Government Approves Reduction in Cost for Alzheimer's Treatment Drug Lecanemab in Japan
In a move aimed at improving the affordability and sustainability of innovative but costly medications in Japan's national health insurance system, the Japanese health ministry panel has approved a plan to reduce the price of Lecanemab, an Alzheimer's disease drug, by 15%. This reduction will take effect from November 1.
Lecanemab is a groundbreaking drug co-developed by Japanese drugmaker Eisai Co. and U.S. industry peer Biogen Inc. It is used to treat dementia caused by Alzheimer's disease, and is innovative due to its ability to remove abnormal proteins that accumulate in patients' brains. The medication is expected to slow the progression of Alzheimer's disease.
However, the Central Social Insurance Medical Council, which assesses the cost-effectiveness of drugs, found that Lecanemab's cost-effectiveness was lower compared to existing treatments for Alzheimer's disease dementia. As a result, under Japan’s system that adjusts prices of high-priced or large-market drugs based on cost-effectiveness, a price reduction was approved.
The price reduction applies to the entire drug, not just specific dosages. For a patient weighing 50 kilograms, the annual cost of Lecanemab will be reduced from approximately 2.98 million yen to approximately 2.53 million yen. The new price of a 500-milligram bottle of Lecanemab is 97,277 yen.
It's important to note that this price reduction is specific to Japan and may not apply in other countries. Additionally, the price reduction does not apply to other drugs used to treat Alzheimer's disease or other medical conditions.
This decision aligns with Japan's drug pricing policies, which aim to make innovative but costly medications more accessible to its citizens while ensuring the sustainability of the national health insurance system.
[1] Japanese health ministry panel approves price cut for Alzheimer's drug Lecanemab, Nikkei Asia, October 2023. [2] Japan to reduce price of Alzheimer's drug Lecanemab by 15%, Kyodo News, October 2023. [3] Lecanemab: What you need to know about the Alzheimer's disease treatment, Mayo Clinic, 2023.
[1] Science advancements, such as the Alzheimer's disease drug Lecanemab, hold promise for addressing neurological disorders like Alzheimer's disease. However, its high price may limit its accessibility to patients. [2] In an effort to improve health-and-wellness for its citizens, Japan's health ministry has approved a 15% reduction in Lecanemab's price. [3] This price cut, specifically for Japan's national health insurance system, applies only to Lecanemab and not other therapies-and-treatments for medical-conditions.
