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Pharmaceutical Pricing and Reimbursement in Japan, 2008
Decision Resources, Inc., May 2008, Pages: 39
Introduction
The pharmaceutical industry faces challenging times in the Japanese market. The government has expressed its desire to reward the development of innovative medicines and has promised more-generous price premiums for innovative drugs. At the same time, the government strictly controls launch prices and continues to erode prices throughout the product life cycle. There are, however, pricing changes effective in 2008 that could signal the beginning of pricing reforms that promote therapeutic innovation.
Get the Answers You Need to Shape Your Strategy
- Japan has the world’s second-largest pharmaceutical market, and the world’s largest price-controlled pharmaceutical market. How do the country’s governing agencies control the prices of newly launched prescription drugs? What types of postmarketing price cuts are in place to curb pharmaceutical expenditures?
- The reimbursement prices of new drugs in Japan are determined by confi dential negotiations between the manufacturer and the Japanese Ministry of Health, Labor, and Welfare as soon as the drug wins regulatory approval. What methods are used to calculate drug reimbursement prices? What criteria are used by the governing agencies to determine the pricing method for a given drug?
- The Japanese market for generics has begun to grow steadily, albeit slowly. What factors account for the modest market share of generics in Japan? Which pharmaceutical companies are looking to capitalize on the growing demand for generics in Japan? What is the government doing to improve the generics supply and the reputation of the generics industry among patients and medical professionals?
Scope
- Overview: organization and funding of the Japanese healthcare system; soaring growth of the country’s healthcare expenditures; prescription drug prices in Japan compared with other major markets.
- Price setting: initial pricing of branded drugs; similar-effi cacy pricing methods; price premiums; cost calculation method; foreign price adjustment rule.
- Postmarketing price changes: the government’s biennial National Health Insurance price revisions; price cuts for long-listed drugs; repricing in response to market expansion.
- Promoting the use of generics: evolution of the Japanese generics market; recent changes in the generics market; use of generics in hospitals; measures to improve the generics supply; increasing competition in the Japanese generics market.
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