Japanese Pharmaceutical Industry In 1994

As part of its 1993 survey (the latest year for which figures are available), the Japan Pharmaceutical Manufacturers Association found that 41 (62%) of its 66 Japanese members have a total of 245 overseas operation bases for their pharmaceutical business compared to 189 bases maintained by 37 of its 65 companies in the previous survey in 1991. 97% of the total are located in Asia & Oceania, western Europe and North America.

Since 1989, says the JPMA report, outstanding foreign investment has been growing at a rapid pace, recording an average increase of more than 10% per year. The amount invested in North America has grown steadily, from just over 160 billion yen ($1.6 billion) in 1989 to around 180 billion yen in 1992, although the percentage in North America as a total investment has declined over the period (72.4% in 1989 to 62.5% in 1992). Over the same period, notes the report, the Japanese industry's investment in western Europe has risen hugely, from 43 billion yen (19.1% of overseas investment) in 1989 to 88 billion yen in 1992 (28.4% of overseas investment), a rise of over 100% in three years.

Presenting a breakdown of overseas bases, the report says that 38 of the 66 companies are conducting research and development, 30 are performing exploratory research and 25 are engaged in clinical trials. The number of companies performing preclinical studies overseas is relatively small, notes the report, with 14. 38 companies allocating an average of 6.8% of their total R&D expenditures to activities overseas. However, there were three firms which earmarked over 20%, and three which specified between 10% and 20% of turnover on overseas R&D.