KSPST 'Generic drug price cuts not right for fiscal savings'

New president to strengthen society's inner core and expand society’s reach

Cheong-won Cho, the newly appointed president of the Korean Society of Pharmaceutical Science and Technology (KSPST), expressed a critical view of the government’s policy to lower generic drug prices, stating that such an approach is not logically consistent if the objective is to reduce National Health Insurance (NHI) spending. She argued that to reduce NHIS spending, the use of generic drugs should be promoted rather than cutting their price.

Cho made the remarks during a press briefing held on the 28th at a restaurant in Yeoksam-dong, Seoul. “Given concerns about the depletion of the NHI fund, policies aimed at narrowing financial gaps are necessary. However, lowering generic drug prices as a means of reducing NHI expenditure seems illogical.”

“Lowering generic drug prices would have a devastating impact on pharmaceutical companies' profits, leading to workforce reductions and decreased R&D investment. The government claims that lowering generic drug prices will encourage increased investment in new drug development, but I believe the government and the pharmaceutical industry are heading in different directions on this point.”

“It's not that the government's position is wrong, but rather than focusing on lowering generic drug prices, they should seek various methods to prevent the depletion of the national health insurance fund. I think it would be good if the government held a close ear to the input from relevant academic circles and organizations and considered the overall situation to restructure the system based on a predictable scenario.” President Cho explained that activation of generics following patent expiration of originator drugs is, in itself, beneficial to NHI finances.

This was Cho's first meeting with the press after being appointed President of KSPST. Currently a professor at Chungnam National University College of Pharmacy, she expressed her ambition for strengthening the society’s internal capabilities while expanding its external influence.

Cho said, “As pharmaceutics advances, regulatory environments are becoming more complex and global competition more intense. We will establish a robust academic framework and build effective R&D programs. To expand our reach, we will form consortia with domestic and international academic societies and foreign journals, and establish a systematic framework to support the society's sustained growth.”

The newly appointed executive board of the Korean Society of Pharmaceutical Science and Technology poses for a commemorative photo after concluding a press conference on the 28th. (From left: Scientific Program Committee Chair Jin-wook Yoo, General Affairs Committee Chair Sangkil Lee, President Cheong-won Cho, Secretary General Yu Seok Yoon, Public Relations Committee Chair Jun-Bom Park)

Yu Seok Yoon, Secretary General of KSPST, who also attended the event, said, “The society must serve as a bridge between basic science and clinical practice. We will continue to expand into areas where social and academic demand exists.”

Founded in 1971, KSPST is a reputable academic organization that has dedicated 54 years to advancing pharmaceutical research and scholarship. It has approximately 1,200 members and has contributed to the development of the pharmaceutical industry and the promotion of public health through the dissemination of pharmaceutical R&D achievements and industry collaboration.

Last year, the society shared the latest developments in pharmaceutics through the Formulation Technology Workshop and an International Academic Conference. The Formulation Technology Workshop drew participation from approximately 500 experts from industry, academia, and research institutes. Its International Academic Conference also gathered over 650 attendees, including 36 domestic and international speakers from 11 countries, marking its largest-ever participation.

This year’s major events include a Science Month symposium on April 10, a Formulation Technology Workshop on September 18, and the Society’s General Assembly and International Conference from November 25 to 27.

Jin-wook Yoo, Chair of the Scientific Program Committee, noted, “Through our academic conferences, we aim to strengthen industry-academia-research collaboration by pursuing both academic depth and industrial applicability. We plan to establish an academic foundation for the pharmaceutical-biotech sector's leap forward and organize conference sections reflecting the latest technological trends.”