Succeeding in Japan's pharma market - by P Reed Maurer

It appears some Western pharma executives and their consultants cannot grasp the reality of Japan’s pharma market, comments P Reed Maurer, long-time Japanese pharma industry watcher and president of International Alliances Limited (IAL). After so many years they simply don’t get it. A recent case in point was a description of why Japanese firms are acquiring foreign firms. The alleged rationale is to look for growth that “…eludes them in a tightly regulated, hierarchical and controlled price environment,” in Japan, he says.

Statements like this suggest Japanese companies are fleeing Japan because of its harsh conditions and low growth. In fact we can count on the fingers of one hand the number of Japanese companies that have made significant acquisitions outside Japan. And these companies have the resources to acquire because they are succeeding, not failing in the Japanese market.

Thus, we can conclude the Japan pharma market is nurturing nascent global competitors. At the same time, it is attracting foreign companies to either increase their presence in the market or to establish a presence instead of licensing out their products to Japanese companies. As the saying goes, “You make it here and you can make it anywhere.”