Japan's pharma industry awaits new DPJ Admin's moves with some concerns

As a result of the landslide victory of the Democratic Party of Japan (DPJ) in the recent national election, much is expected to change various aspects of political thought. This applies not least to the country's pharmaceutical industry, which is awaiting these outcomes - partly in positive anticipation but also with some concerns.

New Japanese Prime Minister Yukio Hatoyama said at a press conference shortly after his election on August 30 that biotechnology was at the top of his priority list, saying the sector, among others, would be ensured 'sustained economic growth,' and 'we will promote the necessary regulatory reform but put brakes on excessive regulatory reform.'

The pharmaceutical sector has expressed great hope of the DPJ, reports Pharma Japan, with the relevant trade associations saying that their leaders will explain the sector's position to the DPJ administration as soon as the new Cabinet is formed.

Most industry observers are optimistic that government-private sector dialogs will be continued by the new administration, as had been with that of former Liberal Democrat Party (LDP) PM Shinzo Abe. However, there are some concerns, says Pharma Japan.

Worries about R&D promo tax, drug pricing reforms

Among the worries expressed by drugmakers are ones concerning the R&D promotion tax system, with some afraid that the new administration may want to change this against the industry's interests as part of its efforts to 'revise the LDP's industry patronizing policy.'

There are also concerns that the new government will delay discussions on the National Health Insurance drug pricing system reform, preferring to first consider medical fees.

The greatest challenge for the industry is now to create an environment that facilitates the new government implementing the pharmaceutical industry promotion policy, and for this the sector must actively approach the dramatically increased number of new Diet (Parliament) members from the DPJ, concludes Pharma Japan.