|
Figure
2: Asia Demographics
Figure
3: Percentage of aging population (> 55 years in 2000)
Cost
containment inevitable
On
the other hand, cost containment due to increasing healthcare costs as
well as insurance and reimbursement are issues that are being scrutinized
in every country. Total healthcare expenditure in Asia stood at $463
billion in 2001, with a per capita healthcare expenditure of $162. This is
strongly influenced by Australia, Japan and New Zealand, all of which had
per capita expenditures of more than $1,000 in 2001, followed by Singapore
at $857. Countries with increasing healthcare expenditure are China, India
and Korea. Japan already has very high healthcare expenditure and has
strong pricing reforms in place. Australia, Thailand and Taiwan also have
strict reimbursement systems and control prices of products. With
skyrocketing healthcare costs, it is expected that health authorities in
most Asian countries will implement some form of pricing control while
simultaneously boosting the local manufacturing industry. Figure 4 shows
the total private and government healthcare expenditure of various
countries in Asia Pacific.
Figure
4: Total healthcare expenditure, Asia Pacific (2001)
Market
Drivers and Restraints
Drivers
are factors that contribute to market growth while restraints do the exact
opposite and contribute to market decline. Multiple drivers and restraints
act at the same time in any given market and have a differing impact over
time.
Pushing
the market – Drivers in Asia
-
Asia’s
aging population and longer life expectancies promote larger markets
for lifestyle diseases, maintenance drugs and drugs for old age
diseases, which are generally high value drugs and increase the
revenues of the market.
-
Direct
to consumer marketing through electronic media increases reach,
contact and relationship with patients providing the opportunity for
companies to gain brand recognition.
-
The
setting up of local clinical trial bases strengthens drug efficacy
data towards Asian patients thereby gaining end-user confidence and
providing the opportunity to enlarge the user base. Singapore has
internationally recognized clinical trial centers. Multi national
companies have been attracted to conduct local clinical trials in
China due to its huge population base. It is estimated that over 40
clinical trials for Class I new drugs sponsored by around 30
multinational pharmaceutical companies are currently being conducted
throughout China. Clearly international pharmaceutical companies are
driving China from simply a drug selling market into a clinical trial
base. This will boost growth opportunities.
|
