Pharmacoeconomic Evaluation in Japanese Pharmaceutical Companies
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0092-8615/98 Copyright 0 1998 Drug Information Association Inc.
PHARMACOECONOMIC EVALUATION IN JAPANESE PHARMACEUTICAL COMPANIES SHUNYA IKEDA,MD, MSc, DRMEDSCI Assistant Professor
ADAMJAMES OLIVER,MSc Visiting Researcher
NAOKIIKEGAMI,MD, MA, DRMEDSCI Professor Department of Health Policy and Management, School of Medicine, Keio University. Tokyo, Japan
In Japan, since August 1992, materials derived from pharmacoeconomic evaluations have been accepted at the time of new drug price negotiation, Pharmaceutical companies generally consider the materials they submit to be private information. Moreover, it is unclear how the government uses these materials in its policy decisions. In this paper, for the purpose of understanding the present status of pharmacoeconomic evaluation in Japanese pharmaceutical companies, the resultsfrom an investigative interview of selected employees at 22 pharmaceutical firms are outlined. An analysis of how the submitted economic data are reflected in drug prices is provided. This analysis clari3es that in recent years pharmacoeconomic evaluations have been submitted for most new pharmaceutical products. A clear connection between the submitted economic materials and the issuing of premiums to innovative or useful products, however, was not found, It is concluded that there is an urgent need to construct a system in which the results ofpharmacoeconomic evaluation can be appropriately used in government pricing decisions. Key Words: Pharmacoeconomic evaluation; Pharmacoeconomics; Japanese pharmaceutical companies; Submission; Pricing decision
INTRODUCTION RISING MEDICAL EXPENDITURES have become a primary factor behind the pressure on state finances in many countries, and thus the effort to control these expenditures has become a major undertaking in the countries concerned. In this process, pharmaceutical products have received much attention.
Reprint address: Shunya Ikeda, Department of Health Policy and Management, School of Medicine, Keio University. 35 Shinanomachi, Shinjuku-ku, Tokyo 160, Japan.
Throughout the world various policies are being introduced for the purpose of establishing appropriate pharmaceutical pricing and usage. Pharmacoeconomic analysis, a research technique that quantitatively evaluates the cost-effectiveness of pharmaceutical products, is in the process of development in many countries. Presently, Australia (l), Canada (2), and various European countries (3) are already moving toward the use of pharmacoeconomic analytical results in decision making regarding whether or not a product should be listed for insurance reimbursement. These results are also being used to aid pricing decisions.
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Shunya Ikeda, Adam James Oliver, and Naoki Ikegami
In Japan, since August 1992, materials assessed. Within the interview, three main derived from pharmacoeconomic evaluation points were raised: have been accepted at the time of new drug price negotiation. In September 1994, the 1. How
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