US Pharma Lobby Group Urges Japan to Stop Cutting Drug Prices

Japan should change its pharmaceutical system to keep drug prices higher in order to boost investment and innovation in the sector, a US industry group said.

Currently, Japan caps the price of drugs dispensed through its national health insurance and typically lowers them each year. That helps funnel more money toward the growing cost of elderly care, but the pressure it puts on drugmakers’ bottom line hurts investment in developing novel therapies.

A change to the pricing system would pave the way for sustainable growth for Japan’s pharmaceutical market, which is shrinking as the global sector expands 4% to 6% ...