Potential evolutions of medical, industrial, and distribution practices in the Japanese pharmaceutical business strategy of the Japanese government

Date of publication: June 15, 1987

Author: J. B. Bouée

Abstract:

Since some years the Japanese government had decided to yearly reduce the drug reimbursement price considerably and to ask patients to share a greater part of the medical cost. The government, thus was working towards at least two goals: - Reduction of the overall welfare cost; - Impedimentation of the domestic market. The exact consequences have yet to be seen and will depend also on how far the Japanese government has decided to go in reducing the reimbursement. Nevertheless, many Japanese companies involved in the Pharmaceutical business are now struggling for survival. For foreign Pharmaceutical companies, the new situation has paved the way to trouble (as the Western Pharmaceutical companies are indeed also suffering from the reimbursement reduction in Japan), and to further opportunities (as many mergers and collapses are likely to occur, there are new positions that can be occupied and market shares that can become available).

J. B. Bouée

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