illegal rebates paid to doctors reached KRW19.1bn which was a 67.8% drop as compared to KRW59.4bn in 2010. The amount increase to KRW25.4bn in 2012 when M-ATP was suspended.
* In September 2014 Lee Eui Gyeong a professor of Sungkyunkwan Univeristy released a report entitled 'Comparison of Drug Prices in Korea and other OECD Members' The report stated that prices of new drugs introduced after the introduction of the positive list system was 44.4% of the...
The South Korea Pharmaceuticals & Healthcare Report features Business Monitor International (BMI)'s forecasts for drugs and healthcare expenditure and imports and exports focusing on the growth outlook for the prescription OTC patented drugs and generics market segments.
BMI's South Korea Pharmaceuticals & Healthcare Report provides industry professionals strategists company executives investors analysts and sales/marketing heads with independent forecasts and competitive intelligence on the South Korea pharmaceutical and healthcare industry.
Key Benefits
* Benchmark BMI's pharmaceutical and healthcare market forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean pharmaceutical and healthcare market.
* Target business opportunities and risks in the Korean pharmaceutical and healthcare sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in South Korea.
* Assess the activities strategy and market position of your competitors using our company profiles (including SWOTs KPIs and latest activity) and competitive landscape tables.
Coverage
BMI Industry ViewAn at-a-glance perspective on the latest regulatory developments key forecast indicators and major corporate developments covering the prescription OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis and taken together with BMI’s political economic and business environment SWOTs it gives a complete overview of market climate.
BMI Industry Forecast ScenarioIndustry forecasts to end-2019 for all key indicators supported by explicit assumptions plus analysis of key downside risks to the main forecasts:
* Healthcare: Total healthcare expenditure (USDbn) healthcare expenditure (% of GDP) healthcare expenditure per capita (USD) hospital beds doctors and birth & mortality rates (all per ‘000 population).
* Pharmaceutical Market: Drug expenditure in USDbn % of GDP and per capita (USD).
* Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
* Generic Drug Market: Generic product sales (USDbn) generic sales (% of total sales).
* OTC Drug Market: OTC sales (USDbn & % of total sales).
* Macroeconomic Forecasts: Nominal and real GDP % real GDP growth % private consumption growth % industrial output growth % consumer price index % GDP price deflator exports imports trade balance current account balance foreign direct investment exchange rate against USD government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward IndexBMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide indices of highest to lowest appeal to investors with each position explained.
Market SummaryA snapshot of key market characteristics including total size of the pharmaceuticals and healthcare segments growth drivers leading therapeutic areas and the competitive landscape
Industry DevelopmentsA focus on government healthcare reforms epidemiological trends mergers and acquisitions product launches market entries FDI activity R&D biotechnology clinical trials and supply chain issues.
Regulatory RegimeDetails of the industry regulatory framework and key legislation covering the licensing of new products/services pricing and reimbursements intellectual property taxation and advertising as well as analysis of the overall regulatory burden.
Competitive LandscapeThe competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector as well as the OTC generics and distribution sub-sectors.
Company Profiles*
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