JGPMA Joins IGPA

Japanese Generic Pharmaceutical Manufacturing Association Joins
the International Generic Pharmaceutical Alliance

Mr Hiroyuki Sawai, President of JGPMA (right), Accepts Membership in IGPA at
the 10th IGPA Annual Conference in Miami on 29 November 2007, while
Greg Perry, Director General of EGA and Co-coordinator of the IGPA
Management Committee, listens on.

Thank you very much, Mr. Perry for the introduction.

Good Afternoon, everyone. My name is Hiroyuki Sawai. I am the president of Japan Generic Pharmaceutical Manufacturers Association -the JGPMA - and the CEO of Sawai Pharmaceutical Company in Japan.

I am honored to be here to make this speech.

First of all, on behalf of the Japan Association, I would like to express our sincere gratitude to IGPA management members, and all American, European, Canadian and Indian members for their approval for a full membership.

I would like to briefly talk about the current situation and recent changes in the Japanese Generic Industry.

The present share of generic drugs in Japan is only 5% in value base, and 17% in volume base. This is extremely low, compared to major countries and that of the US, which is 63%.

In view of this very low share of generic drugs and the need to reduce medical costs, this year, the Japanese government finally started taking 5 clear measures to promote the use of generics.

First, the Ministry of Health officially announced this June a specific program to raise the generic drug share over the next five years from 17% to more than 30% by the year 2012.

Second, from April 2008, the government plans to implement a Japanese style generic substitution system. Pharmacists will be allowed to substitute generic drugs if doctors do not specify that a brand name drug is to be dispensed.

Third, most pharmacists are currently reluctant to substitute generic drugs for brand name drugs because of their lower profits. Therefore, starting in April, the Japanese government intends to give pharmacists additional incentives if they stock and dispense a certain number of generic drugs.

This strategy is under discussion at the Central Social Medical Council. I am certain that a conclusive agreement will be reached by the end of this year.

Fourth, the Ministry of Health plans to soon launch an advertising campaign to raise awareness and promote the usage of generic drugs.

Finally, by 2012, the government is also planning to bring more hospitals into a one -payment per treatment system, which is called “DPC”.

With these government measures, the future for generic drugs in Japan looks very promising.

In closing, the JGPMA and I, are very happy to become a regular member of the IGPA. The Japanese industry has traditionally developed by learning from western countries and it is certainly the case with generic drugs.

Although, we do not currently have the experience to perform in the globalization of the generic drug industry, we are confident that with your continuous support we can assert an international presence in the near future.

Thank you very much.

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