The pharmaceutical and biotech industry on the 28th voiced concern over the government's plan to improve the drug pricing system.
The Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) said in a statement that day it was concerned that "if the criteria for setting drug prices are sharply lowered as proposed, core financial resources for corporations' research and development (R&D) investment and hiring will shrink, which could lead to delays in new drug development, reduced facility investment, and a retreat in global competitiveness."
The association in particular noted, "If drug prices are lowered further to cost levels, corporations will have no choice but to first scale back production of low-priced essential medicines," adding, "This will lead to increased import dependence, disruptions in the supply of essential medicines, and a higher risk of stockouts." It added, "This will result in outcomes that run counter to the 'stability of the pharmaceutical supply chain,' which is directly linked to the public's health and lives."
The association emphasized, "Before finalizing the improvement plan, the government must ensure the effectiveness of the system based on reasonable input from the industry and a thorough analysis of ripple effects," and "Drug price incentives for corporations with high R&D investment ratios and for corporations that contributed to supply stability must produce practical effects in the field."