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Pharmaceutical Pricing and Reimbursement in Japan
Decision Resources, Inc., Nov 2006, Pages: 38
Introduction
Japan is the world’s largest price-controlled market for prescription drugs. With few exceptions, the Japanese government sets the reimbursement prices for all newly launched drugs. If pharmaceutical firms hope to survive—and thrive—in the Japanese market, they must thoroughly understand the unique Japanese pricing system and acquaint themselves with its recent changes.
Get the Answers You Need to Shape Your Strategy
To control Japan’s total health care expenditures devoted to drugs, the government sets the reimbursement prices for new branded drugs, rewarding companies that manufacture innovative products. The government also mandates revisions in the prices of all drugs every other year.
How are drug prices currently calculated, and how does the Japanese government plan to enhance its control over drug prices?
What is the pharmaceutical industry’s best hope in influencing the pricing system?
Growth of the Japanese generics market is expected as generics substitution expands and higher copayments compel patients to seek out lower-cost alternatives. However, the market is still relatively underdeveloped. What factors contribute to the relatively small market share for generics?
Will the government’s intent to encourage use of generics prompt greater expansion?
The Japanese pharmaceutical market is likely to continue to grow modestly through 2011. Competition among companies (including generics manufacturers) is expected to grow ever fiercer, as domestic and foreign firms battle for shares of this rich market. What strategies should companies, particularly smaller ones, pursue to ensure their survival?
Scope
National health insurance system: social health insurance programs, benefits, and copayment rates.
Health care expenditures: historical trends and pharmaceuticals’ share of health care spending.
Pharmaceutical pricing environment: initial pricing of branded drugs, methods for calculating reimbursement prices, biennial price revision, repricing, price cuts in longlisted drugs, and the future pricing system.
Cost-containment: prescriber-targeted and patient-targeted measures.
Sales and prescribing trends: market value and best-selling drugs and drug classes.
Generics market: current status, participants, recent changes, and outlook.
Outlook: implications of the pricing and reimbursement environment on the Japanese pharmaceutical market.
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