August 10, 2009
The revised Pharmaceutical Law stimulates competition among drug sellers
| The revised Pharmaceutical Affairs Law, effective June 1st, opened the way for supermarkets, convenience stores and other retailers to sell nonprescription drugs without a pharmacist on duty. These establishments are strengthening their sales channels and developing low-priced nonprescription drugs seeing that nonprescription drugs and medicines are considered new revenue opportunities. Under the revised law, over-the-counter (OTC) drugs are classified into three categories. Category I OTC drugs have a high risk of side effects that must be disclosed to the customer by a pharmacist. Category II OTC drugs have fewer side effects, such as cold and analgesic antipyretic drugs. Category III OTC drugs are supplements and health foods. The revised law allows stores to sell Category II and III OTC drugs if they have a registered OTC drug seller. To qualify the store must include at least a year of experience selling OTC drugs and pass a test administered by a prefectural government. The store can qualify even without a license to practice pharmacology. Drugstores such as Matsumoto Kiyoshi, one of major drugstore chains in Japan, will be expanding, adding shops that will be open 24 hours a day. Major supermarket chains have reduced their prices of nonprescription drugs. Aeon Co., a leading retail chain in Japan, reduced the price of 300 pharmaceutical items and sells them as their private brand at 20% to 40% lower price than common over-the-counter drugs. Convenience stores and 24-hour shops are also aiming to enter the market. Seven Eleven Japan, a giant convenience store chain, started selling OTC drugs in limited shops as a trial in June. There is a high potential for 24 hour stores, because it is often difficult to find a store open where OTC drugs are available for nighttime emergencies. Meanwhile, mail-order firms have been left behind in the competition due to an ordinance issued by the Health, Labor and Welfare Ministry in accordance with the revised law to strengthen regulations on Category I and II drugs. They can sell Category II drugs to people living on remote islands or to people who have regularly purchased the drugs from them; however, they will be prohibited from doing so after June 2011. A firm that sells health foods and OTC drugs on the internet filed a lawsuit in May against the central government to negate the ordinance prohibiting the sales of nonprescription drugs through the internet. |
