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| home > epc > winter 2001 > a competitive analysis of the japanese pharmaceutical and biotechnology industries |
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European Pharmaceutical Contractor
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At the time of writing, Taisho Pharmaceutical Co Ltd and Tanabe Seiyaku Co Ltd have announced a merger under the tentative name of Taisho Tanabe Pharma Group. Both companies were in the top tier of Japanese pharmaceutical companies, with sales of 274 billion yen and 194 billion yen respectively, for the financial year end of March 2001. The question that now arises from the rhetoric of the Japanese pharmaceutical market is: does the merger mark the new beginning of the long awaited consolidation of the Japanese market? Or, is this a one-off event within the industry and what prospects exist for other Japanese pharmaceutical companies?
Japan is always described in any pharmaceutical journal as being the second largest pharmaceutical market in the world. Combine this with the prospect of a population of 127 million people, a drug expenditure of £355 per head, and the fastest ageing population in the world, and you have a market that is ripe for picking.
So why is there such a limited presence of foreign pharmaceutical companies in the marketplace and why are Japanese pharmaceutical companies so worried about their future prospects?
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