2024 New Year's Greetings
As we begin 2024, we would like to extend our sincere New Year’s greetings.
Looking back on last year, the prolonged COVID-19 pandemic began to subside, and the streets regained their former vibrancy. The flow of people and goods resumed, and the economy began to rebound.
On the other hand, a series of events have cast a shadow over the economy, including the continued depreciation of the yen, extreme heat, soaring prices, and labor shortages. Supply concerns regarding pharmaceuticals—triggered by misconduct at certain companies—have persisted for an extended period, compounded by supply chain disruptions and rising production costs for pharmaceuticals.On behalf of the JPMA, I would like to offer my deepest apologies for the significant inconvenience and concern this has caused to patients and healthcare professionals. I would also like to express my gratitude to everyone who is working tirelessly to maintain healthcare services amid these difficult circumstances.
Looking globally, we have faced economic challenges such as the ongoing conflicts in Ukraine and Israel, China’s economic slowdown, and soaring prices worldwide. This year will also see the U.S. presidential election, and a shift in the political landscape is anticipated.
Hiroaki Ueno, Chairman, Japan Pharmaceutical Manufacturers Association (
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As the JPMA, we are committed to building a robust supply chain to resolve the current supply issues. Furthermore, even under these difficult circumstances, we must contribute to extending the healthy life expectancy of the Japanese people and deliver drug discovery innovation to the world. Each company will devote its full efforts to these goals.
For pharmaceutical companies to continue producing innovative medicines, we need a drug pricing system that appropriately values innovation.However, the fundamental reform of the drug pricing system in 2018 introduced a framework that does not necessarily maintain the prices of innovative new drugs, and with annual price revisions now in place, Japan’s pharmaceutical industry has been weakened, and the appeal of the Japanese market in the global marketplace has gradually eroded.As a result, “drug lag” and “drug loss”—where the introduction of useful pharmaceuticals into the domestic market is delayed or their development is not even undertaken—have occurred.
To overcome this situation, the JPMA has advocated for the need for a “drug pricing system that appropriately values innovation.” As a result, the promotion of pharmaceutical innovation was included in the government’s Basic Policy.Furthermore, this year’s drug pricing system reform is expected to introduce mechanisms that recognize the early introduction of innovative new drugs to Japan and fully maintain drug prices through the “New Drug Creation Surcharge,” among other measures; the details are currently being finalized.This reflects the expectations that the government and the public have for the pharmaceutical industry, and I feel a deep sense of responsibility that the industry must unite to meet these expectations moving forward.
This year marks a milestone with the triple revision of medical, long-term care, and disability welfare services, and the healthcare sector will face numerous challenges, including an aging population, the post-COVID era, soaring labor costs, and rising utility costs. Additionally, there is the “2024 issue,” which involves the implementation of regulations on logistics and physicians’ overtime work.On the other hand, this year also marks a turning point in the digitization of healthcare, with the successive introduction and implementation of online eligibility verification, data integration between medical and long-term care systems, and the establishment of a regulatory framework for programmable medical devices. For us as well, digital technology offers a wide range of possibilities, including its application in drug discovery, the streamlining of distribution, and the utilization of medical data.We must leverage digital technology to build a more efficient healthcare system and resolve these numerous challenges.
As the need to evaluate innovation is being reaffirmed and the approach to evaluating pharmaceuticals is being reexamined, we will work to improve public access to new drugs and ensure a stable supply. Furthermore, by strengthening our collaboration with relevant organizations, we will develop new drugs that can compete on the global stage and contribute to the advancement of the pharmaceutical industry and the promotion of public health.
In closing, I would like to extend my New Year’s greetings and express my hope that this year will be a wonderful one for all of you.