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Challenges in Generic Drug Supply: 40% of Companies Abandon Development

2026-08-23

Challenges in Generic Drug Supply: 40% of Companies Abandon Development

According to the latest report released by a Ministry of Health, Labour and Welfare research team, it has been revealed that 40% of companies have abandoned the development of generic drugs or decided against launching them into the market over the past five years.

Generic drugs play a crucial role in curbing Japan's medical expenses, as they use the same active ingredients as brand-name drugs while being offered at a lower cost. However, this survey has highlighted the current reality that many companies are struggling to maintain a stable supply.

The primary reasons cited for abandoning development include rising costs for procuring raw materials and increased expenses for maintaining production lines. Additionally, the capital investment required to meet stringent quality control standards has become a significant burden for small and medium-sized enterprises.

This issue, referred to as "generic drug loss," could increase the risk that patients will be unable to obtain the medications they need smoothly. The Ministry of Health, Labour and Welfare plans to consult with experts to determine what measures are necessary moving forward.

Stable supply in the medical field is essential for protecting the health of the public. Attention is now focused on how the government and the pharmaceutical industry will cooperate to build a sustainable supply system.

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