Japan's Healthcare System and Pharmaceutical Industry

Abstract

Japanese people are enjoying longer and healthy lives at relatively low cost, thanks to well-balanced nutrition, low infant mortality and effective TB drugs. The healthcare system of the country also has made a significant contribution to such good performance. The system is divided into health insurance programs and a special healthcare system for seniors (SHSS), to which Japan's government has been paying money despite having a tremendous financial deficit. The government has tried to slash its financial burden of the healthcare system as much as possible for a better financial condition. Meanwhile, the Japanese pharmaceutical industry has played an important role in the development of the healthcare system under the situation of government having carried out a series of National Health Insurance (NHI) drug price cuts in order to save healthcare costs in recent years. The industry is categorised into three groups such as big players with presence in the US and Europe, other brand drug companies with no presence in these areas and generic drug companies. Price cut pressure from the government will force the big players to intensify their overseas activities and the other brand drug companies to do everything for their survival. On the other hand, generic drug companies will keep a better position in the market because the government has realised that promoting the use of generic drugs is effective for cost saving and changed to the policy favourable to the generic industry.