Pharmaceutical pricing in Japan: market evidence for rheumatoid arthritis treatment

ABSTRACT

Background: Drug price setting is one of the key challenges faced by the Japanese health care system. This study aims to identify the determinants of drug price in Japan using the example of the rheumatoid arthritis (RA) treatment market.

Research design and methods: In order to compare prices across different products, we calculated prices per defined daily dose using WHO methodology. Price determinants were calculated both at launch and over time using IMS quarterly data on medicines approved for RA treatment in Japan from 2012 to 2015. Pharmaceutical pricing was modeled as a function of clinical and economic variables using regression analysis.

Results: For prices at the launch we found that differences in efficacy are not reflected in price differentials. We also report that the number of products within a molecule class had a negative effect on prices while originator drugs maintained higher prices.

Conclusion: Although the existing pricing rules in Japan are very comprehensive they do not necessarily capture differences in product characteristics. The findings here support the notion that competitive forces are weak in highly regulated markets such as Japan.

KEYWORDS:

• Pharmaceutical Pricing
• Japan
• rheumatoid arthritis
• regulation
• biologics

Acknowledgments

We thank Y Sasatani and M Nishi from Janssen KK for providing important background information. We also thank Don MacArthur for advice and editing of the paper.

Declaration of Interest

J Mahlich and R Sruamsiri are employees of Janssen KK. The authors have no other relevant affiliations or financial involvement with any organization or entity with a financial interest in or financial conflict with the subject matter or materials discussed in the manuscript apart from those disclosed. Peer reviewers on this manuscript have no relevant financial or other relationships to disclose.

Author contributions

JM designed the study and drafted the manuscript, RS performed the statistical analysis, IK interpreted the findings.

Additional information

Funding

This paper was funded by Janssen Pharmaceutical KK.