Slowing economy to affect Japan’s pharmaceuticals spending: Fitch | Healthcare Asia Magazine

Slowing economy to affect Japan’s pharmaceuticals spending: Fitch

It also said that the annual medicine price review will affect medicine’s market growth trajectory. 

The slowing economy will be a roadblock for the Japanese government in increasing its spending on pharmaceuticals, Fitch Solutions said, adding that the annual price review will affect the medicine market’s growth.

“The pricing and reimbursement system in the country remains tough. A slowing economy will further restrict the government’s ability to increase spending on pharmaceuticals.

It also said that the annual review of medicine prices will affect the commercial rewards for multinational drugmakers in Japan.

“Marking a departure from the traditional biennial price review, this will significantly weigh on the medicine market's growth trajectory,” Fitch said.

It cited a study by the Pharmaceutical Research and Manufacturers of America which stated that the sector’s sales in Japan, the world’s third-largest drug market, are estimated to fall by 30% to US$62b through 2025 with the annual price review.

Despite this, Fitch remains positive on its outlook for Japan’s pharmaceutical and healthcare sector, noting that the rapidly ageing population provides “considerable growth potential for innovation with the growing demand for chronic disease medicines.

Fitch also said that Japan’s regulatory regime is among the “most robust” globally. It added that the high level of urbanisation there means a high level of access to advanced healthcare facilities

Follow the link for more news on

Join Healthcare Asia Magazine community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Hospital infection therapeutics market eyes 5.27% CAGR growth until 2028
It is expected to grow by $3.46b amidst the increasing prevalence of HAIs within the forecast period.
Healthcare
ADB approves $170m loan to strengthen India’s health systems
The initiative is in support of the government’s National Health Policy 2017 to provide quality healthcare to all.
Healthcare