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news.Several Japanese drug majors like Daiichi Sankyo are bracing up for generic challenge to their branded products, as the government tries to control the spiraling drug costs. At present, owing to changes in prescriptions and the spread of flat-sum reimbursement, generics account for around 17% by volume and about 7% by value of Japan's prescription drug market.
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Now the government intends to raise the volume figure to 30% over the next three years. This has motivated many major overseas generics players to start operations in Japan over the last few years.
According to the ministry of health, labor and welfare of Japan, nearly 318 generics from 54 firms were listed, including 119 versions of 13 active ingredients which became generic for the first time in the country. Sawai, one of Japan’s largest generics firms, has 34 generics listed, including several levofloxacin preparations and expects to increase total sales to around ¥2.8 billion by the end of this year.
The prices of all these first-time generics were again set at 30% less of the present price of the original drug.
Subsequently, the generic versions are putting intense pressure on sales of braded drugs. For instance, Daiichi’s number three product antibacterial Cravit (levofloxacin) has been hit hard by the 31 generic versions that are made available in the market.
Other Daiichi Sankyo products like temocapril and irinotecan are also at the risk of first Japanese generic invasion. As a result, Daiichi Sankyo plummeted to a group net loss of ¥335.8 billion.