Japanese companies look to generics to increase market share
Medium-size pharmaceutical companies in Japan are stepping up efforts to increase sales of generic drugs in response to the government's policy to encourage the wider use of generics to help reduce the nation's ballooning medical costs.
Medium-size pharmaceutical companies in Japan are stepping up efforts to increase sales of generic drugs in response to the government's policy to encourage the wider use of generics to help reduce the nation's ballooning medical costs.
Lack of funds for r&d makes it difficult for smaller companies to release new drugs on a regular basis. As such, they aim to secure stable earnings by introducing new, value-added products. Kyorin for example, has built a new ¥1.1bn laboratory at its plant in Toyama Prefecture to develop generic drugs.
In 2005, the company acquired Toyo Pharma (now Kyorin Rimedio) and entered the generic market in earnest. It has since launched three new products annually and plans to raise the number to 10 by the year ending January 2010.
Wakamoto Pharmaceutical's product division director Shigeo Nishio said: "Generic drugs cannot set themselves apart from the original drugs simply by being priced lower; Wakamoto is developing an antibacterial eyedrop that changes from liquid to gel form by the temperature of the eye when applied so that it can maintain its effectiveness longer."