While the weaker yen boosted the top line for Japanese pharma companies with a strong global presence in the fiscal first half, it also raised reported costs. Several firms reported strong growth for mainstays, while holding out high hopes for selected new drugs with blockbuster potential. But some other products underperformed for unexpected reasons.

Japan will end full reimbursement coverage for COVID-19 therapeutic drugs from October, after downgrading the status of the virus to the same level as seasonal flu in early May. As authorities discuss the possible coverage reduction, a larger than usual price cut may also be applied to Shionogi's oral COVID antiviral Xocova.

After years of discussions, Japan has revised legislation relating to the use of medicines containing cannabinoids, while also officially criminalizing the non-medical use of marijuana. The move may pave the way for easier use of medicines such as Epidiolex, for which a local Phase III trial started in 2022.