Pharmaceutical Industry Expresses Views on Review of Drug Pricing System
On August 26, 2026, the Drug Pricing Expert Committee of the Central Social Insurance Medical Council (Chuikyo) under the Ministry of Health, Labour and Welfare held a meeting. This session provided a forum to hear opinions from representatives of the pharmaceutical industry regarding the consideration of a new drug pricing system.
Major organizations, including the Japan Pharmaceutical Manufacturers Association and the Pharmaceutical Research and Manufacturers of America (PhRMA), participated in this meeting. The focus of the discussion was the "foreign price adjustment" (MFN) mechanism, which determines prices based on drug prices in other countries. Various organizations raised concerns and called for careful consideration of how this system might impact the Japanese pharmaceutical market.
Representatives from the pharmaceutical industry emphasized that the development of new drugs requires significant time and financial investment. They expressed concern that if drug prices were to be drastically reduced, it would become difficult to develop new drugs within Japan, creating a risk that patients might be unable to access the latest treatments. Meanwhile, striking a balance with the government, which aims to curb medical expenses, remains a critical challenge.
At the Central Social Insurance Medical Council, discussions will continue on how to ensure the stable provision of innovative drugs while maintaining the universal health insurance system. The input gathered during this session is scheduled to be reflected in the rule-making for future drug price revisions.
Determining drug prices is a vital issue that directly affects our medical cost burden and the content of treatments available at hospitals. The future developments and the conclusions reached by the government and the pharmaceutical industry are being closely watched.