Generic switching in Japan has significant impact on medical costs

Japan’s switch to generic drugs from brand-name medicines is expected to have reduced the country’s medical costs by 1.3 trillion yen ($12. 3 billion) in fiscal 2017, according to a Ministry of Health, Labor and Welfare (MHLW) announcement reported by local media.

The reduction, the biggest on record, would be about 40% greater than estimated for fiscal 2015, according to the Japan Times.

The government aims to raise the share of generic drugs in use to at least 80% by September 2020 based on a projection showing that 1.3 trillion yen in medical costs could be saved per year if the target is met.