The Overview of Japanese CSO Market ver. 2016
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The number of MR in Japan in 2015 was 64,135. CSO saw 3.7% decrease, which was the first time, while it had been increasing in the pat years. Some of pharmaceutical companies decreased the number of MR, mainly by cutting contract MR, due to the rationalization caused by slow domestic sales. Although CSO currently accounts for only 6% share of the total, it has grown by 20%+ over the last several years.
Japanese companies normally prefer to use internal resources. Initially, non Japanese pharma started to use contract MR. Since then, it has gradually widespread to Japanese large sized pharma, and now we can also see increasing Contract MR even in small and mid sized companies. CSO business has been gaining presence over time.
While companies still hesitate to decrease the total number of sales force, they will also see the difficulty to pool large sized of internal resources. As a result, firms will likely bridge this gap by utilizing temporary staff and contract MR. The shift towards contract MR continues, primarily at foreign firms, but Japanese pharmaceutical manufacturers will also follow. Therefore, we expect CSO market will continue to expand for a while.
Without having enough block busters in the market, many of firms will face the operational challenge soon, and they will have to see downsizing the organizations. On the other hand, new entrants will be able to enjoy the market entry with fairly light internal resources, as long as they have products to be launched in Japan. That would be really one of the rare game changing times to pharmaceutical companies, and how a company cope with this opportunity will shape its organization’s future.
We recommend pharma, especially new entrants, utilize contract MRs, with the support from CSO companies, knowing it is rather risky to hold internal sales force nowadays.
Japanese companies normally prefer to use internal resources. Initially, non Japanese pharma started to use contract MR. Since then, it has gradually widespread to Japanese large sized pharma, and now we can also see increasing Contract MR even in small and mid sized companies. CSO business has been gaining presence over time.
While companies still hesitate to decrease the total number of sales force, they will also see the difficulty to pool large sized of internal resources. As a result, firms will likely bridge this gap by utilizing temporary staff and contract MR. The shift towards contract MR continues, primarily at foreign firms, but Japanese pharmaceutical manufacturers will also follow. Therefore, we expect CSO market will continue to expand for a while.
Without having enough block busters in the market, many of firms will face the operational challenge soon, and they will have to see downsizing the organizations. On the other hand, new entrants will be able to enjoy the market entry with fairly light internal resources, as long as they have products to be launched in Japan. That would be really one of the rare game changing times to pharmaceutical companies, and how a company cope with this opportunity will shape its organization’s future.
We recommend pharma, especially new entrants, utilize contract MRs, with the support from CSO companies, knowing it is rather risky to hold internal sales force nowadays.