The government of Japan has approved a draft revision of a law aimed at strengthening the development of new drugs in the country, including setting up a fund to support businesses.

The draft of the law concerning pharmaceuticals and medical devices was approved at a Cabinet meeting on Wednesday. It aims to create an environment suited for drug development, such as facilities to be used by startups.

Sales of drugs that originated in Japan are on the decline in global markets. Japan also faces the need to enhance its ability to develop drugs, as some drugs approved overseas are not approved in the country.

The draft revision says national coffers and donations from pharmaceutical firms will be used to create the fund. The fund will be used to support the launch of startups, create research facilities to be used by such businesses and facilities for animal experiments.

The draft revision also includes ways to strengthen the system for stable drug supplies. It includes provisions on requesting drug firms to increase production and the monitoring of demand and supply with the use of electronic prescriptions.

Heath minister Fukuoka Takamaro said after the meeting that he is aware that the industry shares the idea of stepping up support for drug development.

He said he hopes to use the fund to strengthen the foundation of drug development through the cooperation of the public and private sectors.