Under circumstances of low economic growth and progress in aging, the government promotes using generics as a one of the effective countermeasures to streamline the healthcare cost in Japan. The barrier between long-listed products and generics could be vague in the future. It will be key issue to fine-tune our business model without being bound by existing frameworks by finding out new market needs from any environmental transformations.

The landscape in the pharmaceutical industry has been rapidly changing for both innovators and generic companies over the last few years. Outsourcing/ procurement and supply chain management have become more challenging and the need for a strategic relationship between buyer and supplier has become imperative. The relationship has moved towards being a strategic business partner rather than buyer and supplier.

The use percentage of generic drugs is increasing steadily, but further promotion measures are necessary for achievement of the government goal. I introduce some main measures in FY 2012 Revision of Medical Fee for further promotion of generic drugs.

Promoting generic drug use is the current goal of 30%(volume basis) is to achieve the end of 2012. To achieve this goal, every year until now (Chairman of Japan Society of Generic Medicine) "Policy Recommendations" have been conducted for officials. Announced last year "2011 Policy Recommendations" for, for their content and effectiveness, as well as policy recommendations to support the research, I'll explain.