NHI Drug Price Revision for Fiscal 2025 (FY2025)
December 25, 2024
Japan Pharmaceutical Manufacturers Association
The Central Social Insurance Medical Council has recently compiled the "Outline of the FY2025 NHI Drug Price Revision.
The Japan Pharmaceutical Manufacturers Association (JPMA) has been working to solve various issues with the aim of creating a virtuous cycle of strengthening Japan's drug discovery capabilities and appropriately evaluating innovation. In the meantime, this summer, the government positioned the pharmaceutical industry as a growth and key industry in Japan, and the strengthening of drug discovery capabilities as a national strategy has begun to move forward. The Pharmaceutical Manufacturers Association of Japan (PMAJ) has welcomed this policy and requested that various measures be steadily implemented to continue this trend.
In particular, we have argued that the fiscal 2025 NHI drug price revision (mid-year revision) is not in a position to be implemented because it would put a brake on the trend of the fiscal 2024 NHI price reform, which turned to an evaluation of innovation, and also in light of changes in the environment, including soaring prices, a weak yen, and rising wages.
However, the recent "Framework for FY2025 NHI Drug Price Revision" stipulates that NHI drug prices will be revised for eight consecutive years starting in FY 2018, and that items exceeding an average deviation rate of 5.2% (or 0.75 times the average deviation rate) are subject to NHI price revision, even for drugs that are still under patent. Furthermore, the "deduction of the accumulated amount of additions for new drug creation, etc.," which is not linked to the prevailing market price, was also implemented, even though it is not part of the main revision of the drug price every two years. While there are some measures, such as the "additional amount at the time of NHI price revision," that should be evaluated, the overall reduction in drug costs of 246.6 billion yen is a heavy burden for pharmaceutical companies.
It is truly regrettable that such a negative policy decision has been made at a time when Japan is transforming itself into an innovation-oriented country and pharmaceutical companies are increasingly eager to develop drugs in Japan, and some have begun to reconsider their development plans or have decided to develop drugs domestically. Furthermore, we are concerned that the elimination of drug-lag losses may be set back. The Pharmaceutical Manufacturers Association of Japan (PMAJ) will continue to call for the repeal of the mid-year revision.
The Pharmaceutical Manufacturers Association of Japan (PMAJ) will continue to contribute to healthcare in Japan and around the world through the development of innovative drugs. We ask for the continued understanding and cooperation of all parties concerned.
The End
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Japan Pharmaceutical Manufacturers Association, Public Relations Department
- Phone
- 03-3241-0374