Japan on right course, says PhRMA president

"I was impressed that Japan is going towards the right direction in the National Health Insurance drug pricing system reform," David Brennan,  president of the Pharmaceutical Research and Manufacturers of America  (PhRMA) and chief executive of Anglo-Swedish drug major AstraZeneca,  said at a recent press conference.

In his address on the introduction of a drug price maintenance special  exception system or one for the price of new drugs to be maintained  during their patent validity, he said: "I have heard that the approach  to introduce this is going forward in a rapid manner in talks with  industry people in Japan." In addition, he said that he has learned the  Ministry of Health Labor and Welfare understands that the rewards (drug  price and patent exclusivity) are necessary to promote innovation.

In order to make the Japanese drug market attractive for foreign  affiliates, as well as domestic drug manufacturers, he urges the  Japanese government to strongly foster the pharmaceutical industry  because this might become a growth driver in the economy. He added that  Japan is in the danger of missing the opportunity to become an R&D hub  in Asia since Singapore and Taiwan are aiming for that position. He  also called for the government to eliminate the current NHI drug price  revision allowing biennial price reductions which has a negative  impact on the Japanese drug industry, such as the foreign companies'  recent withdrawals of R&D footholds and Japan's majors' transferring  their bases to the USA, as well as with regards health care costs as an  investment in humans because this can extend people's longevity and  improve productivity in the society.