Following the Cabinet Decision on the "Kotta Policy 2025
June 13, 2025
Japan Pharmaceutical Manufacturers Association
Asuka Miyabashira, Chairman of the Board of Directors
Recently, the Cabinet approved the "Basic Policies for Economic and Fiscal Management and Reform 2025" (KOTTAI NO SHODAN 2025) following a report by the Council on Economic and Fiscal Policy. I would like to express my respect for the efforts of all parties involved in the formulation of this policy.
In this policy, it is clearly stated that "we will realize policies in an integrated manner to develop the drug discovery ecosystem, expand the healthcare market, and strengthen the foundation of drug discovery capabilities," which we take as a reiteration of the importance of our industry's mission to deliver innovative medicines to patients. In addition to aiming to build a sustainable social security system, we will actively engage in dialogue with relevant stakeholders on the following points from the perspective of appropriately valuing pharmaceuticals.
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Strengthening Drug Discovery Capability and Promoting Innovation
In this policy, the strengthening of drug discovery capabilities and the promotion of innovation and medical DX are set forth, as well as the implementation of appropriate valuation in NHI drug prices. In response to this, JPMA will continue its efforts to create innovative new drugs.
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Cost-Effectiveness Evaluation System
The policy states that the Pharmaceutical Manufacturers Association of Japan (PMAJ) "will examine measures for further utilization of the cost-effectiveness evaluation system, including its use in the NHI drug price system and in medical care, while considering appropriate evaluation methods, scope of coverage, and implementation system, based on objective verification. The JPMA will actively participate in the discussions, including the formulation of a new system that is not bound by the current framework, to ensure that the various values of innovative new drugs are appropriately evaluated from a more scientific and comprehensive perspective.
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Reflection of Economic and Price Trends in Social Security Expenses
Despite soaring costs for the manufacture and distribution of pharmaceuticals and rising wages, the official price of drugs has remained unchanged until now. However, the policy states that "an increase corresponding to the increase in social security-related expenses due to the aging of society plus an increase corresponding to the response to economic and price trends" and also mentions "an increase in the official price" in the medical field. In this regard, we are aware that NHI drug prices are also included in the scope of this policy, and we will continue the necessary dialogue with related parties toward the FY2026 estimate request criteria and the year-end budgeting process.