As described in the news article “国内医療用医薬品市場　27年度まで５年平均成長率、特許期間中の市場はプラス6.5～7.5％　IQVIA | ニュース | ミクスOnline (mixonline.jp)” released by MixOnline on June 26, 2023, IQVIA announced on June 23, 2023, the outlook for Japan’s pharmaceutical market for the fiscal year 2027. The compound annual growth rate (CAGR) of the pharmaceutical market segment which is under patent protection from 2022 to 2027, is projected to be between 6.5% and 7.5%, pushing the market segment up by 1.7 to 1.8 trillion Japanese yen (about 12 billion US dollars when the exchange rate for 1 US dollar is 145 yen) over the five years. Additionally, the market size of newly launched drugs from 2023 until 2027 is estimated to be around 1.1 to 1.2 trillion yen, contributing to an overall market expansion of 2.8 to 3.0 trillion yen (about 20 billion US dollars) when combined with patented drugs.

The report highlights the potential rise of Japan’s total pharmaceutical market, estimating it to reach the 11 trillion yen (about 76 billion US dollars) range by 2027, and Japan is described as the world’s second-largest market after the United States in terms of a market composed of new and patented drugs. The market driven by new and patented drugs will expand through biopharmaceuticals and specialty drugs, continuing to be an attractive market. However, for continued investment in new drug development in Japan, it was emphasized that “an environment that promotes innovation is essential.”

According to the news article, “有用性加算の柔軟化や類似薬拡大など提言　　厚労省研究班、革新的新薬の早期導入で | 日刊薬業 – 医薬品産業の総合情報サイト (jiho.jp)” released by NIKKAN YAKUGYO on June 16^th, 2023, the 2022 annual report compiled by the team of Ministry of Health, Labour and Welfare’s scientific research on “Appropriate Research on the Development Environment, Stable Supply, and Distribution Environment of Drugs” provided a comprehensive overview of the research related to maintaining and improving the appropriate development, stable supply, and distribution environment drugs.

The report presents specific recommendations aimed at facilitating the early introduction of new drugs. Firstly, the flexible application of the usefulness-addition criteria is proposed. The low application rate of usefulness addition is highlighted as a concern, particularly for orphan and pediatric drugs where conducting randomized controlled trials can be challenging. The proposal suggests evaluating the application of usefulness addition based on appropriate indirect comparison data. Furthermore, it emphasizes the importance of considering not only the primary evaluation parameters in clinical trials but also the patient’s quality of life and patient-reported outcomes.

The report also emphasizes the importance of ensuring predictability in drug pricing. To achieve this, the report suggests expanding the range and approach of similar efficacy comparison methods, enabling a more comprehensive selection of reference drugs (most similar drugs). It further advocates for enhancing the pre-consultation system regarding drug price calculation. Additionally, it recommends applying foreign average price adjustment even for price increases after listing and considering additional add-ons for products with simultaneous launches in Japan, Europe and the United States.

According to the news (バイオシミラー普及へ「シェア80%超成分を6割に」の新目標、市場拡大元年となるか | AnswersNews (ten-navi.com)) released by Answers as date of 05/06/2023, the Ministry of Health, Labour and Welfare has set a goal for disseminating biosimilars (BS). By the end of the fiscal year 2029, they aim to increase the replacement rate of reference products to BS, of which market share exceeds 80%, to 60% on a quantity basis. Currently, 16 ingredients of BS have been approved, but only three ingredients, epoetin-α, filgrastim and darbepoetin-α, representing less than 20%, have achieved a quantity share of 80% or more. It is said that the dissemination of BS will take time and may follow a similar path as generic drugs. While concerns about quality are settling down, there is still a lack of stability in the supply of imported products, and cases of shipment adjustments and suspensions exist. Currently, only three ingredients exceed a quantity share of 80%, and there are challenges in increasing the percentage of those ingredients. The introduction of authorized generics (AG) has quickly increased the overall share of BS, but price competition has eroded companies’ financial strength, posing challenges for investment recovery and supply continuity. Cost-effectiveness is crucial for achieving the government’s target, and companies with a consistent system from in-house manufacturing to sales can reduce costs. However, sourcing from other companies may take time to secure profits. To promote wider dissemination, incentives in the medical fee reimbursement system and alleviation of economic burdens are necessary, but the previous policies have not yielded satisfactory results. Ensuring a stable supply is also essential, as it becomes difficult to gain the trust of physicians and patients in situations of supply instability. The dissemination of BS is still in its early stages and faces various challenges to be addressed.

According to the news article “2022年度の国内医薬品市場、過去最高の10.97兆円…前年度比2.6%増、コロナ薬・診断薬伸びる | AnswersNews (ten-navi.com)” released by AnswersNews on June 1^st, 2023, IQVIA announced that the pharmaceutical market in Japan reached a record high in the fiscal year 2022, with a 2.6% increase from the previous year, totaling 10 trillion and 969 billion yen (approximately 80 billion USD at the current exchange rate). The demand for therapeutics and diagnostics for the treatment of COVID-19 contributed to this growth. Ono Pharmaceutical’s immune checkpoint inhibitor drug, “Opdivo,” remained at the top for the second consecutive year in product sales. All three market segments, including hospitals, clinics, and pharmacies, experienced growth. Among therapeutic categories, “anti-tumor agents” generated the highest revenue. The COVID-19 pandemic also led to a significant increase in demand for diagnostic test reagents, propelling them to the top 10 therapeutic categories. From January to March 2023, the market recorded a 1.3% increase, reaching 2 trillion and 591 million yen (approximately 20 billion USD), while diagnostic test reagents experienced a substantial decrease. In terms of product sales, “Opdivo” maintained its top position, followed by “Keytruda” and “Eliquis.” Among the pharmaceutical companies, Chugai Pharmaceutical retained its leading position, followed by Takeda Pharmaceutical and AstraZeneca.

As explained in the article, “バイオシミラー｜AnswersNews Plus (ten-navi.com)” released by AnswersNews on November 21, 2018, a biosimilar is a drug with the same quality, safety, and efficacy as a reference biopharmaceutical product. It is developed by a different company (not the company that is marketing the originator) after the patent for the reference product has expired. To demonstrate clinical equivalence and similarity to the reference product, clinical trials enrolling actual patients are required even if the development process of biosimilars is not equivalent to that of the reference product. The price of a biosimilar is typically higher than that of a typical generic product due to the high costs associated with development and manufacturing. However, it is typically 70% of the price of the reference biopharmaceutical product. For subsequent biosimilars, the price tends to be proportional to the price of biosimilars already on the market. And also, current updates on government policy indicate a supportive trend for biosimilars.

As described in the article “先駆け審査指定制度｜AnswersNews Plus (ten-navi.com)” released by AnswersNews on 15/03/2019, the SAKIGAKE designation system is a program that grants preferential treatment to innovative products such as pharmaceuticals, medical devices, regenerative medicine products, and in vitro diagnostic drugs that are applied for approval in Japan for the first time in the world. This system shortens the standard 12-month approval period to 6 months for designated products. To be designated as a target product, it is necessary to demonstrate the ground-breaking nature of the product, the severity of the targeted disease, extremely high efficacy, and an intention to develop and apply early in Japan. The SAKIGAKE designation system provides preferential measures such as advancing the approval review process, prioritizing review, consultation on development progress management, and extending re-examination periods. In addition, a “SAKIGAKE designation system addition” is added to the drug price of target products as a premium, which serves as an incentive for drug development. 

In the article “薬価の基本｜AnswersNews Plus (ten-navi.com)” released by AnswersNews on 07/06/2018, they explain the “YAKKA” (drug price) system in Japan, the official price of prescription drugs used in medical care. The price of drugs that are covered by public medical insurance is determined by the government (the Minister of Health, Labor and Welfare), and pharmaceutical companies cannot freely determine the prices of drugs used in hospitals or clinics. The list that summarizes the official prices, known as the “YAKKA KIJUN” (price standard), plays the role of both a product catalog and a price list. Medical institutions and pharmacies bill patients for the cost of drugs prescribed or dispensed based on the official prices set by the price standard (Co-payment rate for a patient is basically 30%). A revision of the official prices called “YAKKA KAITEI” is conducted once every two years, usually in conjunction with the April revision of medical fee schedules.  

Tim Dietlin Joins the Company as CEO

WASHINGTON, D.C. – The Validant Group, a leading international quality, compliance, and regulatory consulting firm, today announces that Tim Dietlin has joined the company in the role of Chief Executive Officer (CEO).

“Tim brings a unique skill set to his role as CEO of the Validant Group. His deep understanding of the life sciences industry, coupled with his business effectiveness and leadership advisory experience, allows Tim to build transformative teams that drive growth and attain long-term success,” said Alistair Macdonald, Chair of the Validant Group Board of Directors and ­­Operating Partner, GHO Capital.

Tim Dietlin brings more than 25 years of leadership experience to his role as CEO of the Validant Group. Most recently, Tim served for eight years as the Global Managing Partner of the Healthcare and Life Sciences Practice at Heidrick & Struggles, a leading global executive search and management consulting firm. In this role, Tim led all aspects of the practice’s healthcare and life sciences business and specialized in providing leadership advisory services to a broad portfolio of clients, including established pharmaceutical companies, emerging high-growth biotechnology firms, and investor backed service and technology companies.

Tim’s extensive experience includes leadership roles at IBM, where he led the life sciences strategy and transformation consulting practice; INC Research, where he served as Senior Vice President of Global Consulting and Strategic Alliances; and Campbell Alliance, a life sciences management consulting firm, where Tim led the firm’s Research and Development and Medical Affairs consulting practices.

“The Validant Group has built a strong foundation as a leader in the life sciences industry. By uniting this already powerful partnership of companies, and capitalizing on our collective capabilities, we will unlock the full potential of our business,” said Tim Dietlin, Validant Group CEO. “Together, the Validant Group will deliver a full-service platform that provides unmatched regulatory clarity at every phase of the product life cycle. I look forward to cultivating and continuing to grow a united Validant Group that is stronger together and positioned for success.”

May 15, 2023

Contact: Taryn.Walpole@greenleafhealth.com

ABOUT THE VALIDANT GROUP

The Validant Group is a global, full-service life science consulting company focused on managing and resolving complex regulatory issues. The Validant Group is comprised of five companies offering collaborative consultancy services:

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.

Reference:

【ビジュアル解説】600品目に新薬創出加算、不採算品再算定で1100品目引き上げ…23年度薬価改定 | AnswersNews (ten-navi.com)

Sanofi’s LIBTAYO, Cemiplimab IV, was approved in December 2022

based on results of global Ph 3 EMPOWER-Cervical 1 study, of which duration was around 6 years. This is the 3^rd approval for PD-1 inhibitor in Japan following Opdivo and Keytruda. It was approved to treat patients with advanced or recurrent cervical cancer whose diseases progressed after chemotherapy, and that means Keytruda has been already approved for advanced or recurrent cervical cancer in Japan.

While precedent Opdivo and Keytruda have been approved for wide indications, LIBTAYO’s future positioning and strategic challenges to compete with 2 giants would become a big topic in Japan.

Reference:

Study of Cemiplimab in Adults With Cervical Cancer – Full Text View – ClinicalTrials.gov

Libtayo® (cemiplimab) Approved in Japan for Advanced or Recurrent Cervical Cancer | Regeneron Pharmaceuticals Inc.