Japan’s Drug Pricing Policies Cool Pharma’s Ambitions

November 22, 2022

A new report by the Office of Pharmaceutical Industry Research, a part of a major pharma industry group in Japan, showed that over a quarter of member companies think of Japan as a lower investment priority in recent years. The majority of companies, which are nearly evenly split between overseas and Japan-based, saw no difference in market prospects in the country. The driving force of some companies’ negative outlook was annual drug price revisions.

According to , “Six companies responded to the OPIR survey by claiming that a lower drug price was the main reason for them to change their strategy in the market while another two companies said that the drug price was the second most important factor for them to change their investment plan. Other reasons include lower sales demand and high investment costs. In terms of the influence caused by negative changes in international investment in Japan, the pharmaceutical companies that decided to lower their business priority in Japan reported lower pharmaceutical sales. A lower number of clinical trials and regulatory filings were other important influences behind the decision. Other contributing factors include the decreasing number of post-market studies and difficulties in primary research and manufacturing.”

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