LONDON, May 15, 2017 /PRNewswire/ -- Japan represents the world's eighth biggest market for generic drugs in terms of value.
Generic drugs, however, have traditionally enjoyed a relatively lower penetration in Japan compared to other developed markets such as the United States and Europe.
Historically, the lower penetration of generic drugs in Japan was due to several reasons:
- The perception of inferior quality of generic drugs, the preference of branded drugs among physicians and patients and the limited profits to be made by physicians from pharmaceutical price differentials by prescribing low priced generics.
- Generic drugs also remained less popular in Japan because of the lack of generic substitution rights by Japanese pharmacists, slower review times in the drug approval process and difficulties working with major pharmaceutical distributors – many of whom were closely tied to major branded drug manufacturers.
- The Japanese government has identified growth of the country's generic drug market as imperative to Japan's long-term economic health.
- The Japanese government, recognizing the country's increasing aging population as well as rising costs of branded drugs has begun instituting healthcare policy changes to cut their expenditures on medical costs.
- Drug costs account for around a fifth of the country's total medical expenses and reducing this burden has become a cornerstone of Japan's health administration policy.
- Substitution of low-cost generic drugs for innovator products has been identified as a strategy where major savings are possible. Driven by these initiatives, the penetration of generics has grown robustly over the past few years.
- The government has also made a target towards achieving a generic penetration of 60% by 2017. This is expected to create huge opportunities for both domestic and foreign generic manufacturers in Japan.
This report can serve as an excellent guide for investors, researchers, consultants, marketing strategists and all those who want to gain an insight into the market for generic drugs in Japan.
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