Taiwan (the Republic of China) consists of Taiwan Island, the P'enghu Islets, and the islands of Quemoy and Matsu near the Chinese mainland. The capital is Taipei City, which is situated in the far north of Taiwan Island. Taiwan saw its real GDP grow to 5.8% in 2004, largely as a result of exports which soared by 16.8%, and also due to rapid expansion in world trade.
Drugstore and private clinic outlets are estimated to account for approximately 21% of the total pharmaceutical market. There are about 12,707 drugstores and 11,404 dispensing doctors in private clinics.
In 2004, the pharmaceutical market operated in a rather precarious environment. This was due to the introduction of two major hospital cost-containment initiatives, namely the Hospital Self-management and Performance Excellence programmes.
These work with the aim of cutting back prescription volume, the use of newer drugs and outpatient visits. The impact will be considerable in light of the fact that some 75% of the pharmaceutical market is still within the hospital sector. The encouraged use of generics will also definitely have a significant impact on the research-based industry.
