The gov. begins research on preferential tx

For innovative new drug prices

From drug price support to post-adjustment incentives and R&D investment linkage are also considered

The MOHW will place an order for research on the 19th through KHIDI. The results will be announced in May next year

The MOHW has launched a research service to prepare preferential measures for new drugs developed by innovative pharmaceutical companies in Korea.

 

The policy is to innovate pharmaceutical companies and achieve health insurance fiscal consistency, such as giving incentives when adjusting drug prices and supporting drug prices linked to R&D investment scale.

 

On the 19th, the MOHW completed an order to Korea Online EProcurement System for "Research on Pharmaceutical Price Support Policy of Innovative Pharmaceutical Companies in Conformity with International Trade Order" through the KHIDI.

 

Regarding the background of research on drug preferential treatment for innovative pharmaceutical companies, the KHIDI predicted that the global pharmaceutical market will grow 4.7% annually over the past five years, recording about $1.3 trillion in 2019, and expand up to $1.4 trillion by 2026.

 

As the pharmaceutical and bio markets are expected to be new growth engines in Korea in the future, it is necessary to actively promote support measures.

 

The KHIDI said that although the revision of the Pharmaceutical Industry Promotion and Special Act in December 2018 provided a basis for preferential treatment for innovative pharmaceutical companies, there are no subordinate laws due to trade problems.

 

In fact, Article 17-2 of the Pharmaceutical Industry Promotion Act stipulates that the Minister of Health and Welfare sets drugs manufactured by innovative pharmaceutical companies by Presidential Decree, including the addition of the upper limit on medical care benefits under the National Health Insurance Act.

 

The problem is that the Presidential Decree and enforcement regulations, which are subordinate statutes of the provision, have not been created, making it ineffective.

 

When domestic pharmaceutical companies and the National Assembly's Health and Welfare Committee said they needed improvement in this year's parliamentary audit, the MOHW said it would launch research through the KHIDI to find ways to preferential drug prices for innovative pharmaceutical companies.

 

The KHIDI took follow-up measures through practical research orders.

 

It seeks a policy to support new drug prices for innovative pharmaceutical companies without harming the international trade order, with a research period of six months from the date of the contract and a budget of 50 million won.

 

After the research order in October, the agency plans to select successful candidates for the research in early November and receive a final result report in March next year after an interim report in January next year.

 

The key point of the study is to investigate the current status of drug price policies in the domestic and foreign pharmaceutical industries and to collect opinions on drug support from innovative pharmaceutical companies.

 

It reviews the need to support innovative pharmaceutical companies and prepares practical drug preferential policy measures that meet the international trade order.

 

It will also investigate drug price support policies of major overseas pharmaceutical advanced countries for innovative new drugs, biovectors, IMDs, biosimilars, and generics.

 

After COVID-19, major pharmaceutical industry support policies in major foreign countries in the vaccine and bio sectors will be studied with weight on drug price support policies.

 

It will also investigate international trade disputes and settlement cases related to drug price support policies to prepare for international friction.

 

Innovative pharmaceutical companies will prepare opinions from related organizations such as the HIRA and the Health Insurance Corporation and drug support measures based on the demand survey for drug support.

 

It is also accompanied by external opinions such as academic experts and civic groups.

 

It plans to form an advisory committee to collect related opinions and investigate opinions from various fields related to drug support through surveys and interviews.

 

There is also a procedure to analyze the history or effectiveness of support policies for innovative pharmaceutical companies, and the limitations of the current support policy.

 

In order to favor innovative new drugs that do not harm the international trade order, it will induce innovation of pharmaceutical companies, such as drug price support measures, incentives for drug price follow-up adjustment, and drug price support linked to R&D investment.

 

Above all, research will also be conducted to identify in advance the factors that can actually be raised and resolve solutions to ordinary issues related to policy measures for supporting innovative pharmaceutical companies.

 

It plans to provide international trade advice through trade experts such as academic experts and lawyers.

 

The KHIDI said, "The research goal is to present risk factors and solutions when promoting drug support for innovative pharmaceutical companies." The KHIDI said, "We will also analyze data requested by the organizer related to policies to support innovative pharmaceutical companies." It added, "We will select a research institute in December, sign a contract, and receive a report on the results in March after an interim report next year." The MOHW and the KHIDI are currently certifying 45 innovative pharmaceutical companies to intensively foster the pharmaceutical and bio industries as national growth engines.