Opportunities In Eastern Asia's Pharma Markets

21st century trade will be dominated by eastern Asia, Ames Gross, president of consulting company Pacific Bridge, which helps US medical firms sell products, set up joint ventures and do market research in Asia, has told the Interphex conference. Realizing the opportunity, Japan has increased investment in the area as this diminishes in the USA. Business in the west must break into this market now, he said.

Pharmaceutical Research & Manufacturers of America member companies' rate of sales growth abroad (6.9% in 1994 and 7.7% in 1995) is expected to outpace US growth (3.6% and 3.2% respectively), as recessionary pressures alleviate, particularly in Japan, he said. Annual growth in the "big three" markets (USA, European Union and Japan) was 6% in 1994-95 compared to 22% for Asian markets, excluding Japan. The growth in health care spending on drugs in Asia has outstripped even economic growth, apart from Thailand. Most countries in the region focus on western prescription and traditional or herbal drugs rather than over-the-counter drugs.

In Japan, western drug sales in 1992 were $60 million, with annual growth of 16%; foreign drugs took 24% of total sales in 1991. Consolidation in Japan has been anticipated for a while but has yet to manifest itself. Many firms are using their prescription drug profits to increase R&D activities and develop OTC businesses.