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Aging population is becoming the potential social and economic problem for many governments all around the world. These countries including Taiwan are seeking for solutions for the increased healthcare spending. According to the United Nations’ population estimates, we are living in a rapidly aging world. The global share of what we call “senior” or people age over 65 is expected to rise from nearly 8% in 2015 to more than 14% by 2050. The situation in Taiwan is not much different. With increasing life expectancy and a birth rate that continues to decline, the aging population in Taiwan has become more and more obvious.
Widespread adoption of Generic and Biosimilar drugs, as opposed to patented or brand name drugs, could help governments reduce healthcare costs and increase the reach of healthcare services. Patented drugs in the prescription drugs segment account for about 70% of total prescription spending in Taiwan. However, the share is set to decline gradually under pressure from government policies promoting the use of generic products and the increasing switches from prescription segment to OTC segment (RX-to-OTC). We expect the penetration of generic drugs in Taiwan OTC drugs segment to increase as the generic drug market has continued to gain prominence within the pharmaceutical sectors in recent years.
Despite the fact that OTC generic drug market is a highly competitive market in Taiwan, Genedex Co. still aims to provide good quality generic drugs at a competitive price to meet the generic drugs demands. In addition, Genedex Co. understands the ability to quickly bring new products to the market will play a large role in the future success. Thus, product innovation and differentiation will also be the center focus in the business model. Looking into the future, Genedex Co. expects to see growth at a more rapid pace starting from year 2020 as newly developed generic OTC drugs will be introduced to the market to compete with the branded counterparts and also expects to achieve a more solid presence in the market by year 2021.
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