Japan’s 10-year fund to boost pharmaceutical landscape

The country’s ageing population is driving demand for innovative treatments.

Japan’s 10-year government fund to support innovative drug development signals a shift towards pro-innovation policies, aiming to build a more resilient pharmaceutical ecosystem, said GlobalData.

Currently, Japanese pharmaceutical companies have 62 innovator drugs in the pre-registration phase, 174 in Phase III clinical trials, and 213 in Phase II, as of 20 March.

“Japan had started reviewing its lengthy regulatory approval processes and time to reduce drug lag and supply shortages to lessen reliance on imported medicines and improve patient access to critical treatments,” said Sasmitha Sahu, Pharma Analyst at GlobalData.

The country’s ageing population is driving demand for innovative treatments in regenerative medicine, personalised therapies, and AI-driven drug discovery.

Meanwhile, developments in digital health technologies and research and development incentives are contributing to a dynamic and evolving pharmaceutical landscape.

“While Japan’s initiative aligns with other Asia-Pacific countries in terms of government support and innovation, it is specifically designed to address its unique challenges, including drug lag and pricing reforms,” Sahu added.