Pharmaceuticals Industry Trends Japan - 2022

市場監測

  • 日本
  • 化學/制藥

2022年03月15日

Growing share of generics could affect local producers

IT Japan pharma credit risk 2022

Japanese pharmaceuticals producers are mainly doing business in the domestic market, with a rather low share of export sales. Large global companies and well-established domestic businesses dominate the Japanese market. The demand situation is good, and the backlog of non-Covid related medical care, spending and treatments has decreased since mid-2021, after the 'state of emergency' was lifted in major cities. At the height of the pandemic pharmacies suffered from deteriorating drug sales due to low footfall, while drugstores benefited from strong demand for sanitary goods.

IT Japan pharma output 2022

Japanese brand-name drug producers face annual rising R&D expenses, as the expiry of patents requires additional investment in the development of new medicines. Additionally, the yen depreciation has a negative impact.  However, several Japanese pharmaceutical producers are in the final stages to get approval for Covid-19 vaccine production as of 2023, which supports their growth prospects. As Japan has a very high share of elderly population, demand for pharmaceuticals will increase in the coming years, in particular for special drugs to treat chronic diseases.

Despite good demand prospects there are challenges ahead, which could affect sales and margins of domestic producers and distributors in the mid-term. In order to curb public healthcare spending costs, the government revises drug prices biannually, and actively promotes the distribution of generics in the market. Currently generics sales amount to 47% in volume terms, but the government aims to increase this share to 80%. While more imports of generics would reduce healthcare costs, it would also dampen domestic drug production.

Most pharmaceutical businesses have strong balance sheets and good access to bank financing. The payment duration varies from 60-120 days, and payment behaviour has been very good over the past two years. The amount of both payment delays and insolvencies has been very low over the past 12 months, and we do not expect an increase in 2022. Due to the low credit risk and financial strength of most businesses, our underwriting stance remains open for the Japanese pharmaceuticals sector.

 

相關資料

免責聲明

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.