Weak Yen Sparks Push for Japan to Raise Medical Device Prices

Foreign medical device makers are urging Japan to increase the prices it sets for their products. They argue the current rates, set when the yen was stronger, are now too low due to the currency's sharp decline. Japan's government centrally determines how much its national health insurance will pay for drugs and devices. These "reimbursement" prices are revised every two years. Companies say the yen's multi-year drop makes importing and operating in Japan unsustainable at existing price levels. The weak yen reduces the value of revenue earned in Japan when converted back to foreign currencies. It also raises the local cost of imported materials and components. Industry groups warn this could delay the launch of new devices in the Japanese market. The Japanese government acknowledges the currency shift is a factor in its ongoing price discussions. The outcome of these negotiations, expected later this year, will significantly impact global manufacturers' strategy in the world's third-largest medical market.