What is the main policy signal from Takaichi Cabinet 2.0 for healthcare?

The government wants to boost public-private drug R&D while tightening biologic pricing once biosimilars arrive. That means more coordinated funding, support for advanced medicine, and the G1 rule extending to originator biologics under Japan drug pricing reform 2026. Expect better capital access for biotech and tougher pricing for older biologics in Japan.

How does the G1 rule affect originator biologics in 2026?

After biosimilars enter, originator biologics will face structured price cuts similar to long-listed drugs. The goal is to reduce price gaps and move prices closer to biosimilar parity. This changes lifetime revenue assumptions. Companies will need earlier cost control, faster next‑generation launches, and tighter Japan pricing strategies.

Who benefits and who loses from biosimilar price parity?

Payers and patients benefit from lower costs, and biosimilar makers can gain share. Discovery-stage and platform biotech may benefit from improved funding signals. Originator biologics near biosimilar entry likely face margin pressure in Japan. Diversified firms with strong pipelines and specialty focus are better placed than those reliant on aging biologic franchises.

What should investors in Japan’s healthcare sector watch now?

Track ministry releases for program specifics, grant awards, and collaboration frameworks. Monitor upcoming biosimilar launches that could trigger sharper price cuts for originators. Watch venture activity, alliances, and IPO pipelines tied to public programs. Recheck models for Japan sales sensitivity, especially for molecules nearing biosimilar competition.

Law and Government

February 24: Takaichi Cabinet 2.0 Backs Drug Investment, Biosimilar Parity

ByDanny Kontos February 24, 2026February 24, 2026

Takaichi Cabinet 2.0 sets a clear policy line: expand public-private drug R&D and tighten price rules on biologics under Japan drug pricing reform 2026. Prime Minister Sanae Takaichi directed Health Minister Kenichiro Ueno to support drug discovery and advanced medicine through joint investment. At the same time, extending the G1 rule to originator biologics once biosimilars launch will push prices toward biosimilar parity. For Japan investors, this mix signals stronger biotech funding but margin pressure for legacy biologic portfolios in the domestic market.