‘Gov’t investment and incentives needed to resolve drug shortages’

Silvia Park, “Corporate effort alone is insufficient”

“The U.S. and Europe also rely on policy support… public manufacturing infrastructure is needed”

Experts stressed that resolving shortages of essential medicines requires financial investment and policies like drug price incentives on the government’s part.

They also argued that reliance solely on the private sector is insufficient, calling for the establishment of public manufacturing infrastructure and proactive cooperation frameworks in areas where dependence on overseas supply is unavoidable.

Park Silvia, Research Fellow, Korea Institute for Health and Social Affairs

On the 12th, Park Silvia, a researcher at the Korea Institute for Health and Social Affairs, emphasized the need for policy support to enhance drug supply stability at the Korean Academy of Social and Administrative Pharmacy academic conference.

She explained that since the COVID-19 pandemic, countries like the US and Europe are also preparing countermeasures to address pharmaceutical supply disruptions.

The US is increasing domestic manufacturing through executive orders and taking measures to ensure excess capacity within its domestic supply chain. To expand domestic production, it provides financial support incentives and has established an evaluation system that rewards excellent manufacturers.

This year, regulatory barriers have been lowered to facilitate the establishment of domestic pharmaceutical manufacturing facilities and to shorten approval timelines.

Europe is also pursuing strategic projects to strengthen manufacturing capabilities. It has also strengthened supply planning and reporting obligations for license holders and expanded joint purchasing among member states to bridge gaps in access to essential medicines.

Park noted that Korea is also seeing a rising number of reports related to drug supply disruptions and shortages, underscoring the urgency of policy responses.

Park stated, “Strengthening the essential medicine manufacturing and supply chain has clear limitations when relying solely on corporate willpower. Financial support such as subsidies, grants, low-interest loans, investments, and tax incentives is necessary for developing manufacturing technology and establishing facilities.”

She further proposed, “It is necessary to identify priority medicines for focused support and management, centered on national essential medicines. Priorities must be assigned to derive strategies. Additionally, manufacturers' supply risk management plans must be established and their implementation managed.”

Park added, "Preferential drug pricing is needed to maintain domestic manufacturing of essential medicines, including APIs. Essential medicines for which domestic manufacturing and diversification are strategically pursued should receive preferential treatment in public procurement.“

Finally, Park stressed the importance of the public role, stating, ”Relying solely on private pharmaceutical companies to supply all essential medicines has limitations. Building a public-centered pharmaceutical manufacturing infrastructure is also necessary. Furthermore, in areas where dependence on the global supply chain is unavoidable, a system that ensure active cooperation and solidarity is needed."