Originator drug market share in Japan not falling much despite big price cuts

In Japan, where generic drugs still have a small market share versus brand-name products compared to other developed countries, the market share of originator medicines has not decreased much, despite large falls in their prices, according to a study from the Korosho, the Japanese Ministry of Health and Welfare

The study, reported in Pharma Japan, showed that prices on long-listed drugs fall following the entry of generics, but their sales volume-based share does not.

A special price cutting rule was introduced in Japan based on the assumption that 'forcible price reductions are necessary because the prices of original drugs do not decrease even after the entry of generics.' However, the results of this survey demonstrated that prices fall to levels similar to those in other countries.