Japan Hopes to Boost Drug Prices for Innovation

Like other drug markets, downward price revisions in Japan are common. In an effort to boost drug prices, Japan has a program called the Price Maintenance Plan (PMP). Under the PMP plan, the MHLW allows an additional premium to specific drug prices. On August 23, the Drug Pricing Organization (DPO) recommended several proposals for 2024 drug reimbursement. First, the DPO recommended that more pediatric drugs be eligible for PMP. Second, the DOP suggested that the PMP plan be used more frequently for innovative drugs. The PMP program should also be used for new overseas drugs that once registered in Japan will be beneficial to Japan. Third, the DPO suggested that drugs priced using the comparator method, when there are price changes in actual use, be dropped.

In addition to the above, the Japanese MHLW also suggested to jump-start innovation by introducing an “innovation box” tax program. This program will allow drug companies a tax break on income received from drug intellectual property sources and encourage R&D spending in Japan.


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.