South Korea Pharmaceuticals and Healthcare Report Q2 2009

Publication Date	May 2009
Publisher	Business Monitor
Product Type	Report
Pages	107
ISBN Number	1748-2208
Product Code	BMI03802

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Summary

In BMI's Business Environment Rankings table for Q209, South Korea moved up by one spot, out of 15 markets assessed in the Asia region, and is now second only to Japan. The country is also regarded as one of the most attractive global (being ranked joint ninth, alongside Canada) pharmaceutical markets due to high per capita consumption and strong annual growth of its already sizeable value. However, while the country's prospects are considerable, price cuts, limitations on reimbursement and generic substitution will conspire to decelerate the rate of growth over the coming years, exposing South Korea's stable position to strong competition from nascent pharmaceutical markets in the region.

The 2008 value of South Korea's pharmaceutical market was estimated at just under US$10bn at consumer prices. The market is forecast to post a compound annual growth rate (CAGR) of 7.65% in local currency terms through to 2013, with the value reaching some US$15.5bn. Key drivers of growth include population ageing and the demand for the chronic and long-term disease treatments, as well as the expected liberalisation of the over-the-counter (OTC) medicine sales. Additionally, while we cut our 2009 real GDP growth forecast from 3.0% to 1.5% on the back of a sharper-than-anticipated slowdown in exports amid government efforts to resuscitate moribund domestic demand, the South Korean economy is likely to be back on its feet in as early as H209.

Nevertheless, the government will continue to work at containing rising healthcare and pharmaceutical costs. To this end, in December 2008, the authorities reduced the listing timeframe for generics and incrementally modified drugs (IMDs, also known as 'me-too' products), in accordance with the Drugs Listing Simplification policy. The alterations aim to reduce the time to market for cheaper drugs as well as to encourage generic substitution, with BMI forecasting the share of the generics drugs as a percentage of the total market to increase from 34% in 2008 to 35% in 2013. While faster growth is likely to be prevented by the downward pressure on prices, generics are expected to significantly increase their volume share, as a number of key patents expire. Most recently, domestic drugmakers Kwangdong and Shinpoong announced that they are aiming at capturing 10% market share of the breast cancer market for their generic version of Femara (lestrozole). Nevertheless, in 2008, Sanofi-Aventis's blood-thinner Plavix (clopidogrel) remained the best-selling drug in South Korea for the third year running, despite recording a negative sales growth in H108.

In the meantime, the merger of three South Korean biotechnology associations - namely Bioindustry Association of Korea (BAK), Korea Bio Venture Association (KOBIOVEN) and Korea Biotechnology Research Association (KBRA) - was finalised in February 2009, further boosting the country's already sizeable biotechnology sector. The new entity - the Korea Bio Industry Organization (KoreaBIO) - will aim to advance biotechnology research and improve communication between the industry and the government, as well as seek to avoid duplicating effort and resources.

Content

Executive Summary
SWOT Analysis
South Korea Pharmaceuticals Industry SWOT
South Korea Political SWOT
South Korea Economic SWOT
South Korea Business Environment SWOT
Pharmaceutical Business Environment Ratings
Limits Of Potential Returns
South Korea - Market Summary
Regulatory Regime
Recent Regulatory Developments
Direct-To-Consumer Advertising
Intellectual Property Regime
Recent Intellectual Property Developments
Market Access Barriers
Pricing Regime
Price Cuts
Reimbursement Regime
Recent Reimbursement Developments
Hospital Purchasing
Foreign Trade Developments
Industry Trends And Developments
Epidemiology
Healthcare System
Healthcare System Reforms
National Health Insurance Corporation
Domestic Pharmaceutical Industry
Recent Domestic Industry Developments
Foreign Companies
Recent Foreign Sector Developments
Research And Development
Clinical Trials
Biotechnology Sector
Recent Biotechnology Sector Developments
Medical Devices
Recent Medical Devices Developments
Industry Forecast Scenario
Overall Market Forecast
Key Growth Factors - Industry
Key Growth Factors - Macroeconomic
Prescription Market Forecast
Patented Market Forecast
Generics Market Forecast
OTC Market Forecast
OTC Market Forecast
Pharmaceutical Trade Forecasts
Other Healthcare Data Forecasts
Key Risks To BMI's Forecast Scenario
Competitive Landscape
Company Profiles
Leading Multinationals
GlaxoSmithKline (GSK)
Pfizer
Sanofi-Aventis
Merck & Co
Novartis
Eli Lilly
Leading Domestic Manufacturers
Dong-A
Chong Kun Dang Pharmaceutical (CKD)
Hanmi Pharmaceutical Co
Yuhan Corporation
Daewoong Pharmaceutical
Bukwang Pharmaceutical
Kuhnil Pharmaceutical
Choongwae
Country Snapshot: South Korea Demographic Data
Section 1: Population
Section 2: Education and Healthcare
Section 3: Labour Market and Spending Power
BMI Forecast Modelling
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceutical Business Environment Ratings Methodology
Ratings Overview
Weighting
Sources
List of Tables
- Table: Asia Pacific Pharmaceutical Business Environment Ratings For Q209
- Table: Top 10 Products By Reimbursement Amount, H107
- Table: South Korea's National Health Insurance Financial Data (KRWbn)
- Table: New Molecular Entities Developed By South Korean Drugmakers
- Table: South Korea's Bio-Industry Backbone
- Table: Classification Of Medical Devices In South Korea
- Table: South Korea - Drug Expenditure Indicators, Historical Data And Forecasts
- Table: South Korea - Health Expenditure Indicators, Historical Data And Forecasts
- Table: South Korea - Economic Activity
- Table: South Korea - Prescription Market Indicators, Historical Data And Forecasts (KRWmn unless otherwise stated)
- Table: South Korea - Patented Market Indicators, Historical Data And Forecasts
- Table: South Korea - Generics Market Indicators, Historical Data And Forecasts
- Table: South Korea - OTC Market Indicators, Historical Data And Forecasts (KRWmn unless otherwise stated)
- Table: South Korea - Pharmaceutical Trade Indicators, Historical Data And Forecasts (US$mn)
- Table: South Korea - Other Healthcare Data Indicators, Historical Data and Forecasts
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
- Table: Pharmaceutical Business Environment Indicators
- Table: Weighting Of Components

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Product features / use

Level	General Industry Strategies
Data	Detailed Market Forecasts
Profiles	Profiles of Key Companies
Features	Contains SWOT Analysis
Extra Info	Consumer Trends Highlighted