Oppo parties also promise 'drug price system reform'

to promote global expansion of domestic new drugs

Democratic Party of Korea “Will foster an environment for government investment linked to strengthening the social responsibility of pharmaceutical companies"

Makes general election pledge for national R&D investment to foster Korea into a new drug powerhouse…strengthen support for domestic raw substances and essential medicines

Following the ruling party’s pledge, the opposition parties also announced their general election pledges to promote Korea’s growth into a pharma-bio powerhouse, by investing in research and development (R&D) and preparing customized drug pricing systems for the global entry of Korea’s new drugs, heralding their intent to foster and develop Korea’s domestic industries.

 

Both the ruling and opposition parties largely accepted most of the policy proposals submitted by the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, therefore, changes in the pharmaceutical and bio-regulatory administrations and drug pricing policies are expected after the 22nd general election.

 

The following is a summary of the pharmaceutical and bio sector-related policy pledges made by the Democratic Party of Korea in its general election policy manifesto on the 29th.

 

First, in response to KPBMA’s request for the government to strengthen Korea’s R&D environment to become a global key player, the DPK promised to expand national investment and lay the foundation for Korea’s rise into a pharmaceutical bio powerhouse.

 

However, unlike the People Power Party, DPK’s vision is to create a national investment system linked to strengthening the social responsibility of pharmaceutical companies.

 

The DPK also promised to establish a strategic R&D investment system and strengthen outcome-based support, and this is in line with the KPBMA’s request to expand government R&D investment and support the development of blockbuster new drugs.

 

In particular, the DPK also promised to reform the drug pricing system suitable to new drugs seeking to enter the global market.

 

They also pledged to establish a drug price compensation system connected to innovative pharmaceutical companies and their R&D investment rates.

 

It is also expected to affect the drug pricing system for incrementally modified new drugs and generic drugs that serve as a cash cow for new drug development.

 

To address the issue of drugs that have long-term unstable supply, the DPK pledged to establish a public pharmaceutical company and drug distribution corporation, and the opinion on the pledge remains controversial.

 

Proponents argue that the policy would increase the level of state control over out-of-stock drugs, while opponents argue that it would be inefficient and impractical to establish a separate public pharmaceutical company instead of using existing pharmaceutical companies that own the infrastructure.

 

The DPK plans to improve the supply stability of essential medicines and improve the production and investment environment by stockpiling and supporting the establishment of drug production facilities that manufacture essential medicines and drug shortage prevention drugs.

 

The KPBMA called for the establishment of a national measure to realize self-sufficiency of drug substances, and the DPK pledged to expand incentives for drugs using domestic raw materials and support the development of technology for the localization and self-sufficiency of essential medicines and vaccines.

 

Lastly, the DPK’s pledge to build a public big data platform for new drug development and support the utilization of AI is also regarded to be in the same line with the KPBMA’s policy proposal on fostering a digital innovation ecosystem for the pharmaceutical and bio-industry, including the utilization of advanced AI and big data.