Japan's MoH Explains Drug Benefits Policy

At a recent meeting of divisional directors of Japan's Ministry of Health and Welfare (Koseisho), policies were outlined for prefectural government officials. Economic Affairs director Tadaharu Goto warned the future may be rather bleak for the drug industry.

Most urgent, he said, is the need for a balance between sound development of the drug industry and sound spending of public financial resources, and as medical costs continue to rise, putting heavy economic pressure on the health insurance programs, so drug costs have become a major issue in many countries. According to a report in Pharma Japan, Mr Goto said that in order to deal with this, "it is imperative for the industry to strengthen its R&D capability, enter overseas markets and review all its operations, and revealed that the Koseisho plans to initiate a three-year review of the industry's role."

He also outlined recent discussions with the Council on Medical Insurance, and warned that conclusions very severe to the drug industry may be reached. And regarding negotiations on drug prices between wholesalers and medical facilities, Mr Goto called on prefectural governments to provide appropriate guidance to both parties in line with the intentions of drug distribution reform.