South Korea Pharmaceuticals & Healthcare Report

Published 12 August 2015

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

BMI View: Despite having an ageing population with a high burden of non-communicable diseases, market potential in South Korea will continue to be limited by the government ' s cost containment policies. We highlight that companies will continue to invest in innovative products or expand overseas in order to maintain their revenues.

The South Korean government will continue to enforce price pressures on pharmaceuticals as a means to contain the escalating healthcare costs brought on by the country's ageing population. This is particularly as other avenues - including shifting the healthcare cost burden onto consumers - will remain more subdued as private expenditure already accounts for a large portion of total healthcare spending. Moreover, South Korea has developed multiple price control mechanisms that it can leverage upon to reduce pharmaceutical prices.

Headline Expenditure Projections

  • Pharmaceuticals: KRW16,590bn (USD15.8bn) in 2014 to KRW17,117bn (USD15.6bn) in 2015; +3.2% in local currency terms and -1.2% in US dollar terms. Forecast unchanged from previous quarter.

  • Healthcare: KRW108,117.1bn (USD102.7bn) in 2014 to KRW114,226.3bn (USD103.9bn) in 2015; +5.7% in local currency terms and +1.1% in US dollar terms. Forecast slightly unchanged from previous quarter.

Risk/Reward Indices

In Q4 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 high, 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 July 2015, th e South Korean Health and Welfare ministry announced plans to reform local hospitals in order to deal with the outbreak of the Middle East Respiratory Syndrome (MERS). The...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Pharmaceutical Market Forecast
15
Table: Pharmaceutical Sales, Historical Data And Forecasts (South Korea 2011-2019)
16
Healthcare Market Forecast
17
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
19
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
19
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
20
Prescription Drug Market Forecast
20
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
22
Patented Drug Market Forecast
22
Table: Patented Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
24
Generic Drug Market Forecast
24
Table: Generic Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
26
OTC Medicine Market Forecast
26
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
29
Pharmaceutical Trade Forecast
29
Table: Pharmaceutical Trade Data And Forecasts (South Korea 2013-2019)
31
Table: Pharmaceutical Trade Data And Forecasts local currency (South Korea 2013-2019)
31
Key Risks To BMI's Forecast Scenario
31
Macroeconomic Forecasts
33
Economic Analysis
33
Table: Economic Activity (South Korea 2010-2019)
37
Industry Risk Reward Ratings
38
Asia Pacific Risk/Reward - Q4 2015
38
South Korea Risk/Reward Ratings
44
Rewards
44
Risks
44
Market Overview
46
Industry Trends And Developments
47
Epidemiology
47
Healthcare System
49
Table: Healthcare Resources (South Korea 2009-2014)
50
Table: Healthcare Personnel (South Korea 2009-2014)
50
Table: Healthcare Activity (South Korea 2009-2014)
51
Healthcare Financing
51
National Health Insurance Corporation
52
Medical Tourism
53
Research And Development
53
Biotechnology Sector
55
Clinical Trials
57
Regulatory Development
59
Regulatory Regime
59
Regulatory Developments
60
Controversial Trade Practices
61
Intellectual Property Regime
62
Pricing And Reimbursement Regime
64
Table: Different Price Control Levers
64
Price Cuts
65
Hospital Purchasing
67
Competitive Landscape
69
Pharmaceutical Industry
69
Domestic Pharmaceutical Industry
70
Foreign Pharmaceuticals Sector
71
Recent Pharmaceutical Sector Developments
72
Pharmaceutical Wholesale
73
Pharmaceutical Retail
74
Table: Pharmaceutical Retailers, 2000-10
74
Table: Timeline Of OTC Slow Liberalisation
76
Company Profile
77
Bukwang Pharmaceutical Company
77
Chong Kun Dang Pharmaceutical
79
Daewoong Pharmaceutical
81
Dong-A Pharmaceutical
85
Eli Lilly
90
GlaxoSmithKline
93
Hanmi Pharmaceutical Co
96
JW Holdings
100
Kuhnil Pharmaceutical
103
Merck & Co
105
Novartis
108
Pfizer
112
Sanofi
115
Yuhan Corporation
118
Demographic Forecast
121
Table: Population Headline Indicators (South Korea 1990-2025)
122
Table: Key Population Ratios (South Korea 1990-2025)
122
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
123
Table: Population By Age Group (South Korea 1990-2025)
123
Table: Population By Age Group % (South Korea 1990-2025)
124
Glossary
126
Methodology
128
Pharmaceutical Expenditure Forecast Model
128
Healthcare Expenditure Forecast Model
128
Notes On Methodology
129
Risk/Reward Index Methodology
130
Index Overview
131
Table: Pharmaceutical Risk/Reward Index Indicators
131
Indicator Weightings
132

The South Korea Pharmaceuticals & Healthcare Report features BMI Research'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 South Korea pharmaceutical and healthcare industry.

Key Benefits

  • 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.

Coverage

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 BMI’s forecast analysis, and taken together with BMI’s 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:

  • 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.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s 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.

Market Summary

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

Industry Developments

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.

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 analysis of the overall regulatory burden.

Competitive Landscape

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.

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.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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