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South Korea Pharmaceuticals Report Q1 2007Published by: Business Monitor International Published: Mar. 1, 2007 - 72 Pages Table of Contents
AbstractThe South Korean pharmaceutical industry is attractive to investment because of its large size and high growth rate, according to BMI’s recently published South Korea Pharmaceutical & Healthcare Report Q1 2007. However, we caution that the country may refuse to sign a free trade agreement with the US, which would be a significant setback to the future operating climate for foreign firms. BMI’s recently updated data estimate the value of the total pharmaceutical market to be US$15.2bn in 2006, rising to US$21.2bn by 2011.Thousands of doctors protested in February 2006 over plans by the government to dilute the sanctity of their role as diagnosticians and prescribers. The state wants to reduce healthcare costs by allowing nurses to identify diseases and recommend the appropriate course of action. BMI supports the government in its plans as many other countries, most recently the UK, have allowed nurses and pharmacists greater power in the management of patients and diseases. Furthermore, due to the rational nature of the proposals, we believe that the doctors will eventually curb their industrial action. Healthcare expenditure is rising as the country gets older and the preference for expensive medicines increases. In 2005, the NHIC spent KRW7.2trn (US$7.6bn) on drugs (or almost 30% of total health expenditure) which compares to KRW4.2trn (US$4.4bn) in 2001. Local sources have claimed that arrangements between doctors and multinationals keen to promote their products have been partly responsible for growing health spending. Calls to reduce the consumption of antibiotics in South Korea were mounting in Q107 after a study found unsafe levels of pharmaceuticals in four major river basins. BMI believes that the government will implement further public health initiatives to reduce this situation, which will have a negative impact on manufacturers of these types of medicines, albeit not immediately given the endemic nature of the problem. We currently estimate the value of the South Korean antibiotic market to be US$1.33bn, rising to US$1.68bn by 2010. Domestic firm Bukwang Pharmaceutical received Korean Food & Drug Administration (KFDA) approval for its hepatitis B virus infection, Levovir (clevudine), in November 2006. Bukwang invested over KRW90bn (US$96mn) in Levovir, which after clinical tests in more than six countries, has been shown to be effective in suppressing the hepatitis B virus in 92% of patients. In December 2006, the reimbursement price was fixed for Levovir. Get Full Details About This Report >> |
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