Preferential pricing plan will be further discussed by HIPDC

Results will be presented at the end of the month

Will not be able to be presented at the general meeting on the 8th… will also promote meeting with the pharmaceutical industry

The government’s announcement of the plan to improve Korea’s drug pricing system to properly compensate for the innovation value of new drugs (hereinafter referred to as the New Drug Preference Pricing Plan) is expected to be made around the end of this month.

 

The plan was originally set to be presented for deliberation at the general meeting of the Health Insurance Policy Deliberation Committee (HIPDC) on the 8th of this month, but the Health Insurance Policy Deliberation Subcommittee decided that the agenda requires further discussion.

 

According to the industry on the 3rd, the New drug preference pricing plan had been presented as an agenda for deliberation on the 22nd, but the subcommittee decided to continue further discussions.

 

As such, another subcommittee meeting is expected to be held around the middle of this month.

 

Prior to this, the contents of the New drug preference pricing plan will be shared at a meeting with the pharmaceutical industry.

 

This is also expected to be held in the middle of this month, ahead of the subcommittee meeting.

 

The New drug preference pricing plan has been discussed with the pharmaceutical industry since January this year.

 

The government has been working on a plan since the end of last year to strengthen the competitiveness of homegrown new drugs and foster the pharmaceutical and bio industries.

 

The industry has also consistently called for drug pricing incentives for homegrown new drugs that have proven non-inferiority to existing drugs, saying that more practical measures are needed to encourage innovative pharmaceutical companies.

 

As such, the ministry held 5 public-private consultative body meetings and 6 working-group level meetings with the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the Korea Biomedicine Industry Association, and the Korean Research-based Pharmaceutical Industry Association until June this year.

 

Since then, the Ministry of Health and Welfare has taken time to organize the final draft, collecting opinions from related organizations in consideration of the financial soundness of insurance finances and feasibility.

 

In addition, the MOHW had added other measures, such as adding drug price preservation plans for drugs with unstable supply and demand.

 

Currently, the most promising plans include ▲ Flexible application of ICER thresholds by prioritizing innovation for pharmacoeconomic evaluation of innovative new drugs ▲ Preferential drug pricing for domestically developed innovative new drugs (apply highest price among alternative drugs) ▲ Preferential drug pricing for natural drugs at the same level as cell therapies ▲ Expansion of drugs for severe diseases that deteriorate the quality of life to be allowed exemption from pharmacoeconomic evaluative and applied RSA ▲ Application of RSA (dual drug pricing) for homegrown new drugs planned for exports.

 

If the plan is finalized, the industry expects that the preferential pricing of homegrown new drugs and eased post-marketing management will improve the competitiveness of the drugs overseas and allow faster listing of innovative new drugs developed abroad that are urgently needed for patient treatment.