Industry Trend Analysis - Multinational Drugmakers Will Benefit From Improving Operating Environment - SEPT 2017
BMI View: The South Korean population's regionally high per-capita pharmaceutical and heal thcare expenditure, as well as the country ' s highly innovative R&D environment, will ensure the attractiveness of the pharmaceutical market. The g overnment ' s support for the pharmaceutical industry, as reflected by the recent announcement of new legislation to improve medical information transparency and tackle corruption, bode s well for South Korea ' s long-term potential as a proposition for pharmaceutical firms.
The South Korean government will remain committed to the strengthening of the pharmaceutical and healthcare system, with a view to bringing more novel drugs to the market to meet the needs of the country's ageing population. Moreover, the government's drive to reduce regulatory uncertainty and improve investor sentiment will yield benefits for the pharmaceutical sector.
In June 2017 the South Korean government announced its new legislation, the 'K-Sunshine Act', aimed at reducing corrupt practices within the country's pharmaceutical industry. Under the new healthcare reform act, pharmaceutical companies that offer financial compensation to medical staff will be required to keep records of all transactions, to be presented at the request of the Minister of Health and Welfare (MOHW). Drugmakers are expected to suffer a fine of KRW2mn (USD1,800) for a failure to provide these records.
|Robust Healthcare System To Support Sales|
|South Korea: Pharmaceutical Spending (KRWbn)|
|f = BMI forecast. Source: Korea Pharmaceutical Manufacturers Association (KPMA), Korea Health Industry Statistics System, (KHISS) BMI|