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Governments Face Immense Pressure to Develop Financially Sustainable Healthcare Systems in the Asia-Pacific Region

Companies mentioned in this article: Decision Resources Group

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.

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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."

Additional resources:

    --  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 ccomfort@dresourcesgroup.com.

About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. Clients rely on this analysis and data to make informed decisions. Find out more at www.DecisionResourcesGroup.com.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact:

Decision Resources Group
Christopher Comfort
781-993-2597
ccomfort@dresourcesgroup.com

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SOURCE Decision Resources Group