South Korea Pharmaceuticals & Healthcare Report Q1 2015
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 unchanged from Q414.
- Healthcare: KRW101,399.1bn (USD92.60bn) in 2013 to KRW107,708bn (USD102.6bn) in 2014; +6.2% in local currency terms and +10.7% in US dollar terms. Forecast unchanged from Q414.
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.
Key Trends & Developments
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.
- 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...
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.
- 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.
BMI Industry View
An 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 BMIs forecast analysis, and taken together with BMIs political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
BMIs Pharmaceuticals and Healthcare Risk Reward Index
- 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.
BMIs Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the markets 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.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A 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.
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 analysis of the overall regulatory burden.
The 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.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMIs 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.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.
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.
South Korea Pharmaceuticals Industry SWOT
South Korea Political SWOT
South Korea Economic SWOT
South Korea Business Environment SWOT
Pharmaceuticals Risk/Reward Ratings
Table: Asia Pacific - Regional Pharmaceuticals Risk/Reward Ratings, Q213
South Korea - Market Summary
Controversial Trade Practices
Intellectual Property Regime
Separation Of Prescribing And Dispensing
Table: Selected List Of Illegal Rebates Cases
Foreign Trade Developments
Industry Trends And Developments
National Health Insurance Corporation
Research And Development
Table: MOHW's R&D Grants by Company & Industry Field, 2004-09
Table: Top R&D Spenders In Listed Firms In Selected Asia Pacific Countries (%)
Stem Cell Research
Table: South Korea's Bio-Industry Backbone
Industry Forecast Scenario
Pharmaceutical Market Forecast
Table: South Korea Pharmaceutical Sales, Historical Data And Forecasts
Healthcare Market Forecast
Table: South Korea Healthcare Expenditure Trends, Historical Data And Forecasts
Table: South Korea Government Healthcare Expenditure Trends, Historical Data And Forecasts
Table: South Korea Private Healthcare Expenditure Trends, Historical Data And Forecasts
Key Growth Factors - Macroeconomic
Table: South Korea - Economic Activity
Prescription Drug Market Forecast
Table: South Korea Prescription Drug Market Indicators, Historical Data and Forecasts
Patented Drug Market Forecast
Table: South Korea Patented Drug Market Indicators, Historical Data And Forecasts
Generic Drug Market Forecast
Table: South Korea Generics Drug Market Indicators, Historical Data And Forecasts
OTC Medicine Market Forecast
Table: List Of OTC Drugs To Be Sold Outside Pharmacies
Table: South Korea Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts
Pharmaceutical Trade Forecast
Table: South Korea Pharmaceutical Trade Data And Forecasts (US$mn)
Table: South Korea Pharmaceutical Trade Data And Forecasts (KRWmn)
Other Healthcare Data Forecasts
Key Risks To BMI's Forecast Scenario
Domestic Pharmaceutical Industry
Table: Top-20 Pharmaceutical Firms By R&D Expenditure As % Of Total In South Korea (2011)
Table: Pharmaceutical Manufacturers, 2004-10
Table: Pharmaceutical Production, 1991-2010 (KRWbn)
Table: Pharmaceutical Production By Therapeutic Category, 2009-2010 (KRWbn)
Table: Leading Pharmaceuticals Companies On Korea Exchange According To Market Capitalisation
Foreign Pharmaceuticals Sector
Recent Pharmaceutical Sector Developments
Table: Pharmaceutical Wholesalers, 2000-10
Table: Pharmaceutical Retailers, 2000-10
Timeline Of OTC Slow Liberalisation
Leading Local Manufacturers
Chong Kun Dang Pharmaceutical
Hanmi Pharmaceutical Co
Bukwang Pharmaceutical Company
Leading Multinational Companies
Merck & Co
South Korea - Population By Age Group
South Korea - Population By Age Group
South Korea - Key Population Ratios
South Korea - Rural and Urban Population
How We Generate Our Pharmaceuticals Industry Forecasts
Risk/Reward Ratings Methodology
Table: Pharmaceuticals Business Environment Indicators
Table: Weighting Of Components
This report does not have a list of Companies Mentioned available
This report does not have a press release associated with it