Biopharmaceutical industry kotra march_20151
Transcript of Biopharmaceutical industry kotra march_20151
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BIOPHARMACEUTICAL
KoreaWhere Success Knows No Limits
Index
1. Industry Overview 3
2. Competitive Standing and Outlook 9
3. Government Policies 14
4. Status of Foreign Direct Investment 15
Market size & production trends Korea’s pharmaceutical market stood at KRW 19.291 trillion (USD 17.3 billion)* in 2013, up
0.3% YoY, and posted a five-year CAGR of 2.3% from 2008 to 2013
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* Currency conversion based on March 10, 2015 rate.
Recent developments in Korea’s pharmaceutical industry Unit : KRW mn.
2008 2009 2010 2011 2012 2013
13,893,810
14,788,387
15,569,588 15,440,25115,560,663
16,191,845
16,957,675
17,970,026
18,908,439 18,943,812 18,980,00319,029,15
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Production
Market size
Industry Overview - Pharmaceutical industry
Industry Overview - Pharmaceutical industry
Export & import trends Korea’s pharmaceutical exports posted a 2008-2013 CAGR of 13% driven by Korean phar-
maceutical companies with a growing presence in the global market
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Export & import trends in Korea’s pharmaceutical industry
2008 2009 2010 2011 2012 2013
1,255,891
1,772,242 1,770,0591,943,493
2,309,5342,318,52
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4,319,756
4,953,8815,108,911
5,447,0535,728,874
5,155,829
Export
Import
Source: Korea Health Industry Development Institute (2014), Analysis of Korea’s Pharmaceutical Industry (2013)
Unit : KRW mn.
Industry Overview - Pharmaceutical industry
Human resource trends As much as 70.2% of researchers have master’s or doctoral degrees and the research
workforce structure was based mostly on higher-skilled talent.
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Number of people employed in Korea’s pharmaceutical industry
Korea Health Industry Development Institute (2014), Analysis of Korea’s Pharmaceutical Industry (2013)
2008 2009 2010 2011 2012
75,406
81,204
77,314
74,477
78,259
Unit : People
Industry Overview - Biotech industry
Market size & production trends The domestic biotech market stood at KRW 5.87 trillion in 2013, up 6.1% YoY, posting a
CAGR of 8.5% from 2009 to 2013.
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Market size and production trends of the biotech industry
Source: IMS Health (2012)
2009 2010 2011 2012 2013
2773474
5,787,826
6,396,252
7,129,229
7,523,831
4,236,695
4,751,946
5,208,078
5,643,437
5,866,853
Production
Market Size
Unit : KRW mn.
Industry Overview - Biotech industry
Number of biotech companies The number of companies in Korea’s biotech industry increased by 13, from 958 in 2011 to
971 in 2012, marking an upward trend.
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Changes in number of biotech companies
Source: Biotech Industry Study (2014)
Total Biopharmaceuticals Biochemicals Bioengineered food Others
918
276 188 202 247
958
305204 199
250
971
317
203 199252
2011 2012 2013
Unit : Companies
Other
Industry Overview - Biotech industry
Human resource trends About 60% of researchers have master’s or doctoral degrees. The workforce is highly
skilled in the biotech industry, as seen in the pharmaceutical industry.
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Workforce structure of the biotech industry Unit : People
Source: Biotech Industry Study (2014)
Biopharmaceuticals biopharmaceuticals Bioengineered food Others
1,030 362 345 359
3,519
1,355 1,298 1,239
6877
1,9373,527 3,079
7,043
1,282
2,9002,045
Doctoral degree
Master’s degree
Bachelor’s degree
Other
OtherBiochemicals
Competitive Standing and Outlook
The global pharmaceutical and biotech markets have steadily expanded thanks to an aging population and growing awareness of healthy lifestyles worldwide.
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Size and growth outlook of the global biotech market
Source: IMS Health (2012)
2010 2011 2012 2013 2014 2015
987.20
1,079.00
1,181.50
1,298.4
1,434.70
1,572.40
CAGR: 9.7%
Outlook of the global biotech market
Unit : USD bn.
Competitive Standing and Outlook
Outlook of the domestic biotech market
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The in vitro diagnostic segment has strong growth potential thanks to new technology de-velopment and a rapidly aging population. The market is estimated to reach KRW 420 bil-lion in 2014.
Korea’s in vitro diagnostic medical device (IVD) market
Source: Ministry of Trade, Industry & Energy, Five-year Plan for Technology Innovation (2013)
2009 2010 2011 2012 2013 2014
Bioelectronics 369 489 553 624 724 840
Bioinformatics & biological
assay1,406 1,355 1,531 1,730 1,955 2,209
Bio diagnostics
(20% of the diagnostic
test market)
600 690 780 881 996 1,125
Total 2,375 2,534 2,864 3,235 3,675 4,174
Unit : KRW mn.
Competitive Standing and Outlook
Most promising sector
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If the domestic development of new therapeutic antibodies speeds up, Korea’s therapeu-tic antibodies segment will reach KRW 300 billion in 2015.
Outlook for the Korean therapeutic antibodies market
Source: Ministry of Trade, Industry & Energy, Five-year Plan for Technology Innovation (2013)
Unit : KRW mn
2006 2010 2015
300
830
3000
Competitive Standing and Outlook
Increased R&D investments
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R&D investments in the pharmaceutical industry recorded KRW 967.2 billion in 2012, positing a CAGR of 13.7% for the past 5 years.
Korea’s biotech R&D investments reached KRW 1.165 trillion in 2013, continuing on a growth path.
Unit : KRW million
R&D investments by Korean pharmaceutical companies
Source: Korea Health Industry Statistics System (KHISS)
2008 2009 2010 2011 2012
578,268648,362
684,207
813,755
967,239
Korea’s biotech R&D investments
Source: Biotech Industry Study (2014)
Unit : KRW million
2011 2012 2013
9,30210,079
11,651
Competitive Standing and Outlook
Increased R&D concentration
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The R&D concentration rate of Korea’s pharmaceutical companies rapidly increased, from 6.24 in 2008 to 7.67 in 2012.
Unit : %
R&D concentration among Korean pharmaceutical companies
2008 2009 2010 2011 2012
6.24
6.5 6.44
7.41
7.67
Government Policies
2013 the Five-year Comprehensive PlaFor the support and development of the pharmaceutical industry: To be among the top 10 in the global phar-maceutical industry
- By recording pharmaceutical exports worth KRW 11 trillion- Creating four world-class new drugs by 2017 through five core tasks
Govt. efforts in the pharmaceutical industry
2013 - Five-year Comprehensive Plan
Streamlined procedures for new drug registration
• Provides Korean companies with consulting and advisory services through recruiting leading ex-perts from overseas as short-term consultants.
The PB 300 Project
• The Korean government introduced a pilot system that combines drug approval and price evaluation into a single procedure to streamline current procedures.
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Government Policies
15 Source: Biotech Industry Study (2014)
The government has designated the healthcare industry as one of the pillars of and core tasks for Korea’s transition toward a “creative economy.”
Unit: KRW 100 mn
2009 2010 2011 CAGR
Government R&D 123,437 137,014 148,902 9.8%
Biotech R&D 20,112 23,252 25,808 13.3%
Biotech R&D as % of government R&D 16.3% 17.0% 17.3% -
Government efforts in the biotech industry
Government R&D investments by segment
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KRW 350 billion in investments from Temasek, since 2010Celltrion
• Strategic partnership with Japan’s Nichi-Iko Pharmaceutical (2010)• Exclusive sales right worth KRW 30 billion (2014)Aprogen
Established the Network Equipment Education Center in SeoulSamsung
BioLogics
Strategic partnership with GSK Dong-A Pharm
Ajinomoto Genexine, a joint venture with AjinomotoGenexine
Success CasesStatus of Foreign Direct Investment
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