New figures from IMS Japan have revealed that the country's prescription drug market grew by 5.5% to reach JPY9.53 trillion (USD120.9 billion) in the 12 months to 31 March 2012.
IHS Global Insight Perspective | |
Significance | Despite a lowering in demand during the final quarter of the 2011/12 financial year due to the imminent arrival of biennial prices revisions in April 2012, Japan's prescription drug market grew by a healthy 5.5% over the course of the 12 months to reach JPY9.53 trillion (USD120.9 billion). |
Implications | The most dynamic category was antidiabetics, which enjoyed double-digit growth as a result of the influx of DPP4-inhibitors. Set against this, generic competition is beginning to eat into sales of a number of established blockbuster brands. |
Outlook | Although overall sales growth in FY2012/13 will be negatively impacted by April's price revisions, Western multinationals are poised to continue raising their profile in Japan via new launches which will bring their product lines up to date with their lines in other developed markets. |
Pharma Japan reports that the JPY9.53 trillion (USD120.9 billion) overall turnover, which was based on National Health Insurance (NHI) prices, was further broken down by IMS into a number of sectors. These included the hospital market (i.e. medical institutions with 100 beds or more), whose sales were up by 5.0% to JPY3.73 trillion, and the GP market (i.e. medical institutions with fewer than 100 beds), whose sales grew by 5.4% to JPY2.30 trillion. The remainder of the market, which was comprised mainly of dispensing pharmacies, increased by 6.2% to JPY3.50 trillion.
The rankings of the top four therapeutic categories remained the same as in fiscal year (FY) 2010/11, with renin-angiotensin (RA) system drugs leading the way, ahead of antineoplastics, lipid-regulating/anti-atheroma agents, and antacids/anticulerants/antiflatulents. However, the most dynamic category was antidiabetics, in fifth place (see table, below).
Leading Prescription Drug Categories in Japan FY2011/12 | ||
Category | Sales (JPY Bil.) | Growth (Y/Y) |
Renin-angiotensin system | 657.754 | +5.4% |
Antineoplastics | 631.51 | +5.2% |
Lipid-regulating/anti-atheroma agents | 447.558 | +3.8% |
Antacids/anticulerants/antiflatulents | 437.158 | +2.5% |
Antidiabetics | 392.500 | +15.5 |
The RA system category owed its continued growth to the rise of combination products, which offset a decline in sales of single-ingredient drugs. Popular combination products included Takeda (Japan)'s Unisia (candesartan + amlodipine), whose sales rocketed by 329.4% to JPY19.47 billion; Novartis (Switzerland)'s Exforge (valsartan + amlodipine), up 311.1% to JPY16.72 billion; Daiichi Sankyo (Japan)'s Rezaltas (olmesartan + azelnidipine), up 223.2% to JPY14.75 billion; and another Takeda product, Ecard (candesartan + hydrochlorothiazide), up 26.1% to JPY14.73 billion).
DPP4-Inhibitors Drive Antidiabetics Growth
Meanwhile, growth in the antidiabetics category was driven by the rising tide of DPP-4 inhibitors, continuing a trend that was noted during the third quarter of the 2011/12 financial year (see Japan: 5 March 2012: Pfizer Overtakes Takeda to Become Leading Drug Company in Japan in 2011). The leading DPP-4 inhibitor—Merck, Sharp & Dohme (MSD; US)'s Januvia (sitagliptin)—saw its sales shoot up by 185.2% to JPY59.65 billion, thereby elevating it from fourth place last year to first place in the overall category rankings. Other prominent DPP-4 inhibitors included another sitagliptin-based product, Ono (Japan)'s Glactiv, whose sales were up by 159.6% to JPY30.75 billion, raising it up from 10th to third position. Meanwhile, Takeda's Nesina (alogliptin) enjoyed an increase of 848.4% to JPY15.50 billion, and Novartis's Equa (vildagliptin) was up by 463.3% to JPY11.37 billion.
Set against this, generic competition for last year's category leader, Takeda's thiazolidine product Actos (pioglitazone), was largely responsible for causing its sales to slide by 33.0% to JPY35.63 billion, dropping it down into second position.
Aricept Claims Overall Lead Despite Generic Competition
Meanwhile, the overall best-selling product in Japan's prescription drug market in FY2011/12 was Eisai's Alzheimer's disease treatment Aricept (donepezil), which climbed up from third place in FY2010/11 after its sales rose by +8.2% to JPY138.28 billion (+8.2%), despite the onset of generic competition. Last year's overall market leader, the angiotensin receptor blocker (ARB) Blopress (candesartan) from Takeda, saw its sales decline by 8.0% to JPY126.48 billion, dropping it down into second position.
Outlook and Implications
In the context of the impact of the Great East Japan Earthquake and difficult economic conditions, Japan's 5.5% growth rate must be considered a respectable achievement, albeit it represents a slowdown from the 6.9% growth rate that was recorded in the 12 months to the end of December 2011. The slowdown in the last three months of FY2011/12—sales were down by 2.0% year-on-year to JPY2.29 trillion in the final quarter—was largely due to a lowering in demand in the build up to the biennial price revisions which took place on 1 April 2012.
However, Japan's domestic drug industry will be concerned by the fact that much of the growth was driven by Western multinationals: in terms of sales directly to wholesalers, Takeda retained the market leadership (JPY725.59 billion), but its growth rate of 4.4% was dwarfed by companies such as MSD (JPY393.03 billion, +11.0%), GlaxoSmithKline (JPY335.03 billion, +20.8%) and Eli Lilly (JPY172.3 billion, +20.3%). Meanwhile, in terms of sales attributed to the company that markets (as opposed to distributes) the products, the leading player was Pfizer which—buoyed by its partnership with Astellas for Lipitor—enjoyed an increase of 10.5% to JPY585.1 billion.
Looking ahead to FY2012/13, Western companies are set to continue raising their profile as they seek to bring their product lines in Japan up to date with their lines in other developed markets. However, the overall market's growth will be negatively impacted by April's price revisions.