Industry Concern At Japan Drug Cost Proposals

the Pharmaceutical Research & Manufacturers of America has questioned whether the draft report issued by Japan's Central Social Insurance Medical Council (Chuikyo) at the end of October, directing the Ministry of Health and Welfare to reduce drug costs as a proportion of health care spending, has "focused on the quality of patient care and the ability of the research-based pharmaceutical industry in Japan to continue discovery of innovative medicines."

In Japan last week for the 20th joint meeting of the Japan Pharmaceutical Manufacturers Association, the PhRMA and the European Business Council, PhRMA chairman Lodewijk de Vink said the seriousness of this omission had been stressed in talks with Japanese health officials. "It is vital that we meet when changes are being proposed for the pricing of pharmaceuticals," he said, and it was also vital to recognize that drugs cut costs rather than raising them. He called for a more sophisticated accounting of the "cost" of drugs - "not the one-dimensional price of a pill, but the impact it has on reducing hospital stays, speeding recovery, eliminating surgeries and improving quality of life."

Industry "Must Develop Alliances" Participants at the JPMA/PhRMA/EBC meeting expressed their concern at Chuikyo's proposals for repricing of certain products, generic pricing (or listing) of older products, expansion of the "flat-sum" payment system and the possible increase in the cost burden for innovators of new drug research and clinical trials. The industry must continue to exercise its utmost efforts to develop alliances, it was agreed, not only with health care professionals but also with consumers to achieve the common goal of quality care, recognizing the importance of trade names for drug products and fostering innovative new drug research.