Growing market for generics and liberalization of OTC medicines driving demand at CPHI Japan 2017

PIC/S membership accelerating international interest with market forecast to reach US$115bn by 2024.

Central to the internationalisation of the Japanese market is CPHI Japan, which returns as the most comprehensive pharma event in the region to provide the latest trends, insights and innovations in the industry. The five-in-one event allows visitors to gain access to the entire Japanese pharma industry under one roof, and meet with exhibitors working across ingredients, contract services, biopharmaceuticals, machinery, technology, and packaging.

Japan is the world’s third largest pharma industry, with a market that is forecasted to reach a total value of US $115 billion by 2024. However, due to an ageing population and growing healthcare costs, the Government recently committed to increase market penetration of generics from 30% in 2014, to 60% by the end of this year. The surge in demand will open up new opportunities for international pharmaceutical manufacturers, as domestic producers alone will struggle to meet required capacity. High quality Indian generic manufacturers and branded generics, particularly those from the US and Europe, are well placed to expand market share. 

Having joined the Pharmaceutical Inspection Convention and the Pharmaceutical Inspection Cooperation Scheme (PIC/S) in 2014, Japan is also synchronising manufacturing and quality control standards between overseas suppliers and Japanese pharmaceutical manufacturers.

“Entering the PIC/S system 3 years ago has accelerated the entry to market for several international companies, particularly as the synchronisation of standards harmonise procedures. This coupled with the rise in demand for generics and the price review frequency amendment, will see pharma manufacturers from places such as India, but also Europe and the US cement a foothold in Japanese pharma, as consumers here are highly brand oriented.” Rutger Oudejans, Brand Director CPHI at UBM EMEA.

To help explore the market’s potential, running alongside the exhibition is a three-day, in-depth conference. CPHI Japan’s high-value conference programme enables attendees to learn about the latest trends and strategies in the market. It features bespoke content discussions and special seminars across topics such as ‘An Evolving Pharma Market - Challenges and Opportunities Ahead - Outlook to 2021’, and ‘Digital health: What does it mean exactly?’.

In addition, keynote sessions will address ‘Current situations and challenges of policy on health insurance’ and ‘Current topics regarding regulation of pharmaceuticals in Japan’. Finally, an important session, dedicated to the new pricing and reimbursement system of medicines set in December 2016, will discuss the effects this will have in the market, including the potential reduction in overall prices and increased competition.

Oudejans added: “With the Japanese market becoming increasingly accessible to international companies, CPHI Japan is vital not only to meet and network with future partners, but also to learn about the key trends and insights in the pharma market. We have tailored our platforms, and particularly CPHI Japan’s conference programme, to provide the most important topics and information needed to thrive in this pharma economy. For the past 16 years, we have seen this industry grow and it is now opening up to international markets and generics in addition to having one of the world’s highest per capita pharma spends.”