JAPANESE MINISTER REPORTEDLY SLAMS PHARMACEUTICALS

According to industry reports, a member of Japan's cabinet has launched an unprecedented tirade against the local pharmaceuticals sector. Minister Seiichiro Murakami, who is tasked with driving forward Japan's regulatory reform process, reportedly claimed that the Japanese industry should be "scrapped" and replaced with something more "globally competitive."

The apparent outburst comes at a time when Japan's Takeda prepares to launch its first new drug in the US in six years, but political and economic pressures are growing at home. A key part of the alleged criticisms was Japanese firms' purportedly weak discovery capability, following reports in recent months highlighting the slow development of local biotech and other R&D compared with Western and Asian peers.

Further, Murakami also condemns the "heavy dependence" of Japanese firms on the Japanese health insurance system, according to the reports. Much of this dependency is purportedly on drugs that have been listed for a long period, mainly due to Japanese consumers' well-known opposition to generics. The government panel under Murakami's stewardship could now examine the entire 12,000-product reimbursement list in order to evaluate suitable products for OTC switching.

The comments also appear to support strong financial incentives for innovation, with more OTC products to be non-reimbursable and distributed through non-pharmacy outlets. In general, the reported statements again highlight the government's alarm at rising drug costs, with both official panels and political heavyweights recently weighing in on calls for thorough reform.