Though the Japanese pharma industry failed to make significant overall gains in the last few years, it has opened up more to international pharma with the revision of Pharmaceutical Affairs Law and as a result of the emerging simple distribution channels.
However, of late, Japan's pharma industry has been reportedly at the receiving end. First of all, the impact of global recession and the appreciation of its currency have almost made other countries believe that this land of rising sun has nearly become a land of setting sun for doing business. Secondly, the growth of its pharma industry, the second largest in the world, has been much lower during the last couple of years, compared to other major drug markets.
Since the reports painted a gloomy picture of the Japanese pharma industry, the strides the country was making in this much happening market front seldom came to light. Every one seemed to be carried away by the reports of sluggish growth of Japanese pharma industry and the fall of its robust economy.
In fact, the Japanese pharmaceutical industry has been going through major transformations and taking things to its advantage during the periods of its tardy growth as well as the current recession and the appreciation of its currency. Hence, it would be wrong to say Japan is not a safe haven to do business anymore.
"Since the Japanese pharma industry is focused more on domestic demand, the economic downturn and the appreciation of Yen, haven't much affected the industry's growth. For many companies in the sector the strong Yen means that their purchasing costs have fallen. So the pharmaceutical industry is faring much better than other sectors of the economy," said Christopher Eve, president, CMP Business Media.
"Although market growth was low in the last couple of years, significant changes have been taking place within the Japanese pharmaceutical industry. Japanese pharmaceutical companies have been merging and regrouping and the shape of the market is altering. As a result, its complex distribution channels have almost become simple. Hence, opportunities are abundant for new suppliers who can offer innovative products at competitive prices. Besides, the high value of the Yen means that the opportunities in the Japanese market for overseas suppliers have never been better," he added.
It is also learnt that the government pressure on drug companies to reduce prices and the revision of Pharmaceutical Affairs Law have opened up more business opportunities to Japanese pharma players' counterparts in other parts of the world. Since the revised Pharmaceutical Affairs Law has allowed the Japanese pharmaceutical manufacturers to outsource substantial parts of the research, testing and manufacturing process to third parties, countries like India, among others, stand to gain a lot from this move.
In addition, as consolidation wave is strengthening in the pharmaceutical industry, Japanese companies with their radical new business strategies represent good targets for global pharma. "Japan offers a huge pharma market, second only to the United States. Japanese companies have proved themselves to be willing to consider and implement, radical new ideas and business opportunities that will bring them competitive advantage in a marketplace where the only way to gain growth is through innovation or acquiring your competitors' market-share," apprised Christopher Eve.
BIOTECH
As in the pharmaceutical front, Japan is also doing all it could to emerge successful in the field of biotechnology. The recent biotech acquisition spree by Big Pharma has only boosted its efforts to hone up its biotech capabilities.
"There is currently a high degree of interest in the potential of bio-pharmaceuticals in Japan. After getting a slow start, the Japanese pharmaceutical manufacturers have been eager to catch up with the US and European players in the bio field by investing and cooperating with bio ventures and universities. Also, on its part, the government has been investing on infrastructure development such as bio industrial cluster projects and setting up supporting programmes for bio ventures and universities in order to grow Japan's bio pharma industry," said, Christopher Eve of CMP Business Media.
"Biotechnology-based drugs, especially antibody drugs, are anticipated to be one of the key drivers of the pharmaceutical market in the near future. And this is reflected in the growing number of biotechnology-based drugs among newly approved medicines," he stressed.
CPhI JAPAN '09
In its efforts to provide the much required information regarding the business opportunities offered by the Japanese pharma industry, its changing regulatory environment and above all how to respond to downturn and how to cut costs in times like recession to global pharma, United Business Media, a leading organiser of trade shows in Europe, US and Asia, is all set to hold CPhI Japan 2009 at Tokyo Big Sight Exhibition Centre, Tokyo, Japan from April 21 to 23.
As in the previous editions of the show, this year too events like International Contract Services Expo (ICSE) Japan and Pharmaceutical Machinery and Equipment Convention (P-MEC) would be held concurrently with CPhI Japan 2009.
While ICSE Japan would offer a unique opportunity to present new products, outsourcing solutions or R&D development and outsourcing services in drug discovery, testing and analysing to the Japanese pharmaceutical audience, P-MEC is learnt to provide a platform for exhibiting machines and equipments related to manufacturing, development and packaging needs of pharmaceutical industry.
This year, CPhI Japan would see the launch of BioPharma Pavilion in a bid to provide more visibility to suppliers of bio pharma raw materials, services and equipment. Also, the event would feature a seminar on Japanese "Drug Master File System - Avoiding pitfalls in the review process" for international participants.
Referring to the seminar for international participants at CPhI Japan 2009, Christopher Eve said, "The special seminar for international participants will be held on the second day of the show. We believe it will be a great opportunity for them to understand the requirements and description methods of Drug Master File (DMF) following the revised pharmaceutical affairs law (PAL)."
"By the revision of PAL, requirements and description methods of DMF have been changed. Several overseas manufacturers have taken a long time to fully understand and comply with revised PAL. Due to inaccurate contents of DMF, review process is sometimes delayed. Hence, it is highly recommended that the overseas active pharmaceutical ingredient and drug manufacturers utilise the opportunity at CPhI Japan to learn more about the system for easier future business," he added.