Japan’s annual economic policy blueprint, known as the “honebuto,” is expected to take a more proactive stance on pharmaceutical innovation this year. The 2026 draft includes a commitment to revisit how breakthrough medicines are priced at launch and how drug prices are managed through the patent period — areas where Japan has long drawn criticism for discouraging early market entry.
According to the draft, the FY2027 drug price revision will move forward as planned. Two pricing questions sit at the center of the review: what breakthrough drugs should cost when they first hit the market, and how their National Health Insurance (NHI) prices should hold up over the life of the patent. The draft also flags an overhaul of the cost-effectiveness assessment framework.
On the industry side, the government wants to double the number of multi-regional clinical trials and expand public-private investment in drug discovery. Plans also include greater use of AI in drug development, stronger domestic production of critical pharmaceutical materials, and structural reforms to stabilize generic drug supplies.
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.