Unlike existing analogues, the new medicine, which is taken orally, prevents the spread of the flu virus and ultimately kills it.
Medics explained that the new drug works by inhibiting the activity of enzymes that aid in the propagation of influenza viruses that enter the body through the throat or nose.
Nikkei Shimbun compared the new medicine favorably with the current influenza treatment Tamiflu, which the newspaper said fails to stop the spread of the virus and must be taken for about five days.
The second phase will begin in November, when the number of influenza cases typically increases dramatically. The drug will reportedly be tested on several hundred patients.
The Japanese Health Ministry has, meanwhile, put the new drug into a fast-track approval process for sales to commence as early as 2018.