The vaccine fund will be increased by ₩40 billion

The key is whether or not to accept the entry department

The pharmaceutical industry said, "In the pharmaceutical and bio industries, fiscal austerity stance should be avoided"

Expectations in the pharmaceutical industry are soaring as the National Assembly's Health and Welfare Committee decided to increase next year's budget for the "K-Global Vaccine Fund" to 50 billion won, up 40 billion won from the government's plan.

 

As the Ministry of Health and Welfare is constantly sending signals to the pharmaceutical community to focus on developing domestic vaccines and new drugs based on Korean bio funds, attention is being paid to whether the budget approved by the Welfare Committee will pass the plenary session.

 

Looking at the Ministry of Health and Welfare's budget plan for next year, which was recently approved by the Welfare Committee, the budget for supporting the development of the pharmaceutical industry increased sharply from 44.07 billion won to 11.128 billion won.

 

Among them, the largest increase in budget is the "K-Global Vaccine Fund" project.

 

The government had set aside 10 billion won, a reduction of 40 billion won from this year's budget, as a global vaccine fund budget.

 

During the screening process, the 10 billion won budget was too small, which could dampen private investment, followed by demands from welfare committee members for an increase.

 

The move is aimed at providing aggressive R&D investment support for pipelines that are likely to succeed among vaccine and new drug candidates preparing for domestic and foreign clinical trials for the purpose of final marketing approval and market launch.

 

The Welfare Committee adopted a 50 billion won bill among the plans to increase the fund budget by 20 billion won from 10 billion won to 30 billion won and increase it by 40 billion won to 50 billion won.

 

The remaining gateway is the Special Committee on Budget and Accounts.

 

If the plenary session is passed without reduction adjustment in the special committee on the budget and settlement, the vaccine fund budget, which is increased by 40 billion won compared to the government's plan, is expected to be operated from next year.

 

The domestic pharmaceutical industry is voicing its voice that the National Assembly and budget authorities should agree to a review without reduction in order to increase the possibility of developing native vaccines and new drugs.

 

The Ministry of Strategy and Finance urged the government to avoid tightening its fiscal stance in the vaccine fund sector to achieve the goal of fostering the domestic pharmaceutical bio industry.

 

An official from A Pharmaceutical Company in Korea said, "Unlike expected, the Welfare Committee voted to increase the amount by 40 billion won.

 

"It is encouraging that they seem to agree on the need to foster the pharmaceutical bio-industry and develop blockbuster domestic vaccines and new drugs," he said.

 

"The resolution to increase the amount is the same as this year's budget, and support for vaccines and new drugs, which may be possible only when the budget is passed as it is, will be able to become a reality," he expected.

 

An official from A said, "I understand that the Ministry of Health and Welfare and the welfare committee members are greatly aware of the importance of the vaccine fund budget.

 

He said, "I think I felt the need for a native vaccine starting from COVID-19," adding, "The Ministry of Economy and Finance, which is a financial authority, should sympathize with this urgency and work hard to pass the budget without reduction." An official from company B in Korea also said, "The increase has been decided, but this game is from now on when the Special Committee on Budget and Accounts begins." He said there are concerns that the reduction will be inevitable as the government is tightening its fiscal stance.

 

"However, the government's vision to grow the pharmaceutical bio-industry as a new engine is a goal it has put forward every year." "It is time to realize our will in this budget review," he said.

 

"The vaccine fund business is in the form of receiving private investment compared to government investment.

 

If government investment increases, private investment will be able to be activated in proportion, he said.

 

"The National Assembly and the Ministry of Economy and Finance should recognize that pharmaceutical companies equipped with clinical trials at home and abroad are waiting for R&D support."