Global pharmaceutical leaders meet in Japan

With China growing dominance In the biopharmaceutical R&D sector, a group of global pharmaceutical leaders traveled to neighboring Japan this week to discuss efforts to strengthen leadership prospects in the life sciences with Prime Minister Sanae Takaichi.

More than 20 pharmaceutical executives from local companies, the United States and Europe attended the meeting in Japan, which marked “an important opportunity to discuss the actions needed for Japan to maintain its leadership in the life sciences,” said Roche CEO Thomas Schinecker, Ph.D., who chairs the Biopharma CEO Roundtable (BCR), in a May 26 press conference. release of the global pharmaceutical trade group, the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA).

“Investing in innovative medicines and vaccines is not only essential for health outcomes, but it is also a strategic investment that supports Japan’s economic growth, national security and resilience,” Schinecker said. “We must work together to address the current decline in Japan’s share of global biopharmaceutical R&D and ensure that Japanese patients do not face a growing gap in access to life-saving treatments.

Over the past decade, biopharmaceutical companies have invested 14 trillion Japanese yen ($87.9 billion) in R&D in the country, with more than 1,200 new drugs to demonstrate, IFPMA points out.

However, policy changes and increasing global competition have contributed to a “structural decline” in Japan’s share of global investment, as early-stage pipelines and clinical trial activities continue to move elsewhere, according to the IFPMA.

The U.S. Most Favored Nation (MFN) drug pricing policy, which aims to tie U.S. drug prices to those of certain high-income countries, specifically risks exacerbating this situation, placing Japan at a “situation of increasing competitive disadvantage,” notes the IFPMA. This outside pressure, along with “repeated revisions to drug pricing rules,” could contribute to “a growing gap” between drugs available to patients in Japan and those in other countries, the group said.

Given this, the group of global pharmaceutical leaders says that increasing Japanese government spending on innovative medicines is “critical to closing this gap”, says the IFPMA.

“Japan remains one of the traditional hotbeds of pharmaceutical innovation and will continue to play a central role in Japan’s future strength,” added Hiroyuki Okuzawa, CEO of Daiichi Sankyo and vice president of BCR. “Continued innovation will be essential to successfully address demographic change, emerging health challenges and evolving global risks. »

Schinecker further noted in a LinkedIn job that the meeting between Takaichi, his office and pharmaceutical industry executives was a “constructive and valuable exchange.”

“Our message was clear: investing in healthcare innovation is vital to Japan’s health outcomes, economic growth and resilience,” Schinecker said.

The “innovation gap” in Japan was already discussed when the BCR delegation encounter with Japanese officials in 2023 to propose a “public-private strategic dialogue” on possible drug pricing reforms and R&D efforts.

However, today, with high-stakes political changes and vast interest in Chinese biotechnology innovation, many countries, such as UNITED KINGDOM place greater emphasis on their ability to compete with global competition.

British Prime Minister Keir Starmer was joined by AstraZeneca CEO Pascal Soriot for a meeting with Chinese President Xi Jinping earlier this year, which raised a whopping $15 billion. investment commitment from AstraZeneca. The company seeks to invest in drug discovery, clinical development and manufacturing in China through 2030.