Life sciences should be regarded not simply as part of the healthcare system, but as a strategic economic asset. This is one of the key messages emerging from Japan’s Honebuto framework – the 2026 Basic Policy on Economic and Fiscal Management and Reform – which the European Federation of Pharmaceutical Industries and Associations (EFPIA) has highlighted as a possible source of inspiration for European policymakers.
“While Europe continues to debate how to strengthen its competitiveness, Japan is taking action,” wrote Thomas Gelin, EFPIA Executive Director, International Affairs. He argued that the strategic relationship between government and industry, aimed at identifying competitiveness challenges and shaping an appropriate response, should serve as an ambition for the EU.
The key messages from Honebuto
Greater support for R&D investment, manufacturing and innovation lies at the heart of the Honebuto framework. One of its objectives is to create the conditions for the market for innovative, patent-protected medicines – including first-in-class and best-in-class products – to grow at a rate closer to the 9.6% CAGR recorded across the G7 countries. According to EFPIA, Japan’s market is currently growing at 5.3% CAGR, compared with approximately 10.4% in Italy.
Among the measures highlighted by EFPIA is an increase in the initial prices of patent-protected medicines when they are first listed under Japan’s National Health Insurance (NHI) system, alongside mechanisms designed to maintain an appropriate price throughout the patent-protection period.
According to Gelin, this approach sends a clear signal that Japan regards innovative medicines as a strategic investment capable of supporting economic growth, resilience and long-term competitiveness. The Japanese government must now translate the Honebuto framework into practice, including by aligning initial prices more closely with US market conditions.
What Europe can learn from Japan
EFPIA also views Honebuto as the first acknowledgement of the potential impact of US Most Favoured Nation pricing policies on Japan’s attractiveness as a destination for pharmaceutical innovation. Global pricing dynamics can influence where pharmaceutical companies invest, conduct clinical trials and launch new medicines.
For EFPIA, however, the most important lesson from Japan concerns not only the policies themselves, but the process through which they were developed. Japan’s Public-Private Council provides a permanent forum in which government and industry can jointly identify barriers to competitiveness and contribute to shaping national strategy. This structure allows policymakers to engage directly with industry and gain a clearer understanding of the conditions needed to support investment and innovation.
EFPIA therefore suggests that European institutions should adopt a similar approach by establishing a European Pharmaceutical Taskforce, bringing together the European Commission, Member States and the pharmaceutical industry.
Such a strategic platform could help better align health, industrial and trade policies, while creating a more favourable environment for pharmaceutical innovation and investment. Without a more coordinated approach, EFPIA warns, Europe risks seeing an increasing share of its research, capital and talent move to more attractive markets elsewhere.