2018 Pricing Reform: Will Takeda Exit the Japanese Pharma Market? - - PowerPoint PPT Presentation
2018 Pricing Reform: Will Takeda Exit the Japanese Pharma Market? Japan Pharma & Governance Tour: UBS Securities e-Projection K.K. July 12, 2018 e-Projection Three Forces Determining the Direction of Healthcare Shape of the market will
e-Projection
e-Projection
Industry
Driver
R&D
Vehicle
RoI
Key Incentive
Patients&HCP
Driver
Advocacy
Vehicle
Well being
Key Incentive
Authorities
Driver
P&MA
Vehicle
Fiscal discipline
Key Incentive
e-Projection
Leaky: unhealthy healthcare
Insurance premium 49% Injection of public funds 39% Patient copay 11% Others 1% Source of National Healthcare Funds (2015)
Source: MLHW statistics
The Japanese pricing authorities’ inabilit lity a and unwi willin llingness t to value n new d drugs is harming innovation Pricetags: way off the target
Opdivo initial prices in different markets
e-Projection
Premium
from biennial to annual
“Market Expansion” allowing massive price cuts to happen anytime
value of the products, e.g. HTA, failed to be implemented effectively Initiatives Implications Deceleration in market growth of new drugs Decreasing the consistency of the business Possibility of erroneous initial prices granted
e-Projection
20 40 60 80 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Years post launch
20 40 60 80 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Years post launch
20 40 60 80 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Years post launch
Prices of new drugs used to be maintained during the lifecycle until LOE Prices will be reduced significantly at LoE and then will be cut thereafter in line with competition After ‘18, prices will be cut regardless of exclusivity “Re-pricing” may happen at any arbitrary timing and extent Initial Price
e-Projection
e-Projection