BMI's Executive Summary

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Taiwan is of intermediary interest to multinational pharmaceutical firms operating in the Asia Pacific region. Positives to the US$4.32bn market include a traditional preference for branded medicines, a strong research environment and a highly urbanised population. However, several recent price cuts and a less than clear operating environment provide a degree of concern. BMI is expecting reasonable growth, with the market set to reach a valuation of US$5.29bn by 2012.

Small pharmacies are strongly opposed to the price cuts. According to a September 2007 survey, drugstores were suffering losses because purchasing costs were sometimes higher than reimbursement prices. This resulted in some pharmacies refusing to provide dispensing services anymore, and advising patients to get their prescriptions filled by hospitals.

The domestic industry received a boost in September 2007, when the Ministry of Economic Affairs unveiled anew tax relief to encourage research and development (R&D). Under the 'Act of the Development of Bio-pharmaceutical Industry', if drug-development activities account for over 5% of turnover or 10% of investment capital, a company will benefit from the measure.

Taiwan's biotechnology sector is poised for rapid expansion after a decade of increasing investment. A multi-million dollar science park is being planned, government involvement is increasing and a local start-up recently acquired rights to an innovative medicine that could one day become a blockbuster. However, there are high risks involved and certain Asian rivals have head-starts in developing life sciences for commercial ends. BMI is confident that the country will continue to develop biotechnology, but cautions that the scale of anticipated upside may not be realised.

Meanwhile, outpacing the pharmaceutical market significantly, Taiwan's US$1.86bn medical device sector is poised to expand steadily over the next 5 years. The two main drivers are a greater uptake of diagnostics for chronic diseases and an aging population, which, like the overall healthcare sector, will provide an increasing demand for products. BMI is projecting 7.1% year-on-year (y-o-y) growth through to 2012, when the sector will have a valuation of US$2.62bn.

Contents

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Chapter 1 - Executive Summary

Taiwan Pharmaceuticals & Healthcare Industry SWOT

Taiwan Political SWOT

Taiwan Economic SWOT

Taiwan Business Environment SWOT

Chapter 2 - Taiwan: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics - Long-Term Risk

Politics - Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Taiwan: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Regime

Intellectual Property Developments

Compulsory Licensing

Pricing Regime

Reimbursement Regime

Price Cuts

Chapter 5 - Industry Trends & Developments

Healthcare System

Health Status

Domestic Pharmaceutical Sector

Table: Taiwan: Local Industry Players

Domestic Company Activity

Foreign Company Activity

Medical Devices

Biotechnology Sector

Vaccines

Traditional Chinese Medicine

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Taiwan Drug Market Forecast Indicators

Key Growth Factors - Industry

Table: Taiwan Health Expenditure Forecast Indicators

Key Growth Factors - Macroeconomic

Table: Population & Output

Prescription Market Forecast

Table: Taiwan Prescription Drug Market Forecast Indicators

OTC Market Forecast

Table: Taiwan OTC Market Forecast Indicators

Generics and Branded Market Forecasts

Table: Taiwan Generics and Branded Market Forecast Indicators

Export/Import Forecasts

Table: Taiwan Trade Indicators

Other Healthcare Data Forecasts

Table: Hospital Data Trends

Key Risks to BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Overview

Chapter 8 - Company Profiles

Leading Multinational Manufacturers

Pfizer

GlaxoSmithKline

Novartis

Sanofi-Aventis

Merck & Co

Indigenous Manufacturer Profile

Yung Shin Pharmaceutical (YSP)

ScinoPharm Taiwan

Synmosa Biopharma

Empax Pharma

Purzer Pharmaceutical

Taiwan Biotech Co

Chapter 9 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 10 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 11 - Country Snapshot: Taiwan Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

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BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: