There are expectations & concerns about ordering research

on innovative new drugs

The government and the National Assembly are trying to enact subordinate laws of the Pharmaceutical Industry Act by intellectually accepting it

While the government has ordered a study on preferential treatment for domestic new drugs developed by innovative pharmaceutical companies, domestic pharmaceutical companies with new drug technology are expressing both expectations and concerns at the same time.

 

As the government accepts demands from the pharmaceutical industry and criticism from the National Assembly, many pharmaceutical companies think positively about the possibility of enacting a sub-law on innovative new drugs in the Special Act on the Pharmaceutical Industry within next year.

 

International trade friction is not a problem that can be solved by the MOHW alone, but trade pressure-related ministries such as the Ministry of Commerce, Industry and Energy can also make opinions, and if there is a difference in positions between the MOHW.

 

On the 20th, the domestic pharmaceutical industry is paying keen attention to the direction of promoting the "Study on Pharmaceutical Price Support Policy of Innovative Pharmaceutical Companies in Conformity with the International Trade Order" announced by the KHIDI to Korea Online E-Procurement System on the 19th.

 

Pharmaceutical companies said that in order to enact a subordinate law on the preferential treatment of innovative new drugs without problems, the key is to create a "policy and fast policy" by regularizing cooperation between government ministries and government-pharmaceutical companies.

 

First of all, members of the National Assembly's Health and Welfare Committee criticized the absence of Article 17-2 of the Special Act on the Pharmaceutical Industry in this year's parliamentary audit.

 

Pharmaceutical companies are welcoming the Ministry of Health and Welfare's order for research services through the KHIDI.

 

Analysts say that the government has officially promised to enact subordinate laws that have been empty for more than two years after the law was created due to the order of research services.

 

In particular, pharmaceutical companies are positively evaluating the fact that the research service, which was originally scheduled to be ordered next year, has been drastically advanced by nearly half a year due to the announcement of the results in October this year and May next year.

 

Pharmaceutical companies are raising expectations, saying, "More effective domestic drug price preferential measures could be created," when the study included incentives such as suspension and restriction of drug prices after listing for the first time since the development of innovative drugs.

 

Pharmaceutical companies suggested that domestic pharmaceutical companies' willingness to develop new drugs should be specified in the subordinate laws to enjoy the effect of promoting and encouraging domestic pharmaceutical companies' willingness to develop new drugs.

 

Pharmaceutical experts say that the first listed drug price preferential treatment helps domestic new drugs acquire good drug prices in overseas markets when entering the global market, and that the post incentive gives them an advantage over other competitive drugs in the domestic market.

 

An official from A Pharmaceutical, which owns a new domestic drug, explained, "It is positive that the government took the pharmaceutical industry's appeal and the National Assembly's criticism heavily and ordered research sooner than expected.

 

We can expect the government to introduce a specific domestic drug preferential policy in the second half of next year." An official from Company A said, "The fact that we will conduct drug price preferential research, including incentives to lower drug prices, is also in favor of substantially increasing the effectiveness of drug preferential treatment," adding, "However, the upper limit preferential clause should also be prepared at a level without friction." "Only when the government sets the initial registration price for new domestic drugs can it competitively receive drug prices in overseas countries when exporting," he stressed.

 

Pharmaceutical companies expressed serious concern about the fact that even after the ordered study was successfully completed, it could not be introduced or reflected as an actual policy or could be privately cultured.

 

Even if the MOHW and the promotion agency come up with a drug preferential measure without trade friction in the study, pharmaceutical companies are nervous about the possibility that other government ministries, including the Ministry of Commerce, Industry and Energy, will not be reflected as the final policy.

 

If the research agency and the MOHW, which are working-level government ministries enacting subordinate laws, fail to empathize and communicate with the health industry promotion department, the research was completed, but the drug preferential policy could lead to negative results.

 

"In the actual research service process, the Promotion Agency and the MOHW should have a common goal with close consultation," said an official at drug price management at Pharmaceutical B, which owns new domestic drugs.

 

An official from Company B said, "It is difficult to improve the basic evaluation method that only some innovative pharmaceutical companies can preferentially treat new drugs, and it is not easy to avoid controversy." The official said, "In the end, sophisticated sub-laws are needed in the research process to prevent the MOHW from wanting to provide drug preferential treatment," adding, "Efforts should be made to create a drug preferential law that does not differ in opinion between the pharmaceutical field and the government policy."