Industry Trend Analysis - EU-Japan Free Trade Agreement: European Pharmaceutical Industry To Be Major Beneficiary - SEPT 2017
BMI View: The FTA between the European Union and Japan has the potential to provide a significant tailwind to the European pharmaceutical industry. Increased regulatory collaboration between the European regulatory agenc ies and their Japanese counterpart s will enable a reduction in market access barriers, most pertinently to medicine approvals. This poses considerable upside risk for rev enue-generation in the country for European innovative drugmakers.
After almost four and a half years and 18 rounds of negotiations, on July 6 2017 a free trade agreement (FTA) between the European Union and Japan was agreed. The European agriculture and Japanese automotive industries have been highlighted as prime beneficiaries of this deal ( see ' EU-Japan Free Trade Agreement: Initial Thoughts For Agriculture ' , January 18 2017 and ' EU-Japan Free Trade Agreement: Potential Implications For Autos ' , December 16 2016).
We highlight that an underappreciated consequence of the FTA is a significant boost to the pharmaceutical industry.
|European Medicines Dominate Foreign Medicine Supply|
|Japan: Pharmaceutical Imports By Country (USDbn)|
|Note: Light blue bars denote European markets. Source: UN Comtrade UNSD/DESA, BMI|