South Korea as a country has been an economic success story and the origin of much cutting edge technology, but its pharmaceutical market can now also be given Asian tiger status, according to a report published in November 17.

According to the report (author: Donald Macarthur, 66 pages, price: 890 pounds), South Korea have seen for the last four years total sales growth of 15.6%, 13.5%, 12.4% and 13.8%.

The report also cites IMS forecasts; CAGR of 6.5% from 2010 through 2015 makes Korea the fastest growing developed market for medicines in the world.
Currently ranked fourth in Asia-Pacific - after Japan, China and India, but ahead of Australia - drug sales at manufacturer selling prices are the equivalent of $11 billion, the report noted.

Despite the fact that foreign innovative products in Korea did not gain access to the reimbursement system until late 1999, the report said, it is remarkable that multinational companies today hold half of the top-10 sales rankings with prescription products and in total have a 40% market share.

The report also said that modern-day Korea is trying hard to shake off its reputation for lack of transparency in reimbursement decisions and unfair business practices, with the Free Trade Agreements signed with the US and the EU cementing the internationalization process.

With pricing and reimbursement there is still no denying that the required processes are complex and multi-tiered, with major rule changes and new cost containment measures as a result of budget limitations announced in quick succession over recent years, the report said.

Donald Macarthur is an independent analyst, consultant and writer on international pharmaceutical business issues. Qualifying as a pharmacist from the University of London, Macarthur's early career involved community and hospital pharmacy practice, 16 years in development, regulatory affairs and medical department functions in the pharmaceutical industry in the UK (Parke-Davis; Roche; Serono; Lundbeck), and four years with PJB Publications (publishers of Scrip).

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