Japan Atopic Dermatitis Therapeutics Market Analysis

Japan Atopic Dermatitis Therapeutics Market Analysis: Executive Summary

The Japan Atopic Dermatitis Therapeutics Market is at around US $0.77 Bn in 2022 and is projected to reach US $1.56 Bn in 2030, exhibiting a CAGR of 9.3% during the forecast period.

Atopic dermatitis, commonly known as eczema, is a persistent skin condition characterized by inflammation, redness, and irritation. It is non-contagious and can affect individuals of all age groups, with a higher prevalence often observed in childhood. Key risk factors include a personal or familial history of eczema, allergies, hay fever, or asthma. Common symptoms include intense itching, redness, swelling, cracking, clear fluid discharge, crusting, and scaling. Approaches to managing atopic dermatitis may involve regular moisturizing and self-care practices, the application of medicated creams to alleviate itching and support skin repair, the use of topical or oral medications, and additional therapies such as phototherapy or immunosuppressants. Several companies, including Sanofi, Pfizer, AbbVie, Leo Pharma, Eli Lilly, and Teva Pharmaceutical, provide therapeutic options for atopic dermatitis, encompassing topical corticosteroids, calcineurin inhibitors, and other medications designed to alleviate the symptoms of the condition.

Japan is one of the leading countries in the prevalence of AD, with estimates suggesting a prevalence ranging between 10–20% in children and 2–5% in Japanese adults. The market is being driven by significant factors such as the increasing disease burden, growing healthcare spending, and evolving treatment landscape in the therapeutics market. However, conditions such as limited affordability, regulatory hurdles, and health system challenges limit the growth and potential of the market.

Market Dynamics

Market Growth Drivers

Increasing AD burden: Japan experiences one of the highest prevalence rates of atopic dermatitis (AD) worldwide, impacting approximately 10–20% of children and 2–5% of adults. As the population ages and life expectancy increases, the number of individuals prone to chronic skin conditions like AD is anticipated to grow. Environmental factors such as pollution, stress, and dietary changes linked to urbanization are associated with an increased incidence of AD.

Increased government spending: Japan maintains a substantial investment to healthcare, with per capita spending reaching US $4665 in 2020. This enduring investment fosters innovation and accessibility within the AD therapeutics market. A strong private healthcare insurance system ensures broader access to advanced treatments, including biologics. Increasing living standards empower patients and their families to afford newer and more expensive options for AD treatment.

Emerging treatment landscape: The advent of innovative biologics and targeted therapies with enhanced effectiveness and fewer side effects, introduced by pharmaceutical companies like Otsuka, is transforming the landscape of AD treatment. The progress in creating advanced drug delivery systems, such as topical foams and sprays, enhances medication adherence and improves patient comfort. Breakthroughs in genetic testing and biomarkers are laying the foundation for personalized treatment approaches tailored to the specific needs of individual patients.

Market Restraints

Limited affordability: Imported medications, especially recent biologics, come with high costs attributed to research and development expenses, limited competition, and import tariffs. Consequently, a considerable portion of the population finds them largely unaffordable. Despite Japan having universal healthcare, obtaining coverage for AD treatments like biologics often necessitates extensive documentation and justification, resulting in potential delays and denials.

Health system challenges: Despite being a prominent medical nation, Japan encounters a shortage of dermatologists, particularly in rural areas, which constrains access to specialized care for AD patients. Rural areas frequently lack specialized dermatologists and advanced treatment facilities, leading to disparities in access to high-quality care.

Regulatory hurdles: Thorough safety and efficacy assessments can lead to delays in introducing innovative AD treatments in Japan, as compared to other developed markets. Government-imposed price controls and fixed reimbursement rates for specific medications may not accurately represent their actual cost or value, which might discourage pharmaceutical companies from entering the market.

Notable Updates

August 2022, Maruho Co Ltd by Chugai Pharmaceuticals has introduced the Anti-IL-31 Receptor A Humanized Monoclonal Antibody Mitchga in Japan for the management of itching related to AD.

June 2022, Otsuka Pharmaceutical Co., Ltd. has reported the approval of a novel atopic dermatitis treatment, Moizerto® Ointment, available in 1 percent and 0.3 percent formulations, in Japan.

Healthcare Policies and Regulatory Landscape

Japan's healthcare regulatory landscape is overseen by the Pharmaceuticals and Medical Devices Agency (PMDA) and the Ministry of Health, Labour, and Welfare (MHLW). The PMDA is a regulatory body responsible for evaluating and approving pharmaceuticals and medical devices in Japan. The MHLW sets broader healthcare policies and regulations. The regulatory process in Japan is known for its meticulous and stringent standards to ensure the safety and efficacy of pharmaceutical products.

Obtaining a license for a new drug in Japan involves a comprehensive submission to the PMDA, including detailed data on the drug's clinical trials, safety profile, and manufacturing processes. The approval process typically includes a thorough review and consultation with experts to assess the product's suitability for the Japanese market.

For new entrants, the Japanese pharmaceutical market presents both opportunities and challenges. While Japan represents a significant market with a high demand for innovative healthcare products, the regulatory environment can be complex. New entrants must navigate the intricacies of Japanese regulations, including the Pharmaceutical Affairs Law, and work closely with the PMDA to gain approval for their products.

Competitive Landscape

Key Players

• Otsuka Pharmaceutical
• Maruho
• Taisho Pharmaceutical
• Kaken Pharmaceutical
• Fuji Film Medical
• Mitsubishi Tanae Pharma
• Sanofi
• Novartis
• AbbVie
• Leo Pharma