Japan pharmaceutical industry & forecast focus on otc and prescription drugs-sample report


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The report offer detailed study of OTC and prescription drugs market, key trends, driving forces and recent Mergers and acquisitions. The report also talks about future outlook of overall Japanese Pharmaceutical industry and demand for prescription and OTC drugs in coming years.

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Japan pharmaceutical industry & forecast focus on otc and prescription drugs-sample report

  1. 1. 1
  2. 2. TABLE OF CONTENTS1. Industry Snapshot 1.1. Global Market Overview2. Japan Healthcare Sector 2.1. Pharmaceutical Market Size Impact of Earthquake and Tsunami over Pharmaceutical Industry in Japan Pharmacies 2.2. Japan Pharmaceutical Market Forecasts3. Drugs Classification and Market Size 3.1. Classification by Distribution Channels 3.1.1. Ethical/Prescription Drugs 3.1.2. Over the Counter Drugs (OTC) OTC Drugs Demand by Major Categories 3.2. Industry Forecast by Distribution Channels 3.3. Classification by Type of Drugs 3.3.1. Patent Drugs 3.3.2. Generic Drugs4. Growth Drivers Chronic Diseases Rapidly Aging Population Rising Medical care Expenditures Consumer Expenditure Health Insurance and Life Expectancy5. Industry Developments 5.1. Recent Trends 5.2. Recent Pharmaceutical Industry M&A Activities 5.3. Regulatory Structure 5.4. Key Issues 2
  3. 3. 6. Country Analysis 6.1. Key Findings 6.2. Political Environment 6.2.1. Government Policy 6.3. Macro-economic Indicators 6.3.1. GDP Recovery and Growth 6.3.2. Population7. Industry Competition and Players Profiling 7.1. Competitive Landscape 7.2. Takeda 7.2.1. Business Overview 7.2.2. Key Financials 7.2.3. Key Findings 7.3. Astellas 7.3.1. Business Overview 7.3.2. Key Financials 7.3.3. Key Findings 7.4. Daiichi Sankyo Group 7.4.1. Business Overview 7.4.2. Key Financials 7.5. Roche (Chugai) 7.5.1. Business Overview 7.5.2. Key Financials8. Appendix 8.1. Abbreviations 8.2. Definitions 8.3. Research Methodology Data Collection Methods 3
  4. 4. Approach8.4. Disclaimer 4
  5. 5. LIST OF FIGURESFigure 1: Global Pharmaceutical Market by Value (2006-2011E)Figure 2: Japan Pharmaceutical Sales by Facility in 2010 & 2011EFigure 3: Japan Pharmaceutical Industry Revenues (2006-2011E)Figure 4: Japan Pharmaceutical Industry Forecast (2011-2016)Figure 5: Share of Drugs by Distribution Channels in (2006-2011)Figure 6: Prescription Drugs Retail Sales by Value (2006-2011E)Figure 7: OTC Drug Retail Sales by Value (2006-2011E)Figure 8: Prescription Drugs Retail Sales Forecast by Value (2011-2016)Figure 9 : OTC Drugs Retail Sales Forecast by value (2011-2016)Figure 10: Generic Drugs Retail Sales by Value in Japan (2009-2011E)Figure 11: Japan Aging Population (2006-2010)Figure 12: Japan Medical Care Expenditures (2006-2010)Figure 13: Medical Care Insurance (2006-2008)Figure 14: Japan GDP (at current prices) (2006-2010)Figure 15: Japan Total Population (2006-2010) 5
  6. 6. LIST OF TABLESTable 1: Global Pharmaceutical Market by Geography (2009, 2010 & 2011E)Table 2: Number of Pharmacies by Territories in Japan 2010Table 3: Health Food/Vitamin Import by volume and value (2006-2010)Table 4: Common OTC Drugs Classification and Market by Value (2006-2011E)Table 5: Health care Sector in Japan (2005-2010E)Table 6: Foreign Acquisitions by Japanese Pharmaceutical Companies (2007-2010)Table 7 : Country OverviewTable 8: Japanese Economy (2010-2012)Table 9: Leading Pharmaceutical Manufacturers in Japan in 2010Table 10: Comparison of Key Financials in 2010Table 11: Players Market Share in Ethical Drugs Segment in 2010Table 12: Takeda Revenue by Geography (2010&2011)Table 13: Astellas Revenue by Geography (2006-2010)Table 14: Roche (Chugai) Financials 6
  7. 7. GLOBAL MARKET OVERVIEWThe trend towards healthy lifestyles and rising healthcare awareness has become a globalphenomenon. In the first quarter of 2010, advertising expenditures on pharmaceutical products grew 3.60% compared to the same period last Japan is the second largest year, generating USD ~ billion revenues. Japan is the market for pharmaceuticals, second largest market for pharmaceuticals, accounting for accounting for 11.20% share in global pharmaceutical industry 11.20% share in global pharmaceutical industry. The impact of recent economic turmoil was not much overdomestic pharmaceutical companies due to an increase in value of Japanese currency againstUSD.Figure: Global Pharmaceutical Market by Value (2006-2011E) 1,000 900 800 700 600 USD Billion 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011ETable: Global Pharmaceutical Market by Geography (2009, 2010 & 2011E) 2009 2010 2011EUSJapanEuropeOthers 7
  8. 8. JAPAN HEALTHCARE SECTORThe Japanese government is introducing changes in the pharmaceutical industry policies tomake it more transparent and to control counterfeiting of medicines. Government andhealthcare agencies are planning to increase spending on technologies to improve R&D andmanufacturing of drugs.PHARMACEUTICAL MARKET SIZEDrug stores, hospitals and clinics account for the largest demand for pharmaceuticals whilesupermarkets and other confectionary stores (permitted to keep general cold and flumedicines) account for only a small percentage of demand. Pharmacies and drug stores hold51.30% share in terms of sales of pharmaceuticals followed by hospitals and clinics.Figure 1: Japan Pharmaceutical Sales by Facility in 2010 & 2011E 120% 100% 80% 60% 40% 20% 0% Hospitals Clinics Pharmecies & Drug Others Stores 2010 2011ENote: Hospitals include both small & large in size In 2009, pharmaceuticals market in the In 2010, Japanese pharmaceutical country grew 8.67% to USD ~ billion. This industry recorded USD 96.13 billion growth was mainly driven by the treatment of revenues and grew almost at a steady chronic diseases and government healthcare rate in 2011 spending. During the same year, some leadingpharmaceutical companies in Japan witnessed slow growth in sales due to fall in demand insome categories of medicines such as energy drinks, vitamins, Systemic Antibacterial, 8
  9. 9. Calcium Antagonists and expensive drugs used to treat dementia and other chronicconditions.In 2010, Japanese pharmaceutical industry recorded USD ~ billion revenues and grew by5.79% in 2011.Figure: Japan Pharmaceutical Industry Revenues (2006-2011) 120 100 80 USD Billion 60 40 20 0 2006 2007 2008 2009 2010 2011EPHARMACIESAccording to MHLW, in 2010, there were ~ pharmacies 1 in Japan, accounting for 42.00% per100,000 populations while ~ convenience stores were recorded. Saga, Hiroshima, Fukuoka,Yamaguchi and Kochi has most number of pharmacies; the large numbers of pharmaciesrepresent high demand for drugs.1 The on-site pharmacies in hospitals are referred to as dispensing facilities and are not managed by the MHLW, they arenot included in the number of pharmacies 9
  10. 10. Table: Number of Pharmacies by Territories in Japan 2010 PharmaciesRank Prefectures Number Per 100 thousand population1 Saga2 Hiroshima3 Fukuoka4 Yamaguchi5 Kochi6 Tokushima7 Tokyo8 Kagawa9 Nagasaki10 Miyazaki11 Kagoshima12 Miyagi13 Yamanashi14 Akita15 Gifu16 Tottori17 Niigata18 Oita19 Iwate20 Shizuoka 10
  11. 11. JAPAN PHARMACEUTICAL MARKET FORECASTJapanese pharmaceutical industry is expected to grow at a slow rate due to governmentreforms in healthcare policy aiming to control rising healthcare cost and uneven demand fromoutside Japan. The market is expected to rebound by 2014 at 2.60% growth rate. TheJapanese pharmaceutical industry is expected to grow at a CAGR 2.65% from 2011 to 2016reaching USD ~ billion.Figure: Japan Pharmaceutical Industry Forecast (2011-2016) 125 120 115 USD Billion 110 105 100 95 90 2011 2012 2013 2014 2015 2016CLASSIFICATION BY DISTRIBUTION CHANNELSIn Japan, prescription drugs accounted for the largest share of the market which is close to93.00%. Although, OTC drugs accounted for a small percentage of the market but its share isexpected to improve from 2012 onwards. 11
  12. 12. Figure: Share of Drugs by Distribution Channels in (2006-2011) 2 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 Prescription Drugs OTC DrugsETHICAL/PRESCRIPTION DRUGS The Prescription drugs accounts for the largest share The prescription drugs sales in of total drugs sale in the country but a slow fall in its the third quarter (July-Sep) of market share is expected to start from 2012 onwards 2011 grew 4.70% compared to same period in 2010 influenced by falling patent drugs retail sales growth. In 2011, estimated prescription drugs sales by valuereached USD ~ billion. During the third quarter 2011, prescription drugs retail sales showed agrowth of 4.70% as compared to results generated in the Q3 2010 and in terms of value USD~ billion.Figure: Prescription Drugs Retail Sales by Value (2006-2011E) 100 90 80 USD Billion 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011E2 Here we have categorized drugs in two segments prescription drugs and OTC drugs. Drugs for household delivery havebeen included in prescription drugs 12
  13. 13. OVER THE COUNTER DRUGS (OTC)Government initiative to deregulate pharmaceutical industry in Japan brought changes inOTC structure wherein certain OTC drugs became quasi 3 to make available at general retail stores such as convenience stores. In 2011, OTC In 2011, OTC market grew by 4.26% market grew by 4.26% from previous year and its from previous year and its share in share in total pharmaceutical drugs market total pharmaceutical drugs market reached 6.98% reached 6.98% although this percentage was low from 2010 results.Figure: OTC Drug Retail Sales by Value (2006-2011E) 8 7 6 5 USD Billion 4 3 2 1 0 2006 2007 2008 2009 2010 2011EOTC DRUGS DEMAND BY MAJOR CATEGORIESCold and Flu (C&F) MedicinesCold & flu medicines are always on demand and account for a significant share of OTC segment. Rise and fall on demand depends upon Retail sales of cold and flu weather conditions, spending power and behavior medicines grew by 3.88% in pattern. Demand for OTC cold and flu medicines is Japan not stable in the country. The retail sales of cold andflu medicines grew by 3.88% in Japan reaching USD ~ million in 2010.3 Quasi drugs are defined as medications that are milder in effect than regular drugs and are safe to be purchased withoutadvice from medical experts, such as pharmacists. 13
  14. 14. Health Food and Vitamins MarketThe 2009 vitamin preparations market import fell compared to the figures recorded a yearback. In 2010, the total import of health food and vitamins reached ~ tons but on the otherhand, the total amount of imported vitamin powder decreased in 2010 due to the fall in unitprice led by price competition for end-products.Table: Health Food/Vitamin Import by volume and value (2006-2010) Volume Value 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010Homogenised composite food preparationsPanax Genseng and extractsFood supplement with a basis of vitaminsTotal Vitamin powderVitamin AVitamin B1Vitamin B2Vitamin B3/Vitamin B5Vitamin B6Vitamin B12Vitamin CVitamin ETotal vitamin preparationsOther vitaminsVitamin preparationsTotalNote: Volume in Tons, Figures in JPY Yen millionDigestive Medicines Growth in this segment is uncertain, The Japanese digestive medicines segment is depending upon changing lifestyle, witnessing a continuous fall in shipment by environment, and awareness of cause and volume and value from last four years effect of health problems. The estimated market size of digestive medicines is USD~ million in 2011. 14
  15. 15. Table: Common OTC Drugs Classification and Market by Value (2006-2011E) 2006 2007 2008 2009 2010 2011ECold & Flu MedicinesHealth DrinkDigestive MedicinesNote: Figures in USD MillionINDUSTRY FORECAST BY DISTRIBUTION CHANNELSIn coming years prescription drugs demand is expected to show mixed results; initially from2011-2013 it is expected to witness fall in growth rate and from 2014 onwards is expected towitness a positive growth trend, although growth rate will be low compared to historicalperformance. Prescription drugs share in overall pharmaceutical market is also expected todecline from 93.01% in 2011 to 91.58% in 2016.The overall prescription drugs sales is expected to register slow growth reaching USD ~billion by 2016 at a CAGR 2.39% from 2011-2016.Figure: Prescription Drugs Retail Sales Forecast by Value (2011-2016) 120 115 USD Billion 110 105 100 95 90 2011E 2012F 2013F 2014F 2015F 2016FVitamins, Antiallergic, skincare and Antibiotics will push the OTC drugs demand whichcurrently account for a small share of the overall pharmaceutical industry in Japan. OTCdrugs market is expected to grow at CAGR 6.22% from 2011-2016. 15
  16. 16. Figure: OTC Drugs Retail Sales Forecast by value (2011-2016) 12 10USD Billion 8 6 4 2 0 2011E 2012F 2013F 2014F 2015F 2016FCLASSIFICATION BY TYPE OF DRUGSDrugs are categorized in two segments: Patent and Generic.PATENT DRUGSPatent can be applied or granted, this way a company receives an exclusive right to produce adrug using certain process which cannot be copied. In 2010, ~% prescription drugs revenueswere generated by patented drugs in Japan.GENERIC DRUGSIn Japan, generic drug market is in development stage, presently accounted for only ~% (byvolume) and 6.75% (by value) of the total drug sales in 2010. By the end of 2012,government officials are expecting generics sales volume to increase by 30% from 22.60% in2010. This growth will be driven by cost cutting in many patented drugs by government,expiry of major drugs patents by 2012 and pressure on hospitals and clinics to support thisinitiative. By value, generics market reached USD ~ billion in 2010 as compared to USD ~billion in 2009 and is further expected to cross USD ~ billion by 2014. 16
  17. 17. Figure: Generic Drugs Retail Sales by Value in Japan (2009-2011E) 7.2 7 6.8 USD Billion 6.6 6.4 6.2 6 5.8 5.6 2009 2010 2011ECOMPETITIVE LANDSCAPEIn recent years, many foreign companies entered in the Japanese pharmaceutical industry tocompete with domestic players in developing generics market. Many international firms suchas Mylan, Sandoz, Teva, Hospira, Actavis, Ranbaxy, Lupin, and Zydus have entered in themarket using different modes. Also, many small domestic players are entering into jointventures with large pharmaceutical companies to expand their reach and compete with largeforeign companies.Table: Leading Pharmaceutical Manufacturers in Japan in 2010 Domestic SalesManufacturer (in billions of yen) Japan Ranking Market ShareTakedaAstellasTaiyo 4EisaiDaiichi Sankyo Group4 Teva acquired a 57% stake in 2H2011 17
  18. 18. Table: Comparison of Key Financials in 2010 Takeda Astellas EisaiEarnings Per Share (Yen)Return on equity (ROE)Operating Margin (%)Net Profit Margin (%)Asset Turnover (%)Source: Company ReportsTable: Players Market Share in Ethical Drugs SegmentCompanies in Ethical Drugs Segment Market Share %Takeda Yakuhin KogyoAstellas SeiyakuDaiichi SankyoMitsubishi TanabeChugai SeiyakuEisaiFor more information please refer to the below mentioned link:info@ammindpower.com 18