Japan Confirms 10% Drug Price Cuts

Japan's Ministry of Health and Welfare has confirmed that it proposesto reduce National Health Insurance prices of prescription drug products by 10% from next April (Marketletter November 3), in a move which the MHW estimates will reduce state pharmaceutical subsidies by approximately 200 billion yen ($1.64 billion) in fiscal 1998, and reduce costs for the health insurance unions by 600 billion yen.

The move will not however reduce drug costs to patients, it is stated.

Takeshi Bito, managing director of the Japan Pharmaceutical Manufacturers Association, says that the proposal would deliver a crushing blow to Japan's drug manufacturers and wholesalers, noting weak demand on the home market and the fact that many drugmakers suffered losses in first-half 1997.