Taiwan Generic Pharmaceutical Market Status & Issues The 15th - - PowerPoint PPT Presentation

Taiwan Generic Pharmaceutical Market – Status & Issues

Taiwan Generic Pharmaceutical Association Tiffany Chen

The 15th Annual IGPA Conference 2012 Kyoto, Japan

OUTLINE

• Taiwan Pharmaceutical Market

Overview

• Major Issues
• Possible Solutions

Geography

• Population:

23 million

• Healthcare

providers: HP: 477 GP: 9,956 DS: 5,199 (contracted)

Generic definition follows IMS Taiwan definition, Which consider all local manufactures are generics and foreign manufactures are branded due to Taiwan IMSPlus data limitation

Taiwan Pharmaceutical Market Overview – 1/20

US$ 4,598 million

Exchange Rate : 29.5 (NT$/1 US$)

Taiwan Pharmaceutical Market Overview – 2/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 3/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 4/20

US$ 4,598 million

Foreign companies: 30 Local companies: 160

Taiwan Pharmaceutical Market Overview – 5/20

US$ 4,598 million

Medical center: 22 Regional hospital: 83 Area hospital: 372 Total: 477

Taiwan Pharmaceutical Market Overview – 6/20

US$ 4,598 million

Total: 5,199 (Contracted)

Taiwan Pharmaceutical Market Overview – 7/20

US$ 4,598 million

Total : 9,956

Taiwan Pharmaceutical Market Overview – 8/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 9/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 10/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 11/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 12/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 13/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 14/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 15/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 16/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 17/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 18/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 19/20

US$ 4,598 million

Taiwan Pharmaceutical Market Overview – 20/20

Major Issues

• Branded products still dominate Taiwan market

(77% versus 23%)

• National Health Insurance policy still plays the key

role as well as the coming 2nd generation NHI

• Relatively lower medical expenditure versus other

countries

• Reimbursement price cut led by price-volume

survey (PVS) every two years

• Bureau of Health Insurance presents the

continuing financial deficit

Lower Medical Expenditure

Average medical expenditure/ person/year Medical expenditure/GDP USA France Holland Switzerland USA Switzerland Norway Holland Canada Germany Austria Canada Austria Belgium Germany France New Zealand Belgium Sweden Sweden Australia England Spain England Japan Finland Norway Spain Japan Italy Australia New Zealand Finland Italy Czech Taiwan

• S. Korea
• S. Korea

Czech Taiwan Mexico Mexico

Major Issues

• Products losing patent protection will have their

prices reduced to a “reasonable” level within five years, under Article 46 of the 2G NHI Act, due to be implemented at the start of 2013. As a result, there will be deeper cuts to prices earlier than before which will lower the motivation to multinational companies launching new products in Taiwan

• Foreign generics take the advantage of higher

reimbursement price compare to local generics

Major Issues

• The BNHI is now starting its review process as

soon as the Taiwan Food and Drug Administration issues an approval letter, which should save three

• r more months from the time taken for

reimbursement listing and pricing. However, the drug lag in Taiwan will get even longer if China starts to benchmark low Taiwanese prices, since companies will want to be approved first in the larger market before launching in Taiwan

Possible Solution

• Generic penetration will accelerate, helped by

higher prices – up to 100% of the original product price - for generics that meet tougher quality standards, as manufacturers will be able to answer quality concerns and offer larger discounts

Possible Solution

• The introduction of the second-generation National

Health Insurance (2G NHI) Act in 2013 will boost the finances of the NHI system through the introduction of supplementary premiums. However, there are fears that this may not raise enough to ensure the NHI‘s financial stability for the next five years, and the Bureau of National Health Insurance (BNHI) may try to minimize the promised cut in basic premium rates.

Possible Solution

• Total healthcare expenditure accounted for 6.8% of

GDP in 2011. The government intends to increase spending on healthcare to 7.5%. Healthcare policy will seek to address the challenges of the ageing population and the rise in chronic disease. The Department of Health (DOH) has started work on a long-term care system for the elderly and disabled and is putting more resources into preventative care

Possible Solution

• By the end of 2014, all domestic manufacturers

will have to meet Pharmaceutical Inspection Convention/Co-operation Scheme good manufacturing practice (PIC/S-GMP) standards, which will lead to some companies leaving the market and a rise in contract manufacturing

• The local industry is expected to consolidate and

concentrate, with the leading companies using the higher prices for improved manufacturing standards to increase their market share

Thanks For Your Attention!

Reference: Taiwan DOH IMS