Japanese NHI Drug Price Calculations

The Federation of Pharmaceutical Manufacturers' Associations of Japanhas passed to its member associations a notification from the Ministry of Health and Welfare, setting out the price calculation method to be used in April's National Health Insurance drug price revision, and the range of long-listed original drugs for which generics are listed, reports Pharma Japan.

It says the revised NHI prices will equal the weighted average market price, minus tax (1.03 + 0.02 x 0.9) + current NHI price x R-zone, but will not exceed the current NHI price x 104 + 103. An adjustment for an inventory period of about a month will apply concerning the rise in consumption tax, but this adjustment will not apply to radiopharmaceuticals and blood products with short shelf lives.

Prices of long-listed (approved since October 1, 1967) original drugs, for which generics of the same therapeutic category and with the same active ingredient are listed, will be calculated using an 8% R-zone; the MHW estimates that this covers about 900 products. Drugs for which there are generics with the same active ingredient, therapeutic category and dosage form but with differing specifications will be included.