Now Available: South Korea Pharmaceuticals & Healthcare Report Q3 2013

The fourth quarter of 2012 brought positive revenue growth for large domestic pharmaceutical firms in South Korea, the first positive result following many erratic price cuts that had been instituted since 2011. We highlight a slow positive change in sentiment in the sector given the lack of government intervention in price regulation as well as the companies' ability and intention to diversify beyond generic drugs. A downside risk to our view is the potential increase in welfare spending, a campaign issue for the newly inaugurated president, Park Geun-hye. Any escalation in healthcare expenditure is likely to trigger pharmaceutical price reductions over the longer term.

Headline Expenditure Projections

* Pharmaceuticals: KRW17,534bn (US$15.59bn) in 2012 to KRW18,657bn (US$15.95bn) in 2013; +6.4% in local currency terms and +2.3% in US dollar terms. Forecast up from Q213, on account of historical data adjustment and macroeconomic factors.
* Healthcare: KRW96,525bn (US$85.80bn) in 2012 to KRW104,364bn (US$85.20bn) in 2013; +8.1% in local currency terms and +4.0% in US dollar terms. Forecast up from Q213, on account of historical data adjustment and macroeconomic factors.

Full Report Details at
- http://www.fastmr.com/prod/640271_south_korea_pharmaceuticals_healthcare_report_q3.aspx?afid=301

Risk/Reward Ratings: Having been ranked third in Q213, South Korea now occupies an improved second position out of the 18 countries surveyed in the Asia Pacific region. The new risk and reward assessment tool is more transparent and more sensitive in regards to potential rewards. Indeed, South Korea's score for its Rewards variable is now only second to Japan, indicating the country's favourable longer-term standing in terms of its pharmaceutical market development.

Key Trends & Developments

* In April 2013, US-based TheraVida and South Korean company SK Chemicals entered into a licensing deal for drugs treating overactive bladder and urinary incontinence conditions. TheraVida has granted a licence to SK Chemicals to manufacture and sell THVD-201, an experimental formulation, in South Korea. The company will also be responsible for securing regulatory approval for the drug in the country. The deal additionally allows SK Chemicals to conduct phase III clinical tests for the formulation and also to be responsible for THVD-202, THVD-20's follow-on product.
* In support of biotechnology research and development (R&D) efforts, the South Korean government recently increased both financial and institutional support to boost the domestic biosimilars market, with an aim to emerge as a global leader by 2020. According to Frost & Sullivan Research Analyst Poornima Srinivasan, the South Korean government believes biosimilars drug development is cheaper than new drug development, and is a better investment option. The rise in government support comes amid several patent expiries of original biologics in South Korea between 2011 and 2019, Srinivasan said.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- South Africa Pharmaceuticals & Healthcare Report Q3 2013
- Singapore Pharmaceuticals & Healthcare Report Q3 2013
- Australia Pharmaceuticals & Healthcare Report Q3 2013
- Hong Kong Pharmaceuticals & Healthcare Report Q3 2013
- Nigeria Pharmaceuticals & Healthcare Report Q3 2013