Transforming domestic market
As many drug patents have begun to expire and the market for generic drugs flourishes, Japanese companies are forced to adapt to a changing market environment. On the other hand, aging demographics and the growing life expectancy of Japanese society bear various opportunities for medical and pharmaceutical industries due to an increasing demand for medical treatments and pharmaceutical products.At the same time, the Japanese government has been working on reducing long approval processes for new products faced by pharma companies, which may have the positive effect of attracting foreign companies. The government hopes these actions will increase international investment in the Japanese market and pharmaceutical exports from Japan.
Digitalization in demand
Accelerated by the outbreak of the coronavirus disease (COVID-19), pharmaceutical industry in Japan, like many other industries, are experiencing a digitalization movement. According to experts, the Japanese pharmaceutical industry should enhance its entire value chain through digitalization to overcome the sluggish growth of the market. The general hope is that digital technology will significantly increase the efficiency and efficacy of the outputs, especially in the country’s drug discovery research segment.Some major domestic companies have implemented technology, like big data and artificial intelligence (AI), in their drug discovery businesses, with initial results pending. For example, Chugai Pharmaceutical Co., Ltd. began developing MALEXA in 2020, which uses AI machine learning to obtain molecular sequences for the antibody discovery process.