A Quick Review On International Reference Pricing China And Japan

By Edward Stone


Over the past decades, IRP has increasingly been adopted by most European countries like UK, Germany, France, Taiwan, Korea, Singapore, and Asia, among others. The healthcare reform has deepened, making most of these countries to eliminate the traditional cost-based costing methodology. They have thus proposed a new costing strategy that is based on market conditions, the ability to pay as well as negotiations. This has made IRP become an essential component of the considerations. This article will give you a better understanding of the International Reference Pricing China and Japan.

IRP has created a significant impact in most countries, like China and Japan. This pricing methodology has limited the flexibility that companies have. Therefore, companies can no longer offer differentiated costing solutions. The IRP policies have increased the interconnection between markets. This has made the optimizing of launch sequence to be a complicated exercise. Thus, some companies are still feeling affected by the IRP.

Nonetheless, the costing methodologies that are being made are essential for maintaining and monitoring the prices of the pharmaceutical in several countries. Countries are, however, urged to have a better understanding of the impact created by this policy. Most countries all over the world are using the IRP methodology to price their pharmaceuticals. This is greatly impacting many countries. IRP thus focuses on assessing the referencing impact as well as recommend new and better ways to maximize revenues.

The Chinese government, in 2009, established a reform program in the healthcare sector. The main aim of this initiative was to monitor and control healthcare expenditures as well as increase the quality of care. This prompted NDRC to propose a new policy for pricing drugs in the year 2015. The increasing costs of the pharmaceuticals prompted the new costing methodology. This created an extraordinary rise of the pharmaceuticals which attracted the authorities.

Many pharmaceutical industries have recently agreed to work with regulators to cut the prices on certain drugs by approximately sixty-seven percent. This is an initiative of the government to make pharmaceutical products more affordable. Some of the drugs that have been impacted include Viread, Iressa, and Conmana. More cuts to other drugs are expected.

Some people perceive the introduction of IRP to be a new way of creating new prices and initiate new and different launches. This has prompted several debates across countries. The claims made are that no country should price their pharmaceuticals higher than the approved prices. Also, countries should be referencing their neighboring countries.

Discussions regarding the application of IRP are still ongoing. Thus, the exact prices for most other drugs are yet to be decided. Meanwhile, the policy continues, and countries are urged to continue applying the IRP policy. They should also reference against other neighboring countries to create harmony in the prices.

The IRP was ideally initiated for the good of the people. This means that pharmaceutical products will continue being affordable to most people. This will, in return, significantly improve the healthcare sector. Therefore, most people can now easily access even the drugs that were initially too costly. This is thus a good thing for most countries.




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