Updated on 15 May 2013
Mr Tatsuya Kimura, Drug Information Association, Japan
The Asian business strategy of multinational pharmaceutical companies in terms of resource reallocation and investment will become a key issue for future growth and success. In the world pharmaceutical market, Asia is the most rapidly growing region.
The total world pharmaceutical market in 2011 was $955.5 billion and it recorded a compound annual growth rate (CAGR) of 6.1 percent from 2007-11. IMS Health estimated the growth rate of Asia, Africa and Australia in 2011 at 13.1 percent with a market size $163.1 billion. Although the growth of the global pharma market has been largely supported by emerging countries, the huge impact of major markets like Japan on total market growth cannot be underestimated.
The Japanese pharma market in 2011 was $114.7 billion and is still the second largest following the US market at $346.2, according to IMS Health. The topline market data by IMS Health, projected that the CAGR from 2012-16 for the Japanese pharma market would be in the range of one-to-four percent, which is the same as the US market and better than the European market growth of zero-to-three percent.
Some believe that the growth of the pharmaceutical market in Japan is slowing and it has become less attractive for investment. Moreover, expensive development costs have led multinational companies to reconsider investment in Japan and made them to reallocate to emerging markets in Asia.
However, market data clearly shows that the Japanese market has grown steadily and will continue to do so into the future. Because of the stable growth potential and it nature of addressing challenges in productivity in development, not only in industry but also at the regulatory authority level efforts, major multinational companies have begun to put resources in Japan again, identifying it as a strategically important country for business growth.