Is Japan an ideal pharma market? - by P Reed Maurer

An uninformed, non-resident of Japan might respond to the title question as the Chairman of a major multinational pharma company did in July, comments long-time Japan industry watcher P Reed Maurer, president of International Alliances Limited. This chairman’s remarks, quoted widely in Japan, were as follows:

“The pricing environment is extremely negative in Japan.”
“Japan is an extremely difficult market.”
“The Japanese government does not reward innovation.”
“Japan is killing the pharmaceutical industry.”

This summer I met individually with 38 presidents or country managers of foreign pharma firms in Japan and not one, that’s right, not one said Japan is an extremely difficult market. Those with new drugs recently listed in the reimbursement tariff are pleased with the prices they received from the Ministry of Health Labor and Welfare (MHLW).  In short, they are on a roll growing faster than the market and launching new drugs in a timely manner.