Healthcare System Reform, Healthcare Cost Containment, and Intensifying Market Competition

「The operating environment remains challenging, affected by healthcare-cost containment measures, including reforms to the drug-pricing system.」

「During the interim consolidated accounting period, following the drug price revision in April 2024, an interim-year drug price revision was implemented in April 2025, evaluating drugs by category, including products eligible for the premium for new drug creation and elimination of off-label drug use, other new drugs and long-listed products. Overall growth in drug spending therefore remains subdued.」

「During the interim consolidated accounting period, drug prices in the pharmaceutical industry were revised in April 2024. In addition to system reforms focused on eliminating drug lags and losses and evaluating and promoting innovation, measures were taken to support drug prices, including an increase in products subject to recalculation for unprofitable products. However, overall growth in drug spending remains subdued due to healthcare cost-containment measures, including interim-year drug price revisions, and the industry continues to operate in a challenging environment.」

「The pharmaceutical industry continues to operate in a challenging environment. As part of measures to contain healthcare costs, including reforms to the drug pricing system, drug prices were revised in April 2022, followed by an interim-year drug price revision in April 2023.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a mid-year drug price revision was implemented in April of the current year following the drug price revision in April of the previous year.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a drug price revision was implemented in April of the previous year following the mid-year drug price revision in April of the year before that. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a drug price revision was implemented in April of the current year following the mid-year drug price revision in April of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a drug price revision was implemented in April of the current year following the mid-year drug price revision in April of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「The COVID-19 pandemic, which lasted for 2 years, caused extensive damage worldwide and had a major impact on social activities. In addition, escalating tensions surrounding Ukraine have made the outlook for the global economy even more uncertain.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a mid-year drug price revision was implemented in April of the previous year following the drug price revision in April of the year before that.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a mid-year drug price revision was implemented in April of the current year following the drug price revision in April of the previous year.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a mid-year drug price revision was implemented in April of the current year, following the revision in April of the previous year.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, a drug price revision was implemented in April following the revision accompanying the consumption tax rate increase in October of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, a drug price revision was implemented in April following the revision accompanying the consumption tax rate increase in October of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「The pharmaceutical industry is in the midst of structural transformation. Pharmaceutical companies are required to innovate in treating rare diseases, emerging infectious diseases, and intractable diseases for which no treatments are available, as well as in improving quality of life. In Japan, social security system restructuring is under way in response to the declining birth rate and aging population. In healthcare, successive measures to contain drug costs, including fundamental reform of the drug pricing system and initiatives to promote the use of generic drugs, are being implemented to maintain universal health insurance coverage. In addition, promotional activities by pharmaceutical companies are subject to stricter regulation under the Guidelines for Provision of Sales Information, which took effect in April 2019, creating an urgent need to establish a new framework for providing drug information.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, a drug price revision was implemented in October of the previous year in line with the consumption tax rate increase.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「Companies are required to address rare diseases and intractable diseases for which no treatments are available, while healthcare needs are becoming more advanced and diverse, including the pursuit of improvements in quality of life. At the same time, drug development costs are rising and the difficulty of developing new drugs is increasing due to a shortage of new drug candidates and higher R&D risks. In addition, as the outlook for international affairs becomes increasingly uncertain, the global market is undergoing major change, requiring the pharmaceutical industry to adapt to a new market structure, and competition among companies is extremely intense.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the drug price revision implemented in April of the previous year included a review of the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use, as well as drug price reductions for long-listed drugs based on their replacement rates by generic drugs.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the latest drug price revision implemented in April included a review of the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use, as well as drug price reductions for long-listed drugs based on their replacement rates by generic drugs.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the latest drug price revision implemented in April included a review of the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use, as well as drug price reductions for long-listed drugs based on their replacement rates by generic drugs.」

「Companies are required to address rare diseases and intractable diseases for which no treatments are available, while healthcare needs are becoming more advanced and diverse, including the pursuit of improvements in quality of life. At the same time, drug development costs are rising and the difficulty of developing new drugs is increasing due to a shortage of new drug candidates and higher R&D risks. In addition, as the outlook for international affairs becomes increasingly uncertain, the global market is undergoing major change, requiring the pharmaceutical industry to adapt to a new market structure, and competition among companies is extremely intense.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「In the pharmaceutical industry, the challenging operating environment continued. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the drug price revision implemented in April of the previous year continued the trial introduction of the premium for promoting the development of new drugs and eliminating off-label drug use, while applying special reductions to long-listed drugs that have not been sufficiently replaced by generics and implementing special market expansion repricing.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the drug price revision implemented in April of the previous year continued the trial introduction of the premium for promoting the development of new drugs and eliminating off-label drug use, while applying special reductions to long-listed drugs that have not been sufficiently replaced by generics and implementing special market expansion repricing.」

「The pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the latest drug price revision implemented in April continued the trial introduction of the premium for promoting the development of new drugs and eliminating off-label drug use, while applying special reductions to long-listed drugs that have not been sufficiently replaced by generics and implementing special market expansion repricing.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, the latest drug price revision implemented in April continued the trial introduction of the premium for promoting the development of new drugs and eliminating off-label drug use, while applying special reductions to long-listed drugs that have not been sufficiently replaced by generics and implementing special market expansion repricing.」

「In Japan, the United States, and Europe, various healthcare system reforms are being pursued to control healthcare costs, while healthcare needs are expanding in emerging markets. As a result, the pharmaceutical market is undergoing major change globally. In addition, healthcare needs are becoming more advanced and diverse, including treatments for rare diseases and improvements in quality of life, while the productivity of research and development is becoming increasingly challenging due to a shortage of new drug candidates and rising drug development costs. Competition among companies is extremely intense.」