Impact of Healthcare System Reform and Drug Price Reductions on Business Performance
First written in FY2016. 11 of 30 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2027-H1.
Alfresa Holdings moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 68 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「This segment reported net sales of ¥1,425,124 million, up 4.2% year on year, and operating income of ¥13,986 million, down 5.2%. Net sales increased due to higher sales of certain type 2 diabetes treatments and specialty pharmaceuticals, while operating income declined due to the negative impact of the drug price revision implemented in April 2026, efforts to improve distribution aimed at eliminating excessive disparities in drug price margins, and higher distribution costs, including personnel expenses.」
In addition to the April 2026 drug price revision, distribution improvement initiatives and higher logistics costs, including labor costs, squeezed profit in the wholesale business for prescription pharmaceuticals and other products, resulting in higher sales but lower operating profit. - 2026-06-24RestatedGovernance
「Group Compliance and Risk Management Committee」
The Group Compliance and Risk Management Committee is shown as an organization working with the board of directors and other bodies, reconfirming the group-wide compliance and risk management structure. - FY2026WorsenedAnnual report
「In the wholesale business for prescription pharmaceuticals and other products, despite a challenging operating environment resulting from the negative impact of the interim-year drug price revision implemented in April 2025 and higher logistics costs, including labor costs, the effects of higher sales exceeding market growth and expense reductions achieved by focusing on cost control resulted in net sales of ¥2.782584 trillion, up 5.4% year on year, and operating profit of ¥33.297 billion, up 0.7%.」
In addition to the April 2025 interim-year drug price revision, higher logistics costs, including labor costs, became evident as a challenging operating environment on a full-year basis. Meanwhile, higher sales and profit were achieved through sales growth and cost control. - FY2026-H1WorsenedAnnual report
「In the wholesale business for prescription pharmaceuticals and other products, despite a challenging operating environment resulting from the negative impact of the interim-year drug price revision implemented in April 2025 and higher logistics costs, including labor costs, the effects of higher sales exceeding market growth and expense reductions achieved by focusing on cost control resulted in net sales of ¥1.367229 trillion, up 5.4% year on year, and operating profit of ¥14.754 billion, up 16.6%.」
The April 2025 interim-year drug price revision and higher logistics costs, including labor costs, continue to have an actual impact as challenging operating conditions for the wholesale business for prescription pharmaceuticals and other products. - FY2025RestatedAnnual report
「The group is focusing on compliance with the “Guidelines for the Distribution Improvement of Prescription Pharmaceuticals to Be Observed by Distribution Stakeholders,” launched in April 2018.」
The company continues to recognize the risk that healthcare system reforms and drug price revisions may affect business performance, and has identified compliance with guidelines, appropriate sales activities, and expansion of products and services not affected by the healthcare system as countermeasures. - FY2025-H1RestatedAnnual report
「Although the interim-year drug price revision implemented in April 2024 had a negative impact, this segment posted higher sales and gross profit during the current interim consolidated accounting period, due to market growth, particularly increased sales of patented products and products eligible for the new drug creation incentive, as well as efforts to improve the gross profit margin.」
While the negative impact of the April 2024 drug price revision continued, the wholesale business for prescription pharmaceuticals and other products posted higher sales due to market growth and increased sales of patented products and other products. - FY2024-Q2RestatedAnnual report
「For the first half of the current consolidated fiscal year, the segment reported revenue of ¥1.267188 trillion (up 7.2% year on year) and operating profit of ¥13.796 billion (up 72.6%), despite the negative impact of the mid-year drug price revision implemented in April 2023, due to market growth, including growth in the market for COVID-19 treatments, changes to the distribution systems of certain pharmaceutical companies, and efforts to reduce the selling, general and administrative expense ratio, among other factors.」
Although the negative impact of the interim-year drug price revision continued, the wholesale business for prescription pharmaceuticals and other products posted higher sales and operating profit due to market growth and other factors. - FY2024-Q1RestatedAnnual report
「Although the interim-year drug price revision implemented in April 2023 had a negative impact, net sales in this segment increased during the cumulative first quarter of the current fiscal year, reflecting market growth and changes in the distribution systems of certain pharmaceutical manufacturers.」
While the negative impact of the April 2023 interim-year drug price revision continued, the wholesale business for prescription pharmaceuticals and other products posted higher sales due to market growth and other factors. - FY2023-Q1RestatedAnnual report
「Due to the impact of the drug price revision implemented in April 2022 and other factors, net sales were ¥585.439 billion, up 3.1% year on year, and operating profit was ¥2.443 billion, down 18.9%.」
The company continues to describe the impact of drug price revisions on operating profit in the wholesale business for prescription pharmaceuticals and other products. - FY2022-Q3RestatedAnnual report
「The prescription pharmaceuticals and related products wholesale business is facing a challenging business environment for our group due to the spread of COVID-19, price negotiations with medical institutions following the first interim-year drug price revision, and the suspension of medical institutions from bidding nominations as a result of Antimonopoly Act violations.」
The company continues to describe a challenging business environment resulting from the infectious disease, price negotiations following the interim-year drug price revision, and the suspension of participation in tenders following a violation of the Antimonopoly Act. - FY2022-Q2RestatedAnnual report
「The prescription pharmaceuticals and related products wholesale business is facing a challenging business environment for our group due to the spread of COVID-19, price negotiations with medical institutions following the first interim-year drug price revision, and the suspension of medical institutions from bidding nominations as a result of Antimonopoly Act violations.」
The company continues to describe a challenging business environment resulting from the infectious disease, price negotiations following the first interim-year drug price revision, and the suspension of participation in tenders. - FY2022-Q1WorsenedAnnual report
「The prescription pharmaceuticals and related products wholesale business is facing a challenging business environment for our group due to the effects of the spread of COVID-19, the first interim-year drug price revision, and the suspension of medical institutions from bidding nominations as a result of Antimonopoly Act violations.」
In addition to the impact of previous drug price revisions and infectious diseases, the business environment for the wholesale business for prescription pharmaceuticals became even more challenging due to the first interim-year drug price revision and the suspension of participation in tenders following a violation of the Antimonopoly Act. - FY2021WorsenedAnnual report
「In the wholesale business for prescription pharmaceuticals and other products, the manufacturing business for pharmaceuticals and other products, and the healthcare-related business, the market has contracted due to the impact of restrictions on outpatient visits and a decline in the number of surgeries at medical institutions and elsewhere, resulting in a challenging business environment.」
In addition to the drug price revision, restrictions on outpatient visits and a decline in the number of surgeries due to COVID-19 affected the market, with market contraction and a challenging business environment continuing through the full year. - FY2021-Q3RestatedAnnual report
「The prescription pharmaceuticals and related products wholesale business market contracted due to the effects of two drug price revisions, in October 2019 and April 2020, and the suppression of outpatient visits by patients at medical institutions and the decline in the number of surgeries accompanying the spread of COVID-19, resulting in a challenging business environment.」
Market contraction and a challenging business environment continue due to two drug price revisions, restrictions on medical consultations, and a decline in the number of surgeries resulting from the infectious disease. - FY2021-Q2WorsenedAnnual report
「The prescription pharmaceuticals and related products wholesale business market contracted due to the effects of two drug price revisions, in October 2019 and April 2020, and the suppression of outpatient visits by patients at medical institutions and the decline in the number of surgeries accompanying the spread of COVID-19, resulting in a challenging business environment.」
In addition to two drug price revisions, restrictions on outpatient visits and a decline in the number of surgeries resulting from the spread of COVID-19 have affected the market, and market contraction and a challenging business environment continue. - FY2021-Q1WorsenedAnnual report
「The prescription pharmaceutical market remained in a challenging business environment due to the effects of two drug price revisions, in October 2019 and April 2020, and the suppression of outpatient visits by patients at medical institutions and the decline in the number of surgeries accompanying the spread of COVID-19.」
In addition to two drug price revisions, restrictions on outpatient visits and a decline in the number of surgeries resulting from the spread of COVID-19 made the business environment for the prescription pharmaceutical market more challenging. - FY2020-Q3Updated third-quarter market growth rateAnnual report
「In the prescription pharmaceutical market, the market grew by 3.7%, mainly due to the expanding demand for antineoplastic drugs and other factors (estimated by Crecon Research & Consulting Co., Ltd.).」
The cumulative third-quarter growth rate for the prescription pharmaceutical market was updated to 3.7%. Although the growth rate declined from 4.9% in the previous cumulative quarter, positive growth continues, driven by increased demand for anticancer drugs and other factors. - FY2020-Q2Updated second-quarter market growth rateAnnual report
「In the prescription pharmaceutical market, the market grew by 4.9%, mainly due to the expanding demand for antineoplastic drugs and other factors (estimated by Crecon Research & Consulting Co., Ltd.).」
The prescription pharmaceutical market grew 4.9% on a cumulative second-quarter basis, driven by increased demand for anticancer drugs and other factors. The market environment figures have been updated. - FY2020-Q1Updated first-quarter market growth rateAnnual report
「The prescription pharmaceutical market grew by 0.7%, driven by factors including increased demand for antineoplastic drugs, according to an estimate by Crecon Research & Consulting Co., Ltd.」
The prescription pharmaceutical market grew 0.7% in the first quarter, driven by increased demand for anticancer drugs and other factors. The quarterly figure has been updated for the market environment affected by the healthcare system and drug prices. - FY2019Updated full-year market growth rateAnnual report
「During the fiscal year, the prescription pharmaceutical market recorded zero growth year on year overall, despite the average 7.5% reduction in drug prices in April 2018, due in part to increased demand for hepatitis C treatments and antineoplastic drugs.」
The market shifted from a 0.4% contraction in the cumulative third quarter to zero growth for the full year. Although the impact of the average 7.5% drug price reduction and other factors remained, demand growth brought the market from contraction to flat growth. - FY2019-Q3WorsenedAnnual report
「During the cumulative third quarter of the fiscal year, the prescription pharmaceutical market contracted by 0.4% year on year overall, representing negative growth, despite the average 7.5% reduction in drug prices in April 2018, due in part to increased demand for hepatitis C treatments and antineoplastic drugs (estimate by クレコンリサーチ＆コンサルティング株式会社).」
The rate of decline widened from a 0.1% year-on-year contraction in the previous quarter, and the prescription pharmaceutical market posted negative growth of 0.4%. - FY2019-Q2WorsenedAnnual report
「During the period, despite the average 7.5% drug price reduction in April 2018, the prescription pharmaceutical market posted negative growth of 0.1% year on year overall, due to increased demand for hepatitis C treatments and anticancer drugs, among other factors.」
Although the overall market grew 1.9% in the previous quarter, it posted negative growth of 0.1% year on year in the current quarter under the impact of the average 7.5% drug price reduction and other factors. - FY2019-Q1MitigatedAnnual report
「In the prescription pharmaceutical market, despite the impact of an average 7.5% reduction in drug prices based on the April 2018 drug price revision, the market grew 1.9% overall (estimate by Crecon Research & Consulting Co., Ltd.).」
Although the impact of the average 7.5% drug price reduction in April 2018 continued, the overall market grew 1.9%. - FY2018-Q3MitigatedAnnual report
「Although demand for hepatitis C treatments declined and long-listed products decreased as a result of the shift to generic drugs, the prescription pharmaceutical market grew slightly, up 0.3% year on year overall, due in part to expanded sales of antineoplastic agents (estimate by クレコンリサーチ＆コンサルティング株式会社).」
The market turned from a 1.1% year-on-year decline in the previous quarter to 0.3% growth in the current quarter. Although the impact of the decline in long-listed products remains, the overall market posted slight growth. - FY2018-Q2Updated market growth rateAnnual report
「The prescription pharmaceutical market contracted by 1.1% year on year overall, representing negative growth, due to declining demand for hepatitis C treatments and the decline in long-listed products accompanying the shift to generic drugs (estimate by クレコンリサーチ＆コンサルティング株式会社).」
The prescription pharmaceutical market contracted 1.1% year on year. Although the rate of decline narrowed from a 3.2% contraction in the previous quarter, negative growth continues due to the decline in demand for hepatitis C treatments and the decline in long-listed products accompanying the shift to generic pharmaceuticals. - FY2018-Q1WorsenedAnnual report
「The prescription pharmaceutical market contracted by 3.2% year on year overall, representing negative growth, due to declining demand for hepatitis C treatments and the decline in long-listed products accompanying the shift to generic drugs (estimate by クレコンリサーチ＆コンサルティング株式会社).」
The prescription pharmaceutical market contracted 3.2% year on year, as the decline in demand for hepatitis C treatments and the decline in long-listed products accompanying the shift to generic pharmaceuticals became concrete challenges in the business environment. - FY2017-Q3WorsenedAnnual report
「The prescription pharmaceutical market contracted by 2.6% overall, representing negative growth, due to the April 2016 reduction in drug prices, the decline in long-listed products accompanying the shift to generic drugs as demand expanded, and the waning of demand for hepatitis C treatments, which had expanded in 2015 (estimate by クレコンリサーチ＆コンサルティング株式会社).」
From 0.6% growth in the previous quarter, the market shifted to negative growth, contracting 2.6%, due to the drug price reduction, the shift to generic pharmaceuticals, the decline in long-listed products, and the leveling off of demand for hepatitis C treatments. - FY2017-Q2MaterialisedAnnual report
「The prescription pharmaceutical market grew 0.6% overall, affected by the April 2016 drug price reduction, the decline in long-listed products as demand expanded for generic pharmaceuticals, and changes in customer demand following the revision of dispensing fees (estimate by Crecon Research & Consulting Co., Ltd.).」
The drug price reduction, the shift to generic pharmaceuticals, the decline in long-listed products, and changes in demand following the revision of dispensing fees are identified as specific factors that limited market growth to 0.6% during the period. - FY2017-Q1MaterialisedAnnual report
「In the prescription pharmaceutical market, despite the impact of an average 7.8% reduction in drug prices following the April 2016 revision of medical service fees, the market grew 4.4% (estimate by Crecon Research & Consulting Co., Ltd.).」
The company states that the average 7.8% reduction in drug prices, which had been described as an expectation in the previous fiscal year, had an actual impact during the current quarter. - FY2016First statedAnnual report
「Following the April 2016 revision of medical service fees, the company expects an average 7.8% reduction in drug prices and other impacts.」
Drug price revisions and measures to curb healthcare spending are described as risks that could directly affect sales and profit.