On December 20, 2024, the Japanese Fiscal Year 2025 NHI drug price revision was implemented. Price revisions in Japan are based on the “discrepancy rates” between the current NHI prices and the actual market prices obtained in the 2024 drug price survey. For branded drugs that have been granted a Price Maintenance Premium (PMP), if the discrepancy rate exceeds the average discrepancy rate of 5.2%, then the drug price will be reduced. For branded drugs that were not granted the PMP, the downward price revision will apply where the discrepancy rate is 3.9%. There are other new price reduction formulas for long-listed drug products, generics, etc.
For the Fiscal Year 2025 drug price revisions, there will also be some other key points. First, the above new rules will only be valid for essential drug products with the same composition and dosage form as those in the Fiscal Year 2024 revision. Also, many of the minimum NHI prices will be increased in the Fiscal Year 2025 revision. There will also be increased pricing for unprofitable drug products. In addition, Japan will continue to add PMP to key innovative drugs going forward.
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.