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Japan is instituting some measures that are aimed to increase the stability of their national health insurance. These repricing initiatives have been historically conducted in Japan by the Ministry of Health, Labor, and Welfare (MHLW) every other year. Pharmaceutical costs have been escalating in Japan due to the rapidly aging society. Medical spending is expected to increase by 75% by 2040. One of the measures to stabilize the system is the discounting of certain high – demand pharmaceuticals. Japan has delayed discounting the prices for pharmaceuticals offered by the country’s national health insurance system that was intended to take effect this past April.
The basic goals of the fundamental reform of the drug pricing system is to achieve the sustainability of the health care system and the promotion of innovation.
The planned price cuts are intended to modify large gaps between prices for those products accessible by Japan’s National Health Insurance system and market prices. The drug prices are adjusted to match the price wholesale manufacturers are providing to medical facilities and the pharmacies. Japan has broadcasted a list of 17 drugs for which prices will be reduced. Some of the high-volume drugs that are being repriced include:
| Company Name | Drug Name |
| Merck & Co. Inc. | Keytruda (pembrolizumab) |
| Daiichi Sankyo Co. Ltd. | Lixiana (edoxaban) |
| Novartis AG | Xolair (omalizumab) |
| Pfizer Inc. | Vyndagel (tafamidis) |
| Otsuka Pharmaceutical | Samsca (tolvaptan) |
| Teijin Pharma | Feburic(febuxostat) |
| Celgene Corp. | Revlimid(lenalidomide) |
| Astrazeneca | Lynparza (olaparib) |
| Janssen Biotech Inc. | Stelara (ustekinumab) |
| Sanofi SA | Dupixent (dupilumab) |
| Chugai Pharmaceutical | Hemlibra (emicizumab) |
The process of repricing involves a review of drug prices to determine if the drug market has increased above what was expected. The repricing details for pharmaceuticals are agreed upon at a public hearing after discussing Japanese and global pharmaceutical companies’ views.
Producers and suppliers have opposed the price cuts in 2021 because it will stress an industry that is already struggling. Repricing the drugs will challenge business strategies of the Japanese drug industry and limit their abilities to raise revenue and develop breakthrough drugs cost effectively.
Japan’s MHLW will be conducting hearings on the subject matter.
We have over 20 years of experience working globally and with Japan and we are tracking this issue. Please contact us to assist you with market access in Japan.
Sources:
https://www.bioworld.com/articles/432831-japans-drug-repricing-plan-to-hit-some-top-sellers
About GIRS
For more than 17 years, GIRS has been assisting medical technology manufacturers with their market uptake and reimbursement strategies so that patients can have access to the care that they need. To implement successful market access strategies, the GIRS Value Discovery Landscape Assessments® team and the Payer Advocacy Compass® team work together to develop and implement foundation reimbursement landscape and payer advocacy strategies to obtain positive coverage, appropriate payment, and innovative payer contracting arrangements to improve market uptake. For more information, email us at info@girsinc.com or call us at 901-834-9119.
Disclaimer: The information in this blog is based on payer information which is dynamic. It is accurate at the time of posting but should not be construed to be reimbursement or legal advice. CPT® is the trademark of the American Medical Association (AMA).