Once known as very difficult to penetrate, the Japanese pharmaceutical market is now much more accessible to foreign investment due to changes in legislation that reflect new demographics and approaches to market dynamics. The new legislation favours businesses that focus on innovation, generics manufacturing and support services industries such as CMOs and CROs.
Japan, one of the highest per capita spending countries on medicines in the world, is likely to reach a value of US $166 billion by 2023. The Japanese pharmaceutical is Asia's biggest pharmaceutical market, worth US $108.2 billion in 2014. This represents over 11 per cent of the global drug market with a Compound Annual Growth Rate of 3.9 per cent between 2013 and 2023. Looking at the various sectors, slow generics contribute to the use of patented drugs and the liberalisation of the over-the-counter drug sector will also boost pharmaceutical sales.
It has largely been defined by strong brand domination and weak generics share where traditional legislation has provided an environment for domestic firms to thrive in a market with minimal competition. Because a majority of Japan's approved medications are developed overseas, sales rather than drug development defines market behaviour and makes pricing competition the main driver for profitability.
Recently, as Japan's population ages and threatens to increase healthcare expenditures for nursing care and age related diseases, the Japanese government has been updating legislation to include increasing the market share for generics. This is good news for generics manufacturers looking to penetrate the huge market.
It is expected that the new legislation will influence the market in several areas, such as foreign investment and market entry, by increasing the importance of unique innovations and support services industries, e.g., CMOs and CROs. The BRIC economies will be the greatest competitors to generics manufacturing in the Japanese market.
Following the Japanese government's measures to reduce health expenditure, the volume of generic drugs in Japan is expected to increase over 60 per cent by 2018. The total generics market in Japan is predicted to be worth US$12.3 billion by 2015. As the use of generic drugs in Japan continues to expand, Japanese pharmaceutical manufacturers are urgently seeking to secure new and reliable suppliers of price-competitive pharmaceutical ingredients.
The active pharmaceutical ingredients (API) market is particularly buoyant, with foreign suppliers playing a major role. Over the next few years, countries such as China, India are Korea are predicted to increase their API exports to Japan. As an established and reliable market, Italy continues to maintain a steady position to Japan among (API) suppliers. With these favourable market conditions, Italy is expanding its pavilion size at CPhI Japan this time.
In the future however, it is predicted that there will be an increased active development of new drugs rising in Japan, increasing the opportunities both for international partners and domestic manufacturers of APIs and excipients.
Globally, most new drugs under development are now biopharmaceuticals and it is no different here in Japan, where we are seeing a rise in this market. With the Japanese pharma economy now looking to produce more innovative products, the biopharm market is also expected to expand significantly in the medium term.
As Asia's leading pharma industry and the world's second largest pharma market, Japan is the right country to find the latest technologies and innovative products. Changes in the market environment, together with an ageing population result in a great drug demand, especially in the generic and biotechnology sectors.
Building partnerships and understanding the market are crucial success factors in the growing pharmaceutical market of Japan
In order to take advantage of these ongoing changes and tap into this flourishing market , CPhI Japan and co-located events ICSE, P-MEC,LABWorld, BioPh and InnoPack are the ultimate one-stop-shop for all pharma relevant activity concerning Japan. With a wide range of companies from all areas of pharma active in Japan as well as free to attend seminars presented by governmental bodies and other important institutions, CPhI Japan helps to successfully enter this highly profitable market
CPhI Japan 2015 exhibition and its four parallel events is one of the largest and most expected international annual gathering of the pharmaceutical industry opening the door to exploring new business opportunities, expanding personal networks, meeting other pharmaceutical professionals and building strong partnerships
Since its first edition in 2002, the event has become an indispensable opportunity to meet new partners and forge new relationships, particularly in the Asian region.CPhI Japan 2015, celebrating its 14th edition, will be held at Big Sight Exhibition Centre, Tokyo from the April 22 to 24.
The event will be covering various industries such as API's, biopharmaceuticals, custom manufacturing, excipients, fine chemicals & intermediates, finished formulation and natural extracts. CPhI Japan will also have seven country pavilions being Japan, India, China, Korea, UK, Spain and Italy. CPhI Japan with its co-located events is the industry's premier business platform where over 17,000 pharma professionals gather.
Says Christopher Eve, President of UBM Japan, organizer of the exhibition, “Each year CPhI Japan has enjoyed the participation of many foreign governments and trade associations, either as exhibitors or visitors. Today, with the stable supply of APIs a major issue not only for generic drugs but also for new drugs and OTC drugs, I sincerely hope that this event and seminars will serve not only as an excellent opportunity for foreign API manufacturers to deepen their understanding of GMP research and the MF system in Japan but also as a step toward deeper mutual understanding between Japanese pharmaceutical manufacturers and the world market.”
The CPhI Japan exhibition and its four parallel events - constituting the largest and most international annual gathering of the pharmaceutical industry in Japan - has become an indispensable opportunity to meet new partners and forge new relationships. All these events in one space, at one time, creates a huge pharma platform for business opportunities across a variety of industry sectors. Last year CPhI Japan and its integrated pharma events attracted a record-breaking 17,000 visitors.
This year there will be 500 exhibiting companies from 30 countries and regions, the biggest number of participants ever making it the largest exhibition so far. More than 150 seminar sessions will be held alongside CPhI Japan this year. The seminar programs, which attracts around 6,000 persons from the industry, is one of the most attractive features of CPhI Japan.
A novel programme for 2015 will be the introduction of “CPhI Women” – which is being held on April 22, the first day of CPhI Japan. Increasingly, women are becoming active leaders within the Japanese pharmaceutical industry, especially in the areas of drug regulatory affairs, quality control and research.
“CPhI Japan can offer a forum to facilitate networking by women in this industry, and we hope that CPhI Japan Women will provide opportunities for business communication directly linked to their daily jobs and for an information exchange to help better career development” , says UBM Japan’s President, Christopher Eve.
This first edition of CPhI Women will feature a lecture entitled “Designing Career Options” by Kuniko Shoji - Director and Senior Executive Officer, General Manager of the Regulatory Affairs, Clinical Development Department, Terumo Corporation - who will discuss some of the issues that women are likely to encounter in their work and possible solutions.
It is becoming even more important for Japanese companies to build closer co-operation with international partners who can provide them with competitive products, technologies and services in order to survive against international competitions.
Meanwhile, the three major foreign groups of exhibitors including China, Korea and India have significantly expanded their presence in this year’s show. From Europe, in addition to Spain exhibiting for the first time, Italy continues to hold a steady position among API suppliers to Japan will expand its pavilion size this time. Foreign suppliers are clearly expecting a new rise in API demand.
The India-Japan Pharmaceutical Summit at CPhI Japan 2015 will help to cultivate a two-way process of business & investment in pharmaceutical industry between Japan and India. Organised by Pharmaceuticals Export Promotion Council (Pharmexcil) on April 22 with the support of Osaka Pharmaceutical Manufacturers Association (OPMA), the summit is expected to connect Indian pharma industry with Japanese market with an increased pace.
The summit’s objective is to cultivate “Two-Way Process of Business & Investment” between both nations. The motto -- Brand India Pharma and Make in India will be unleashed as a growth strategy and opportunity for the Japan pharmaceutical and healthcare sector.