Ruling party will focus on fostering Korea's pharma industry

including creation of big pharmaceutical companies, innovating drug pricing system for homegrown new drugs, etc

accepts KPBMA's proposal on the need to ensure stable supply of essential medicines and increasing incentives for finished drugs using domestic drug substances

The ruling party has adopted a number of policies proposed by domestic pharmaceutical companies and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association as pledges for the 22nd general election, foretelling its plan to concentrate on fostering the domestic pharmaceutical industry.

 

The ruling party's main pledge, which is to create an environment for Korea to make the leap and become a central player in the global pharmaceutical market by expanding government investment in pharmaceutical and bio R&D, supporting the development of blockbuster new drugs, expanding pharmaceutical exports, and expanding incentives for finished pharmaceuticals that use domestic ingredients, largely coincides with the policy proposals that were made by KPBMA.

 

The ruling party’s pledge also met the needs of the pharma-bio sector by adding a policy that strengthens incentives such as expedited review and drug price premiums for developing or manufacturing essential drugs for children or the elderly while establishing a supply management committee to respond to drug supply and demand instability, expanding the items and quantity of drugs in the national stockpile, and supporting manufacturing facilities for essential medicines.

 

This observation was made while comparing between the People Power Party’s 22nd general election policy pledges and the KRPBMA’s policy proposals on the 25th.

 

Specifically, the association requested the government to strengthen the R&D environment to become a global center, expand government R&D investment, support blockbuster drug development, and continue to expand the megafund for blockbuster drugs, and the ruling party responded to the request with such pledges.

 

The plan also included creating a pharma-bio digital innovation ecosystem that incorporates advanced technologies such as AI and big data, expanding drug exports and supporting the development of global big pharmaceutical companies, improving the stability of essential drug supply, and establishing nation-wide measures to realize self-sufficiency of drug substances.

 

The People Power Party will continue to promote and expand a Korean ARPA-H to create blockbuster new drugs and expand tax credits for investments in biotech companies by pharma and bio companies.

 

Also, to improve the success rate of new drug development and commercialization, the government will strengthen support for late phase II-III trials and global expansion and improve the drug price compensation system for domestically developed new drugs.

 

To expand drug exports and support the development of global big pharmaceutical companies, the ruling party also pledged to provide clinical and licensing consulting, distribution network construction and marketing, expand the pool of overseas pharmaceutical experts, and support the establishment of customized export strategies, and establishment of a global medical supply base (contract manufacturing organizations).

 

To stabilize the supply of essential medicines, the government has announced amendments to the Pharmaceutical Affairs Act, including establishing a system to detect drug supply instability and establishing a supply management committee to respond to drug supply instabilities.

 

In addition, the party decided to expand the items and quantity of drugs in the national stockpile, secure adequate inventory for pharmaceutical companies, realize services for the automation of essential drug production and manufacturing facilities, and expand government stockpiles.

 

The drug shortage prevention system and the national essential medicine system will also be linked to support cost preservation.

 

In particular, incentives for the development and manufacturing of essential drugs, especially for pediatric and elderly patients, will be strengthened.

 

Development of essential medicines for pediatric and elderly patients will receive expedited review and separate drug pricing premiums.

 

The government will also support the companies’ development of self-sufficient technologies for essential vaccine ingredients and drugs.

 

Furthermore, a compensation system to reward the innovative value of new drugs will be established.

 

The government will establish an incentive system for the development of new drugs for domestic and foreign pharmaceutical companies, and fully reflect the value of domestic and foreign innovative new drugs in their drug prices.

 

The ruling party's pharma and biotech policy pledges will be implemented in the legislation and government administration depending on the outcome of the 22nd general election.