No thanks to unregulated pricing regime.
Hong Kong's pharmaceutical market will continue to see positive growth over the coming years, according to BMI Research.
The Special Administrative Region has a large and growing elderly population and a rising prevalence of chronic diseases that will drive demand for treatments, reflected in a score of 65.8 out of 100 in BMI's Innovative Pharmaceuticals Risk/Reward Index. While growth will be supported by the robust healthcare system, high-value pharmaceuticals will face significant difficulties due to unregulated medicine pricing regime.
Fundamentals underpinning Hong Kong's demand for pharmaceuticals will remain positive, highlighted in the country's score of 50.4 out of 100, slightly below the regional average of 53.8. Pharmaceutical expenditure on a per capita basis is high, reflective of the high penetration of high quality medicines.
Here's more from BMI Research:
Further supporting the growth of pharmaceutical sales and expansion of medicine market in Hong Kong is the well-established healthcare sector, with the hospital authority playing a pivotal role in the provision of healthcare services.
Hong Kong's regulatory environment will remain highly conducive for pharmaceutical research and for the introduction and consumption of novel treatments, highlighted in the country's score of 81.0 out of 100, far above the regional average of 52.7.
Despite Hong Kong being a signatory to all major intellectual property treaties, the level of protection available for products in the country has been an area of concern to the international drug industry, as has the lack of enforcement of patent legislation.
Moreover, pharmaceutical prices in the country are not under any strict form of government control in the public sector and drug pricing is unregulated in the private sector, which perpetuates an uncertain environment for drugmakers.
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