Abstract
We aimed to analyze the market structure and changes in the market share of new drugs, original drugs, and generic drugs in the pharmaceutical market over the past ten years. We utilized national health insurance claims data, including both national health insurance and medical aid, from 2007 to 2017 to establish pharmaceutical expenditure and usage data. The drugs are categorized into new drugs, original drugs (expired patents), and generic drugs. Furthermore, we classified the original drugs as single-source and multi-source original drugs based on whether generic drugs had entered the market. Market share is calculated based on the volume and value of drugs in each category. The results indicate that the total pharmaceutical expenditure increased by 1.75 times, from 10.4 trillion Korean won (KRW) in 2007 to 18.2 trillion KRW in 2017. The number of claimed ingredients and drug items also increased during the same period. In 2017, the market share of new drugs accounted for 10.3% of the total pharmaceutical expenditure, while original drugs and generic drugs accounted for 45.9% and 43.8%, respectively. The study reveals a slight decline in the market share of generics in the decade. Further sub-analyses based on formulation, medical center types, and the number of generic drugs provide additional insights into the market dynamics. These findings contribute to understanding the trends and implications of pharmaceutical expenditure and the role of generics in achieving sustainable development in national health insurance.
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