Abstract
Recent Initiatives from the Government Catalyze Market Growth
Significant government support is ensuring that Japan is fast emerging as a
force to reckon with in the global biotechnology industry. Realizing its huge
potential, the Japanese Government is pumping in funds, introducing
administrative changes, and streamlining regulatory structures. These
initiatives are helping shape biotechnology into a pillar industry of the
Japanese economy and creating lucrative opportunities for companies planning to
enter the market. For instance, having recognized the importance of
industry-academia interaction, the government has modified regulations to create
a viable environment in which such interactions can occur. Another key step
taken by the government is the setting up of the Biotechnology Strategy Council,
which is slated to play a defining role in boosting competition, strengthening
R&D, and expediting technological advancement.
This Frost & Sullivan research identifies and discusses drivers,
restraints, and the latest trends and developments in the Japanese biotech
market. Detailed analyses provide a clear understanding of Japan's standing in
this market in relation to other countries, while competitive positioning
strategies help companies take advantage of available opportunities.
Strong Domestic Market - A Major Attraction for Biotech Companies
"Biotech has thrown open the doors of the lucrative pharma industry,
which has been hitherto impenetrable, to a host of small players. These
companies will now have access to the second largest pharmaceutical market in
the world," says the analyst. Japan's substantial domestic market for
prescription products will benefit local companies that lack the financial
resources to take their products out of the country. With high per capita
spending on medicines, selling in the domestic market - even with low levels of
investment - can be a profitable venture for these companies.
For foreign companies, the sheer size of the Japanese market is a
considerable attraction. This gives Japan a distinct advantage over other
countries in the region such as Australia, South Korea, and Singapore, whose
biotech industries are limited by their smaller domestic markets.
Biopharmaceuticals Continue to Rule the Roost
Biopharmaceuticals continue to be the mainstay of the Japanese biotech
market, accounting for 40 percent of the total market. Recombinant protein drugs
such as erythropoietin and interferon have the highest market share in the
biopharmaceuticals segment. Erythropoietin, the largest selling product with a
market size of around $1.00 billion, is expected to show continued healthy
growth.
Although most of these biopharmaceuticals are produced in technical
collaboration with European and American companies, Japanese biotech companies
are now investing heavily in research to bring out their own products and are
eyeing various emerging areas. "Regenerative medicine, which promises to
grow organs and tissues to eliminate the problem of rejection that occurs with
organ transplants, holds much interest for Japanese companies. The other
potential areas of growth are expected to be protein drugs and glycobiology,"
says the analyst.
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