Market expansion driven by the 80% target for generic drug use

「Under the selected medical care scheme for long-listed products, the patient copayment was increased from June 2026 to one-half of the price difference from generic medicines. In addition, the period for applying the G1 rule, under which the prices of long-listed products are gradually reduced to approximately the same level as generic medicines, was shortened from 10 years to 5 years in principle. For authorized generics, whose composition, dosage form and manufacturing process are considered identical to those of the originator product, successive system revisions have also been implemented to promote the use of generic medicines, including setting the prices of products newly listed from October 2026 at the same level as the originator products.」

「At the general meeting of the Central Social Insurance Medical Council held on 17 December 2025, a proposal was presented and considered for the revision of medical service fees in fiscal 2026. Under the selected medical care scheme for long-listed products, the patient burden, currently one-quarter of the price difference between generic medicines and long-listed products, would be increased to at least one-half.」

「According to the Ministry of Health, Labour and Welfare publication Trends in Recent Pharmaceutical Expenditure (Computer-Processed Data), February 2024 issue, the volume share of generic medicines increased from 80.2% in fiscal 2023 to 90.6% in February 2025 as a result of these measures.」

「As a result of these measures, the volume share of generic medicines increased steadily from 80.2% in fiscal 2023 to 85.0% in fiscal 2024, while the value share increased from 56.7% in fiscal 2023 to 62.1% in fiscal 2024.」

「From 1 October 2024, the selected medical care scheme was introduced for long-listed products, meaning originator medicines for which generic medicines are available. For covered medicines, patients will bear an additional amount equal to one-quarter of the price difference from the generic medicine, which is expected to promote the use of generic medicines.」

「At the meeting of the Health Insurance Subcommittee of the Social Security Council held on 14 March 2024, in addition to the primary target of maintaining a volume share of at least 80% in every prefecture by the end of fiscal 2029, the following were established as new secondary targets: by the end of fiscal 2029, the number of active ingredients for which biosimilars account for at least 80% should represent at least 60% of all active ingredients, and the value share of generic medicines should increase from 56.7% in fiscal 2023 to at least 65% by the end of fiscal 2029.」

「To promote the use of generic medicines, the Ministry of Health, Labour and Welfare plans to revise the utilization target, which is already close to being achieved, from the current volume-based target of 80% to a new value-based target during fiscal 2023. The Study Group on the Desired Industrial Structure for Achieving a Stable Supply of Generic Medicines recommended measures including evaluating, under the drug pricing system, companies capable of ensuring a stable supply of quality-assured generic medicines, and narrowing the range of newly listed products to address the industry's low-volume, high-variety structure.」

「The volume share from January to March 2023 was 81.6%, according to the Japan Generic Medicines Association.」

「In the pharmaceutical industry, the government has been promoting the use of generic medicines. In the April 2022 revision of medical service fees, evaluations were revised, with a focus on medical institutions with high generic medicine utilization rates, among other measures, to further promote the use of generic medicines.」

「In the pharmaceutical industry, the government has been promoting the use of generic medicines. In the April 2022 revision of medical service fees, evaluations were revised, with a focus on medical institutions with high generic medicine utilization rates, among other measures, to further promote the use of generic medicines.」

「According to an analysis by the Japan Generic Medicines Association, the volume-based utilization rate for generic medicines was 79.3% (preliminary figure) from October to December 2021, bringing it close to 80%. Meanwhile, supply concerns have emerged recently as a result of a succession of serious quality-related issues across the generic medicine industry caused by violations of the Pharmaceuticals and Medical Devices Act, creating a need to secure confidence in the quality and stable supply of generic medicines.」

「According to an analysis by the Japan Generic Medicines Association, the volume-based utilization rate for generic medicines was 79.2% (preliminary figure) from July to September 2021, bringing it close to 80%. Meanwhile, a supply shortage has emerged recently as a result of a succession of serious quality-related issues across the generic medicine industry caused by violations of the Pharmaceuticals and Medical Devices Act. Accordingly, the Basic Policy on Economic and Fiscal Management and Reform 2021 added that, with securing confidence in the quality and stable supply of generic medicines as its pillars, the government and private sector would jointly strengthen manufacturing control systems, tighten supervision of manufacturing sites, and conduct quality confirmation testing of products in market distribution, among other measures. It then set out a target of achieving a volume share of at least 80% in every prefecture by fiscal 2023.」

「The result of the September 2020 drug price survey was 78.3%, falling just short of the 80% target. Accordingly, at the Social Security Working Group of the Council on Economic and Fiscal Policy's Committee for Promotion of Integrated Economic and Fiscal Reform, held on 27 April 2021, the Ministry of Health, Labour and Welfare presented a new target for generic medicine utilization: generic medicines should account for at least 80% of volume in every prefecture by the end of fiscal 2023, because the penetration of generic medicines varies by prefecture.」

「The result of the September 2020 drug price survey was 78.3%, falling just short of the 80% target. Accordingly, at the Social Security Working Group of the Council on Economic and Fiscal Policy's Committee for Promotion of Integrated Economic and Fiscal Reform, held on 27 April 2021, the Ministry of Health, Labour and Welfare presented a new target for generic medicine utilization: generic medicines should account for at least 80% of volume in every prefecture by the end of fiscal 2023.」

「According to an analysis by the Japan Generic Medicines Association, the generic medicine utilization rate was 79.4% (preliminary figure) in the third quarter of fiscal 2020 (October–December 2020), bringing it close to 80%.」

「According to an analysis by the Japan Generic Medicines Association, the generic medicine utilization rate was 78.9% (preliminary figure) in the second quarter of fiscal 2020 (July–September 2020), bringing it close to 80%.」

「According to an analysis by the Japan Generic Medicines Association, the generic drug usage rate in the first quarter of FY2020 (April to June 2020) was 79.3% on a preliminary basis, bringing it close to 80%.」

「The Basic Policy on Economic and Fiscal Management and Reform 2019, “A New Era of Reiwa: Challenges toward Society 5.0” (Basic Policy 2019), also explicitly states that efforts will continue toward achieving a generic drug usage rate of 80% by September 2020, including by strengthening incentives, while ensuring stable supply and further enhancing confidence in quality. Accordingly, the volume share of generic drugs is expected to continue expanding.」

「The Basic Policy on Economic and Fiscal Management and Reform 2019, “A New Era of Reiwa: Challenges toward Society 5.0” (Basic Policy 2019), also explicitly states that efforts will continue toward achieving a generic drug usage rate of 80% by September 2020, including by strengthening incentives, while ensuring stable supply and further enhancing confidence in quality. Accordingly, the volume share of generic drugs is expected to continue expanding.」

「The Company will continue working toward achieving a generic drug usage rate of 80% by September 2020, including by strengthening incentives.」

「The June 2017 Cabinet decision reaffirmed the goal of raising the generic drug usage rate to 80% by September 2020 and considering further measures to promote use so that the target could be achieved as early as possible. In addition, the Ministry of Health, Labour and Welfare launched the Priority Region Use Promotion Strengthening Project as a new program from FY2018, designating prefectures with low generic drug volume shares as priority regions and providing support. Accordingly, the volume share of generic drugs is expected to continue expanding.」

「The June 2017 Cabinet decision reaffirmed the goal of raising the generic drug usage rate to 80% by September 2020 and considering further measures to promote use so that the target could be achieved as early as possible. In addition, the Ministry of Health, Labour and Welfare launched the Priority Region Use Promotion Strengthening Project as a new program from FY2018, designating prefectures with low generic drug volume shares as priority regions and providing support. Accordingly, the volume share of generic drugs is expected to continue expanding.」

「The Company will consider further measures to promote the use of generic drugs, with the aim of raising the generic drug usage rate to 80% by September 2020 (Heisei 32) and achieving this target as early as possible.」