Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-26T07:24:59.309Z Has data issue: false hasContentIssue false
  • English
  • Français

The generic drug market in Japan: will it finally take off?

Published online by Cambridge University Press:  21 December 2010

Toshiaki Iizuka  and
Kensuke Kubo
Toshiaki Iizuka*
Affiliation:
Professor, Faculty of Economics, University of Tokyo, Tokyo, Japan
Kensuke Kubo
Affiliation:
Associate Senior Research Fellow, Development Studies Center, Institute of Developing Economies, Japan External Trade Organization, Chiba, Japan
*
Correspondence to: Professor Toshiaki Iizuka, Faculty of Economics, University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan. Email: toshi.iizuka@gmail.com
Get access Rights & Permissions [Opens in a new window]

Abstract

Historically, brand-name pharmaceuticals have enjoyed long periods of market exclusivity in Japan, given the limited use of generics after patent expiration. To improve the efficiency of the health-care system, however, the government has recently implemented various policies aimed at increasing generic substitution. Although this has created expectations that the Japanese generic drug market may finally take off, to date, generic usage has increased only modestly. After reviewing the incentives of key market participants to choose generics, we argue that previous government policies did not provide proper incentives for pharmacies to boost generic substitution. We offer some recommendations that may help to increase generic usage.

Type
Articles
Information
Health Economics, Policy and Law , Volume 6 , Issue 3 , 16 June 2011 , pp. 369 - 389
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Beck, M. (2008), ‘Inexact copies: how generics differ from brand names’, Wall Street Journal, 22 April, p. D1, http://online.wsj.com/article/SB120882069010332969.html [20 July 2010].Google Scholar
Cabinet Office (2007), Keizai zaisei kaikaku no kihon hoshin 2007 (Basic Policies for Economic and Fiscal Reform 2007). Tokyo: Cabinet Office, http://www.kantei.go.jp/jp/singi/keizai/kakugi/070619kettei.pdf [21 May 2010].Google Scholar
Central Social Insurance Medical Council (2008), Kohatsu iyakuhin no shiyo jokyo chosa hokokusho (Report on the Survey Regarding the Status of Generic Medicine Usage). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2008/07/dl/s0709-7i.pdf [21 May 2010].Google Scholar
Central Social Insurance Medical Council (2009), Kohatsu iyakuhin no shiyo jokyo chosa hokokusho (Report on the Survey Regarding the Status of Generic Medicine Usage). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2009/05/dl/s0520-4d.pdf [21 May 2010].Google Scholar
Central Social Insurance Medical Council (2010), Yakka Seido Kanren Shiryo (Materials Relating to the Pharmaceutical Reimbursement System). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2010/06/dl/s0623-2b.pdf [24 August 2010].Google Scholar
Eggleston, K. (ed.) (2009), Prescribing Cultures and Pharmaceutical Policy in the Asia-Pacific, Stanford, CA: Walter H. Shorenstein Asia-Pacific Research Center.Google Scholar
Iizuka, T. (2007), ‘Experts’ agency problems: evidence from prescription drug market in Japan’, RAND Journal of Economics, 38(3): 844–862.CrossRefGoogle ScholarPubMed
Iizuka, T. (2009a), ‘Generic entry in a regulated pharmaceutical market’, Japanese Economic Review, 60(1): 63–81.CrossRefGoogle Scholar
Iizuka, T. (2009b), ‘Agency Relationship and Technology Diffusion: Evidence from Post-patent Pharmaceuticals’, Paper presented at the 7th World Congress of the International Health Economics Association, Beijing, 13 July.Google Scholar
Ito, T., Niwa, U., Mitarai, F., Yashiro, N. (2007), ‘Shakai hosho kaikaku ni tsuite’ (On Social Security Reform), Paper Presented by the Private Sector Members of the Council on Economic and Fiscal Policy, Cabinet Office, Tokyo, 15 May, http://www5.cao.go.jp/keizai-shimon/minutes/2007/0515/item3.pdf [21 May 2010].Google Scholar
Japan Fair Trade Commission (2006), Iryoyo iyakuhin no ryutsu jittai ni kansuru chosa hokokusho (Report on the Marketing and Distribution of Prescription Pharmaceuticals). Tokyo: Japan Fair Trade Commission, http://www.jftc.go.jp/pressrelease/06.september/06092702-hontai.pdf [21 May 2010].Google Scholar
Japan Generics Journal (2005), ‘Tenkazai ga jenerikku iyakuhin no dotosei o sapoto suru’ (Additives support the equivalence of generic drugs), Japan Generics Journal, 32: 5–7.Google Scholar
Japan Generics Journal (2006), ‘Jitsuryoku koshi ni deta shiharai gawa’ (Payers begin to use their buying power), Japan Generics Journal, 40: 4–6.Google Scholar
Japan Generic Medicines Association (2009), Jenerikku iyakuhin shea ni tsuite (On the Share of Generic Pharmaceuticals). Tokyo: Japan Generic Medicines Association, http://www.jga.gr.jp/pdf/H19_GE_Share090323.pdf [21 May 2010].Google Scholar
Japan Generic Pharmaceutical Manufacturers’ Association (2007), Jenerikku iyakuhin ni tsuite (On Generic Pharmaceuticals). Tokyo: Japan Generic Pharmaceutical Manufacturers’ Association, http://www.epma.gr.jp/something_text/something_fulltext.pdf [21 May 2010].Google Scholar
Jensen, M. C. (2001), ‘Corporate budgeting is broken – let’s fix it’, Harvard Business Review, 79(10): 94–101.Google Scholar
Ministry of Heal th, La bour and Welfare (2008a), Heisei niju nendo sinryo hoshu kaitei ni okeru shuyo kaitei komoku ni tsuite (Main Points of the 2008 Revision of the Medical Fee Schedule). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2008/02/dl/s0213-4a.pdf [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2008b), Saikin no chozai iryohi no doko: densan shori bun (Recent Developments in Pharmaceutical Medical Expenditures: Results from Computer-processed Data). Tokyo: MHLW, http://www.mhlw.go.jp/topics/medias/c-med/2008/07/16.html [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2009a), Saikin no chozai iryohi no doko: densan shori bun (Recent Developments in Pharmaceutical Medical Expenditures: Results from Computer-processed Data). Tokyo: MHLW, http://www.mhlw.go.jp/topics/medias/c-med/2009/03/dl/16.pdf [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2009b), Yakka chosa ni motozuku kohatsu iyakuhin no shiyo jokyo (Status of Generic Medicine Usage Based on Drug Price Surveys). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2009/05/dl/s0527-8e.pdf [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2009c), Shakai iryo shinryo koi betsu chosa (Survey of Social Medicine by Treatment Type). Tokyo: MHLW, http://www.mhlw.go.jp/toukei/saikin/hw/sinryo/tyosa08/index.html [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2009d), Iyakuhin kakaku chosa no sokuhochi ni tsuite (Advance Estimates from the Pharmaceutical Price Survey). Tokyo: MHLW, http://www.mhlw.go.jp/shingi/2009/12/dl/s1202-7a.pdf [21 May 2010].Google Scholar
Ministry of Health, Labour and Welfare (2009e), Kohatsu iyakuhin no shiyo sokushin no tame no kankyo seibi no kosshi (Outline of Policies to Facilitate the Promotion of Generic Drug Usage). Tokyo: MHLW, http://www.wam.go.jp/wamappl/bb11GS20.nsf/0/35cad89135c7b81549257689001f3528/$FILE/20091216_10shiryou3_1.pdf [21 May 2010].Google Scholar
Nihon Keizai Shinbun (2008), ‘Nedan no yasui kohatsuyaku jenerikku: koka onajitte honto?’ (Low-cost Generic Drugs: Is it True That They Are Equally Effective?), 28 September, p. 31.Google Scholar
Nikkei Sangyo Shinbun (2009), ‘Jenerikku kohatsuyaku: hiyaku naruka?’ (Generic Drugs: Will They Grow Dramatically?), 26 May, p. 1.Google Scholar
Organisation for Economic Cooperation and Development (2009), OECD Health Data 2009, Paris: OECD, http://www.ecosante.org/sourceoecd.php [21 May 2010].Google Scholar
Sawai Pharmaceutical (2010), Annual Report 2010. Tokyo: Sawai Pharmaceutical Co., Ltd, http://www.sawai.co.jp/english/ir/ar2010/annual_2010.pdf [24 October 2010].Google Scholar
TM Marketing (2008), Jenerikku ni kansuru ishi no ishiki chosa (A Survey of Physicians Regarding Their Attitudes Towards Generic Drugs). Tokyo: TM Marketing, http://www.tmmarketing.co.jp/PR/TMMPressRelease_080710.pdf [20 July 2010].Google Scholar
Wolf, P. (2007), ‘Political campaign in Denmark’ (Abstract), Epilepsia, 48(Suppl. 7): 6–7.Google Scholar
Yakugyo Kenkyukai (1999), Yakko betsu yakka kijun hokenyaku jiten heisei 11 nen 7 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug Price Listing for July 1999). Tokyo: Jiho.Google Scholar
Yakugyo Kenkyukai (2001), Yakko betsu yakka kijun hokenyaku jiten heisei 13 nen 7 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug Price Listing for July 2001). Tokyo: Jiho.Google Scholar
Yakugyo Kenkyukai (2003), Yakko betsu yakka kijun hokenyaku jiten heisei 15 nen 7 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug Price Listing for July 2003). Tokyo: Jiho.Google Scholar
Yakugyo Kenkyukai (2005), Yakko betsu yakka kijun hokenyaku jiten heisei 17 nen 7 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug Price Listing for July 2005). Tokyo: Jiho.Google Scholar
Yakugyo Kenkyukai (2007), Yakko betsu yakka kijun hokenyaku jiten heisei 19 nen 7 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug price Listing for July 2007). Tokyo: Jiho.Google Scholar
Yakugyo Kenkyukai (2008), Yakko betsu yakka kijun hokenyaku jiten heisei 20 nen 4 gatsu ban (Directory of Reimbursed Pharmaceuticals Based on Drug Price Listing for April 2008). Tokyo: Jiho.Google Scholar
Yakuji Nippo (2007), ‘Yakka no kairiritsu wa 6.9 pasento’ (Difference between Reimbursement and Wholesale Prices at 6.9 Percent), December 20, http://www.yakuji.co.jp/entry5320.html [21 May 2010].Google Scholar
Yakuji Nippo (2008), ‘Kosei rodo sho: kohatsu iyakuhin no sansho kakaku seido wa kanja futan ga zoka; kisei kaikaku kaigi ni hanron’ (MHLW Opposes Deregulation Commission: Increasing Generic Usage Through Reference Pricing Will Increase the Burden of Patients), August 14, http://www.yakuji.co.jp/entry7695.html [21 May 2010].Google Scholar
Yakuji Nippo (2009a), ‘Chozai reseputo onrain seikyu: Hiyo tai koka miawazu ashibumi’ (Online Billing of Prescription Drug Insurance Claims: Adoption Delayed due to Low Cost Effectiveness), June 25, http://www.yakuji.co.jp/entry13423.html [20 July 2010].Google Scholar
Yakuji Nippo (2009b), ‘Kohatsuhin sagaku tsuchi ga kappatsuka’ (Price Difference Notifications Increasing), June 30, http://www.yakuji.co.jp/entry13534.html [21 May 2010].Google Scholar