Japan introduces new measure to cut health spending

Fresh from its decision to intervene over the price of the multi-indication cancer drug Opdivo (nivolumab), the Japanese government has unveiled new plans to reduce the cost of health care.

The government proposes to review drug prices annually rather than every other year, from 2018 onwards, as it attempts to reverse spiralling spending on health care, which has increased by 10% in the past five years to 41.5 trillion yen ($351 billion).

The new reviews will mean prices can be changed for products where there is wide divergence between the government-set final price and the wholesale price, while quarterly reviews will also take place to focus on medicines that have a sudden increase in sales following approval of new indications.