Japanese pharma expects 17% growth throughout 2017

Pharma companies attending CPhI Japan are expecting a 17% growth of the country’s market throughout the year, according to data collected at the event, suggesting a resurgence of confidence and opportunity in the Japanese marketplace after a number of years with limited growth.

More than 90 domestic and international companies were surveyed at the Tokyo event on their thoughts regarding the direction of the industry. Breaking down the findings, 56% of companies named biologics and biosimilars as the sectors that will see the most growth throughout 2017; 28% instead highlighted "finished dose generic drugs" as the sector with the highest growth potential – an interesting statistic as it aligns with the Japanese Government’s pledge to improve market penetration of generic drugs.   

Elsewhere, it was found that more than two out of three responding companies are now aiming to undertake business in international markets, despite the fact that only 18% of all Japanese pharma business traditionally takes place overseas. A minority of companies said that this focus would be within Europe; instead, most concentrated on the US market - it is thought that the benefits of reimbursements systems available in the country are a driving factor for this.

Interestingly, 80% of companies admitted they are re-evaluating their strategies "due to the impending patent cliff", with 77% expecting that collaboration between the country’s domestic companies and generic manufacturers.

"Over the past few days CPhI Japan has provided an unprecedented opportunity for international companies to cultivate innovation and promote investment into Japan’s ever-growing domestic market," explained Rutger Oudejans, Brand Director at CPhI for Asia and North America. "The extremely robust patented market combined with the huge growth anticipated for generics, biologics and APIs all provide an appealing platform for big business investments. This will enable Japan to maintain their position as a world leader in the pharmaceutical industry."

He also added: "The ever rising demand for anticancer drugs and high margins combined with Japan’s robust reimbursement system for patented drugs make it an attractive market for companies to invest in and develop new drugs."