Mitigating NHI Price Erosion in Japan
Post-launch NHI price recalculation in Japan can feel unavoidable. However, most of the time the resulting price cut can be mitigated – or even avoided. How? Read on...
Once upon a time...
...there was a manufacturer that expertly navigated through the Japanese P&R system. This manufacturer breezed through negotiations with the Ministry of Health, Labour and Welfare (MHLW), and achieved a price that reflected the true value of what would become their blockbuster drug. Little did the manufacturer know, there were dark times ahead, for MHLW had become wary of the success of the drug. With each new indication, sales for the medication grew and grew, until the MHLW could accept it no longer. And so, price recalculation happened. Fast forward many years later, and the price of the drug is only a fraction of what was first achieved at launch.
Unfortunately, this story is not a mere fairytale. A cautionary tale, maybe, for this situation…
