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Opinion
[Reporter's View] Non-face-to-face treatment pilot project
by
Lee, Jeong-Hwan
Dec 04, 2023 05:12am
Starting December 15th, ’24-hour non-face-to-face treatment’ will be available to the public following the legalization of revised non-face-to-face treatment pilot project by the Ministry of Health and Welfare. The project will extend the non-fact-to-face treatment benefit that had been previously limited to returning patients to new patients. Patients will be able to request non-face-to-face treatment for all types of diseases, whether acute or chronic, at a clinic where they have made an in-person visit within 6 months. A dramatic increase in the number of non-face-to-face treatment is expected due to the updated policy, which has allocated the responsibility of sorting the non-face-to-face treatment eligibility at the sole discretion of the physicians, regardless of severity of disease. Physicians and pharmacists registered with the Korean Medical Association (KMA) and the Korean Pharmaceutical Association (KPA) have voiced concerns against the newly updated non-face-to-face treatment policy. Their primary view regarding the policy is that the government has forcefully implemented the pilot project without a thorough assessment of its side effects. Shortly after the MOHW's announcement, physicians and pharmacists' associations small and large have all issued statements opposing the revised pilot project. On November 30th at 8:00 a.m., a day before the MOHW released the revised plan, a conference had been held between the advisory panel regarding the non-face-to-face treatment pilot project. Although the KMA, KPA, and the Korea Alliance of Patients Organization have stated their opposing views on the extension of the policy at the meeting, their opinions have not been taken into consideration. Therefore, the panels expressed that the advisory panel for the pilot project was held for formality, wherein the government had not planned to regard any of the opinions proposed at the meeting and the extension of the plan was already a done deal. The Yoon Suk-Yeol administration has been putting an emphasis on running the governmental operation based on ‘social consensus and scientific reasoning,’ especially regarding the major issues of national concern. However, no such consensus or reasoning was made in the process of the non-face-to-face treatment pilot project advisory panel meeting and the revision announcement. Neither scientific statistics nor research analysis data have been suggested for concluding extending the potential patient pool of the ongoing pilot project. It is truly questionable whether MOHW has ruled President Yoon Seok Yul’s comment that “parents of children have a hard time seeking non-face-to-face treatment late at night and on holidays” made in the Cabinet meeting a scientifically backed argument. In contrast, all the opposing voices of physicians, pharmacists, and patient organizations were left unheard. As for the revision, the scientific reasoning-based administration is non-existent and the societal agreement-based policy-making principle has been neglected. Because the non-face-to-face-treatment pilot project is a revision to the public health law and not to the medical law, there seems to be no regulation of MOHW's way of conducting an extension. Despite of opposing views by medical professionals, concerns by patient organizations, and major criticisms by the political party, the pilot project which allows ’24-hour non-face-to-face treatment’ will be accelerated. December 15th will be remembered as the date on which the omnipotent pilot project, which extends the scope of non-face-to-face treatment, overpowers the medical law.
Opinion
[Reporter’s View] 1 yr after Zerbaxa's release
by
Eo, Yun-Ho
Nov 20, 2023 05:50am
One year has passed since the new antibiotic ‘Zerbaxa’ has been listed for reimbursement in Korea. At the time, the drug was applied the special exemption of the pharmacoeconomic evaluation system as a National Essential Medicine. The government’s flexible response amid the rise of the global issue of antimicrobial resistance shone through. The drug’s need, although it is not for a ‘life-threatening disease,’ has been recognized. However, a more serious issue lies ahead. No other new antibiotic has been reimbursed since then. Even when taking into account how Zerbaxa was listed 5 years after its approval, this 1-year gap is a significant time when determining whether the government had continued to show resolve to address the antimicrobial resistance issue. At the time, when designating antibiotics as subject to the PE exemption system, the government limited the scope of beneficiaries to antibacterial drugs like Zerbaxa. This is why Cresemba, another antibiotic, remains non-reimbursed, due to difficulties in passing pharmacoeconomic evaluations. Medically, antibiotics refer to 'antimicrobial medicines' that include antibacterial drugs (for the treatment of bacterial infections), antifungal drugs (for the treatment of fungal infections), and antiviral drugs (for the treatment of viral infections). The increase in antimicrobial resistance (AMR) is being regarded as one of the most serious public health issues worldwide. The World Health Organization (WHO) has defined AMR as a global health and development threat as it threatens the effective prevention and treatment of an ever-increasing range of infections caused by bacteria, parasites, viruses, and fungi. Also, finding a new therapeutic alternative to carbapenem is another public health issue that has been announced by the WHO. The rise in the incidence of multidrug-resistant Gram-negative bacteria has also been causing serious issues in terms of healthcare-related infections. In particular, the WHO has designated carbapenem-resistant Pseudomonas aeruginosa infection as one of the highest-priority pathogens in need of research and development for new antibiotics. In this context, ‘Zavicefta,’ which can benefit from the PE exemption waiver system and receive reimbursement, has passed the Health Insurance Review and Assessment Service’s Drug Reimbursement Evaluation Committee in September and is undergoing drug pricing negotiations with the National Health Insurance Service. The drug has been gaining attention as a new antibiotic option for severe infections in which drug resistance poses a serious problem, such as multidrug-resistant Pseudomonas aeruginosa infections, carbapenem-resistant Gram-negative pathogens, extended-spectrum β-lactamases (ESBL) producing Enterobacteriaceae, etc. In With its reimbursement listing nearing thanks to the efforts of the pharmaceutical company and government, this is now the time to look back on the antibiotics issue that lingers as a threat to public health.
Opinion
[Reporter’s View]Encouraging healthy competition in NSCLC
by
Son, Hyung-Min
Nov 16, 2023 05:46am
Although it might be frustrating for those competing against each other, healthy competition often leads to beneficial results on the whole. This is the case for the EGFR-mutated non-small-cell lung cancer treatments, Yuhan Corp’s Leclaza (lasertinib) and AstraZeneca’s ‘Tagrisso (osimiertinib).’ Both drugs are third-generation tyrosine kinase inhibitors (TKIs) targeting EGFR-mutated non-small cell lung cancer, and are currently used as first- and second-line treatment in the field. The two are same-generation drugs that own the same indications. Both have proven their effect in terms of brain metastasis, efficacy, and safety, which are important factors in treating cancer patients. Yuhan Corp and AstraZeneca, which developed the two drugs, have continued to engage in competition with combination therapies using their respective drugs. At the 2023 European Society for Oncology (ESMO) Congress that was held last month, results of Janssen’s main MARIPOSA study that evaluated the combined use of Janssen’s ‘Rybrevant (amivantamab)’ and Leclaza were disclosed. Results showed that Leclaza+Rybrevant improved the primary efficacy endpoint of progression-free survival (PFS). A favorable trend was also observed in overall survival (OS), the secondary endpoint. Also, results of the FLAURA2 study showed that Tagrisso extended PFS by pulling forward the use of platinum-based chemotherapy, which is currently used as a second-line treatment for EGFR-positive NSCLC. Due to the high interest in the 2 treatments, the results for the combination therapies received great attention, raising discussions on which treatment was more effective . The competition further intensified in Korea after Yuhan Corp announced that it would provide Leclaza for free until the drug was reimbursed. Although there was concern that AstraZeneca may object to the measure, the company did not, referring to how it would benefit patients. The movements to extend the patient's survival through the use of combination therapies, offering free treatment to patients, and not raising objections as the other company’s programs will benefit the patient, are all efforts on the companies’ part to put patients first. This deserves applause. Yuhan Corp and AstraZeneca are both separately in pricing negotiations with the National Health Insurance Service to receive reimbursement for Leclaza and Tagrisso as a first-line treatment for EGFRm NSCLC. It is difficult to say which treatment is superior. Ultimately, both drugs would need to be reimbursed if the patients and HCPs are to receive equal benefits in terms of choice. The cost of a single cycle of the two drugs when prescribed without reimbursement exceeds KRW 5 million. So it is this reporter’s wish that the two treatments will be approved for reimbursement so as to reduce the financial burden borne by patients with NSCLC. In this sense, we support the healthy competition between the two companies that can produce beneficial results for the patients.
Opinion
[Reporter’s view] Successive large-scale technology exports
by
Kim, Jin-Gu
Nov 10, 2023 05:19am
There is some good news coming from the pharmaceutical and bio industry. Chong Kun Dang and Orum Therapeutics have signed large-scale technology export contracts with global pharmaceutical companies. On the 6th, Chong Kun Dang signed a technology export contract with Novartis worth a total of $1.305 billion (about 1.7 trillion won). This is a transfer of global development and commercialization rights, excluding Korea, for ‘CKD-510’, a new drug candidate in the HDAC inhibitor class. On the same day, Orum Therapeutic, an unlisted bio venture, signed a contract with BMS to transfer the technology of ‘DRM-6151’, a new drug candidate for leukemia. The total contract size is $180 million (approximately 230 billion won). What attracts more attention than the total contract size is the down payment. Chong Kun Dang received $80 million (approximately 100 billion won) as a down payment, and Orum Therapeutic received $100 million (approximately 130 billion won) as a down payment. The down payment is money that does not need to be returned even if the rights to develop new drugs are later returned. The down payment is evaluated as an appropriate tool to objectively reflect the value of the candidate material. The total contract size is filled with an optimistic outlook. If a candidate material does not meet detailed contract conditions such as development or approval, it will not be received. In general, it is considered a good condition if the down payment ratio is more than 5% of the total contract size. Chong Kun Dang received 6.1% of the total contract size, and Orum Therapeutic received 55.6% as a down payment. In terms of down payment, it is the largest in four years since 2019. In February 2019, SK Biopharmaceuticals received $100 million (total contract size of $530 million) and signed a technology export contract for an epilepsy new drug with AVELOS Therapeutics. Since then, several technology export contracts have been signed with a total contract size in the trillions, but it is true that looking at the contract amount alone, it was disappointing. In some quarters, controversy arose over the discrepancy between the total contract size and the down payment. However, a series of contracts were concluded with a down payment of over 100 billion won. In the pharmaceutical industry, expectations are growing whether large-scale technology export contracts concluded one after another will be able to reverse the recent slump. Recently, the pharmaceutical and bio-industry has been facing an investment cliff due to the high-interest rate situation that has continued since the coronavirus pandemic. In particular, bio ventures that focused on R&D without consistent sales were pushed into crisis as external investment plummeted. In this situation, it is ultimately R&D, the core asset of the biopharmaceutical industry, that leads to a change in the atmosphere. It is time for another R&D performance. We succeeded in revitalizing the atmosphere through a series of technology export contracts. In order to completely change the atmosphere, new R&D results must be released in the near future. I look forward to hitting consecutive hits following Chong Kun Dang and Oreum.
Opinion
[Reporter's view] Preferential pharmaceutical alternative
by
Lee, Jeong-Hwan
Nov 07, 2023 05:34am
The government appears to be slow to announce a plan to reform the drug pricing system, which includes measures to give preferential prices for drugs that reflect the value of innovation. Although we have already held several consultative meetings with representatives of domestic and foreign pharmaceutical and biopharmaceutical companies, it is becoming increasingly late to present results on how to specifically evaluate innovation value and provide preferential drug prices. Initially, it was expected that the government would announce a plan to improve the drug price system in September last September for new drugs. The Ministry of Health and Welfare's plan was to make a final announcement as soon as possible based on the results of five public-private consultations on drug price system reform from February to June of this year. However, since there was no specific plan, the release was further delayed due to reasons such as a government audit. The establishment of preferential drug price regulations that reflect the value of innovation is an issue that the National Assembly has also proposed for several years, raising the need for improvement. The special bill on the pharmaceutical industry, proposed by People Power Party lawmaker Seo Jeong-sook, is the core of the bill, which establishes a pharmaceutical and bio innovation committee under the Prime Minister's direct control and mandates additional preferential treatment of the upper salary limit for drugs manufactured by innovative pharmaceutical companies. Park Min-soo, Second Vice Minister of Health and Welfare, has promised to establish and implement a practical system since the beginning of this year since taking office in relation to the plan to reform the drug price system to reflect innovation values. At a meeting held in person with the Professional Journalists Association in February of this year, Vice Minister Park Min-soo said, "Like the U.S. bio executive order, our country will create an incentive system to convert essential medicines and medicines using domestic raw materials to domestic production and reflect them in drug prices." It was revealed. Even during the review of Rep. Seo Jeong-sook's bill, Vice Minister Park expressed concern over converting the drug price preferential clause for innovative pharmaceutical companies into a mandatory/mandatory regulation and announced plans to clearly create and implement a policy of preferential drug prices for drugs that have proven their innovative value even if not converted. there is. Furthermore, this year's National Assembly inspection is reviewing a plan to improve the drug price system to appropriately compensate for the innovation value of new drugs in order to prevent 'Korea passing' and promote the overseas expansion of new domestic drugs and has responded that it will create a policy of preferential drug prices for drugs using domestic raw materials. In the end, the Ministry of Health and Welfare has announced throughout this year that it will prepare a plan to reform the drug price system to reflect innovation values, but it is regrettable that it is still difficult to examine the specific implications. In the past, in response to criticism that the drug price system needed to be reformed, the Ministry of Health and Welfare repeatedly stated that it would be difficult to come up with a drug price reform plan that would only give preference to domestic industries due to reasons such as WTO trade friction. However, after realizing that the pharmaceutical industry is directly linked to national security due to the prolongation of the COVID-19 pandemic, a signal was sent to protect the domestic industry without any trade friction and to provide corresponding compensation to medicines that showed innovative levels of efficacy and safety. Sent several times. Domestic and foreign biopharmaceutical companies that are manufacturing and importing pharmaceuticals in Korea may also have participated in public-private consultative meetings amid this signal. It is understandable at first glance that the Ministry of Health and Welfare is delaying the release of the inevitable reform plan in the process of designing a more detailed and practical drug price preferential policy based on the results of the consultative body discussions. However, from the perspective of the pharmaceutical industry, which is anxiously awaiting the improvement plan, the delay in the release of the Ministry of Health and Welfare's reform plan without any mention is hopeless. It can be torture. Complaints regarding pharmaceutical companies' drug price system reform have already been submitted to the Ministry of Health and Welfare after several meetings. The government's will to prepare a plan to reform the drug price system should not be weakened due to the end of the COVID-19 pandemic. We hope that the drug pricing system reform plan, which will encourage pharmaceutical companies to develop new and improved drugs, increase their chances of entering the global market, and motivate them to manufacture drugs using domestic raw materials instead of cheap Indian and Chinese raw materials, will be revealed before the end of the fall.
Opinion
[Reporter’s view] WLA Registration
by
Lee, Hye-Kyung
Nov 03, 2023 05:32am
WHO announced on October 26 that the Ministry of Food and Drug Safety was listed on the WHO Listed Authorities. The news became known in Korea on the afternoon of the 30th, when WHO posted a list of WLA-registered countries on its website and then suddenly deleted it. It was confirmed that the error was due to detailed coordination, and it was on the afternoon of the 31st that the Ministry of Food and Drug Safety officially heard the news of WLA registration. WHO also officially distributed a press release and announced that Korea was listed in the WLA. The good news about the Ministry of Food and Drug Safety's WLA is that although Korea is a full member of the ICH, it has not been listed on the WHO's SRA (Stringent Regulatory Authority), which means that the domestic pharmaceutical and bio industries have not been able to receive incentives in bidding for the procurement of medicines and vaccines from UN-affiliated organizations. In particular, in 2021, when COVID-19 was prevalent, Hong Kong limited the scope of countries recognizing vaccination certificates to countries listed in the SRA, raising controversy over the reliability of the regulatory level of domestic pharmaceuticals. This is a happening that occurred as the WHO has not been operating the SRA registration application process since 2015. WHO has been promoting WLA, in which WHO directly evaluates regulatory agencies, since 2016 to replace SRA, which is based on ICH membership requirements. Korea had no choice but to wait for an evaluation system to replace SRA since 2016, and submitted its first letter of intent for registration in 2021, when WHO began accepting letters of intention to register WLA. The news of the Ministry of Food and Drug Safety's WLA registration is a great achievement after two years. However, the specific incentives that the domestic pharmaceutical and bio-industry will experience once WLA registration is achieved are unknown. The Ministry of Food and Drug Safety also provides advantageous conditions by applying exceptions to WHO quality certification (Pre-qualification (PQ)) when SRA countries bid for the procurement of medicines and vaccines from UN-affiliated organizations, and WHO provides equivalent standards to countries listed in the WLA. The only announcement was that they expected to implement support measures. The pharmaceutical bio-industry is expecting WHO's PQ exception to be applied through this WLA listing. Although WHO is not a regulatory agency, it conducts PQ when procuring medicines and vaccines from UN-affiliated organizations, which includes data review, testing, and on-site inspection. In the end, it seems that domestic sites will only be able to realize the Ministry of Food and Drug Safety's WLA registration if they are able to receive exceptions to WHO's PQ. We hope that the Ministry of Food and Drug Safety will be able to announce in detail WHO's incentives for WLA registration as soon as possible.
Opinion
[Reporter’s View] Asthma drugs reimb through diff tracks
by
Eo, Yun-Ho
Oct 25, 2023 05:24am
An unusual case has emerged where drugs for the same indication were listed through different tracks for reimbursement in Korea. The interleukin-5 antagonists for asthma, ‘Cinquair (reslizumab)’ and GSK Korea’s ‘Nucala (mepolizumab)’ have been simultaneously listed for reimbursement in Korea through different reimbursement tracks. Cinquair was listed through the standard reimbursement listing process whereas Nucala received reimbursement listing through the Risk Sharing Agreement (RSA) scheme. This is a situation that has been virtually unheard of. If a drug is listed through the regular reimbursement listing process, no latecomer drugs can enter Korea’s insurance system through the RSA track. Nucala's application for RSA itself was not impossible as Cinquair had not been yet listed. However, with Teva taking active steps to list Cinquair (in the drug pricing calculation phase), it was not at all easy for GSK, which wanted dual pricing, to enter the system. AstraZeneca Korea, which sought to list its drug Fasenra (benralizumab) with Nucala, was unable to pass the Health Insurance Review and Assessment Service’s Drug Reimbursement Evaluation Committee review in September. Nucala’s listing can be said to be the fruition of GSK's determination for reimbursement in Korea. With Cinquair already undergoing drug pricing negotiations through the general listing process, the government's willingness to leave open the possibility of securing additional treatment options also stands out. On the other hand, AstraZeneca's failure to overcome the same situation remains a disappointment. AstraZeneca’s drug was also an interleukin (IL)-5 antagonist that reduces the level of blood eosinophils, a type of white blood cell that is involved in the development of asthma exacerbation. At the time of their approval, it also received attention for being an effective treatment option that had not been available before However, no other drug has been reimbursed since the reimbursement approval of Novartis Korea’s ‘Xolair (omalizumab)’ in 2020. Although the three drugs all treat the same disease, ‘asthma,’ the three drugs and Xolair’s indication differ. However, the government had compared the drugs with Xolair, and therefore, the set price was difficult for the three new biological drugs to bear, which led to the discontinuation of their reimbursement listing process. And then, AstraZeneca was the only company to not join in the efforts the companies had reignited in 2023, which had led to the different results for the three asthma drugs.
Opinion
[Reporter's view]Skill is more important than trends
by
Oct 20, 2023 05:31am
Recently, antibody-drug conjugates (ADCs) have emerged rapidly in the pharmaceutical industry. ADC is a biopharmaceutical that combines an antibody that binds to a specific target antigen on the surface of cancer cells and a drug (payload) with a powerful cell-killing function. Unlike Roche Kadcyla, which is classified as a first-generation ADC anticancer drug, which only secured indications for breast cancer, the recently launched Enhertu is proving its effectiveness by showing effectiveness in various indications, including breast cancer, stomach cancer, non-small cell lung cancer, and colon cancer. In line with this, the domestic biopharmaceutical industry is also challenging the ADC anticancer drug market. Traditional pharmaceutical companies and the bio industry have expressed their intention to participate in ADC development. This is not much different from the previous situation where cancer immunotherapy drug development was popular due to Keytruda. Keytruda, a third-generation anti-cancer immunotherapy drug, is a drug that the domestic biopharmaceutical industry was committed to developing before ADC. It is similar to ADC in that it has fewer side effects and can secure a variety of indications. Many domestic pharmaceutical and bio companies are competing to promote that they are developing anti-cancer immunotherapy drugs such as Keytruda or confirming the effectiveness of new drug candidates by conducting clinical trials in combination with Keytruda. To date, there are numerous stories of confirmed efficacy in preclinical or early clinical trials. However, there is no news that it has entered late-stage clinical trials and is close to commercialization or has achieved notable technology exports. The prevailing assessment is that the domestic biopharmaceutical industry has not yet demonstrated the ability to develop new drugs as much as its willingness to follow trends. Most anticancer drugs from domestic companies, including Leclaza, have failed miserably in the market. It is true that the domestic biopharmaceutical industry, which had not succeeded in developing such a notable anticancer drug, was following the trend and starting to develop ADCs, so it was more focused on whether it was possible than expected. Currently, the industry is following the latest trends not only in ADCs and anti-cancer drugs but also in various areas such as NASH treatments and obesity treatments. It cannot be denied that the research and development (R&D) costs of the domestic biopharmaceutical industry are relatively high compared to global pharmaceutical companies. Accordingly, the industry should not blindly follow trends but rather distinguish between what it can do well, what areas it should challenge, and when it should collaborate. I hope that the true capabilities of the domestic pharmaceutical and bio-industry will be demonstrated, rather than just raising expectations.
Opinion
[Reporter's view]Promotion of pharmaceutical & bio-industry
by
Lee, Jeong-Hwan
Oct 19, 2023 05:30am
In the audit conducted by the National Assembly Health and Welfare Committee for the Ministry of Health and Welfare and the Ministry of Food and Drug Safety this year, it was difficult to find policy questions to foster the domestic pharmaceutical and bio-industry. There are still audits from the National Health Insurance Corporation, the Health Insurance Review and Assessment Service, the Health Industry Promotion Agency, and a general audit, but it seems that there is not enough time to deal with issues related to the pharmaceutical industry with weight. The Yoon Seok-yeol government has shown a blueprint for creating two global blockbuster-class new drugs and nurturing more than three global-level pharmaceutical bio companies by 2027 while showing its willingness to record 16 billion in drug exports, but the National Assembly's willingness to verify this was weak. On the second day of the Ministry of Health and Welfare's national audit and the day of the Ministry of Food and Drug Safety's national audit, the problem of vulnerability to the self-sufficiency rate of domestic raw materials and drugs was pointed out, but even this was only proposed as a solution to solve the problem of supply and demand unstable medicines that suffer from long-term out of stock. There were no questions related to the Prime Minister's BioHealth Innovation Committee, which will serve as a control tower to foster the pharmaceutical bio-industry, pointed out the direction of operating the pharmaceutical bio-industry megafund, and no concerns about the reduction of the budget to support the development of the pharmaceutical industry next year. It was difficult to look at the expression of the National Assembly, which is considering the reform of the innovation value compensation drug price system, which is a hot topic for domestic pharmaceutical companies and global pharmaceutical companies, preferential treatment for domestic raw materials, and ways to foster new domestic drugs. It was a pity that it was hard to find a reference to the agenda related to the pharmaceutical and bio-industry in the National Assembly's audit day of the Ministry of Appreciation Day between the Ministry of Welfare and the Ministry of Food and Drug Safety, which are in charge of nurturing the pharmaceutical and bio-industry. I feel that I have lost the opportunity to look into whether the Ministry of Health and Welfare and the Ministry of Food and Drug Safety are currently putting into practice their policy vision regarding the development of the domestic pharmaceutical and bio-industry. This national audit is the last audit of the 21st term of the National Assembly. The 21st National Assembly experienced the COVID-19 pandemic and felt the need and importance of securing domestic pharmaceutical, bio, and vaccine sovereignty more deeply than anyone else. During the three years following the pandemic, we continued our national activities, seeing that the pharmaceutical and bio-industry is an industry directly related to national security and a field that needs to be intensively nurtured for the future of the country. The National Assembly's interest in creating an R&D, drug price, and regulatory environment where domestic pharmaceutical bio companies can demonstrate sufficient capabilities in the global market is directly related to fostering domestic industry through policy improvement by government ministries. It's time to encourage the government's measures to foster the domestic pharmaceutical and bio-industry, which have unlimited growth potential during the rest of the national audit period, and to show a level of active interest and expertise that can monitor whether the administration is being carried out according to the promised blueprint.
Opinion
[Reporter’s View] KRPIA pulls out ‘structural reform' card
by
Eo, Yun-Ho
Oct 12, 2023 05:37am
The Korean Research-based Pharmaceutical Industry Association (KRPIA) has pulled out the ‘expenditure structure reform’ card as a solution to finance new drug expenditures. Although the message seems somewhat familiar, it is a new and unprecedented request. On the 4th, KPRIA released the results of 'A study on the analysis and rationalization of drug expenditures for new drugs in Korea' conducted by Professor Jong-Hyuk Lee from Chung-Ang University’s College of Pharmacy. Study results showed that the expenditures spent on new drugs from the national health insurance finances accounted for 8.5% of total drug costs and 2.1% of the total national health insurance medical costs. In particular, the financial impact made by new drugs on national health insurance finances was among the lowest when compared with other OECD countries. More specifically, the annual drug expenditure spent on each new drug amounted to KRW 6.1 billion whilst the total drug expenditure spent in Korea over the past 10 years amounted to KRW 164.2 trillion. In this analysis, the financial expenditures spent on items that were waived pharmacoeconomic evaluation data submissions and were subject to RSA, which account for most of the new drugs used to treat serious diseases such as cancer and rare diseases, were low, accounting for 0.3% and 2.7%, respectively, of the total drug cost. In addition, the financial impact of new drugs according to their serious disease classification status showed that drug expenditures spent on new drugs for severe and rare diseases (cancer, rare diseases) were found to only account for 3.3% of the total drug costs, suggesting the low treatment access available for domestic patients with severe and rare diseases. If so, why are studies and claims that should have been made a long time ago being raised and regarded as unusual now? The fact that new drugs account for a small portion of drug expenditures means that drug costs of existing drugs, not new drugs, account for a sizable portion of the expenditures. In other words, Korea spends 91.5% of its drug expenditures on drugs that are not new. The direction of improving the expenditure structure, which the KRPIA has suggested, is to increase the proportion of new drugs and to reduce the proportion of drug expenditures spent on drugs that are not new. It is an agenda that is bound to bring conflict of interest between new drug developers and non-developer pharmaceutical companies. However, there is no doubt that new drugs are important to Korea’s society as a whole. Prior to pointing out the limitations and reliability of the research published this time; it is necessary to consider Korea’s current expenditure structure. However, the number of expensive drugs is indeed increasing, and the number of drugs that remain non-reimbursed due to their potential financial impact is also rising. Korea has been known for its strong health insurance coverage supported by the national health insurance system framework. Even if the government had been a little insensitive to the changes in trends in related industries, new drugs have now surely become mainstream. Therefore, it is now time to consider adapting and evolving Korea’s expenditure structure and priorities accordingly.
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