Iryo To Shakai
Online ISSN : 1883-4477
Print ISSN : 0916-9202
ISSN-L : 0916-9202
HCSI Initiative Research Report
Public Pricing Policy and Trade Practices in Pharmaceutical Distribution
A Research Group Report on Pharmaceutical Distribution
Yumiko Mimura
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JOURNAL FREE ACCESS

2011 Volume 21 Issue 2 Pages 137-162

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Abstract
The Pharmaceutical Distribution in Japan are characterized by many unreasonable trade practices; lump-sum bulk buying, delivery without price agreement between wholesalers and medical institutions/pharmacies, and obscure rebate/allowance system. Over 20 years, Health Labor & Welfare Ministry and Japan Pharmaceutical Wholesalers Association (JPWA) have been trying to improve these unreasonable trade practices through some formal meetings; Committee for Distribution Modernization (RYUKINKYO) in 1990s and Commission for Improvement on Pharmaceutical Distribution Transaction (RYUKAIKON) in 2000s with the members of Pharmaceutical Manufacturers Association, Private Hospitals Association and Pharmacies Association, etc.. In September 2009, the RYUKAIKON members agreed to publish a message that distribution transaction improvement was very critical. This message had some positive effects. But wholesalers realized that some drastic changes in pharmaceutical distribution such as growing pharmacy channel and generic drugs complicated distribution problems.
Since early 2000s, the public pricing policy for drugs has been reexamined from the industrial point of view. A new pricing scheme (Premium Pricing Scheme for Promotion of New Drug Creation and Resolution of Unapproved Drugs/Indications) has been implemented on a trial basis since April 2010. The prospect of this pricing scheme is now unknown, but it is sure that these reform trials would finally change the pharmaceutical distribution system, wholesalers' functions and trade practices. Wholesalers should challenge to reform their management and empower their sales forth.
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© 2011 The Health Care Science Institute
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