dailypharmkorea

Opinion
[Reporter's View] Suspension of drug price cut
by Kim, Jin-Gu May 08, 2023 05:41am
The price of Forxiga, an SGLT-2 diabetes drug, remains unchanged despite the release of a generic version. AstraZeneca applied for suspension of drug price cut execution along with an administrative lawsuit, and the court accepted it. AstraZeneca cited the reason that Forxiga's indications include not only diabetes but also heart failure and kidney disease. A generic Forxiga was released as a treatment for diabetes, and the government's price cuts that affect other indications are unreasonable. Unlike the US, Switzerland, and Australia, Korea does not differentiate drug prices by indication. In other words, unless the current drug pricing system changes in a broader framework, it is very likely that the administrative lawsuit filed by AstraZeneca will not be accepted by the courts. There is no way that AstraZeneca did not know about this situation. Nevertheless, AstraZeneca applied for a suspension of execution of Forxiga's drug price cut. It is a very clever decision from AstraZeneca's point of view. Considering that it usually takes more than three years for the Supreme Court to make a final decision, it can prevent expected losses of tens of billions of won every year for more than three years. However, at the same time, it cannot be free from criticism that it abused the suspension system. Coincidentally, the day Forxiga's drug price cut enforcement suspension was cited was the day the 'Drug Price Cut Refund and Refund Act' passed the National Assembly. This law is about the collection and refund of pharmaceutical expenses paid or unpaid during the period of suspension or execution of drug price cuts. The government has emphasized the necessity of this bill. Biopharmaceutical companies complained that the judiciary's decision to suspend the execution of drug price cuts caused a loss in health insurance finances. The biopharmaceutical industry criticized that it was concerned about violating the constitutional right to sue. Regarding the government's claim that the pharmaceutical industry abuses the judiciary's suspension of execution, he protested that it was only a "partial problem." The face of the biopharmaceutical industry, claiming the injustice of the drug price reduction/refund law, has become meaningless. Rather, it has strengthened the government's argument that has emphasized the necessity of the bill. According to the government's logic, health insurance financial losses of tens of billions of won are expected over the next few years. Neither the government nor the biopharmaceutical industry can view this positively. On the day the bill to correct the problem was passed, he did that very problematic act. Criticism comes from the pharmaceutical industry that the degree of cleverness is too much. The bill will come into effect six months after promulgation. After 6 months, such an application for suspension of execution is burdensome. If the Forxiga drug price cut had been six months later, would AstraZeneca have made the same decision as it is now?