Bio Association: "Biohealth Exports Continue to Grow in the Second Half"

Bio-similar Sales Expansion Expected in Europe and the US
Diagnostic Kit Exports Also Anticipated in the Second Half

[Asia Economy Reporter Kim Ji-hee] The Korea Biohealth Association announced on the 2nd that, based on feedback from major domestic biohealth export companies, exports are expected to continue increasing in the second half of this year.

First, in the pharmaceutical sector, sales of biosimilars, the largest export item, are expected to expand in Europe, the United States, and other markets. For botulinum toxin preparations, exports are also expected to continue increasing in the second half of the year due to new approvals and registrations in the Middle East and Southeast Asia. Overall, there were high expectations for export expansion of biopharmaceuticals to the U.S. and Chinese markets.

However, the association explained, "Difficulties related to securing space on aircraft and ships and rising freight costs are expected to persist in the second half of the year," adding, "The worsening COVID-19 situation in India causing difficulties in the supply of pharmaceutical raw materials and the U.S. response to the supply chain of active pharmaceutical ingredients from China are expected to emerge as major issues domestically in the second half."

In the medical device sector, exports of diagnostic kits, which surged last year due to COVID-19, are also expected to increase in the second half. This is because demand for antibodies and neutralizing antibodies is rising in advanced markets such as the EU, and vaccination in regions like Latin America is somewhat delayed. In areas where new confirmed cases are increasing, demand for molecular diagnostic and antigen test products is expected to grow.

Although implant exports decreased last year due to the impact of COVID-19, exports are expected to increase as the COVID-19 situation improves in major export countries and due to the base effect from last year's export decline. Exports of ventilators are also expected to increase at a level similar to last year.

However, the overall export unit price decline is expected to continue in the second half due to increased overseas competition products and bidding competition in the medical device sector. Key issues for the second half of this year include responding to the In Vitro Diagnostic Medical Device Regulation (IVDR) to be implemented in Europe next year, as well as strengthened regulations on medical device cybersecurity and clinical evaluation.

Oh Ki-hwan, Executive Director of the Korea Biohealth Association, said, "Despite the ongoing COVID-19 pandemic and intense market competition, exports of domestic biohealth companies are expected to continue increasing in the second half of this year," adding, "We plan to actively monitor global trends and collect corporate feedback so that our companies can respond proactively to global issues such as the supply chain of active pharmaceutical ingredients from China and India and changes in approvals and permits in major export countries, thereby enhancing export competitiveness."

Meanwhile, according to the 'June and First Half Export-Import Trends' announced by the Ministry of Trade, Industry and Energy on the 1st, biohealth exports recorded $1.33 billion in June alone, a 13.5% increase compared to the same period last year. For the first half of the year, the total was $7.67 billion, a 27.7% increase compared to the same period last year. Accordingly, biohealth was included among the top 10 export industries along with semiconductors, petrochemicals, and automobiles.

This content was produced with the assistance of AI translation services.