BURLINGTON, Mass., June 16, 2014 /PRNewswire/ -- Decision Resources Group finds that, despite the positive outlook and relatively strong growth potential for pharmaceutical companies in the Asia-Pacific region, many governments are implementing strategies to control costs in order to make healthcare more affordable to its citizens. These strategies include health technology assessment (HTA), ad hoc and systemic price cuts, generic promotions and parallel importation. Most Asian countries have a relatively high level of pharmaceutical expenditure compared with other developed markets, due to aging populations and financial incentives for physicians to overprescribe in certain markets.
Other key findings from the Strategic Insight report entitled Government Cost Containment Efforts in the Asia-Pacific Region:
- Cost-containment methods: Ad hoc price cuts or price caps are the most commonly observed cost-containment methods in the Asia-Pacific region, mainly due to their direct and immediate impact on reducing the financial burden for governments and patients.
- Sophisticated methods are limited: The use of sophisticated methods such as value-based pricing, risk-sharing agreements and international reference pricing are limited in the Asia-Pacific region compared with most developed markets.
- Price volume agreements and cost reviews: Australia, Japan, South Korea and Taiwan have the most complex cost-containment strategies among the Asia-Pacific countries, mainly relying on price volume agreements and market-based transaction cost reviews to control pharmaceutical expenditure.
Comments from Decision Resources Group Analyst Michael Yeung, M.Sc.:
- "The use of HTA will only increase in the Asia-Pacific region. In addition to Australia, South Korea, Taiwan and Thailand—where HTA is established—China, Malaysia and Japan continue to explore adopting HTA into their decision-making process. Manufacturers operating in these regions must be prepared to expand their HTA capacity and their ability to carry out health economics and real-world, evidence-based research to prove the value of their products. The appropriate use of HTA has also been emphasized in recent healthcare reforms in Indonesia and the Philippines."
- "The market for long-listed products will erode quickly as governments look to increase the penetration of generics. Manufacturers should target this opportunity by partnering with local or regional companies; this will be particularly relevant as the Association of Southeast Asian Nations harmonization minimizes trade barriers and standardizes manufacturing requirements among the ten member states."
- Media members are welcome to view the playback of a webinar based on this report entitled Government Cost Containment Efforts in the Asia Pacific Region. For more information, please contact Christopher Comfort at firstname.lastname@example.org.
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