Japan’s Reimbursement Mechanism for Pharma Products — Stronger Than Before

  • Japan’s governing bodies and reimbursement mechanisms and policies
  • New health technology assessment (HTA) method — cost-effectiveness assessment
  • Parameters used for reimbursement pricing
  • The Japanese government’s mechanism(s) for controlling drug pricing
  • Recent examples of price cuts and price increases

Key Takeaways

  • Reimbursement pricing assessment takes 60 days or a maximum of 90 days from market authorisation to patient access.
  • Considers average of foreign reference pricing from the US, the UK, Germany and France as one of the benchmarks for setting reimbursement price
  • Provides price maintenance premiums to support innovation in drug discovery
  • Cost‐effectiveness assessment (CEA) is conducted only for highly innovative and financially impactful drugs
  • Implements CEA method to adjust prices post-launch, it happened for the first time in 2021
  • Shifted drug price revision from biennial to every year, where the NHI list price is corrected using actual purchase/market prices Some of the products price increased by +20% during 2020 price revisions (Faslodex and Dupixent)



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Acuity Knowledge Partners

Acuity Knowledge Partners


We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/