The government is aiming to increase the share of generic drugs used in medical treatment from the current 50 percent to 80 percent. It hopes this move will help slow the growth of the nation's total medical expenses. But in pursuing the policy, the government must ensure the safety and stable supply of generic drugs.
The merit of generic drugs is that they're 30 to 50 percent cheaper than non-generic drugs because they're based on expired patents of brand name drugs so expenditures on research and safety tests are not required.
In 2010, generics accounted for 91 percent of the prescription drugs used in the United States, 82 percent in Germany, 73 percent in Britain and 62 percent in France. To reduce medical costs here, the health and welfare ministry took a cue from the practices in these countries and decided to increase the rate to 60 percent by the end of fiscal 2017. Its measures include using generic drugs in principle when prescribing drugs to patients on welfare. As a result, the share of generic drugs reached 50 percent in the October-December period of 2014.