Japan making no real changes in Rx pharma pricing, says DR

Japan has proposed only modest changes to its pharmaceutical pricing mechanism for 2008 and beyond, according to a new report from research and advisory firm DecisionResources, which adds that the changes reflect the Japanese government's focus on containing health care spending. The most recent proposals do allow for an increase in premiums that can be awarded, for example, for innovative drugs (Maketletters passim).

"To qualify for this premium in Japan, a product must have clinically useful new mechanisms of action, must be proven to have greater efficacy or improved safety and must demonstrate resultant, improved management of the target indication," said Stuart Bowman, a director at Decision Resources. "However, this premium is rarely awarded given the stringent, and less than transparent, qualifying criteria," he added.

The 2008 changes also herald the next round of biannual price cuts. There will likely be extraordinary price cuts for big-selling products, specifically those for which sales have significantly exceeded original (official) revenue projections, notes the report.