South Korea Pharmaceuticals & Healthcare Report

Published 01 May 2015

  • 146 pages
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$1,295.00
South Korea Pharmaceuticals & Healthcare Report

BMI View: 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 KRW17,116.6bn (USD16.3bn) in 2015; +3.2% in local currency terms and -1.2% in US dollar terms. Forecast broadly in line with Q215.

  • Healthcare: KRW108,117.1bn (USD102.7bn) in 2014 to KRW114,291.6bn (USD103.9bn) in 2015; +5.7% in local currency terms and +1.2% in US dollar terms. Forecast slightly downgraded from previous quarter.

Risk/Reward Indices

In Q3 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 March 2015, Boehringer Ingelheim Korea, the South Korean unit of German drugmaker Boehringer Ingelheim, aims to double its market share in the country by 2020 under its '2 by 2020' programme. The move comes despite the company reportedly facing sluggish growth owing to severe competition, regulatory issues and administrative red tape.

  • In the same month, Samsung Bioepis submitted a marketing authorisation application to the EMA for its Remicade (infliximab) biosimilar candidate, SB2. Remicade is marketed by ...

Table of Contents

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)
19
Healthcare Market Forecast
20
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
21
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
21
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
22
Prescription Drug Market Forecast
22
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
23
Patented Drug Market Forecast
24
Table: Patented Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
25
Generic Drug Market Forecast
26
Table: Generic Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
27
South Korea
28
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
30
Pharmaceutical Trade Forecast
31
Table: Pharmaceutical Trade Data And Forecasts (South Korea 2013-2019)
32
Table: Pharmaceutical Trade Data And Forecasts local currency (South Korea 2013-2019)
32
Key Risks To BMI's Forecast Scenario
33
Macroeconomic Forecasts
35
Economic Analysis
35
Table: Economic Activity (South Korea 2010-2019)
39
Industry Risk Reward Ratings
40
Asia Pacific Risk/Reward Index
40
South Korea Risk/Reward Ratings
46
Rewards
46
Risks
46
Market Overview
48
Industry Trends And Developments
49
Epidemiology
49
Healthcare System
50
Table: Healthcare Resources (South Korea 2009-2014)
51
Table: Healthcare Personnel (South Korea 2009-2014)
52
Table: Healthcare Activity (South Korea 2009-2014)
52
Healthcare Financing
52
National Health Insurance Corporation
53
Medical Tourism
54
Research And Development
55
Biotechnology Sector
56
Clinical Trials
58
Regulatory Development
60
Regulatory Regime
60
Regulatory Developments
61
Controversial Trade Practices
62
Intellectual Property Regime
63
Pricing Regime
64
Table: Different Price Control Levers
66
Price Cuts
67
Reimbursement Regime
69
Hospital Purchasing
71
Competitive Landscape
73
Pharmaceutical Industry
73
Domestic Pharmaceutical Industry
74
Foreign Pharmaceuticals Sector
75
Recent Pharmaceutical Sector Developments
76
Pharmaceutical Wholesale
82
Pharmaceutical Retail
83
Table: Pharmaceutical Retailers, 2000-10
84
Table: Timeline Of OTC Slow Liberalisation
85
Company Profile
86
Bukwang Pharmaceutical Company
86
Chong Kun Dang Pharmaceutical
88
Daewoong Pharmaceutical
90
Dong-A Pharmaceutical
94
Eli Lilly
99
GlaxoSmithKline
102
Hanmi Pharmaceutical Co
106
JW Holdings
111
Kuhnil Pharmaceutical
114
Merck & Co
116
Novartis
119
Pfizer
123
Sanofi
127
Yuhan Corporation
131
Demographic Forecast
134
Table: Population Headline Indicators (South Korea 1990-2025)
135
Table: Key Population Ratios (South Korea 1990-2025)
135
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
136
Table: Population By Age Group (South Korea 1990-2025)
136
Table: Population By Age Group % (South Korea 1990-2025)
137
Glossary
139
Methodology
141
Pharmaceutical Expenditure Forecast Model
141
Healthcare Expenditure Forecast Model
141
Notes On Methodology
142
Risk/Reward Index Methodology
143
Index Overview
144
Table: Pharmaceutical Risk/Reward Index Indicators
144
Indicator Weightings
145

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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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