Taiwan Prescribing/ Dispensing Change

3 March 1997

In Taiwan, multinational drug manufacturers and the largerdomestically-owned research-based companies expect that their profits will grow about 10% this year, as a result of the introduction by the Department of Health of a new system separating doctors' drug prescribing and dispensing activities.

The government is actively promoting the change, which industry observers say will be harmful for the medium-sized and smaller local companies.

The China Post reports that most of the larger locally-owned companies are gearing up for the change by expanding their over-the-counter medicine businesses, either through establishing their own pharmacy chains or strengthening existing links with pharmacies. Other strategies being employed by these companies are increasing their production of health foods and organic foods, and expanding the operations of their subsidiaries in mainland China.

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