Tougher Regulations For Hong Kong Pharmaceutical Market Spell Interesting Opportunities For Players

Hong Kong citizens are growing older according to athe last two years.
recent report by the UNFPA (United Nation PopulationThese avid consumers are increasingly concerned
Fund). With men and women living longer, the formerabout drug and pharmaceutical product safety. After
British colony now has the world's second highest lifeseveral incidents involving pharmaceutical product
expectancy. At present life expectancy is 79.8 yearssafety with tainted products coming across the
for men and 86.1 for women and is projected toborder from Mainland China in 2009, the government
increase gradually to 83.7 for men and 90.1 forhas published a major review to highlight certain
women by 2039. This is mainly due to advancedpharmaceutical areas for improvement. The areas
medical technology and health care system in Hongidentified for improvement includes: Good
Kong, particular interest in healthy living and coherentManufacturing Practice (GMP); pre-market control of
family structures. Rapid development ofdrugs; regulations for importers/exporters,
pharmaceutical products also contributes to the highwholesalers & retailers; pharmacovigilance and public
life expectancy which has a flow on effect for theawareness; and increasing penalties for manufacturers
Hong Kong Pharmaceutical Market.sellers. The regulations help to educate the public and
Presently, only 6.2 percent of the cities' population isdraw awareness to safe pharmaceutical product use.
75 or more but will increase to 16 percent by 2039.With the support from government on legislative
At that time 25% of the population are 65 or over.issue, the expanding opportunity for Hong Kong
This demographic shift creates a new market forpharmaceutical and health care industry is
Hong Kong pharmaceuticals wholesaling and retailing.unprecedented.
The aging population are well looked after due to theAll in all, the city has greatly benefited from the
high-standard health care system. The governmentgrowing mainland China market, with an expected
reports that total health care expenditure is increasedaverage GDP growth rate of 3.7% in the forecast
by 5.4% from 2008 and is expected to grow atperiod. The projected total health expenditure as a
similar rate in the forecast period. Total healthpercentage of GDP pegs continual growth from 5.2%
expenditure per capita is over HKD 14500(approx.to 6.5% to 2015. With this aging population we can
USD 2,000) in 2009 and expected to grow to HKDexpect greater turnover in pharmaceutical and health
37600 in 2033. Hong Kong Pharmaceutical productscare industry as a whole.
rapid rate of consumption has risen more than 4% in