Japan to Promote Use of Follow-On Biologics

Tokyo, Oct. 26 (Jiji Press)–Japan’s health ministry has started considering ways to promote the use of follow-on products of very expensive original biological drugs. Options include increasing out-of-pocket costs of patients who choose original drugs even though the original and follow-on products have the same quality and effects, and raising fees paid to medical institutions that prescribe follow-on biological drugs, also known as biosimilars. The ministry aims to introduce new measures in fiscal 2026, which starts next April, as a way to curb the country’s ballooning medical costs. Government-set prices of biosimilars are about 30 pct lower than those of the original drugs, but the usage rate for follow-on biologics stood low at 33.7 pct in fiscal 2024 in terms of value. A switch to follow-on biologics would have saved 110.3 billion yen in medical costs in the same fiscal year, according to the ministry. More reductions would be possible if biosimilars come into wider use, ministry officials said. While many follow-on biologics covered by health insurance are for inpatients at present, some are available for outpatients, such as Insulin Lispro BS, a self-injection drug for diabetes treatment. Patients’ out-of-pocket costs were raised in October 2024 for drugs for which generic products are available. The ministry will consider whether it is possible to introduce a similar system for biological drugs. Medical institutions sometimes do not choose follow-on products when a system to curb patients’ costs for expensive medical treatment is used, because the amount of costs is the same for both the original and follow-on drugs under the system. Against the background, a proposal has been floated to increase medical fees to institutions that prescribe biosimilars while reducing payments to those choosing original products. Already in place is a system to add medical fee payments to institutions that use more than a certain amount of biosimilars for inpatients. The ministry hopes to reach a conclusion by year-end after discussions, including at a key panel that advises the health minister. END [Copyright The Jiji Press, Ltd.]