economy
Drug pricing should be near the top of the US-Japan agenda
President Donald Trump will soon host Japanese Prime Minister Sanae Takaichi at the White House, where the two leaders will seek to strengthen the United States-Japan alliance and boost both countries’ economies.
TL;DR
- Japan's drug pricing system artificially suppresses spending on innovative medicines.
- This "freeloading" practice by Japan reduces global revenues for U.S. biotech companies.
- Reforming Japan's pricing controls could benefit both U.S. biotech and Japan's aging population.
- Japan's patients have access to only 43% of new drugs launched worldwide due to price controls.
- Adopting U.S. policies promoting generic drug utilization could allow Japan to afford more innovative drugs without increasing overall spending.