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To Control Japan's Total Health Care Expenditures Devoted to Drugs, the Government Sets the Reimbursement Prices for New Branded Drugs

Posted on: Wednesday, 22 November 2006, 06:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c45669) has announced the addition of Pharmaceutical Pricing and Reimbursement in Japan to their offering.

Japan is the world's largest price-controlled market for prescription drugs. With few exceptions, the Japanese government sets the reimbursement prices for all newly launched drugs. If pharmaceutical firms hope to survive--and thrive--in the Japanese market, they must thoroughly understand the unique Japanese pricing system and acquaint themselves with its recent changes.

Get the Answers You Need to Shape Your Strategy

To control Japan's total health care expenditures devoted to drugs, the government sets the reimbursement prices for new branded drugs, rewarding companies that manufacture innovative products. The government also mandates revisions in the prices of all drugs every other year.

How are drug prices currently calculated, and how does the Japanese government plan to enhance its control over drug prices?

What is the pharmaceutical industry's best hope in influencing the pricing system?

Growth of the Japanese generics market is expected as generics substitution expands and higher co-payments compel patients to seek out lower-cost alternatives. However, the market is still relatively underdeveloped. What factors contribute to the relatively small market share for generics?

Will the government's intent to encourage use of generics prompt greater expansion?

The Japanese pharmaceutical market is likely to continue to grow modestly through 2011. Competition among companies (including generics manufacturers) is expected to grow ever fiercer, as domestic and foreign firms battle for shares of this rich market. What strategies should companies, particularly smaller ones, pursue to ensure their survival?

Scope

National health insurance system: social health insurance programs, benefits, and co-payment rates.

Health care expenditures: historical trends and pharmaceuticals' share of health care spending.

Pharmaceutical pricing environment: initial pricing of branded drugs, methods for calculating reimbursement prices, biennial price revision, repricing, price cuts in longlisted drugs, and the future pricing system.

Cost-containment: prescriber-targeted and patient-targeted measures.

Sales and prescribing trends: market value and best-selling drugs and drug classes.

Generics market: current status, participants, recent changes, and outlook.

Outlook: implications of the pricing and reimbursement environment on the Japanese pharmaceutical market.

Content Outline:

Executive Summary

Strategic Considerations

Stakeholder Implications

Introduction

The National Health Insurance System

Health Care Expenditures

The Pharmaceutical Pricing Environment

Initial Pricing of Branded Prescription Drugs

Methods for Calculating Reimbursement Prices

Similar-Efficacy Comparison Methods

"Me-Too" Drugs

Price Comparators

Cost Calculation Method

Foreign Price Adjustment Rule

Price Premiums

Biennial Price Revision

Repricing

Price Cuts for Long-Listed Drugs

Ongoing Discussions on the Future Pricing System

Cost-Containment

Prescriber-Targeted Measures

Patient-Targeted Measures

Sales and Prescribing Trends

Generic Drugs

Current Status of the Generics Market in Japan

Participants in the Generics Market in Japan

Market Leaders

New Entrants

Recent Changes in the Generics Market

The Japanese Government's Stance on Generics

Introduction of the New Prescription Form

Generics Use in the Diagnosis-Procedure System

Increasing Public Awareness of Generics

Efforts to Improve the Reliability of Generic Drugs and Generics Manufacturers

Outlook for the Generics Market in Japan

Outlook for the Japanese Pricing and Reimbursement Environment

Tables

Figures

Appendix

Glossary of Japanese Terms Used in This Report

Companies Mentioned:

- Astellas

- Banyu

- Chugai

- Daiichi Sankyo

- Eisai

- Fujisawa

- Genzyme

- GlaxoSmithKline

- Hexal

- Kissei Pharmaceutical

- Meiji Seika Kaisha

- Merck

- Mitsubishi

- Nichi-iko

- Nidek

- Nihon Chouzai

- Nippon Boehringer Ingelheim

- Nihon Pharmaceutical Industry

- Nippon Chemiphar

- Novartis

- Pfizer

- Ranbaxy Laboratories

- Sandoz

- Sankyo

- Sanofi-Aventis

- Sawai

- Taiyo Yakuhin

- Takeda

- Tanabe Seiyaku

- Teva Pharmaceutical

- Towa

- Toyamakagaku

- Yoshitomi

For more information visit http://www.researchandmarkets.com/reports/c45669

Source: Decision Resources

Source: Business Wire

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