Business Monitor International


South Korea Pharmaceuticals & Healthcare Report

Published 01 May 2014

  • 136 pages
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$1,295.00
South Korea Pharmaceuticals & Healthcare Report

BMI View:   South Korea's pharmaceutical market will continue to grow in low-single digit terms due to the government's aim to contain healthcare expenditure in general and pharmaceutical costs in particular. Consequently, domestic companies will have to expand beyond South Korea to maintain growth.  

Headline Expenditure Projections

  • Pharmaceuticals: KRW16,106.7bn (USD14.71bn) in 2013 to KRW16,590.4bn (USD15.80bn) in 2014; +3.0% in local currency terms and +7.4% in US dollar terms. Forecast broadly in line with Q 3 14.

  • Healthcare: KRW101,399.1bn (USD92.60bn) in 2013 to KRW107,660.9bn (USD102.53bn) in 2014; +6.2% in local currency terms and +10.7% in US dollar terms. Forecast slightly downgraded due to receipt of data from the World Health Organization.

Risk/Reward Rating

In Q4 2014, 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.

Key Trends & Developments

  • In June 2014 the US Food and Drug Administration (FDA) permitted sales of Sivextro (tedizolid), an antibiotic for treating methicillin-resistant Staphylococcus aureus (MRSA) infections, which was developed by Dong-A. The company expects to register annual sales of about KRW300bn (USD293mn) in the US from licence royalties and technology support from its US producer and distributor Cubist Pharmaceuticals.

  • In the same month, Hanwha  Chemicals resubmitted its application for the first biosimilar of arthritis therapy Enbrel (etanercept) to the Ministry of Food and Drug Safety (MOFDS). The company first submitted an application for market approval in 2012, but it voluntarily...

Table of Contents

Executive Summary
7
SWOT Analysis
9
South Korea Pharmaceuticals Industry SWOT
9
South Korea Political SWOT
10
South Korea Economic SWOT
10
South Korea Business Environment SWOT
11
Pharmaceuticals Risk/Reward Ratings
12
Table: Asia Pacific - Regional Pharmaceuticals Risk/Reward Ratings, Q213
12
Rewards
13
Risks
13
South Korea - Market Summary
15
Regulatory Regime
17
Regulatory Developments
18
Counterfeiting
19
Controversial Trade Practices
20
Intellectual Property Regime
22
IP Deficiencies
22
Pricing Regime
23
Price Cuts
24
Reimbursement Regime
27
Separation Of Prescribing And Dispensing
29
Hospital Purchasing
30
Table: Selected List Of Illegal Rebates Cases
31
Foreign Trade Developments
31
Industry Trends And Developments
33
Epidemiology
33
Non-Communicable Diseases
33
Communicable Diseases
34
Healthcare System
34
Healthcare Financing
35
National Health Insurance Corporation
35
Medical Tourism
37
Research And Development
38
Table: MOHW's R&D Grants by Company & Industry Field, 2004-09
39
Table: Top R&D Spenders In Listed Firms In Selected Asia Pacific Countries (%)
41
Stem Cell Research
42
Biotechnology Sector
43
Table: South Korea's Bio-Industry Backbone
45
Clinical Trials
45
Industry Forecast Scenario
49
Pharmaceutical Market Forecast
49
Table: South Korea Pharmaceutical Sales, Historical Data And Forecasts
51
Healthcare Market Forecast
52
Table: South Korea Healthcare Expenditure Trends, Historical Data And Forecasts
53
Table: South Korea Government Healthcare Expenditure Trends, Historical Data And Forecasts
53
Table: South Korea Private Healthcare Expenditure Trends, Historical Data And Forecasts
54
Key Growth Factors - Macroeconomic
55
Table: South Korea - Economic Activity
59
Prescription Drug Market Forecast
60
Table: South Korea Prescription Drug Market Indicators, Historical Data and Forecasts
61
Patented Drug Market Forecast
62
Table: South Korea Patented Drug Market Indicators, Historical Data And Forecasts
63
Generic Drug Market Forecast
64
Table: South Korea Generics Drug Market Indicators, Historical Data And Forecasts
65
OTC Medicine Market Forecast
66
Table: List Of OTC Drugs To Be Sold Outside Pharmacies
66
Table: South Korea Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts
69
Pharmaceutical Trade Forecast
70
Table: South Korea Pharmaceutical Trade Data And Forecasts (US$mn)
71
Table: South Korea Pharmaceutical Trade Data And Forecasts (KRWmn)
71
Other Healthcare Data Forecasts
72
Key Risks To BMI's Forecast Scenario
72
Competitive Landscape
74
Pharmaceutical Industry
74
Domestic Pharmaceutical Industry
74
Table: Top-20 Pharmaceutical Firms By R&D Expenditure As % Of Total In South Korea (2011)
76
Table: Pharmaceutical Manufacturers, 2004-10
77
Table: Pharmaceutical Production, 1991-2010 (KRWbn)
77
Table: Pharmaceutical Production By Therapeutic Category, 2009-2010 (KRWbn)
78
Table: Leading Pharmaceuticals Companies On Korea Exchange According To Market Capitalisation
80
Foreign Pharmaceuticals Sector
80
Recent Pharmaceutical Sector Developments
81
Pharmaceutical Wholesale
83
Table: Pharmaceutical Wholesalers, 2000-10
83
Pharmaceutical Retail
84
Table: Pharmaceutical Retailers, 2000-10
84
Timeline Of OTC Slow Liberalisation
86
Company Profiles
87
Leading Local Manufacturers
87
Dong-A
87
Chong Kun Dang Pharmaceutical
90
Hanmi Pharmaceutical Co
92
Yuhan Corporation
95
Daewoong Pharmaceutical
97
Bukwang Pharmaceutical Company
99
Kuhnil Pharmaceutical
101
Choongwae
103
Leading Multinational Companies
105
GlaxoSmithKline
105
Pfizer
107
Sanofi-Aventis
109
Merck & Co
111
Novartis
112
Eli Lilly
114
Demographic Outlook
115
South Korea - Population By Age Group
116
South Korea - Population By Age Group
117
South Korea - Key Population Ratios
118
South Korea - Rural and Urban Population
118
Glossary
119
BMI Methodology
121
How We Generate Our Pharmaceuticals Industry Forecasts
121
Risk/Reward Ratings Methodology
122
Ratings Overview
122
Table: Pharmaceuticals Business Environment Indicators
123
Weighting
124
Table: Weighting Of Components
124

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 Korean pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's independent pharmaceutical and healthcare industry 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, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View & Industry SWOT

An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI's forecast analysis, and taken together with BMI's political, economic and business environment SWOTS, it gives a complete overview of market climate.

Market Summary

Snapshot of key market characteristics, including total size of pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape.

Regulatory Regime

Details 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 an analysis of the overall regulatory burden.

Industry Developments

Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

BMI Industry Forecasts

Forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Healthcare: Total healthcare expenditure (US$bn), healthcare expenditure (% of GDP), healthcare expenditure per capita (US$), hospital beds (per `000 population), doctors (per `000 population), birth and mortality rate (per `000 population)

Pharmaceutical market: Drug expenditure (US$bn), drug expenditure (% of GDP), drug expenditure per capita (US$)

Patented drug market: Prescription drug sales (US$bn), prescription sales (% of total sales), sales broken down by 14 therapeutic areas (cardiovascular, anti-infectives etc.)

Generic drug market: Generic product sales (US$bn), generic sales (% of total sales)

OTC drug market: OTC sales (US$bn), OTC sales (% of total sales), sales broken down by product types (analgesics, skin treatments, vitamins and minerals etc.)

Medical Devices: Medical device sales (US$bn), medical device sales (% of total healthcare market)

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 US$, government expenditure, external debt.

Competitive Landscape

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc