LONDON, Dec. 14, 2016 /PRNewswire/ -- Japan is a small island nation located in East Asia and it is known for its economic prosperity. It sports one of the largest pharmaceutical markets like US and Europe due to which immense commercialization opportunities are present. Unique demographic structure and presence of advanced technology is the main reason for the growth of Japanese pharmaceutical industry. They have one of the most advanced research and development facilities across the world contributing significantly to the development of healthcare infrastructure. Japan has opened its pharmaceutical market for foreign trade leading to higher input of drugs. Their population is going in downward spiral where number of young people are lesser then geriatric population. In this way, they have high demand for therapeutic products due which their pharmaceutical market is increasing.
Observation shows that Japanese pharmaceuticals market is heavily inclined towards consumption of branded drugs. Due to presence of higher technological capabilities they were able to commercialize innovative drugs. Significant investments were made in research and development segment due to which new products are being made.
It promoted the utilization of branded drugs in Japanese market. Presence of universal healthcare system also allowed the patients to include generic drugs in their therapeutic regime. They to invest small out of pocket money while buying branded drugs as rest of the part is covered by the universal healthcare system. Branded drugs market got boost due to regulator's policies but these drugs are quite costly. As a result, stagnant economy is not able to sustain burgeoning financial pressure on healthcare system.
Japanese generic drugs market is largely unchurned due to which it offers significant commercialization opportunities. Both domestic and foreign pharmaceutical companies are expected to take advantage of this scenario. Japanese regulators have developed amenable rules due to which foreign pharmaceutical companies can venture in generic drugs segment. This will increase the competition and further decrease the prices of generic drugs in Japanese market. Moreover, it will build a strong supply chain due to which dearth of generic drugs will not occur in future. Regulators will also be able to increase their consumption by promoting more numbers of patients opting for the generic drugs. In this way, they will be able to observe decrease in investments in healthcare system. To achieve higher cost savings, more work has yet to be done in coming years.
Prices of both generic and branded drugs are checked by Japanese regulators after every two years. This allows the patients to spend less money for treatment of their diseases in long-term scenario. But it could be observed that patients are not willing to switch to the generic drugs despite lesser cost. Main reason behind this fact is that cost difference between these drugs is not significant. Higher buying power of patients allow them to include costly branded drugs in their daily therapeutic regime. This scenario shows that Japanese regulators have to further decrease the prices of generic drugs in order to offer higher cost arbitrage.
They also have to increase the uptake of generic drugs in order to decrease the prevalence of branded drugs as major component of healthcare system. Some of the measures have been implemented but their results are yet to be observed in coming years.
Japanese pharmaceuticals market is quite mature and still has opportunities for growth as they have lesser market shares of generic drugs. This allows significant potential to generic firms to enter in Japanese pharmaceuticals market. Presence of amenable regulation and significant efforts made to decrease healthcare spending is expected to take place in coming years. Large geriatric population plays an important role of consumers in Japanese pharmaceutical industry. They require long-term usage of drugs and switching them from branded to generic drugs will boost the market. It also offers significant commercialization opportunities as compared to other countries where generic drugs occupy major market shares. Japanese generic drugs market is expected to grow several folds in coming years, in this way, its future looks optimistic.
Download the full report: https://www.reportbuyer.com/product/4397196/
Reportbuyer is a leading industry intelligence solution that provides all market research reports from top publishers
For more information:
Research Advisor at Reportbuyer.com
Tel: +44 208 816 85 48
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/japan-generics-drug-market-outlook-2020-300378809.html