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			 The Japanese government made reforms in 2018 that change how its 
			national health system pays for new and innovative drugs. 
 But those changes are not science-based and favor large domestic 
			drugmakers over foreign and smaller players, Giovanni Caforio told a 
			news conference in Tokyo.
 
 "The world is very competitive, and countries such as China have 
			made it a priority to develop a biopharmaceutical innovation-focused 
			industry," Caforio said at an event organized by the Japan office of 
			PhRMA, the main U.S. drugmaker lobby.
 
 Caforio was announced as chairman of PhRMA last month.
 
			
			 
			Japan's government is seeking ways to squeeze savings from its 
			national health care system as the population ages. The number of 
			working-age people in Japan compared to those over the age of 65 is 
			1.8, the lowest in the world, according to a 2019 United Nations 
			report.
 Japan is the world's second-largest market for innovative drugs such 
			as gene-based therapies and cutting-edge cancer drugs. As a wealthy 
			country with one of the fastest ageing societies, it remains an 
			attractive market for global pharmaceutical makers.
 
			
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			Japan is also a major center for pharma research, producing drugs 
			such as Opdivo, a blockbuster cancer drug licensed globally by 
			Bristol-Myers.
 The rules announced last year evaluate drugs and their makers for 
			innovation to determine how much the government will pay for 
			treatments.
 
 The rules would also subject drugs to annual reviews starting from 
			2021, as opposed to biannual reviews now. Caforio said he met with 
			senior government officials to press for more discussion on the 
			regulations.
 
 "These decisions could impact whether the strong investment patterns 
			in Japan continue and whether new medicines are rapidly available 
			for Japanese patients in the future," he said.
 
 (Reporting by Rocky Swift; Editing by David Dolan)
 
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