Market prices of drugs purchased by medical institutions from wholesalers in Japan were 5.2% lower than the state-set official prices on average as of September, a health ministry survey showed Wednesday.
Based on the survey results, presented to a relevant panel advising the health minister, the government plans to lower official drug prices for fiscal 2025 while carefully considering the scope of items subject to the planned cuts in light of the impacts on drugmakers.
Official drug prices had been revised every two years. In fiscal 2021, the government switched to a system of conducting a revision every year in order to reduce financial burdens on the public.
The annual revision system has been criticized by some for pressuring drugmakers' earnings and causing a decline in their abilities to develop new drugs as a result. Some ruling bloc lawmakers are demanding a longer interval between revisions.
The ministry also said the penetration rate for generic drugs stood at 62.1% by value as of September. The government aims to raise the share to at least 65% by the end of fiscal 2029 in an effort to curb medical costs.
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