New Year's Greeting for 2024
At the beginning of the year 2024, I would like to extend my best wishes for the New Year.
Looking back on last year, the long-running Corona disaster is now under control, and the town has returned to its former lively atmosphere. People and goods have resumed coming and going, and the economy is headed for a turnaround.
On the other hand, there were a series of events that put a damper on the economy, such as the ongoing depreciation of the yen, the extremely hot summer, soaring prices, and labor shortages. The supply uncertainty of pharmaceuticals, triggered by the scandals of some companies, has been prolonged, coupled with disruptions in the supply chain and an increase in the cost-to-sales ratio of pharmaceuticals. On behalf of the Pharmaceutical Manufacturers Association of Japan (PMAJ), I would like to express our deepest apologies for the inconvenience and concern this has caused to patients and healthcare professionals. At the same time, I would like to express my gratitude to all those who are making efforts to maintain medical care in the midst of these difficulties.
Looking at the world, there have been economic problems such as the ongoing conflicts in Ukraine and Israel, the economic slowdown in China, and soaring prices worldwide. This year will also see the U.S. presidential election, which is expected to shift the political balance of power.
Japan Pharmaceutical Manufacturers Association
Chairman Hiroaki Ueno
We, the Pharmaceutical Manufacturers Association of Japan (PMAJ), are committed to building a strong supply chain to solve the current supply problems. Even under difficult circumstances, we must contribute to the extension of healthy life expectancy of the people and deliver drug discovery innovations to the world. Each company will do its utmost to address these issues.
In order for pharmaceutical companies to continuously create innovative drugs, a drug price system that appropriately evaluates innovation is necessary. However, with the introduction of a system in which NHI prices for innovative new drugs are not necessarily maintained under the 2018 overhaul of the NHI drug price system, and with NHI price revisions being made every year, the Japanese pharmaceutical industry has become exhausted and the attractiveness of the Japanese market in the global market has gradually eroded. As a result, the introduction of useful drugs into Japan has been delayed or not even developed, creating a "drug lag" or "drug loss.
In order to overcome this situation, the Pharmaceutical Manufacturers Association of Japan (PMAJ) has been advocating the need for a NHI drug price system that appropriately evaluates innovation. As a result, the promotion of pharmaceutical innovation was included in the government's Framework Policy. This year's reform of the NHI drug price system is expected to introduce a mechanism to evaluate the early introduction of innovative new drugs into Japan and a mechanism to maintain the full NHI price with an additional subsidy for new drug creation, and we are currently in the process of finalizing the details. This is an indication of the high expectations that the government and the public have for the pharmaceutical industry, and I am humbled that the industry must work as one to meet these expectations.
This year is a milestone year for the triple revision of medical, long-term care, and disability welfare services, and the medical community will face many challenges, including the aging of the population, post-coronary, rising labor costs, and soaring utility costs. There is also the 2024 issue of logistics and the start of overtime regulations for physicians. On the other hand, this year is also a milestone year for the digitalization of healthcare, with the introduction and implementation of online eligibility verification, data linkage of medical and nursing care, and the institutional development of programmed medical devices one after another. For us, too, digital technology offers a variety of possibilities, including its use in drug discovery, streamlining of distribution, and utilization of medical data. We must leverage digital technology to build a more efficient healthcare system and solve many challenges.
As the need to evaluate innovation is reaffirmed and the way in which pharmaceuticals are evaluated is reviewed, we will work to improve the public's access to new drugs and establish a stable supply. We will also strengthen our cooperation with related organizations to create world-class new drugs and contribute to the development of the pharmaceutical industry and the improvement of the public's health.
In closing, I would like to wish you all a very happy new year and look forward to working with you all in the coming year.
The End