Analyzing Upward Deviation of Actual vs Predicted Drug Sales in Japan for a Reasonable Drug-Pricing Policy

Shoyo Shibata, Daigo Fukumoto, Takeshi Suzuki, Koken Ozaki

Research output: Contribution to journalArticle

Abstract

Background:: Predictions of drug sales play an important role in setting drug prices in Japan, where drug prices are highly regulated.One of 2 primary Japanese drug-pricing methodologies—the cost calculation method— refers extensively to the prediction ofdrug sales in establishing drug prices. Deviations from predicted sales can induce disproportionate drug prices and unexpectedpharmaceutical expenditures. This study aimed to estimate the upward deviation of actual sales from predicted sales and toexplore the predictors of such upward deviation. Methods:: Estimates of upward deviation in 2015 were produced for newmolecular entities (NMEs) approved in 2006-2015. To identify the predictors associated with upward deviation through binarylogistic regression analyses, sales within 3 years of launch and in the predicted year in which peak sales would be reached wereused. Results:: Estimated upward deviation was more than 1220 billion yen in 2015 for the targeted drugs. Drugs priced by the costcalculation method or by obtaining additional indications were significantly more likely to show an upward deviation from predictedpeak sales. Conclusions:: There is substantial upward deviation between actual and predicted drug sales in Japan. So long asdrug sales predictions are used in drug price calculations, a flexible repricing system is needed to buffer unexpected pharmaceuticalexpenditures.

Original languageEnglish
JournalTherapeutic Innovation and Regulatory Science
DOIs
Publication statusAccepted/In press - 2020 Jan 1

Keywords

  • additional indications
  • cost calculation method
  • drug pricing
  • drug sales
  • regulatory science

ASJC Scopus subject areas

  • Pharmacology, Toxicology and Pharmaceutics (miscellaneous)
  • Public Health, Environmental and Occupational Health
  • Pharmacology (medical)

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