[Reporter’s View] Be aware, be prepared

Awareness and preparation essential to address Trump’s drug pricing policy

Even if it seems premature, there is nothing wrong with being prepared.

 

Following the Trump administration’s executive order on the Most-Favored-Nation (MFN) drug pricing policy, the deadline for major multinational pharmaceutical CEOs to submit their proposed drug price reduction plans is fast approaching—September 29.

 

The MFN drug pricing policy seeks to adjust U.S.

 

drug prices to match the lowest price among advanced countries.

 

Initially, this standard was set to apply to Medicaid—health insurance for low-income patients—and gradually expand to Medicare, the public health insurance program.

 

In short, U.S.

 

drug prices will be aligned with the lowest prices found among developed nations.

 

Experts warn that South Korea could become that benchmark country.

 

Given the already heightened concern about “Korea passing,” this may further push multinational companies to avoid listing their drugs in Korea’s reimbursement system altogether.

 

The U.S.

 

pharmaceutical market is the largest in the world and accounts for nearly half of the global market share, which is more than 20 times than that of Korea’s.

 

For multinational firms pursuing profit, Korea becomes a market they can easily abandon.

 

The signs are already visible.

 

Since Trump’s drug pricing policy was announced, some multinational pharmaceutical companies have withdrawn evaluation applications for new drug listings, while others have temporarily halted headquarters’ approval for such applications.

 

Even products already listed have been affected: in one case, a company withdrew authorization, leading to deletion from the reimbursement list.

 

It is time to revisit solutions that have long remained at the “proposal” stage, such as list price preserving mechanisms and structural improvements in expenditure.

 

For drugs already listed, policymakers need to explore alternatives to continuous post-listing price cuts imposed through current pricing mechanisms.

 

Admittedly, dual pricing is an inherently self-serving policy that undermines transparency.

 

By concealing actual country-to-country pricing, it widens the ambiguity of drug costs.

 

Yet, it is also an unavoidable choice for a government seeking to protect its own citizens.

 

Within this dilemma, Korea must now make its own rational choice.

 

There is a chance the scope of Trump’s “bomb” will shrink compared to its initial form.

 

But it remains a possibility nonetheless—even if positive signals were received at the Korea–U.S.

 

summit.

 

Being aware and being prepared is essential.