Japan to review drug prices annually vs every two years previously - sources

  • Government officials in Japan confirmed the country's plans to start reviewing drug prices annually instead of every two years, as reported CNBC Monday.

  • Under the new system, the prices of all drugs will be reviewed instead of only those considered more expensive than their overseas counterparts.

  • The decision comes after officials in Japan cut the price of Bristol-Myers Squibb and Ono Pharmaceutical's Opdivo by 50 percent as well as reduce the price of Gilead Sciences' Sovaldi.

  • The sources also revealed that four cabinet officials will make an official announcement later this week.

  • Opponents of the move have argued that the decision will slash revenues and eliminate incentives to innovate.