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Friday, August 07, 2009

Challenges for the pharmaceutical industry

How about being a marketer in this industry and working in Japan.

You would think that all would be rosy because of the country's fastest, although healthiest, ageing population, but no.

Government policy requires drug prices to be cut once every two years, as part of drive to combat escalating medical costs. In 2006 and 2008, average price cuts were 6.7% and 5.2% respectively. In addition, the health ministry has a target to increase the use of generic drugs – copycat versions of patented drugs – to 30% by 2012, up from today’s 16%.

I reckon there are a lot of governments watching how things work out in Japan since all of the developed world has the same problems.

The financial pressures of the ageing population added to the residual effects of the credit crunch will change the rules of engagement between industry and Government. Certainly in the drug's industry. Dick Stroud

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