JAPANESE DRUGMAKERS HIT BY NEW PRICE CUTS

A number of large price cuts are being planned for leading pharmaceutical products in Japan under the government's biannual price revision, which is due to take place in April. Although the cuts have yet to be confirmed, it is thought that they will include reductions on eight best-selling active ingredients.

The reductions will be made under provisions that allow price readjustments for products whose sales have reached twice the level officially predicted at the time of registration and have exceeded JPY15bn (US$129.17mn). Industry sources expect the prices to be lowered by 6.7%, on average.

Japanese drugmakers have fiercely criticised the cost-saving system, claiming that it unfairly punishes success. The measures were last implemented in April 2000 when a top selling cancer medication was hit with a one-off price cut of 11.5%.

All together, around 21 products will be targeted, with anti-flu medicines especially vulnerable after a strong flu season and government stockpiling. Meanwhile, as part of the April revision, drugs that have been registered for a long period and have generic versions available will also face price decreases of around 8%, according to reports.