Concerns in Japan about impact of new drug development premiums

In Japan, the introduction of price premiums for the development of new drugs, which was introduced in April, is causing concerns in several directions, with some acute-stage hospitals worried about increased costs, and medical representatives being told not to make misleading statements.

Representatives of some hospital organizations have also criticized pharmaceutical manufacturers and wholesalers for trying to raise sales prices taking advantage of the premium, reports Pharma Japan.

In the country's Osaka Prefecture, a hospital operator simulated increases in drug purchase costs assuming that the discount rate for premium-granted drugs will be equal to the average price discrepancy rate of 8.4%, and distributed this to neighboring hospitals. Toshikatsu Asada, the director of the Tachibana Medical Corp - which operates the Higashisumiyoshi Morimoto Hospital in Osaka, said that he immediately thought the premium will increase drug purchasing costs. He said he feared that the hospital would not be able to achieve sufficient profit margins from the difference between National Health Insurance drug prices and their actual purchase costs.