INTERNATIONAL

Clinica // Jan/Feb 2011

Meeting patients’ demand for advanced
devices and diagnostics in JapanDavid PowellAThe Japanese want faster access to advanced medical devices – andthey’re willing to pay for it. It is therefore crucial to speed devices’passage to market, writes David Powell, president and representative
director of Johnson & Johnson Medical Japan and chairman of theAmerican Medical Devices and Diagnostics Manufacturers’ Association

recent national public opinion
survey showed that 85% of Japanesepeople want faster access to theworld’s most advanced medical devicesand diagnostic tests, and more than half
are willing to pay slightly more for it.
Manufacturers, healthcare practitioners
and the government are aware that thelatest medical devices and diagnostic tests
often take longer to reach patients in Japan
than those in other developed countries,
and are each doing their part to address
issues that slow product development.
However, fully meeting the expectationsof the Japanese people will also dependon providing appropriate incentives forinnovation. A device’s path to market, andthe pricing system, must both be mademore predictable, in order to make it easier
to justify the significant initial investment
required to develop new devices anddiagnostic tests in Japan.
The survey, conducted by the American
Medical Devices and Diagnostics
Manufacturers’ Association (AMDD),
aimed to learn how Japanese people value
timely access to the world’s most advanced
medical devices and diagnostics, andwhether they understand the importanceof faster product reviews. Conductedfrom 24-30 September 2010, with 2,000
respondents (half male, half female)between the ages of 40 and 69, it was thefirst large-scale survey of public awarenessand attitudes about medical devices anddiagnostic products in Japan.
Not surprisingly, 87% of survey
respondents said that using advanced
medical technology is “important” or“very important” when they or theirfamily members require diagnosis ortreatment. 74% said they would “want touse” or “definitely want to use” advanced
technology if they or a family member
requires diagnosis or treatment now or inwww.clinica.co.uk

the future. Particularly encouraging was
the finding that 85% said they want to see
improvement “immediately” or “as soon aspossible” in the current situation.
The good news is that the Japanese
government recognises this problem
and is implementing a five-year plan toaccelerate new product reviews by tripling
the number of medical device reviewers
and reducing the regulatory requirementsthat are unique to Japan. The governmentis also implementing a five-year plan to
improve the environment for clinical trials
in Japan so that they can be done faster andat a lower cost without sacrificing quality.
Recent government reviews of these plansin late 2010 suggest that although the paceis slow, real progress is being made.
Over 70% of survey respondents
agreed that advanced medical technology
is important because it “assists early
detection and treatment of disease,” “is lessinvasive and less painful because of small
incisions,” and “enables faster and moreaccurate diagnosis.” Over 50% said that
advanced medical technology is importantbecause it “extends the lives of people withpreviously untreatable diseases,” “shortens
hospital stays,” and “shortens post-surgeryrehabilitation.” These results show that theJapanese public intuitively understands thepotential advanced medical devices anddiagnostics have to improve patient qualityof life and reduce the burden of disease.
The survey’s most striking finding wasthat more than half of the respondents
said they would prefer to use the world’s
most advanced medical technology even
if it cost slightly more. The willingness tobear greater costs is not surprising. As
citizens of a country with one of the world’s
highest per capita income levels and aproud history as a global manufacturing
powerhouse, the Japanese have come toexpect the latest technology in consumer

goods like automobiles and flat-screen
televisions. Why would they settle forsecond-best when confronted with the riskof losing their health?
That said, product pricing is one areathat has not yet been adequately addressedby Japanese policymakers. Manufacturers
often point to higher costs associated withdoing business in Japan, and are concerned
about getting initial reimbursement
prices sufficient to justify the significant
investment required to develop innovative
new devices and diagnostic tests. Overthe past few years, many new products
have been given reimbursement prices
significantly below the average in othercountries. The system needs to better reflect
genuine innovation that improves thequality of medical treatment and patient
quality of life.
Another challenge is the difficulty
in predicting future prices of one’s own
products already on the market. In addition
to reflecting changes in prevailing market
prices, Japan’s biennial repricing system isaffected by arbitrary foreign exchange rate
fluctuations. The practice of referencing
foreign average prices in the biennial
repricing process undermines innovationand should be abolished.
The good news is that using moreadvanced medical devices and diagnostictests can often help reduce total healthcare
costs. For example, the use of lessinvasive techniques and faster testing candramatically shorten the length of expensive
hospital stays. By enabling faster recovery
and detecting problems before they become
serious, advanced medical technology canalso lower the broader economic and social
cost of disease by enabling patients toreturn to work more quickly and be less of aburden on their families. Let’s find a way togive Japanese patients what they want. They
deserve the best.
© Informa UK Ltd 201115