The 5% · Japan · Brand drugs

Why Japan brand drugs are cheaper

It’s cheaper because Japan sets one price for the drug. Every hospital and pharmacy pays that (or a cap under it). In the US, each insurer and PBM bargains a rebate off a high list, and the sticker stays high.

Chuikyo / NHI fee schedule

How it works

The Central Social Insurance Medical Council (Chuikyo) sets NHI drug prices. The list is public. Prices are cut every other year — sometimes faster — so a brand does not sit at launch forever. DPC hospitals cannot turn the vial into a 340B-to-commercial spread. There is no job-plan PBM taking US list.

Why it holds

France and Japan are the cheapest G7 brand markets in RAND. US brands 4.64× Japan — Japan is about 22¢. Presentation overlap with the US is the smallest in G7 (17% of Japanese volume); RAND’s active-ingredient check still found Japan cheap. They infuse. They stay in hospital for weeks. They do not pay US list so a manufacturer can recoup R&D a second time.

The invoices

SKUUnited StatesJapan
Brand originators on the US dollarsourced$1.0022¢
All drugs on the US dollarsourced$1.0029¢
Specialty year at the brand indexmodeled$150,000~$32,000

See RAND drugs. 30-day list prices: CMS 2023, Inflation Reduction Act round 1.

Twenty brands — US sticker vs Japan

Ranked by the US number. 30-day list is CMS 2023 (Inflation Reduction Act round 1). Infusion doses are our hospital commercial bill. Japan column is that US sticker × this country’s RAND brand index. Gross list, not rebates. Even after a US rebate haircut, RAND says brands stay more than 3×.

DrugUnited StatesJapanOn the US $
Keytruda (pembrolizumab)hospital dosemodeled$16,800$3,61822¢
Opdivo (nivolumab)hospital dosemodeled$15,000$3,23022¢
Alteplase (tPA) stroke dosehospital kitmodeled$15,000$3,23022¢
Imbruvica (ibrutinib)30-day listsourced$14,934$3,21622¢
Stelara (ustekinumab)30-day listsourced$13,836$2,98022¢
Herceptin-class (trastuzumab)hospital dosemodeled$9,200$1,98122¢
Neulasta-class (pegfilgrastim)hospital dosemodeled$8,900$1,91722¢
Avastin-class (bevacizumab)hospital dosemodeled$8,100$1,74422¢
Enbrel (etanercept)30-day listsourced$7,106$1,53022¢
Rituximab biosimilarhospital dosemodeled$6,800$1,46422¢
Remdesivir coursehospital coursemodeled$4,200$90522¢
Humira-class (adalimumab) clinicclinic syringemodeled$2,400$51722¢
Ozempic (semaglutide)30-day listmodeled$969$20922¢
Entresto (sacubitril/valsartan)30-day listsourced$628$13521¢
Jardiance (empagliflozin)30-day listsourced$573$12321¢
Farxiga (dapagliflozin)30-day listsourced$556$12022¢
Januvia (sitagliptin)30-day listsourced$527$11321¢
Eliquis (apixaban)30-day listsourced$521$11221¢
Xarelto (rivaroxaban)30-day listsourced$517$11121¢
NovoLog / Fiasp (insulin)30-day listsourced$495$10722¢

Also: Why Japan hospital prices · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Drug voices · Back to The 5%