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1997 FDLI Update 1 (1997)

handle is hein.journals/fdliup1997 and id is 1 raw text is: -A
ISSUE 1  *   1997

UPDATE

Friedman Nam
Deputy Commi
FDLI Open Hot
Celebrates New
Future Food Sa
Challenges.......
Food Nutrition
Teaches the Tea
Former FDA
Commissioners

Inside          Registering Medical Products in Japan
Direct Registration Via the In-Country Caretaker is Often Best
ed Lead                                                                                 - Ames Gross
ssioner .... 2   Japan is the world's single larg-                       Despite the excellent prospects
J est medical market outside the                     for exporting medical devices to
se              United States. Product registra-                     Japan, there is an obstacle that all
Offices... 2   tion in Japan, however, is often                      foreign medical manufacturers
fety             complicated and difficult. The                       face: the legal requirement that all
3      direct registration of medical           -           medical products be registered
products in Japan via the In-Coun-                    with the Japanese Ministry of
Program         try Caretaker (ICC) System can                        Health and Welfare (MHW),
chers........ 4  help foreign medical companies                       Japan's equivalent of FDA. The
understand the issues involved in                    fundamental objective of MHW is
registering products directly in                      to ensure that Japanese citizens
S6 Japan              via  the  ICC  system. Al-    Ames Gross        have access to the latest technol-

lications Advisory
ittee Examines
New Opportunities......
Committee Chairs
of the 105th Congress..
Every Iss
On the Move ..................
Making History ............
New Members ..............
The Associates' Corner
Job Exchange Online ....
New Books ....................
Calendar of Events ......

though the ICC laws were enacted in 1983, few
foreign companies have taken advantage of this
9    strategy due to a lack of knowledge of the laws,
the cost of creating an ICC, or a lack of knowl-
edge about the distinct advantages of an ICC.
.. 10       Despite Japan's economic slowdown in the
early to mid-1990s, its market for medical prod-
ucts has continued to grow steadily. In 1992, the
medical device market grew by 15.8%, in 1993
In       by 19.2%, and in 1994 by 12.4%. In 1995, the
total size of the market reached $21 billion, larger
ue       than all other Asian markets combined. During
the past few years, foreign imports have ac-
..     counted for the vast majority of the increase,
while local production has leveled off and ex-
6     ports have declined. During the next few years,
as Japan's economy begins to grow again, im-
ports of foreign medical devices are expected to
8      grow by five to eight percent annually.
The United States enjoys a particularly favor-
8      able position vis-a-vis other foreign participants
in the Japanese market. Between 1990 and 1994,
11    U.S. suppliers expanded their share of the total
12      market from 13% to 20.3%. In 1994, U.S. medi-
cal devices accounted for 62.3% of Japan's grow-
ing medical device import market.

ogy in medical devices, and that products are safe
and effective. In Japan, medical device manu-
facturers and importers are expected to be so-
cially responsible. The MHW, therefore, enforces
its directive by maintaining stringent quality stan-
dards for both medical device products as well
as manufacturing or import facilities. Consistent
with the MHW regulations, the Japanese govern-
ment requires foreign medical manufacturers to
maintain a physical presence in Japan in order to
ensure a prompt response to safety problems re-
lating to a medical device's use.
To meet the Japanese government's require-
ments of in-country representation, a foreign
medical manufacturer has two choices when en-
tering the Japanese market:
* Establishing an office in Japan and selling
its products through its sales force, a Japanese
distributor, or a combination of the two; or
* Exporting its products to Japan and arrang-
ing for a distributor or importer to sell them there.
If a foreign medical manufacturer chooses to
set up an office in Japan, the manufacturer can
establish a representative office, a branch office,
a joint venture, or a subsidiary corporation. The
Continued on page 10

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DLI . .. a non-profit institute dedicated to advancing the public health by providing a
neutral forum for critical examination of the laws, regulations, and policies related to drugs,
medical devices, other health-care technologies, and foods.

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