The 2023 revision of drug prices in Japan has been announced,
with 600 drugs being eligible for the price maintenance premium (PMP) and 1,100 drugs eligible for the unprofitable drug reassessment. The PMP will provide an additional 0.1% to 1.0% premium for the first three years of sale for drugs that meet certain criteria, such as those that have been approved for the first time in Japan or that have a significant therapeutic effect. Meanwhile, there assessment of unprofitable products aims to reduce the gap between drug prices in Japan and those in other countries. For products that have not been profitable for three years or more, the government will calculate the costs of manufacturing, distribution, and sales, and adjust the price accordingly. This re-evaluation is expected to increase the prices by an average of 2.7%. This revision aims to support companies developing new drugs and improve the financial standing of companies involved in the manufacturing of unprofitable drugs. Cancer and rare disease drugs are expected to be the main focus, with their prices increase.
Overall, the revision aims to ensure the sustainability of Japan’s healthcare system by promoting the development of innovative drugs while also addressing issues of affordability and access to healthcare options.