Korean Government’s Pharmaceutical Prices Not Conducive for New Drugs

A recent report from the Korea Pharmaceutical and Bio-Pharma Manufacturers Association criticizes the government for continuing to lower drug prices in Korea which hinders the growth of new drug development. The report claims that this government policy only incentivizes drug companies to make more generics or slightly modified drugs. The report also says that if Korea wants to grow its drug and biotechnology industry, more money needs to be allocated to R&D. Due to low reimbursement prices, some Korean drug companies have left the industry. Currently, most of Korea’s drug R&D money goes to universities, not Korean companies. Of the Korean R&D budget, only 15% goes to the drug sector, while almost 50% goes into the semiconductor sector. Industry says this needs to be changed.