South Korean Pharmaceutical Market Worth $24.3 Billion by 2020 Says A New Research Report at MarketOptimizer.org
Dallas, TX (PRWEB) April 09, 2014 -- High levels of access to healthcare insurance and reimbursement and increasing demand for healthcare services from a growing elderly population will drive the growth of the pharmaceutical market. However, an increasing focus on generics as a means of reducing healthcare expenditure will restrict the growth of the market in the forecast period.
In 2008, the South Korean pharmaceutical market was worth $15.4 billion and was estimated to grow to $18.6 billion in 2013. The pharmaceutical market is expected to grow at a Compound Annual Growth Rate (CAGR) of 3.9%, from approximately $19.3 billion in 2014 to $24.3 billion in 2020. The increasing elderly population and its associated disease burden combined with the launch of novel medicines have been fueling market growth. The South Korean pharmaceutical market is one of the largest in Asia. Therapeutic segments such as cardiovascular and oncology are expected to grow due to the increasingly large elderly population, which accounts for approximately 12% of the total population, as well as changes to food and lifestyle habits. The market growth is also expected to be influenced by various initiatives taken by the government (such as the Korean Small Business Innovation Research (or KOSBIR) program, organized by Korea Nanotechnology Initiative) to encourage R&D and sustain growth in the pharmaceutical industry (KETs Observatory, 2012).
Purchase a copy of this report at http://www.marketoptimizer.org/contacts/purchase?rname=6252 .
Additionally, to boost private investment, the government has designated 44 pharmaceutical companies: “Korea’s innovative pharmaceutical companies” (in accordance with the Act for Supporting and Raising Pharmaceutical Industry (2011) to provide special benefits such as tax reduction and exemption, preferential government research funding and the postponement of drug price cuts.
The government is focusing on the use of generics as a cost-containment tool to slow the rise of its healthcare expenditure. The country’s generic market increased from $3.5 billion in 2008 to an estimated $4.9 billion in 2013. The market grew at a CAGR of 7% between 2008 and 2013 (FAPA, 2011). In January 2012, South Korea’s generic pricing methods were revised, and according to the current method, the price of the first generic to reach the market is 59.5% of the branded drug price, while the branded drug’s price is lowered to 70% of the listed price before patent expiry for the first year from when the first generic is launched. After 12 months, the prices of all generics entering the market are lowered to 53.55% of the relevant branded drugs’ prices. This price reduction and generic erosion is expected to have a limiting impact on the growth of the pharmaceutical market.
Complete report is available at http://www.marketoptimizer.org/countryfocus-healthcare-regulatory-and-reimbursement-landscape-south-korea.html .
The South Korean medical device market was valued at $3.3 billion in 2008 and is projected to grow at a CAGR of 5.5% to an estimated $6.3 billion in 2020. In 2013, the major segments of the medical device market were ophthalmic devices (17.6%), in vitro diagnostics devices (13.9%), nephrology and urology devices (10.5%), orthopedic devices (10.3%) and dental devices (10%), respectively. The market is driven by the factors such as increasing awareness regarding the early detection and diagnosis of disease, advancements in medical technology, and an increase in the elderly population.
Universal healthcare coverage and easy access to healthcare facilities and reimbursement are the distinguishing features of the Korean healthcare system.
The South Korean healthcare system offers universal healthcare coverage to all citizens. The healthcare system has two components, health insurance and medical aid. The public healthcare insurance system, also known as National Health Insurance (NHI), is the national health insurance provider. The NHI system covers approximately 97% of the South Korean population and the medical aid program covers the remaining population. The NHI system is sponsored by beneficiaries, contributions (such as premiums collected from the insured) and government subsidies; and the medical aid system is funded by general government revenue, which provides support to lower income groups.
The insured are mainly divided into two groups: insured employees and the insured self-employed. The employee insurance scheme covers spouses, descendants, brothers or sisters, and direct lineal ascendants of the insured person. The self-employed insured insurance scheme covers people who are not included in the insured employee category. The premiums for the self-employed are predetermined and set by the government based on income, property, living standards and rate of participation in economic activities. Foreigners working in South Korea are also required to apply for coverage under the NHI system. The Long-term Care Insurance Program was also introduced in 2008. This program is essentially for elderly people who are facing difficulties in performing their daily activities due to geriatric diseases.
Explore more market research reports on Healthcare at http://www.marketoptimizer.org/category/life-sciences/healthcare .
About Us:
MarketOptimizer.org (http://www.marketoptimizer.org/ .) is an online database of market research reports offer in-depth analysis of over 5000 market segments. The library has syndicated reports by leading market research publishers across the globe and also offer customized market research reports for multiple industries.
Priyank Tiwari, Marketoptimizer.org, http://www.marketoptimizer.org/, +1 (888) 391-5441, [email protected]
Share this article