Japanese Drug Survey May Lead to a Relaxation of Price Cuts

A recent study by a research department at the Japan Pharmaceutical Manufacturer Association (JPMA) outlines how many Japanese and foreign drug companies are not increasing (and in some cases decreasing) their investment and focus in Japan’s drug market. One of the many reasons for this is drug price reductions over the years. While Japan has generally implemented price cuts every two years, there have been annual off-year reductions over the last few years.

Given the situation above, the MHLW is now discussing limiting price reductions for 2023. Industry has claimed that lower prices reduce investment, the initiation of new drugs, and can cause supply shortages.