Each country has a different background and challenges in the pharmaceutical industry. Japan is one of the key markets in the global pharmaceutical business and it has been attracting lots of global pharma companies and foreign investors. However, the pricing system is now an obstacle to develop the industry.
What is happening ?
Japanese pharmaceutical market is struggling to attract international investment and comes with risk. It has warned that the supply of some medicines may be interrupted if the NHI drug prices remain low and claimed that the current price system has discouraged drug manufacturers from launching new pharmaceutical products in Japan.
Experts concern about the withdrawal of drugs from the Japanese market and the interrupted supply of essential drugs may lead to a more lenient approach to ensure a stable supply of the latest pharmaceutical products.
Good example is KEYTRUDA by MSD. Investment for additional indication of Keytruda may cause risk to be on the list of price policy. New developments are a kind of punishment for pharma companies nevertheless they took time/cost with the latest technology in the drugs for patients suffering from the disease.
Current challenge about pharma price system in Japan
- It is difficult to invest in the expansion of indications because expansion of indications can become a risk that causes recalculations.
- The rate of drug price reduction is determined by how much the sales amount exceeds the expectations, and the medical value of the expanded indications is not taken into consideration.
- Main products with large sales are likely to be targeted. The rate of reduction is large, which has a huge impact on business management in pharmaceutical companies.
Conclusion
The pricing system is a long-lasting controversial issue. Thanks to this system, people can take treatment with reasonable fee. However, at the same time, the current system leads to a risk not to introduce the latest pharma products in Japan. Although people tend to focus on the negative parts, actually this issue have been improving more than years say some experts. Keep eye open and let’s see how this challenge will be going well.
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