Future Prospects of Pharmaceuticals and Medium to Long-Term Strategies of Health Policy and Governance

Abstract

In the global pharmaceutical market, new drug R&D never stops. Technological innovations have made it possible to design treatments for what have been regarded as severe and intractable diseases, and groundbreaking drugs with the capability to provide fundamental cures continue to enter the market. These inventions not only expand the scope of available treatments, but also demand fundamental changes in regulations, medical cost calculations, and health systems, at an increasingly accelerated pace. The fiscal sustainability of health systems is a pressing issue faced by each and every nation today, and accountability is required of all stakeholders to ensure it. New drugs carry great uncertainty in terms of clinical effectiveness, fiscal impact, and cost-effectiveness. Risk Sharing Agreements on these drugs attest to the importance of sharing fiscal risks. As risks are determined and shared in relation to the aggregate health expenditure, payers and the industry alike, as well as the medical community and the public, should participate and share risks. It is high time for us to start serious discussions on how to ensure that all participants are held accountable for their behavior and decision-making, particularly by enforcing the self-regulation of medical practitioners, reforming the National Health Insurance payment system, and making coverage and its continuation dependent on technology evaluation.