Japan Looks to Cut Drug Prices, with Annual Reviews

Japanese Prime Minister Shinzo Abe and his economic council urged pharmaceutical pricing reform, calling for annual price reviews rather than every two years, in response to high drug prices and a growing budget deficit.

Japan plans to cut the price of Bristol-Myers Squibb’s cancer drug Opdivo by 50 percent, effective February 2017. Meanwhile, the price of Gilead’s hepatitis C drug, Sovaldi, was cut earlier this year.

Ministers will discuss the details for drug price reform at an upcoming meeting. Should it be approved, the plan for annual price reviews will take effect in fiscal 2018.