Japan’s FY2026 drug price revision, which took effect in April 2026, brings another round of pricing cuts under the country’s National Health Insurance (NHI) system. Overall, drug prices were reduced by about 4%, with authorities continuing efforts to control healthcare spending as the use of high-cost therapies increases.
One of the more notable updates is the expansion of repricing rules for older medicines. In the past, some long-listed drugs were somewhat protected from major cuts if generic uptake stayed low. Under the new system, however, older products can still face significant price reductions even when generic substitution has not progressed as much as expected. The policy also now applies more broadly to biologics that face biosimilar competition.
At the same time, Japan is still trying to maintain incentives for innovation. The government continues to offer price protection for certain innovative medicines during their patent period through its revised price maintenance program (PMP). However, those protections are not permanent, and some products are now beginning to see delayed price cuts as patent eligibility expires.
The latest revision highlights the balancing act Japan’s health authorities are facing. While policymakers are under pressure to manage rising healthcare costs, pharmaceutical companies have continued to express concern that repeated pricing reforms could make the Japanese market less attractive for innovative drug development over the long term.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.