Japan Pharma maintains that NHI drug price cuts contradict MHLW vision

"Although we welcomed the new vision for the Japanese pharmaceutical industry, which has indicated the direction we should consult and was compiled by the Ministry of Health, Labor and Welfare last September (Marketletters passim), we are concerned that the National Health Insurance drug price reduction may impair our determination to invest in R&D in the future and therefore contradicts the [MHLW's] vision," warned Tatsuo Higuchi, chairman of the Tokyo Pharmaceutical Manufacturers Association and president of Otsuka Pharmaceutical at a recent gathering in Tokyo.

Prior to the meeting, Japan's Ministers of Health and of Finance had jointly announced agreement on the rate of medical fee revisions, which included a 5.2% reduction in NHI drug prices, equal to a 1.1% cut on a medical cost basis (Marketletter January 14)

Need for cooperation