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Korea's Pharmaceutical/Biotechnology Industry
Pharmaceutical Industry (2006)
| Item | Unit | Medicine1) |
|---|---|---|
| No. of Companies | Permit Holders: 781 Manufacturers: 570 |
|
| No. of Employees | 70,681 | |
| - Production | 21,633 | |
| - Research | 6,372 | |
| Production Amount | KRW100 million | 114,728 |
| (average rate of increase during 2001-2006) |
(%) | (8.3) |
| Market Size2) | 〃 | 138,820 |
| (average rate of increase during 2001-2006) |
(10.1) | |
| Global Market Share | % | 2.3 |
| Corporate R&D Expenses3) | KRW100 million | 3,445 |
| (R&D/sales) | (%) | (4.06) |
| Government Grants for R&D | 〃 | 1,128 |
| Facilities Investment Amount | 〃 | 4,455 |
| Value-Added Rate4) | % | 34.2 |
| Operating Profit Rate5) | 〃 | 12.0 |
| Labor Productivity | KRW100 million/ No. of production workers |
6.6 |
| Export | KRW100 million | 8,626 |
| Import | 〃 | 32,717 |
| Balance | 〃 | -24,091 |
Source:
- Korea Health Industry Development Institute (KHIDI), 2006 White Paper on Health Industry (Oct. 2007), KHIDI,2007 Analysis Report on the Pharmaceutical Industry (Dec. 2007), KHIDI Report on the Health Industry, Vol. 2 (Dec. 2007), Statistical Survey Report on the Mining Industry(Dec. 2007), IMS Health Market Prognosis(March 2007)
Notes :
- 1) Includes finished goods and raw materials, excluding quasi-drugs
- 2) Domestic production + import - export
- 3) Total amount of corporate investment in R&D as of 2005
- 4) (VAT/Sales) x 100
- 5) Based on 123 companies (market listed: 35, KOSDAQ-registered: 20, others: 68) with sales of at least KRW5 billion, whose financial results are disclosed, among a total of 43 manufacturers
Biotechnology Industry(2006)
| Item | Unit | Bio |
|---|---|---|
| No. of Companies | 794 | |
| No. of Employees | 17,316 | |
| - Production | 8,601 | |
| - Research | 8,715 | |
| Market Size1) | KRW100 million | 27,447 |
| (average growth rate during 2001-2006) | (%) | 18.7) |
| Global Market Share | % | 2.2 |
| Production Amount | KRW100 million | 31,595 |
| (average growth rate during 2001-2006) | (%) | (17.6) |
| Corporate R&D Expenses2) | KRW100 million | 5,405 |
| Corporate Facilities Investment Expenses2) | 〃 | 3,135 |
| Government-led Investment in Biotechnology | KRW100 million | 6,615 |
| -R&D | % | 80 |
| - Infrastructure | 〃 | 20 |
| Average Capital | KRW100 million | 120 |
| Capital Ratio | % | 55.6 |
| Export | KRW100 million | 13,502 |
| Import | 〃 | 9,354 |
| Balance | 〃 | 4,148 |
Source :
- Ministry of Education, Science and Technology (MEST), The Korean Biotechnology Industry (Jul. 2006); MEST, 2007 Implementation Plan for Growth in Biotechnology (Mar. 2007); Ministry of Knowledge Economy (MKE)·Korean Agency for Technology and Standards (KATS)·Korea Institute for Industrial Economics & Trade (KIET)·Bioindustry Association of Korea (BAK), 2006 Statistics on Korea's Biotechnology Industry (Dec. 2007); KHIDI, KHIDI Report on the Health Industry,Vol. 2 (Dec. 2007)
Notes :
- 1) Domestic sales + imports
- 2) Total investment of companies surveyed (794)
Annual Trends
Pharmaceutical Industry
(Unit: KRW100 million)
| Year | No. of Companie1) | Employees | Market Size | Production | Export | Import | Balance |
|---|---|---|---|---|---|---|---|
| 2004 | 714 (553) |
59,802 | 112,728 | 96,374 | 8,113 | 24,467 | -16,354 |
| 2005 | 759 (546) |
65,003 | 124,312 | 105,985 | 8,136 | 26,462 | -18,327 |
| 2006 | 781 (570) |
70,681 | 138,820 | 114,782 | 8,626 | 32,717 | -24,091 |
| CAGR (%) |
4.6 (1.5) |
8.7 | 11.0 | 9.1 | 3.1 | 15.6 | 21.4 |
Source :
- KHIDI, 2006 White Paper on Health Industry (Oct. 2007); KHIDI, 2007 Analysis Report on the Pharmaceutical Industry(Dec. 2007), KHIDI Report on the Health Industry, Vol. 2 (Dec. 2007), KHIDI Report on the Health Industry, Vol. 2, (Dec. 2007)
Notes :
- 1) No. of companies with permit. The number in ( ) refers to the number of companies with production 1results.
Export and Import of Drugs (2006)
Drug Exports
- Cosmetics 304,595 / 25.0%
- Oriental Medicine 8,964 / 0.7%
- Medicinal Raw materials 408,783 / 33.6%
- Finished Drugs 494,342 / 40.6%
Drug Imports
- Cosmetics 601,883 / 14.7%
- Oriental Medicine 70,634 / 1.7%
- Medicinal Raw materials 1,740,426 / 42.5%
- Finished Drugs 1,685,173 / 41.1%
Source : Korea Food & Drug Administration [KFDA] 2007 Annual Report on Food and Drug (Nov.2007)
In the Korean pharmaceutical market, the top 30 products account for 81.5% (2006) in market share, resulting in an oligopoly
Korea ranks high among OECD member countries in the increasing rate of expenditure on drugs, while staking its claim as a global leader as it increases to spend on healthcare.
Annual Growth in Drugs and Healthcare Expenditures in OECD Countries(1995-2005)
Expenditures on Drugs
- Ireland 7.6%
- Hungary 7.5%
- U.S.A. 7.1%
- Slovakia 6.6%
- Australia 6.4%
- Mexico 5.8%
- Canada 5.8%
- Spain 5.5%
- Korea 5.4%
- Finland 5.0%
- Iceland 4.8%
- Austria 4.9%
- Luxemburg 4.8%
- OECD 4.6%
- Netherlands 4.1%
- Norway 4.0%
- Portugal 3.7%
- Sweden 3.6%
- Germany 3.5%
- Switzerland 3.3%
- France 3.1%
- Italy 2.9%
- Czech 2.9%
- Denmark 2.7%
- New Zealand 2.5%
- Japen 0.8%
Total Expenditures on Healthcare
- Ireland 7.2%
- Hungary 4.9%
- U.S.A. 3.6%
- Slovakia 4.3%
- Australia 4.7%
- Mexico 3.4%
- Canada 3.2%
- Spain 3.0%
- Korea 7.6%
- Finland 3.5%
- Iceland 5.0%
- Austria 2.4%
- Luxemburg 7.4%
- OECD 4.0%
- Netherlands 3.1%
- Norway 3.4%
- Portugal 3.8%
- Sweden 3.8%
- Germany 1.8%
- Switzerland 2.8%
- France 2.3%
- Italy 3.2%
- Czech 2.5%
- Denmark 2.8%
- New Zealand 4.3%
- Japen 2.6%
Annual Real Growth Rate(%)
Biotechnology Industry
(Unit: KRW100 million)
| Year | No. of Companies | Employees | Domestic Sales | Export | Import | Balance |
|---|---|---|---|---|---|---|
| 2004 | 627 | 12,138 | 12,854 | 11,345 | 6,730 | 4,615 |
| 2005 | 708 | 13,867 | 15,403 | 12,311 | 7,912 | 4,399 |
| 2006 | 794 | 17,316 | 18,093 | 13,502 | 9,354 | 4,148 |
| CAGR | 12.5 | 19.4 | 18.6 | 9.1 | 17.9 | -5.2 |
Source: MKE·KATS·KIET·BAK, 2006 Statistics on Korean Bio-Industry(Dec. 2007)
Status of Major Companies (2007)
(Unit: US$ million)
| Ranking | Company | Sales | R&D | Website |
|---|---|---|---|---|
| 1 | Donga Pharmaceutical | 635,933 | 39,642 | www.donga.co.kr |
| 2 | Hanmi Pham | 501,049 | 54,769 | www.hanmi.co.kr |
| 3 | Yuhan | 482,204 | 29,780 | www.yuhan.co.kr |
| 4 | Green Cross | 442,299 | 28,626 | www.greencross.com |
| 5 | Jeil Pharmaceutical | 305,027 | 8,383 | www.jeilpharm.co.kr |
| 6 | Choongwae Pharma | 385,010 | 17,679 | www.cwp.co.kr |
| 7 | Chong Kun Dang | 252,021 | 22,070 | www.ckdpharm.com |
| 8 | Kwangdong Pharmaceutical | 250,523 | 4,119 | www.ekdp.com |
| 9 | Handok Pharmaceuticals | 262,991 | 12,414 | www.handok.co.kr |
| 10 | LG Life Sciences | 256,402 | 59,170 | www.lgls.co.kr |
Source: Medi Pharms Today <http://www.pharmstoday.com/news/50092>; company websites
Korean Biotechnology Companies
(Unit: US$ million)
| Company | Sales/Net Profit | IPO Date |
|---|---|---|
| Estech Pharma | 19.9/2 | '04. 2 |
| SD | 29.1/9.2 | '03. 1 |
| Estech Pharma | 198.3/14.2 | '97. 6 |
| Komipharm International | 13/-1.1 | '01. 10 |
| Dae Han NewPharm | 57.9/0.7 | '02. 2 |
| Polyplus | 22.3/-7.3 | '02. 12 |
| SanSung P&C | 28.3/-3.1 | '03. 1 |
| Medipost | 14.9/2.3 | '05. 7 |
| Bioneer | 13.5/-6.8 | '05. 12 |
| Bioland | 33.3/6.2 | '01. 5 |
Source: "Business Report" from'http://dart.fss.or.kr/html'
Composition by Biotechnology Sector
- Bioprocess 7%
- other 11%
- Biopharmaceutical 32%
- Bioenvironment 14%
- Biochemistry 23%
Source : KIET(2007)
Major Foreign Drug Companies -Sales in Korea
(Unit: KRW million)
| Company | 2005 | 2006 | 2007 | Growth Rate1) |
|---|---|---|---|---|
| Pfizer Korea | - | 296 | 387 | 30.7% |
| anofi-Aventis Korea | 179 | 296 | 373 | 26.0% |
| GSK Korea | 303 | 358 | 356 | -0.6% |
| Novartis Korea | 233 | 274 | 17.6% | |
| Handok Pharm. Co. (* Hochst) | 221 | 241 | 263 | 9.1% |
| MSD Korea (* Merck & Co.) | 80 | 208 | 244 | 17.3% |
| AstraZeneca Korea | - | 173 | 191 | 10.3% |
| Janssen Korea | 189 | 171 | 190 | 11.1% |
| Bayer Korea | - | 195 | 182 | -6.7% |
| Roche Korea | - | 140 | 151 | 7.9% |
| Schering Korea | 69 | 113 | 122 | 8.0% |
| Boehringer Ingelheim Korea | 60 | 87 | 102 | 17.2% |
| Berna Biotech Korea Corp. | 40 | 49 | 96 | 95.9% |
| Korea Otsuka Pharm. Co. | 83 | 81 | 91 | 12.3% |
| Hanwha Pharm. Co. | 41 | 37 | 40 | 8.1% |
| Fresenius Kabi Korea | 24 | 34 | 39 | 14.7% |
| RP Korea | 63 | 24 | 30 | 25.0% |
| Welfide Korea Co. | 17 | 16 | 18 | 12.5% |
Source : Each company financial report (2008); Daily Pharm News (Apr. 7, 2008)
Notes :
- Year-on-year basis
Investment Trends in the Pharmaceutical and Bio Industry
(Unit: US$ million)
| Company | Investor Organization | Invested Amount |
Business Contents |
|---|---|---|---|
| Celltrion | Vaxgene (U.S.) | 30 | - Bio-medicine company (CMO) - Manufacture of arthritis treatment, colon cancer antibodies, etc. |
| Eugene Science | Meiji Seika Kaisha Ltd. (Japan),H&Q (U.S.) | 9 | Manufacture and export raw materials of ¡°CholZero," cholesterol- H&Q (U.S.) lowering beverage |
| Anterogen | Dinippon Sumitomo Pharma (Japan) | 1 | Heart function recovery using cells excerpted from patients' bone marrow |
| DNA Link | Orchid (U.S.) | 1 | Research on Single Nucleotide Polymorphism (SNP) |
| Viromed | Takara Bio Inc. (Japan) | 6 | Clinical trials for cancers or hereditary diseases |
| Bernabioteh Korea | Bernabiotech (Switzerland) | 10 | Manufacturing and development of conjugate vaccines |
Source: Invest KOREA <www.investkorea.org>
Competitiveness of Korea's Pharmaceutical/ Biotechnology Industry
Rapid Growth Rate
Domestic market: The pharmaceutical and biotechnology industry showed an annual growth rate of 10.1% and 18.7%, respectively, from 2001 to 2006. Among others, bio-food, bio-medicine, and bio-environment posted high growth rates of 62.4%, 31.0%, and 18.5%, respectively, from 2002 to 2006.
New Drug R&D Activities
In Korea, 26 major innovative pharmaceutical companies plan to sharply increase investment in new drug R&D from 5.3% of total sales in 2004 to 7.2% by 2009.
As of April 2007, Korea's innovative pharmaceutical companies had 44 items in clinical trials and 69 in the pre-clinical phase.
Compared to 2004, Korea has seen a high rate of increase in the number of research projects with 49% in new drug development and 69% in new technology.
R&D Projects of Korean Pharmaceutical Companies
| Item | Development Phase | No. of R&D Items | Growth Rate (%) |
||
|---|---|---|---|---|---|
| April 2007 |
December 2004 |
||||
| New Drugs | Commercialization Drug Approval |
12 2 |
9 1 |
40 | |
| Clinical Trials | Phase 3 | 11 | 7 | 57 | |
| Phase 2 | 17 | 10 | 70 | ||
| Phase 1 | 16 | 13 | 23 | ||
| Subtotal | 44 | 30 | 47 | ||
| Pre-clinical | 69 | 49 | 41 | ||
| Search | 50 | 23 | 117 | ||
| New Technology, Biotechnology, Medicine, Super Generic |
New Technology, New Dosage Formula, Complex Dosage Formula, DDS |
122 | 71 | 72 | |
| Bio Medicine (including cell treatment) | 47 | 22 | 114 | ||
| Raw Materials (for pharmaceuticals) | 110 | 68 | 62 | ||
| Diagnosis Drugs | 9 | 10 | -10 | ||
| Other (functional materials/goods) | 11 | 11 | 0 | ||
| Total | 473 | 294 | 61 | ||
Source: KHIDI, Current Status of the Korean Bio Industry(May 11, 2005)
Major Achievements
In just 20 years, Korea has shown many achievements in new drug development as shown in the table below.
New Drug Development Status
| No. | Drug | Company | Date of Approval |
R&D Period (years) |
R&D Expenditures Efficacy (government share) |
Efficacy |
|---|---|---|---|---|---|---|
| 1 | Sunpla Inj. | SK Chemical |
'99. 7 | 10 | 8.7(16) | Stomach Cancer |
| 2 | EGF Topical Solution |
Daewoong | '01. 5 | 8 | 5.4(3) | Diabetic Foot Ulcer |
| 3 | Joins Tab. | SK Chemical |
'01. 7 | 9 | 6.5(5) | Arthritis |
| 4 | Milican Inj. | Dong-wha | '01. 7 | 8 | 4.6(0) | Liver Cancer |
| 5 | Q-roxin Tab. | Choongwae | '01.12 | 7 | 5.4(6) | Urinary Tract Infection |
| 6 | Stillen Cap. | Donga | '02. 6 | 9 | 19.4(5) | Stomach Inflammation |
| 7 | Factive Tab. | LG Life Sciences |
'02.12(KFDA), '03.4(U.S.FDA) | 11 | 322.9 (GSK 83%) |
Respiratory Tract Infection |
| 8 | Camtobell Inj. | CKD Pharm | '03. 10 | 11 | 16.1(13) | Ovarian/Lung Cancer |
| 9 | Maxmarvil Tab. | Yuyu | '04. 11 | 7 | 2.7(6) | Osteoporosis |
| 10 | Revanex Tab. | Yuhan | '05. 9 | 15 | 43(7) | Peptic Ulcer |
| 11 | Zydena Tab. | Donga | '05. 11 | 9 | 21.5(11) | Erectile Dysfunction |
| 12 | Levovir Cap. | Bukwang | '06. 11 | 11 | 120.3(1.5) | Hepatitis B |
| 13 | Mvix | SK Chemical |
'07. 7 | 10 | 16.1(10) | Erectile Dysfunction |
Source: 2007 Research Data from Korea Drug Research Association (KDRA)
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