JAPANESE DRUG ASSOCIATION ADDS VOICE TO PRICING DEBATE

The Japan Pharmaceutical Manufacturers' Association (JPMA) has proposed replacing the National Health Insurance system's complex price calculations with a suggested manufacturer's reimbursement price.

Under the proposals, outlined in a JPMA policy paper, drugmakers would suggest prices for their products, along with relevant evidence, to Japan's Drug Pricing Organisation. New drug prices would be calculated on the basis of prices of competitors' products, prices in comparable foreign markets, added value based on cost and likely patient co-payments. Unsurprisingly, the JPMA also calls for the present ratio of drug costs within 20% of health spending to be maintained.

Further, the JPMA has called for an end to large price reductions on original drugs that have generic versions available, as well as the insurance system's policy of re-pricing drugs that have exceeded initial sales forecasts. The JPMA claims that this practice discourages R&D investment.