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Pharmaceutical Pricing and Distribution in Japan: The keys to success in the world�s second largest market
Just Pharma Reports, June 2008, Pages: 110
No serious multinational can afford to ignore Japan, but it remains a tough and highly competitive market to crack, with the environment for developing and marketing medicines dominated by price. Virtually no new prescription brand can be introduced without a yakka (reimbursement price) set by the government. Innovative new drugs receive price premiums while others are capped at the price of older entrants. Discounting to the trade is inescapable, but is punished by downward price revisions on a scale and frequency unseen elsewhere. Big selling brands and now others in the same class are subject to special price cuts. Distribution is inherently linked to the pricing process and is particularly opaque to outsiders.
Whether the challenge is entering the Japanese market for the first time, moving up the all-important ranking there by market share, or negotiating with a local in-licensing partner, this report is designed to help.
- New drug pricing and price revision processes explained
- Written by an acknowledged expert on the Japanese market with 20 years’ experience
- Fully researched through field interviews conducted in Tokyo and Osaka with industry leaders, government officials and others during March 2008
- Incorporates all pricing rule changes that came into effect from April 2008
- Pro-generic measures critically appraised
- Key role of wholesalers and how they are paid clarified
- Prospects for future reform to the P&R processes discussed
Donald Macarthur’s ‘Pharmaceutical Pricing, Sales and Distribution in Japan’, published by Scrip Reports in 2000, received strongly favourable reviews:
“Mr Macarthur has written a tour de force on the Japanese pharmaceutical market that should be required reading for every person who is contemplating doing business in Japan. In fact, it is a useful refresher course for people who think they know the Japanese market.”
P Reed Maurer, President, Nippon Pharma Promotion
“He is known for his knowledge of the Japanese pharmaceutical regulatory system and industry”
Book review, Pharma Japan, 19 June 2000
About the Author:
Donald Macarthur is an independent analyst, consultant and writer on international pharmaceutical business issues. Issues covered include drug cost containment policy worldwide, pricing and reimbursement, hospital access, European integration and enlargement, wholesale and retail distribution, mail order, homecare, orphan drugs, generics, parallel trade, Rx-to-OTC switching, and several aspects of the Japanese market and industry.
He has written over 50 major reports and also founded, edited and published for four years the world’s first periodical on drug pricing and reimbursement, Pharma Pricing Review..
Formerly with PriceSpective and also the first Secretary General of the European Association of Euro-Pharmaceutical Companies, consultancy clients include the European Federation of Pharmaceutical Industries and Associations - he was the very first consultant ever used by EFPIA - Pharmaceutical Research and Manufacturers of America (PhRMA), the European grouping of national full-line pharmaceutical wholesaling associations (GIRP), the UK’s Office of Fair Trading, other government agencies, and many major multinational biopharmaceutical manufacturers, legal and financial firms. Numerous presentations have been given at international conferences, and he has testified both at a US Senate Committee hearing and at the HHS Secretary’s task force hearing on prescription drug importation. His articles have appeared in many English language pharmaceutical business journals, with some translated into Japanese, German and Turkish.
Qualifying as a pharmacist from the University of London, Mr Macarthur's early career involved community and hospital pharmacy practice, 16 years in development, regulatory affairs and medical department functions in the pharmaceutical industry in the UK (Fisons, 1969-72; Parke-Davis, 1972-75; Roche, 1976-78; Serono, 1978-82; Lundbeck 1982-84), one year in Japan, and four years with PJB Publications (publishers of Scrip).
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