Business Monitor International


South Korea Pharmaceuticals & Healthcare Report

Published 29 January 2014

  • 136 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
South Korea Pharmaceuticals & Healthcare Report

BMI View: We highlight that , despite challenging conditions, South Korea does offer some form of certainty given that the government has yet to initiate fresh rounds of extensive medicine price cuts, providing short-term stability to the pharmaceut ical market. S tringent price containment goes against the country's aim to develop its pharmaceutical sector , and therefore in order to foster the sector 's growth , potential changes must be made to drug pricing regulation, representing an upside risk to our outlook.

Headline Expenditure Projections

  • Pharmaceuticals: KRW16,106.7bn (US$14.45bn) in 2013 to KRW16,543.74bn (US$15.04bn) in 2014; +2.7% in local currency terms and +4.1% in US dollar terms.

  • Healthcare: KRW101,672bn (US$91.19bn) in 2013 to KRW108,555bn (US$98.69bn) in 2014; +6.8% in local currency terms and +8.2% in US dollar terms.

Risk/Reward Ratings

In Q2 2014, South Korea ranks fourth out of the 19 countries surveyed in the Asia Pacific region. South Korea's score for its Rewards variable is third to Japan, Taiwan and China, 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 January 2014, Allergan and Medytox closed the licence agreement that was previously announced on September 25 2013. Under the terms of the agreement, Allergan will pay Medytox an up-front cash payment of US$65mn within seven business days of closing. Medytox has granted Allergan exclusive rights, worldwide outside of Korea, to develop and, if approved, commercialise certain neurotoxin product candidates currently in development, including a potential liquid injectable product.

  • In December 2014, the Ministry of Health and Welfare announced that it will implement its market-based actual...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Pharmaceutical Market Forecast
14
Table: Pharmaceutical sales (US$bn)
17
Healthcare Market Forecast
18
Table: South Korea Healthcare Expenditure Trends, Historical Data and Forecasts, 2010-2018
19
Table: South Korea Government Healthcare Expenditure Trends, Historical Data and Forecasts, 2010-2018
19
Table: South Korea Private Healthcare Expenditure Trends, Historical Data and Forecasts, 2010-2018
20
Prescription Drug Market Forecast
21
Table: South Korea Prescription Drug Market Indicators, Historical Data and Forecasts, 2010-2018
22
Patented Drug Market Forecast
23
Table: South Korea Patented Drug Market Indicators, Historical Data and Forecasts, 2010-2018
24
Generic Drug Market Forecast
25
Table: South Korea Generics Drug Market Indicators, Historical Data and Forecasts, 2010-2018
26
OTC Medicine Market Forecast
27
Table: South Korea Over-The-Counter (OTC) Medicine Market Indicators, Historical Data and Forecasts, 2010-2018
29
Pharmaceutical Trade Forecast
30
Table: South Korea Pharmaceutical Trade Data And Forecasts (US$mn), 2010-2017
31
Table: South Korea Pharmaceutical Trade Data And Forecasts (KRWmn), 2010-2018
32
Other Healthcare Data
33
Key Risks To BMI's Forecast Scenario
33
Macroeconomic Forecasts
35
Strong Downside Pressures in 2014
36
Expenditure Breakdown
38
Private Consumption
38
Government Consumption
38
Investment
38
Net Exports
38
Table: South Korea - Economic Activity
39
Industry Risk Reward Ratings
40
Asia Risk/Reward Ratings
40
South Korea Risk/Reward Ratings
46
Rewards
46
Risks
46
Market Overview
48
Industry Trends And Developments
50
Epidemiology
50
Healthcare System
50
Healthcare Financing
51
National Health Insurance Corporation
52
Medical Tourism
53
Research And Development
53
Biotechnology Sector
55
Table: South Korea's Bio-Industry Backbone
56
Clinical Trials
57
Regulatory Development
59
Regulatory Regime
59
Regulatory Developments
60
Controversial Trade Practices
60
Intellectual Property Regime
62
Pricing Regime
63
Table: Different Price Control Levers
65
Price Cuts
65
Reimbursement Regime
67
Hospital Purchasing
69
Competitive Landscape
71
Pharmaceutical Industry
71
Domestic Pharmaceutical Industry
72
Table: Top-20 Pharmaceutical Firms By R&D Expenditure As % Of Total In South Korea (2012)
73
Table: Leading Pharmaceuticals Companies On Korea Exchange According To Market Capitalisation
74
Foreign Pharmaceuticals Sector
75
Recent Pharmaceutical Sector Developments
75
Pharmaceutical Wholesale
77
Pharmaceutical Retail
78
Table: Pharmaceutical Retailers, 2000-10
79
Table: Timeline Of OTC Slow Liberalisation
80
Company Profile
81
Dong-A Pharmaceutical
81
Chong Kun Dang Pharmaceutical
86
Hanmi Pharmaceutical Co
88
Yuhan Corporation
92
Daewoong Pharmaceutical
95
Bukwang Pharmaceutical Company
99
Kuhnil Pharmaceutical
101
JW Holdings
103
GlaxoSmithKline
106
Pfizer
109
Sanofi-Aventis
113
Merck & Co
116
Novartis
119
Eli Lilly
123
Demographic Forecast
125
Demographic Outlook
125
Table: South Korea's Population By Age Group, 1990-2020 ('000)
126
Table: South Korea's Population By Age Group, 1990-2020 (% of total)
127
Table: South Korea's Key Population Ratios, 1990-2020
128
Table: South Korea's Rural And Urban Population, 1990-2020
128
Glossary
129
Methodology
131
Pharmaceutical Expenditure Forecast Model
131
Healthcare Expenditure Forecast Model
131
Notes On Methodology
132
Risk/Reward Ratings Methodology
133
Ratings Overview
134
Table: Pharmaceutical Risk/Reward Ratings Indicators
134
Indicator Weightings
135

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