Following the Cabinet’s Approval of the “Basic Policy 2026”
July 21, 2026
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 2026 (Basic Policy 2026)” has been approved by the Cabinet.We would like to express our respect to all those involved who contributed to the formulation of this policy. We consider it highly significant that this policy positions drug discovery and advanced medical care as key sectors supporting Japan’s growth.
In particular, we view the explicit direction to further recognize the innovation of groundbreaking new drugs—including appropriate value assessment at the time of initial listing*—as a significant step forward.
The Japan Pharmaceutical Manufacturers Association will continue to actively engage in dialogue with relevant stakeholders to ensure the following points are realized, with the aim of maintaining an environment where patients and the public have continuous access to necessary pharmaceuticals, while balancing a sustainable social security system with the promotion of innovation.
1. Realizing a Japanese market that is chosen globally as a destination for the development and introduction of new drugs
Amid policy developments in other countries regarding pharmaceuticals—such as the Most-Favored-Nation (MFN) pricing policy in the United States—this policy explicitly states the aim of establishing an environment that ensures the reliable market launch of necessary pharmaceuticals and related products.Starting with appropriate evaluations upon the initial listing of new drugs, and extending to the structure of drug pricing—including market expansion reassessments and special sustainability-based price adjustments—we will promptly discuss with relevant stakeholders the design of specific systems to further value innovation. This will lead to the realization of a market environment in which Japan continues to be chosen as a destination for the development and introduction of new drugs.
2. Review and Revision of the Cost-Effectiveness Evaluation System
On the premise that the value of innovation is appropriately evaluated upon the initial listing of new drugs, the cost-effectiveness evaluation system must ensure rationality and transparency and be designed not to hinder innovation, without resorting to hasty verification or revisions in the rush to reach a conclusion.To ensure that innovative pharmaceuticals continue to be delivered to patients, we will continue to actively advance discussions to ensure the system appropriately evaluates their value.
3. Building a Social Security System That Provides Peace of Mind for the Future
It was clearly stated that discussions will proceed regarding targets for the social security burden ratio, with the aim of halting and then reducing the premium rates for the working-age population. It is important to carefully advance a national discussion—including the appropriate structure of financial resources to support drug discovery innovation—while maintaining a social security system that ensures the public can receive necessary medical care with peace of mind for years to come.
*The point in time when a new drug is first covered by insurance and its drug price (fair price) is determined.