Following the Cabinet’s Approval of the “Basic Policy 2025”
June 13, 2025
Japan Pharmaceutical Manufacturers Association
Chairperson Asuka Miyabashira
Following the report submitted by the Council on Economic and Fiscal Policy, the “Basic Policy on Economic and Fiscal Management and Reform 2025” (“Basic Policy 2025”) has been approved by the Cabinet. We would like to express our respect for the efforts of all those involved in the formulation of this policy.
The policy explicitly states that “policies will be implemented in an integrated manner to foster the development of the drug discovery ecosystem, expand the healthcare market, and strengthen the foundation of drug discovery capabilities.” We view this as a reaffirmation of the importance of our industry, which bears the mission of delivering innovative medicines to patients.While aiming to build a sustainable social security system, and from the perspective of appropriate value assessment of pharmaceuticals, we will continue to engage in active dialogue with relevant stakeholders on the following points:
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Strengthening Drug Discovery Capabilities and Promoting Innovation
This policy outlines the strengthening of drug discovery capabilities and the promotion of innovation and digital transformation (DX) in healthcare, while also explicitly addressing the implementation of appropriate evaluations of drug prices. In response, the JPMA will continue to devote its efforts to the creation of innovative new drugs.
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Cost-Effectiveness Evaluation System
Regarding the cost-effectiveness evaluation system, this policy states: “Based on objective verification, and with a view to further utilization, we will examine appropriate evaluation methods, scope of application, and implementation frameworks, while also exploring measures for its application within the drug pricing system and in clinical practice.”The JPMA will explore options—including new systems that go beyond the current framework—to ensure that the diverse values of innovative new drugs are appropriately evaluated from a more scientific and comprehensive perspective, and will actively participate in discussions on this matter.
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Reflection of Economic and Price Trends in Social Security Expenditures
Despite soaring costs associated with the manufacture and distribution of pharmaceuticals, as well as rising wages, drug prices—which are officially set—have remained unchanged to date.However, this policy states that, regarding social security-related expenditures, “an increase equivalent to the rise attributable to an aging population shall be supplemented by an increase corresponding to economic and price trends,” and it also mentions an “increase in officially set prices” in the healthcare sector.We understand that drug prices are included in this scope, and we will continue the necessary dialogue with relevant parties in preparation for the FY2026 budget request guidelines and the year-end budget formulation process.