Taiwan is Asia’s 6th largest drug market with many Western drug companies selling their products there. However, similar to many other drug markets around the world, Taiwan wants to reduce drug prices and government health expenditures. Accordingly, in mid-September, Taiwan’s National Health Agency (NHA) had a meeting with various Taiwanese drug associations and promulgated a price reduction plan – called the DET program. Going forward, the Taiwan NHA will also adjust the drug prices according to the lowest price of the drug in ten global markets as well as the current transaction price. According to IQVIA, the 10 leading drugs in Taiwan are all made by foreign manufacturing companies, and 7 out of these 10 drug prices will now be reduced based on the lowest price of the drug in the ten global markets. In short, drug prices in Taiwan may drop an average of 25%, making the market less attractive to foreign drug makers.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.
Source used in the article: https://www.iqvia.com/locations/asia-pacific/blogs/2023/10/potential-impact-of-newly-proposed-drug-price-policy-in-taiwan