The Pharmaceutical Market: South Korea

Summary

Espicom's in-depth pharmaceutical market reports are ideal for executives wanting to understand the key drivers in pharmaceutical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, pricing/reimbursement, intellectual property, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data for raw materials and finished products and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year.

With a comprehensive health insurance system that covers the entire population, South Korea's pharmaceutical expenditure has risen steadily over the years, despite the government's efforts to curtail spending on an already overburdened system.

Non transparent and discriminatory drug reimbursement pricing, tariffs on imported drugs and other barriers are common problems faced by foreign manufacturers. The policies tend to favour local manufacturers, especially the burgeoning generic drug makers, who thrived on the government's protectionist price cuts and revisions over the years.

The Free Trade Agreement (FTA) with the United States, penned in 2007, promises to abolish these protectionist measures, including other non-tariff barriers, such as the implementation of a patent linkage system. The FTA could very well increase the competitiveness of patented drugs with a fairer reimbursement system while the domestic industry, especially generics, is expected to be hit hard by the recent changes.

In anticipation of this, it has been reported that the South Korean government is expected to inject around one trillion won (around US$1 billion) over ten years to boost the industry starting in 2008, with over 80% of the total earmarked for R&D.

Content