"Korea Passing concerns…'dual pricing system' under review"

Says Minister of Health and Welfare Jeong Eun Kyeong

In response to Rep. Jia Han's inquiry…"Korea's drug pricing is too transplant, which poses a disadvantage"

Minister of Health and Welfare Jeong Eun Kyeong

Minister of Health and Welfare Jeong Eun Kyeong announced that the Ministry would strengthen administrative efforts for 'fast track National Health Insurance (NHI) listing of new drugs' and review the introduction of a 'dual pricing system' to prevent global pharmaceutical companies from "Korea Passing" of their new drugs.

 

On October 14, Minister Jeong stated this during a Parliamentary Inspection, responding to an inquiry from People Power Party Rep.

 

Jia Han regarding the U.S.

 

Trump administration's 'Most-Favored-Nation Prescription Drug Pricing.' Rep.

 

Han stated concern, "If the Trump administration's new drug pricing system is fully implemented, patient access to new drugs in Korea could be significantly constrained," and added, "Global pharmaceutical companies like Pfizer and AstraZeneca have also stated participation in the most-favored-nation price system." Rep.

 

Han further pointed out, "Recently, a key breast cancer treatment, Faslodex, was considered for withdrawal due to drug price issues, and some rare and intractable disease treatments cannot be introduced into Korea at all," and added, "If the most-favored-nation price system is implemented, Korea could devolve into a 'country with cheap drugs but no new drugs.' If major pharmaceutical companies delay launching or withdraw from Korea due to drug price transparency and low market potential, patients will lose access to life-saving new treatments." Rep.

 

Han said, "South Korea's drug prices are about one-fifth of the OECD average, and its share of the global pharmaceutical market is only 1.7%, compared to the U.S.

 

at 58.4%," and added, "If global pharmaceutical companies bypass Korea due to low drug prices and small market size, we would see withdrawal before launch, as already seen with some original drugs." Minister Jeong acknowledged the issue of delayed introduction or withdrawal of new drugs caused by the most-favored-nation price system and responded that the Ministry would strengthen Fast Track NHI listing and review the introduction of a dual pricing system.

 

Minister Jeong said, "We are informed that the risk of delayed introduction or withdrawal from the domestic market for new drugs could increase due to the most-favored-nation price system.

 

" She added, "We will strive to establish a reinforced compensation system for new drugs so that they can be swiftly listed on the NHI." Minister Jeong also said, "South Korea's drug pricing system is excessively transparent and is used as a reference price by other countries, which leads to disadvantages," and concluded, "To compensate for this, we are reviewing a dual pricing system and will work to improve our drug price disclosure methods and system."