Is Japan Ready for Generic Drugs?

According to the December issue of the McKinsey Quarterly, the Japanese market may soon be ready for generic drugs. Generics represent 59% of the US pharmaceutical market volume but only 17% in Japan. Given the number of major drugs going off patent, the drug spending in Japan could be reduced by $ 26 billion. However, before this happens, both physicians and patients need to become more willing to discuss the generic option and generic prices have to drop to 20-30% of the brand versus only 50% now. Both makers of Generic and and those of Innovative Branded Pharmaceuticals stand to gain from this evolution.