Abstract
The Japanese pharmaceutical market is the second largest in the world. The
government has recently introduced new ' stable supply' rules, to be
implemented by 2011, in order to create a more high profile, better-regarded
local generic industry. One major change in 2006 has been the issuing of new
prescription forms which allow a doctor to authorise the dispensing of a
generic drug. This report provides detailed information on the generic drugs
market.
According to the JGPMA, generics account for around 16% of the market by
volume, and around 6.0% by value. This is a similar percentage to that in
France or Spain. Generics are not new in Japan, but they have a low profile
and a poor reputation. Many people see them as inferior to branded products.
Many old brands in Japan are still widely prescribed, despite patent expiry.
The government has recently introduced new ' stable supply' rules, to be
implemented by 2011, in order to create a more high profile, better-regarded
local generic industry.
The pricing system is not helpful for generics. All prescription drug prices
are kept low by the government, with arbitrary price cuts on a regular basis.
Patients and prescribers therefore have little incentive to use generics.
Pharmacists and hospitals on the other hand, obtain revenues from drug sales,
and are keen to dispense higher priced products. Some reforms of the pricing
and reimbursement system have been made, although their effect so far appears
to have been limited. One major change in 2006 has been the issuing of new
prescription forms which allow a doctor to authorise the dispensing of a
generic drug. There is also now a small cash incentive for doctors and
pharmacists to prescribe/dispense generics.
Japan has a sizeable but very fragmented generic industry. A few players, such
as Sawai and Towa, are attempting to boost the image of the sector, but most
companies are undercapitalised and unable to make the necessary investments.
Only a handful of overseas generic manufacturers have direct operations in
Japan.
This in-depth report provides a wide-ranging examination of the generic
pharmaceuticals market, including the operating environment, current market
size, future prospects and five-year market projections.
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