Japan pharma 2023 year in review

Patrick Branch, a Tokyo-based consultant and long-time advisor of pharma and healthcare companies in Japan, provides a view on  notable developments over the last year for the Japanese pharma market.

Japan’s innovative pharma market has been on an upwards trajectory these last 12 months – despite what you may have seen in IQVIA thought leadership reports, industry advocacy body pronouncements or USD-reported results. Overall quarter-on-quarter growth for the first three quarters has ranged in the low-to-mid single digits, and net annual growth looks likely to exceed what was achieved in 2022.

This modest aggregate market growth conceals an ongoing and long-running shift in market mix from post-LOE products to innovative pharmaceuticals.  For those playing in the innovative space, market growth should feel more robust than top-line figures would suggest. For those playing in the legacy space, the reverse is likely true.