A recent report from CPhI Japan has forecast that this year, 2018, will be a transformative year for Japanese pharma as the market is expected to see growth in generics, biosimilars and internationalisation.
Japan
The CPhI Japan 2018 report identifies demographic pressures on healthcare costs as a driver for political agenda that should benefit those companies with lower cost solutions. As such, generics and, particularly for the innovative Japanese pharma industry, biosimilars are expected to experience rapid growth.
Additionally, the country’s pharma economy is transitioning towards greater openness, which has led to predictions that international movers should experience rewards.
However, several factors that may hinder the sector were also identified. These included the way in which international companies approach the market — a local partner was viewed as a prerequisite of success — with brand loyalty also identified as a perennial issue. Moreover, there are still information asymmetries between the views of international and domestic respondents, with markedly different perspectives on the effects of the impending patent cliff, how brand loyalty influences generics consumption, and to what extent regulatory efforts have been successful. One major difference is that domestic respondents believe that the PMDA has made effective strides in tackling the drug approval backlog, while international respondents largely disagree.
“The Japanese pharma industry has recently made attempts to attract more global business and the report findings demonstrate that there are more opportunities than ever for new players to penetrate the market, particularly in generics and biosimilars,” commented Laura Murina, brand manager, CPhI Japan at UBM. “This year, CPhI Japan will continue to provide a platform for the global pharma community to convene, fostering even greater links between the domestic and international markets, and maintaining Japan’s position as a tier one pharma business destination. The report predicts 2018 will be a transformational year for Japan’s growth and the market’s overall internationalisation. This is especially exciting for UBM, as our event can play a key role in facilitating this.”