Impact of Huge-Seller Repricing on Price Trend for Reimbursable Cancer Drugs in Japan

OBJECTIVES: Japan has seen increased delay in drug approvals compared to the US and European markets, while its re-pricing system is seen as a contributor that pushes pharma companies to deprioritize their investments in Japan. Although the Japanese system includes the international reference pricing (IRP) mechanism to ensure its drug prices are competitive compared to overseas markets at launch, IRP impact declines over time as other price measures take precedence. This analysis compares the price trends of cancer drugs in Japan and the European countries it references under IRP (France, Germany, and UK).

METHODS: The overall 5-year price trend for all reimbursed branded cancer drugs in Japan, France, Germany, and the UK, with an available pricing history within GlobalData’s POLI database, was examined. Separate analysis was conducted into the price trend for the top four highest-selling cancer therapies in FY2023 in Japan compared to the same product, dosage and pack size in France, Germany, and the UK over the period from first price listing to 31 May 2024.

RESULTS: Japan had the highest average drug price reduction rate for reimbursed branded cancer drugs among the four markets over the five-year review period. Additionally, Japan’s price reduction rates for the top-selling cancer drugs were significantly higher than its average 5-year price reduction rate for all reimbursed branded cancer drugs. The average price reduction rate of the four top-selling cancer drugs from first listing to May 2024 was 46.9% in Japan, compared to a 28.8% reduction rate in Germany, 19.7% in France, but a 5.5% growth in UK.

CONCLUSIONS: Japan’s re-pricing rules have resulted in steeper price decline over the review period in Japan compared to its reference countries. For the top selling cancer drugs the huge seller re-pricing rule has played an increasingly important role in driving price declines in Japan.