Tuesday, February 17, 2015

Decrease official drug prices

The government is considering decrease the official drug prices. As Japan is suffering from increasing social security expenses due to population aging, drug prices become one of the targets for the cost cut.

If the official prices are lowered by 1 percent, the cost for drugs will be reduced by about \400 billion a year. Then, the effect is very large.

The government will urge us to use more generic drugs than before though the effect of using generic drugs are not yet completely recognized. In addition, if the official drug prices are decreased, it may affect development of new drugs by Japanese pharmaceutical companies due to decrease of revenue.

Therefore, we need to be careful with the by-products of the cost cuts.


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