We do not expect Taiwan’s healthcare expenditure to reach the government’s target of 7.5% of GDP in the short to medium term – unless it increases medical service funding significantly, which is unlikely, given the downward pressure on exports through unfavourable external conditions. We nevertheless continue to believe the relatively stable economic and political situations will attract increased investment in the healthcare system, even though innovative pharmaceuticals remain disadvantaged by a number of market access barriers, including downward price pressures.
Headline Expenditure Projections Pharmaceuticals: TWD135.10bn (US$4.59bn) in 2011 to TWD140.05bn (US$4.59bn) in 2012; +3.7% in local currency terms and -0.1% in US dollar terms. Forecast slightly lower than in Q212 due to macroeconomic factors.
Healthcare: TWD953.29bn (US$32.42bn) in 2011 to TWD1,017bn (US$33.56bn) in 2012; +6.7% in local currency terms and +2.9% in US dollar terms. Forecast significantly higher than in Q212 due to revision and reappraisal of historical data.
Medical devices: TWD49.23bn (US$1.67bn) in 2011 to TWD50.93bn (US$1.67bn) in 2012; +3.5% in local currency terms and -0.3% in US dollar terms. Forecast slightly lower than in Q212 due to macroeconomic factors.
Risk/Reward Rating: Taiwan’s score in the current version of our proprietary Pharmaceuticals & Healthcare Risk/Reward Ratings (RRRs) remains unchanged in relation to the previous two quarters.
With a composite figure of 60.2, Taiwan is still ranked sixth out of the 18 countries surveyed in the Asia Pacific region. Its risk component is still judged to be more favourable for multinationals than its rewards.
The latter receives an unchanged 55 out of the maximum 100 points for this quarter, thus remaining above the now slightly lower regional average of 50.
Key Trends & Developments In its Special 301 submission for 2012, the Pharmaceutical Research and Manufacturers of America (PhRMA) called for Taiwan to again be included in the Watch List of countries, following its complete absence from the 2011 report. PhRMA expressed concerns relating to regulatory data protection, patent enforcement as well as a number of issues related to market access for novel pharmaceuticals, such as price-volume agreements.
According to the Taiwan’s Ministry of Economic Affairs (MOEA)’s Biotechnology and Pharmaceutical Industries Promotion Office, revenue derived from the Taiwanese biotechnology industry reached TWD2,286mn (US$72.76mn) in 2010, up by 8.6% from TWD2,105mn (US$63.7mn) in 2009, with the emerging biotechnology industry accounting for 27.7% of total revenue (TWD633mn; US$20.1mn). Taiwan is aiming to push for biotechnology as one of its economic drivers, through strategies such as joint ventures (JVs) with New Zealand and the US.
In March 2012, prominent Taiwanese drug maker ScinoPharm and the National Health Research Institutes (NHRI) secured approval from the Taiwanese and US authorities for a contract research organisation (CRO) project. The CRO project aims to start a phase I clinical trial for its anti-diabetes drug candidate DBPR108.
The effects of the eurozone crisis are clearly having a detrimental effect on Taiwan’s exports. With expectations for a eurozone recession and a China hard-landing that has yet to materialise, we maintain our downbeat outlook for the export sector in 2012. We expect to see import growth outperform export growth, which would translate into a narrower trade surplus. On a brighter note, we expect to see foreign direct investment come in stronger this year, on the back of a likely increase in mainland investments into the tech and finance sectors.
Taiwan’s long-term political prospects are inseparable from its relations with China, and while cross-Strait relations have thawed in recent years, we believe the status quo will largely prevail.
While further economic integration is likely between the two Chinas, we exclude meaningful political convergence, with Taiwan extremely unlikely to regain internationally recognised independence. As a result, we believe Taiwan will remain in a political no-man’s land – with this being the least worst path for political stability. On the other hand, we believe that continuing mainland investments into the Taiwan’s prized tech-sector and the potential for further deregulation of the financial sector should provide supportive of future foreign direct investment (FDI) inflows into Taiwan.
Pharmaceuticals and Healthcare Report of Taiwan
Published: May 2012 No. of Pages: 100 Price: US $ 1175
Table of Contents
Executive Summary . 7
SWOT Analysis . 9
Taiwan Pharmaceuticals And Healthcare Industry SWOT 9
Taiwan Political SWOT … 10
Taiwan Economic SWOT . 11
Taiwan Business Environment SWOT .. 11
Pharmaceutical Business Environment Ratings 12
Table: Asia Pacific – Regional Pharmaceutical Business Environment Ratings, Q312 … 12
Rewards 13
Risks.. 13
Taiwan – Market Summary 15
Regulatory Regime . 16
Table: Examples Of Controlled Drugs In Taiwan 17
Table: Medicine Categories In Taiwan 18
Recent Regulatory Developments 18
Intellectual Property Regime … 19
Intellectual Property Developments . 21
Counterfeits . 22
Pricing Regime 22
Reimbursement Regime 23
Table: Drug Reimbursement Principles … 24
Table: BNHI Spending by Type of Outpatient Claims, as Percentage of Total 26
Recent Reimbursement Regime Developments . 26
Free Trade Agreements 27
Industry Developments.. 28
Epidemiology … 28
Non-Communicable Diseases .. 29
Communicable Diseases .. 30
Healthcare System … 31
Healthcare Insurance .. 32
Healthcare Financing .. 32
Taiwan: Insurance Coverage … 33
Recent Healthcare System Developments 34
Traditional Chinese Medicine .. 35
Biotechnology Sector … 35
Recent Biotechnology Developments … 37
Clinical Trials .. 38
Recent Clinical Trials Sector Developments 39
Medical Tourism .. 40
Vaccines … 41
Medical Devices… 41
Industry Forecast Scenario … 44
Overall Market Forecast.. 44
Table: Pharmaceutical Sales Indicators 2008-2016 45
Healthcare Market Forecast 46
Table: Healthcare Expenditure Indicators 2008-2016 . 48
Table: Healthcare Governmental Indicators 2008-2016 . 48
Table: Healthcare Private Indicators 2008-2016 49
Key Growth Factors – Macroeconomic … 50
Table: Taiwan – Long-Term Macroeconomic Forecasts . 53
Prescription Drug Market Forecast . 54
Table: Prescription Drug Sales Indicators 2008-2016 55
Patented Drug Market Forecast .. 56
Table: Patented Drug Market Indicators 2008-2016 … 57
Generic Drug Market Forecast 58
Table: Generic Drug Sales Indicators 2008-2016 … 59
OTC Medicine Market Forecast .. 60
Table: OTC Medicine Sales Indicators 2008-2016 .. 62
Pharmaceutical Trade Forecast .. 63
Table: Exports and Imports Indicators 2008-2016 .. 64
Medical Device Market Forecast . 65
Table: Medical Devices Sales Indicators 2008-2016 … 66
Other Healthcare Data Forecasts 67
Key Risks To BMI’s Forecast Scenario 68
Competitive Landscape . 69
Pharmaceutical Industry .. 69
Leading Pharmaceutical Companies According To Market Capitalisation On The Taiwan Stock Exchange (TWSE) 70
Table: Top Ten Pharmaceuticals In Taiwan According To BNHI Expenditure During 2008 .. 71
Domestic Pharmaceutical Sector . 71
Recent Domestic Company Activities … 72
Foreign Pharmaceutical Sector … 73
Recent Foreign Company Activity 73
Pharmaceutical Distribution 74
Corporate Members Of Taiwan’s International Research-Based Pharmaceutical Manufacturers Association (IRPMA) … 75
Company Profiles … 76
Leading Domestic Companies . 76
Yung Shin Pharmaceutical (YSP) . 76
ScinoPharm Taiwan . 78
Empax Pharma 80
Leading Multinationals 82
Pfizer … 82
Sanofi … 84
GlaxoSmithKline .. 86
Novartis … 88
Merck & Co . 90
Country Snapshot: Taiwan Demographic Data … 92
Section 1: Population … 92
Table: Demographic Indicators, 2000-2030 92
Section 2: Labour Market And Spending Power .. 93
Table: Employment Indicators, 2000-2005 .. 93
Table: Consumer Expenditure, 2000-2005 (US$) 93
Table: Average Annual Manufacturing Wages, 2005-2012 . 93
Glossary .. 94
BMI Methodology … 96
How We Generate Our Pharmaceutical Industry Forecasts 96
Pharmaceuticals Business Environment Ratings . 97
Risk/Reward Ratings Methodology .. 97
Ratings Overview . 97
Table: Pharmaceutical Business Environment Indicators … 98
Weighting . 99
Table: Weighting Of Components 99Table: Asia Pacific – Regional Pharmaceutical Business Environment Ratings, Q312 . 12
Table: Examples Of Controlled Drugs In Taiwan . 17
Table: Medicine Categories In Taiwan . 18
Table: Drug Reimbursement Principles . 24
Table: BNHI Spending by Type of Outpatient Claims, as Percentage of Total . 26
Table: Pharmaceutical Sales Indicators 2008-2016 . 45
Table: Healthcare Expenditure Indicators 2008-2016 . 48
Table: Healthcare Governmental Indicators 2008-2016 . 48
Table: Healthcare Private Indicators 2008-2016 . 49
Table: Taiwan – Long-Term Macroeconomic Forecasts . 53
Table: Prescription Drug Sales Indicators 2008-2016 . 55
Table: Patented Drug Market Indicators 2008-2016 . 57
Table: Generic Drug Sales Indicators 2008-2016 . 59
Table: OTC Medicine Sales Indicators 2008-2016 . 62
Table: Exports and Imports Indicators 2008-2016 . 64
Table: Medical Devices Sales Indicators 2008-2016 . 66
Table: Top Ten Pharmaceuticals In Taiwan According To BNHI Expenditure During 2008 . 71
Table: Demographic Indicators, 2000-2030 . 92
Table: Employment Indicators, 2000-2005 . 93
Table: Consumer Expenditure, 2000-2005 (US$) . 93
Table: Average Annual Manufacturing Wages, 2005-2012 . 93
Table: Pharmaceutical Business Environment Indicators . 98
Table: Weighting Of Components . 99