Commentary

Japan’s Drug Innovation Incentive Policies: Policy Challenges Undermine Desired Goals (ENG)

Key Takeaways

  • The Japanese government is actively working to restore drug discovery capabilities, aiming to create a revitalized ecosystem that can contribute to domestic and global drug development.
  • However, these efforts continue to be undermined by remaining constraints on Japan’s rewards for innovation in its drug pricing system – even for novel drugs in key areas like rare diseases and pediatrics, where Japan clearly wants more research and development and faster deployment of innovative remedies.
  • The Asia Group (TAG) assesses that strict cost disclosure requirements, especially the “zero co-factor” rule under the cost-based price calculation method, directly undermine the government’s goal of bringing innovative new pharmaceutical products to the Japanese market, including the targets laid out in the Japanese government’s five-year plan for the development and approval of pediatric and rare disease drugs.
  • The Japanese government should consider either adjustments to these rules or introducing an entirely new way of pricing and rewarding innovative medicines to adequately reflect these products’ value at launch. Such changes will facilitate innovative medicines’ faster entry into Japan, ultimately benefiting patients and contributing to the revitalization of Japan’s drug innovation ecosystem.

Related Posts

TAG China Country Director, Han Lin, Comments in the Financial Times About the Significance of China Hosting the World Economic Forum “Summer Davos”
“China’s hosting of ‘Summer Davos’ amplifies how it wants to see and be seen by the international community as the ...
TAG China Country Director Han Lin Speaks at the World Economic Forum “Summer Davos” Held in Tianjin, China
Han Lin, China Country Director at The Asia Group, participated in a panel discussion and led a breakout session on ...
TAG Chairman and Co-Founder, The Hon. Dr. Kurt Campbell Shares Thoughts on U.S.-China Relations in Interview with Bloomberg
“The steps that Treasury Secretary Bessent has taken, with his [Chinese] counterpart, the Vice Premier, at least appear to be ...
TAG Partner Amb. Dan Kritenbrink Participates in Panel on U.S.-Vietnam Relations
Ambassador Dan Kritenbrink, Partner at The Asia Group, participated in a panel discussion hosted by the US-ASEAN Center, the Vietnam ...
Scroll to Top

You Are Applying For:

Japan’s Drug Innovation Incentive Policies: Policy Challenges Undermine Desired Goals (ENG)

Apply Now

Submit the details below, and our HR team member will get in touch with you shortly.

The Asia Group is an equal opportunity employer where an applicant’s qualifications are considered without regard to race, color, religion, sex, national origin, age, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or any other basis prohibited by law. The Asia Group continually seeks to diversify its staff, particularly to broaden opportunities for individuals from demographic groups that are historically underrepresented in the strategic advisory profession.

"*" indicates required fields

1Personal Details
2Questionnaire & Application Materials
3Voluntary Self Identification

Personal Details

Name*
Address*