Japan Alcohol Addiction Therapeutics Market Analysis

Japan Alcohol Addiction Therapeutics Market Executive Summary

The Japan Alcohol Addiction Therapeutics Market is valued at around $44 Mn in 2022 and is projected to reach $75 Mn by 2030, exhibiting a CAGR of 6.8% during the forecast period.

Alcohol Use Disorder (AUD) is a complex and diverse condition characterized by dysregulation of several executive function-related brain circuits, resulting in excessive alcohol consumption despite negative consequences for one's health and social life, as well as withdrawal symptoms when alcohol access is restricted. Anyone may get AUD, regardless of age, gender, or background. AUD may have a significant impact on someone's health, relationships, and overall quality of life. Treatment options include both psychological and pharmacological therapies aimed at reducing alcohol use and/or encouraging sobriety, as well as addressing dysfunctional behaviours and impaired functioning. Psychological therapies for AUD include cognitive behavioural therapy, motivational interviewing, and contingency management. Medications used for the treatment of AUD include disulfiram, acamprosate, naltrexone, and nalmefene.

Around 12-15% of the Japanese population who are 20 or older consume alcohol at amounts that are deemed dangerous or hazardous. This corresponds to around 18 million people in the country, making this a major issue. Japan's market growth is propelled by government acknowledgment, increased mental health funding, and a rising demand for more effective and tolerable novel therapies to address the challenges posed by alcohol misuse in an aging population.

Otsuka Pharmaceutical and Kyorin Pharmaceutical are projected to have a greater market share due to their long-standing involvement in the Japanese CNS market and established medicines such as acamprosate and naltrexone. Among the foreign players, Alkermes' Vivitrol and naltrexone have a considerable share, whereas Lundbeck's Selincro may have a lower proportion due to its recent debut.

Market Dynamics

Market Drivers

Ageing Population: Japan's increasingly aging population raises worries about the health consequences of alcohol misuse, such as liver cirrhosis and mental health disorders. The government's emphasis on enhancing aged healthcare services, particularly increasing mental health funding, fosters the research and implementation of AUD treatments.

Government Support: The Japanese government's "Basic Policy on Mental Health and Welfare" (2012) acknowledges AUD as a serious public health concern and highlights the importance of comprehensive treatment programs. Policy improvements aiming at expanding access to mental health treatments, including coverage for AUD treatment through the national health insurance program, are expected to fuel market expansion.

Rising Demand for Novel Therapies: Existing drugs, such as naltrexone and acamprosate, nevertheless lack efficacy, tolerability, and long-term effectiveness, leading to increased need for novel therapies. The discovery of novel drugs with distinct mechanisms of action, such as disulfiram-based implants and glutamate-modulator drugs, offers great promise for market expansion.

Market Restraints

Social Stigma and Lack of Knowledge: The stigma associated with mental health difficulties and AUD in Japanese society hinders people from seeking help, resulting in a gap between existing needs and treatment usage. Traditional cultural beliefs that promote self-reliance and social conformity might further discourage people from seeking professional aid. Lack of knowledge about available treatment choices or the efficacy of medication-assisted treatment adds to low treatment rates.

System Complexity: Japan's fragmented healthcare system, which separates medical and mental health care, might hinder access to comprehensive AUD treatment. The scarcity of qualified mental health specialists specializing in AUD therapy, particularly in rural locations, poses access hurdles. Reimbursement policies within the national health insurance program may not cover all AUD treatment choices, posing financial challenges for patients.

Regulatory Barriers and Treatment Modalities: In comparison to other markets, Japan's stringent regulatory processes for authorizing new pharmaceuticals might cause the launch of potentially effective remedies to be delayed. Some elements of the healthcare system and patients may choose non-pharmacological methods like psychotherapy, which may restrict the acceptability of medication-assisted treatment.

Healthcare Policies and Regulatory Landscape

Japan’s statutory health insurance system provides universal coverage. It is funded primarily by taxes and individual contributions. Enrollment in either an employment-based or a residence-based health insurance plan is required. Benefits include hospital, primary, specialty, and mental health care, as well as prescription drugs. The national and local governments are required by law to ensure a system that efficiently provides good-quality medical care. The Pharmaceuticals and Medical Devices Agency (PMDA) is the government organization in charge of reviewing drugs and medical devices, overseeing post-market safety, and providing relief for adverse health effects. The PMDA operates under the Ministry of Health, Labor, and Welfare (MHLW). These two government organizations both handle a wide range of activities, from approval reviews to post-market surveillance.

Competitive Landscape

Key Players

• Lundbeck
• AstraZeneca
• Alkermes
• Merck & Co.
• TEVA Pharmaceuticals
• Pfizer
• BioCorRx
• Otsuka
• Kyorin
• Eisai