Research and Markets (http://www.researchandmarkets.com/research/qgpj6s/pharmaceutical_sup)
has announced the addition of the "Pharmaceutical
Supply Chain in Japan - Periodic Drug Price Revisions by National Health
Insurance Increase Competition and Squeeze Profit Margins"
report to their offering.
Pharmaceutical Supply Chain in Japan.
Pressures felt in Japan as a result of the country's aging population,
drug price revisions and patent expiries have compelled pharmaceutical
industry leaders to rationalize their sourcing and distribution, and
increase operational efficiency, according to a new report by GBI
The new report* states that market competition has led to an oligopoly
being held by a few wholesalers, who effectively control the country's
pharmaceutical distribution market.
GBI Research's analysis shows that supply chain participants in Japan
still follow a traditional route, whereby drugs manufactured by
pharmaceutical companies are distributed solely through wholesalers to
patients via retailers. Drug prices are fixed and controlled by the
government; however, the price at which the manufacturer sells the drug
to the wholesaler depends on negotiations between both parties.
Similarly, pharmacy margins depend on negotiations between the
wholesaler and pharmacy. All key players in the supply chain suffered
losses due to revisions to National Health Insurance (NHI) drug prices
in 2010, which demanded they compromise on profit margins.
The introduction of a price quotation system led competition between
drug wholesalers to escalate, while profitability decreased, and this
led to mergers and reorganizations which aimed to lower costs and create
savings to pass on to manufacturers. As a result, the number of
pharmaceutical wholesalers in Japan has fallen by 45% over the last
decade, and just a few companies now remain in operation. Four
wholesalers, namely Medipal Holdings, Alfresa Holdings, Suzuken and Toho
Holdings, accounted for 90% of the overall pharmaceutical distribution
market last year, generating a total revenue of JPY7.3 trillion ($87.8
The Pharmaceutical Affairs Law (PAL) regulates the manufacture,
marketing and distribution of pharmaceutical drugs and medical devices
For more information visit http://www.researchandmarkets.com/research/qgpj6s/pharmaceutical_sup
Research and MarketsLaura Wood, Senior Manager.email@example.comU.S.
Fax: 646-607-1907Fax (outside U.S.): +353-1-481-1716Sector: Pharmaceuticals
Source: Research and Markets