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InterView
"Lilly's values in caring and discovery: social contrib."
by
Son, Hyung Min
Jan 19, 2026 09:02am
"Lilly's core values have always been 'Caring' and 'Discovery'. GDOS demonstrates that these values are not merely slogans, but a platform where employees can personally practice them within the community and reaffirm the company's reason for existence."On September 25 last year, Eli Lilly Korea held a volunteer activity attended by all employees to celebrate the 'Global Day of Service (GDOS).' GDOS is a global volunteer program launched by Lilly in 2008, which has accumulated over 1.2 million volunteer hours across 65 countries to date. Eli Lilly Korea has participated since 2010, contributing more than 20,000 hours of service.The Global Day of Service is a day when organizations and individuals worldwide volunteer for local communities and global issues. Lilly operates this day annually as its own GDOS, effectively establishing it as "the volunteering day for Lilly employees worldwide."The theme for the 2025 Eli Lilly Korea GDOS was "A Better World Made Together," centered on two pillars: environmental improvement and support for underprivileged children. Approximately 250 employees were divided into groups to conduct plogging in Jung-gu and Seodaemun, and to create donation kits for child support. The donations were delivered through Save the Children, in cooperation with the Community Chest of Korea. They provided necessary items to children at the Manan District Social Welfare Center in Anyang.2025 Eli Lilly Korea GDOS TF Team. From left: Hyung-min Kim (Regulatory Affairs), Minju Kang (Medical), Yu Seok Kang (ENC), Joohee Lee (Medical)Notably, they introduced 'GDOS Night; for the first time last year, featuring a charity performance by the in-house band and a donation program. A new attempt was made to expand the post-volunteer interaction into another act of sharing by accumulating the entire proceeds from food and beverages purchased by employees as donation funds.GDOS aligns with Lilly's global sustainability strategy, which includes: ▲ expanding access to medicines ▲ improving environments with limited medical infrastructure ▲ strengthening community resilience ▲ minimizing environmental footprints ▲ fostering innovation grounded in inclusion and diversity.We met with Minju Kang, Medical Director of Eli Lilly Korea, who managed last year's GDOS, and the TF team (Joohee Lee, Yu Seok Kang , and Hyung-min Kim) to discuss preparations, operations, achievements, and future directions.Q. Please describe your roles in last year's GDOS.Minju Kang (Medical): I am Minju Kang, head of the Medical Department and the sponsor for GDOS. Each year, a different department takes turns sponsoring GDOS, and since the Medical Department was in charge last year, I took on the role of sponsor.Hyung-min Kim (Regulatory Affairs): I am Hyung-min Kim from the Regulatory Affairs team. For this GDOS, I established the overall program plan, selected volunteer activities, and managed group assignments.Joohee Lee (Medical): I am Joohee Lee from the Medical Department. This program was led by three 'Champion Leaders' centered around Vice President Minju Kang. My role involved planning the program, encouraging employee participation, and setting the direction for which values we should focus on.Yu Seok Kang (ENC): I am Yu Seok Kang from the ENC team. Since GDOS is a long-standing event, my primary role was to ensure that the company's regulations and procedures were strictly followed throughout the support process.Q. What kind of event is GDOS?Minju Kang (Medical)Minju Kang: GDOS is a global corporate social responsibility program in which all Lilly branches worldwide, including the U.S. headquarters and Korea, participate. It has continued for nearly 20 years since its 2008 launch, and Eli Lilly Korea has participated consistently since 2010.It is highly significant because it goes beyond a simple annual event; it is a time for us, as members of a pharmaceutical company, to reconnect with our fundamental purpose asking 'Why do we do this work?'GDOS is operated as a volunteer-based activity involving all employees, and each year the TF Champions plan the program. The format changes annually. In some years, we conduct plogging to improve community environmental health, and other years we assemble donation kits for the underprivileged.Last year, we conducted plogging and kit production simultaneously. Furthermore, we introduced GDOS Night, aiming to extend the lasting impact of volunteer work into a time for sharing and interaction.Q. Compared to other CSR activities, what makes Lilly's program special?Hyung-min Kim (Regulatory Affairs)Hyung-min Kim (Regulatory Affairs): Generally, many volunteer programs rely on external vendors to handle the event's composition and operation. However, at Lilly, employees form their own TF to take the lead in the entire process—from planning and execution to reporting results.Members experience creating the program as protagonists rather than mere participants, gaining a sense of belonging and achievement. I believe this is the fundamental differentiator of Lilly's CSR activities.Joohee Lee: Having worked at other pharmaceutical companies, I found it particularly impressive that Lilly employees worldwide participate in volunteer work on the same day.It is rare to find CSR activities in which employees from every country, including the U.S. headquarters, work toward a common goal with a consistent identity as 'Team Lilly.'Additionally, not only the domestic TF but also TF Champions from each country meet in advance to discuss the planning direction and implementation methods for the GDOS program, and share the results after the event. This systematic approach, in which we learn from and spread the activities of different countries, sets GDOS apart as a sophisticated global volunteer program rather than a simple local activity.Q. We heard the 2025 theme was 'A Better World Made Together.' What were the central messages you focused on?Yu Seok Kang : The first pillar was 'Environmental Improvement.' To this end, we collaborated with the 1365 Volunteer Center to conduct plogging activities that could directly improve the local community's environment. The second pillar was 'Child Support.' In the past, we focused on visiting orphanages to improve their facilities. Last year, during discussions with the Community Chest of Korea, we explored ways to provide more practical help to children.As a result, we agreed that an approach of personally creating and delivering items that children need and would enjoy was more meaningful. By structuring the program around these two core pillars (environment and children), we prepared for the theme of "A Better World Made Together" to be portrayed through the activities.Q. Could you explain what "GDOS Night" was?Joohee Lee (Medical)Joohee Lee: In the past, after the volunteer work was completed, employees typically went their separate ways.Last year, we introduced GDOS Night to strengthen GDOS's communal values further.Many employees voluntarily attended the event even after the official activities ended, continuing the interaction and sharing. I believe this experience catalyzed GDOS to naturally expand its purpose.Minju Kang: GDOS Night was an event planned around the 'Lilly Band,' an in-house club.Employees who participate in the band as a hobby held a charity concert. We expanded the traditional 'one-day cafe' format by renting an external club space, selling food and drinks, and raising funds.It was meaningful because it provided a direct platform for employees to participate and spread a culture of donation beyond just a concert.Q. What is the meaning behind Lilly's core value, 'To unite caring with discovery to make life better for people'?Yu Seok Kang : We thought deeply about how to integrate caring and discovery into our activities harmoniously. In particular, introducing the unprecedented GDOS Night was meaningful because it expanded the event from a mere gathering of Lilly members into a festival where we could share and personally experience the values the company pursues.Furthermore, we interpreted the purpose of GDOS differently by introducing a structure that converted the program's proceeds into donations. I believe this series of processes was an attempt to meld the corporate purpose of caring and innovation into overall activities, and a case of seeking new ways through new methods.Minju Kang: Lilly holds 'Respect for People' as one of its core values, which is based on fundamental respect for human dignity and life. Caring, stemming from this value, has a practical meaning for a pharmaceutical company: providing patients with treatment opportunities and improving their quality of life. At the same time, for such caring to be realized in reality, innovative discovery and continuous R&D investment are essential.Therefore, Lilly simultaneously pursues a people-centered perspective and the discovery that realizes it. The discovery mentioned here refers to the development of new medicines, which directly links to our corporate purpose, as only innovative treatments can provide substantial benefits to patients. From this perspective, GDOS is not an event separate from the company's daily operations, but an extension of the process where caring and discovery for a better life are connected through activities.Q. Is there a message you would like to send to the TF preparing for this year's GDOS?Yu Seok Kang (ENC)Yu Seok Kang: Last year, we made various attempts based on collaborations with several volunteer organizations. However, since most volunteer groups operate with small numbers, there were constraints on schedules and operational methods during the coordination process for GDOS, which requires large-scale participation.In the future, we can enhance efficiency and meaning further if collaboration schedules are coordinated and prepared at an even earlier stage. Although there was some trial and error, the process itself, including discussing with TF members and brainstorming ways to maximize employee participation, was very valuable, and I am satisfied with the overall results.Joohee Lee: The feedback left by CEO after last year's GDOS was also memorable. The suggestion was to consider activities that can deliver hope to patients, caregivers, and the community, aligned with a pharmaceutical company's identity and role. From this perspective, I believe programs that create direct touchpoints with patients, such as the Lilly Band holding a concert for patients, are directions worth considering for the future.Kim Hyung-min: GDOS is not an activity directly linked to performance metrics, but it is an event we must participate in with a sense of mission, personally practicing the company's values as Lilly employees. Since it required preparation outside of working hours, personal motivation was necessary, and being able to provide momentum to each other while working as a team was a great help. I believe a TF involving members who can voluntarily offer opinions is a crucial element for the future success of GDOS.Minju Kang : The charity concert (GDOS Night), which was attempted for the first time last year, received a very positive response. If we consider how to further evolve this format for the charity concert next year, we can expand the meaning of GDOS even further.
Company
16 Korean pharma win first appeal against 'Rinvoq' crystal-form patent
by
Kim, Jin-Gu
Jan 19, 2026 09:02am
Product photo of 'Rinvoq (upadacitinib)'Generic companies won the first trial against the crystal-form patent for 'Rinvoq (upadacitinib),' AbbVie's oral autoimmune disease treatment.According to the pharmaceutical industry on the 16th, the Intellectual Property Trial and Appeal Board (IPTAB) recently issued a favorable ruling in a passive scope-of-confirmation trial filed by 16 companies, including Chong Kun Dang, against AbbVie's crystal-form patent for Rinvoq (10-2753815).Chong Kun Dang initially filed for the trial against the Rinvoq crystal-form patent in August last year. Following Chong Kun Dang, 15 other companies, including Daewoong Pharmaceutical, Alico Pharm, Genuone Sciences, Genupharma, GC Biopharma, Samjin Pharm, Sama Pharm, Kolon Pharma, Whan In Pharm, Ildong Pharmaceutical, Pharmbio Korea, LitePharmTech, Hanlim Pharm, Dong-A ST, and Huons, joined the dispute by filing identical trials.With this ruling, the patent-challenging companies have moved a step closer to securing exclusivity for the first Rinvoq generic entrant. To qualify for the exclusivity, three conditions must be met: ▲first to file for trial ▲first to win the trial or subsequent litigation ▲first to apply for marketing authorization. Among these, the companies have now satisfied the requirements of being the first to file and winning the trial.The patent-challenging companies plan to launch generics prematurely following the expiration of the substance patent in May 2032. Currently, two Rinvoq patents are registered: a substance patent expiring in May 2032 and a crystal-form patent expiring in October 2036. The generic companies have successfully circumvented the latter.Rinvoq is a JAK inhibitor used for autoimmune diseases such as rheumatoid arthritis and atopic dermatitis. Its mechanism of action involves inhibiting inflammatory cytokines to block inflammation, pain, and cell activation.According to UBIST, a pharmaceutical market research firm, Rinvoq's outpatient prescription sales reached KRW 36.2 billion last year. This represents a 39% increase over the past year, up from KRW 26.1 billion in 2024. After claiming the top rank in the JAK inhibitor market in the fourth quarter of 2023, Rinvoq has steadily expanded its market share.
Opinion
[Reporter’s View] Reform of reimb reevaluations
by
Jung, Heung-Jun
Jan 19, 2026 09:02am
While it is difficult to predict whether the revision of reimbursement reevaluation standards lead to an expansion or contraction of the list of targeted products, a transparent selection process appears necessary to prevent unnecessary controversy.Without proper discussion on the designation of active ingredients subject to re-evaluation, there is concern that wasteful debates will follow.Even before today's (15th) discussion on revising the reevaluation criteria at the Drug Reimbursement Evaluation Committee, the Pharmaceutical Society for a Healthy Society (PSHS) has voiced opposition, stating, “The direction is tilting solely toward the convenience of the pharmaceutical industry.”The group claims that the revised criteria lack clarity, particularly in cases where medicines are recommended by academic societies or experts, or where conflicting clinical data and efficacy evidence exist.Compared to the previous system, under which old drugs were filtered annually based on overseas reimbursement status and reimbursement claims, the new standards are seen as more ambiguous. As a result, critics fear that the reform may be aimed at shrinking the scope of products subject to re-evaluation.Conversely, however, this also means that any drug deemed necessary can be reevaluated, regardless of factors like listing countries or claim amounts.For instance, even drugs with claims under 0.1% (approximately KRW 20 billion) or listed in at least one foreign country (A8) would no longer be completely excluded from reevaluations.Last year, HIRA announced plans to revise the criteria, discussing expanding the scope to include items with claims under KRW 10 billion and fewer than three overseas countries listed.If that original direction is maintained, the revision of reimbursement reevaluation criteria could actually lead to an expansion of reevaluation targets, contrary to the concerns raised by the Pharmaceutical Society for a Healthy Society.Of course, industry backlash is expected even in this case. It will be difficult to accept the inclusion of ingredients that were not previously subject to reevaluation under the old criteria.Ultimately, regardless of where the impact of the standard revision lands, mechanisms are needed to minimize unnecessary controversy.At present, the revised criteria have not yet passed the Health Insurance Policy Deliberation Committee, nor has a concrete implementation plan been announced, making it too early to reach any firm conclusions. However, if a clear and broadly acceptable selection process is established, the reform could achieve meaningful progress in post-listing management of reimbursed drugs in Korea.
Company
Entresto patent dispute comes to an end after 5yrs
by
Kim, Jin-Gu
Jan 19, 2026 09:02am
The long-running patent dispute over Novartis’ heart failure drug Entresto (sacubitril/valsartan) has effectively come to an end, with Korean generic manufacturers securing decisive victories at the Supreme Court.The Supreme Court ruled in favor of the generic companies in all three appeals related to Entresto: ▲ the polymorph patent ▲ the salt/hydrate patent ▲ and the use-of-product patent lawsuits.The assessment is that the domestic generic companies' consecutive victories in this dispute stemmed from a strategic approach that went beyond simple ‘patent invalidation or avoidance’ arguments, instead precisely identifying and countering the structural vulnerabilities of each individual patent.Entresto patent dispute concludes with generic companies' victory after over 5 yearsAccording to industry sources on the 16th, the Supreme Court on the 15th dismissed Novartis’ appeal in its scope confirmation lawsuit against 10 companies, including Elyson Pharmaceutical, concerning Entresto’s polymorph patent.On the same day, the Court also ruled in favor of generic companies in Novartis’ appeal against Hanmi Pharmaceutical regarding the Entresto salt and hydrate patent. The dispute over the validity of the salt and hydrate patents between Novartis and Daewoong Pharmaceutical/ Elyson Pharm is awaiting a ruling at the Patent Court (second instance).Earlier, in April 2024, the Supreme Court had already dismissed Novartis’ appeal in its use-patent lawsuit against 11 companies, thereby affirming the generics’ victory.This effectively concludes the nearly 5-year-long Entresto patent dispute, according to analysis. Although an appeal remains pending in the salt/hydrate patent dispute between Novartis and Daewoong Pharmaceutical/ Elyson Pharm, the prevailing view is that a similar ruling will be issued, given the Supreme Court's precedent on identical patent issues.The Entresto patent dispute intensified after 2021. Generic companies filed comprehensive patent invalidation petitions targeting Entresto's crystal form patent, salt/hydrate patents, two use patents, and two formulation patents. The generics won all cases at the first instance. After losing the first instance, Novartis selected three patents for appeal: ▲the polymorph (crystal form) patent, ▲the salt/hydrate patents, and ▲the use patent. Ultimately, these three appeals became the focal point of the litigation. For each issue, the patent challengers presented different arguments.Polymorph patent dispute: scope of rights for ‘broad claims’ without experimentationThe starting point and most critical battle in this dispute was the validity of the Entresto polymorph patent. The patent covered a specific crystalline form of the supramolecular complex formed by sacubitril and valsartan.The core issue was whether the patent satisfied the written description and enablement requirements. Under established precedent, polymorph inventions in chemistry are considered highly unpredictable and therefore require detailed experimental disclosure and reproducibility.While Novartis’ specification disclosed experimental data for a specific 2.5-hydrate supramolecular complex, it failed to provide manufacturing methods, reproducibility principles, or experimental support for other solid forms of the supramolecular complex included in the claims. The patent challengers focused on this aspect.The Supreme Court ultimately held that a patent asserting a broad claim scope without experimental support constitutes insufficient disclosure. The rulings of the Intellectual Property Trial and Appeal Board and the Patent Court were therefore upheld.Salt/Hydrate patent dispute: doctrine of equivalents infringementIn the salt/hydrate patent case, the key issue was whether the scope of rights was infringed, particularly whether the generics’ products infringed Novartis’ patent under the doctrine of equivalents.Novartis's patent was based on Entresto's 2.5-hydrate supramolecular complex. In contrast, the domestic pharmaceutical company's product possesses a trihydrate structure with a different number of water molecules. Novartis argued that since the two hydrates represent substantially equivalent technology, they constitute equivalent infringement.The generics countered that the difference was not a mere numerical change, but reflected a fundamentally different problem-solving principle for achieving supramolecular complex stability.The Supreme Court accepted this argument. It ruled that the technical core of Novartis’ invention lay in achieving a specific stoichiometric structure. A hydrate with a different number of water molecules could not be regarded as using the same technical solution.Use patent dispute: judgment of novelty in the heart failure treatment effectIn the Entresto use patent case, the issue was whether the patent possessed novelty. The key question was whether the heart failure treatment effect from the combination of sacubitril and valsartan could be evaluated as a new medical effect compared to prior art.The Patent Court ruled that, in light of existing pharmacological mechanisms and prior technologies, the claimed therapeutic effect could not be regarded as an unpredictable or novel medical outcome. The Supreme Court upheld this reasoning, dismissing Novartis’ appeal without a full hearing.Attorney Dong-joo Kwon of Yoon & Yang, who represented the client in this case, commented, “This Supreme Court ruling is significant not merely as a victory in an individual dispute, but because it provides clear guidance on the boundaries of written description requirements and on how far the doctrine of equivalents can be stretched, which is central to determining the scope of rights.”Kwon added, “Even a global pharmaceutical company’s robust patent portfolio cannot survive if it attempts to claim excessive scope without experimental backing or relies on overly broad doctrine of equivalents arguments that deviate from the technical essence.”“This case demonstrates that rational patent challenges by domestic pharmaceutical companies can strike a balance between market competition and patient access. This ruling will serve as an important precedent for future similar patent disputes.”
Policy
‘Will create first FDA-approved Korean drug by 2030’
by
Lee, Jeong-Hwan
Jan 19, 2026 09:02am
Amid the Ministry of Health and Welfare's ambition to foster Korea’s pharmaceutical industry by establishing a new dedicated “Division of Pharmaceutical and Bio Industry,” Kang-Seop Lim, its first director, expressed his ambition. He said, “We will create cases where domestically developed new drugs independently obtain approval from the U.S. Food and Drug Administration (FDA).”Rather than relying on licensing-out deals to global pharmaceutical companies for overseas market entry, what the government wants to do is support Korean pharmaceutical firms in completing Phase III clinical trials and securing FDA approval on their own, paving the way for direct global commercialization of Korean blockbuster drugs.On the 18th, Director Lim met with the Ministry of Health and Welfare's press corps and stated, “Our goal is to create a successful case of a fully developed Korean drug completing Phase III trials, securing FDA approval, and being sold directly in the U.S. market within five years. We will make this year the starting point, with the aim of achieving this milestone by 2030.”When asked what administrative priorities he would focus on this year as the inaugural head of the new division, Director Lim cited “developing a finished new drug that successfully completes Phase III clinical trials, secures FDA approval, and achieves direct sales” as the top priority.While the ministry will continue to support technology licensing deals, Lim emphasized that the new policy direction is focused on enabling Korean-developed drugs to enter global markets independently, without relying on multinational pharmaceutical companies.To this end, MOHW will operate a dedicated fund specifically supporting Phase III clinical trials for new drug candidates showing potential for final regulatory approval.The Ministry has already allocated KRW 60 billion in government capital in this year's budget proposal for this purpose. Combined with matching funds from the Fund of Funds, it plans to establish a ‘Phase III Clinical Trial Specialized Fund’ totaling KRW 150 billion.Lim said, “Last year, Korea recorded its highest-ever technology licensing exports, yet there are still very few cases of fully developed Korean drugs being launched overseas. Now is the time for Korea to take the lead in completing Phase III clinical trials and securing FDA approval.”“Looking at the K-Bio Vaccine Fund, roughly 50% went to preclinical research and 50% to Phase I–II trials, but there were virtually no Phase III investments. That gap is something we are now determined to fill, which is why we decided to establish a Phase III specialized fund based on this year's budget.”He added, “Of the KRW 150 trillion National Growth Fund, KRW 11.6 trillion will be allocated to the pharmaceutical, bio, and vaccine sectors over five years. We are also considering connecting this funding to late-stage clinical investments. We will signal that pharmaceutical and biotech companies can secure funding even in late-stage clinical trials, enabling them to plan their clinical and business strategies.”Lim added that the Ministry of Health and Welfare also plans to continue supporting technology licensing.This means the Ministry will assist pharmaceutical and biotech ventures and startups in growing from small and medium-sized enterprises (SMEs) to mid-sized companies, and their search for opportunities for further expansion, using technology exports as a starting point.The Ministry has allocated KRW 10.4 billion for its global open innovation budget and is developing collaboration plans to combine this with the Ministry of SMEs and Startups' budget to further expand the scale of the program.In the first half of the year, MOHW will establish a consultative body with biotech venture companies to gather feedback on regulatory reform and policy support. These discussions will feed into regulatory modernization initiatives and next year’s budget planning.Lim stated, “The number of companies to be supported through the global open innovation budget is around 32. For platform technology development R&D, we are considering planning it this year and including it in next year's budget. While existing R&D has primarily focused on candidate substances, preclinical studies, and clinical trials, we now intend to support investment in the platform technology itself.”He further noted, “The establishment of a dedicated department under the name ‘Division of Pharmaceutical and Bio Industry’ carries significant symbolic meaning. I feel a sense of responsibility. The follow-up budget and administrative measures for the Pharmaceutical and Bio-Health Leap Strategy unveiled last September will be fully implemented starting this year. We will present a changed approach to the industry, and the first message will be the announcement of the revised Innovative Pharmaceutical Company Certification System.”
Policy
"2030년까지 FDA 직접 허가 국산신약 사례 창출"
by
Lee, Jeong-Hwan
Jan 19, 2026 09:02am
[데일리팜=이정환 기자]보건복지부가 '제약바이오산업과'를 신설, 국내 제약산업 집중 육성 의지를 드러낸 가운데 임강섭 초대 과장은 "국산 신약이 자력으로 미국 식품의약국(FDA) 허가를 획득하는 사례를 만들겠다"는 포부를 내놨다.국내 제약사가 글로벌 빅파마에 신약 기술수출을 통해 미국, 유럽 등 해외 시장에 진출하는 현실을 뛰어 넘어 임상3상까지 오롯이 끝마친 뒤 블록버스터 신약으로서 직접 해외 허가를 따내는 원년으로 삼겠다는 의지다.18일 임강섭 과장은 복지부 전문기자협의회와 만나 "임상3상까지 끝낸 완제 신약을 개발해 FDA 허가까지 받아 직접 판매하는 사례를 5년 안에 만드는 게 목표고, 올해를 원년으로 삼아 2030년까지는 사례를 만들 것"이라고 피력했다.임 과장은 초대 제약산업과장으로 임명된 올해 무게중심을 둘 행정이 무엇이냐는 질문에 "임상3상 완료, FDA허가, 직접 판매에 성공하는 완제품 신약 개발"을 최우선 과제로 꼽았다.기술수출 지원도 지금보다 늘리겠지만, 우리나라 손으로 만든 신약이 빅파마 손을 빌리지 않고 해외 시장 문을 직접 두드릴 수 있게 돕는 복지부 지원에 방점을 찍겠다는 취지다.이를 위해 복지부는 최종 허가 가능성이 엿보이는 신약물질의 임상3상을 타깃으로 지원하는 전용 펀드를 운영한다.실제 복지부는 이를 위해 올해 예산안에 600억원 규모 정부 출자금을 편성한 상태로, 모태펀드 매칭을 합쳐 총 1500억원 규모의 '임상3상 특화 펀드'를 조성할 방침이다.임 과장은 "지난해 기술수출은 역대 최고치였는데 여전히 완제품 신약 해외 출시까지 가는 사례는 거의 없다"면서 "이젠 우리나라가 주체로서 임상3상까지 완료하고 FDA 승인을 받는 사례를 만들겠다"고 힘 줘 말했다.그러면서 "K-바이오 백신 펀드 집행 내역을 보면 전임상(동물실험)에 약 50%, 임상1상~2상에 약 50%가 쓰였는데 임상3상 투자 사례가 없어 아쉽다"며 "임상3상 투자 공백을 어떻게 메울지 방법을 고민했고, 올해 예산을 토대로 임상3상 특화펀드를 만들 것"이라고 설명했다.또 "국민성장펀드 150조원 중 제약·바이오·백신 분야에 11조6000억원을 5년간 활용한다고 하니, 이 자금을 후기 임상 투자로 연결하는 구상도 하고 있다"며 "제약바이오 기업들이 후기 임상 단계에서도 펀딩을 받을 수 있다는 신호를 전달해 임상·사업 계획을 세울 수 있게 하겠다"고 부연했다.임 과장은 복지부의 기술수출 지원 역시 계속 지원할 계획이라고 했다.제약바이오 벤처·스타트업 기업이 기술수출을 기점으로 중소기업, 중견기업으로 성장하고 또 더 큰 단계로 활로를 모색하는 경로를 복지부가 돕겠다는 얘기다.복지부는 글로벌 오픈이노베이션 예산으로 104억원을 편성한 상태로 중소기업벤처부 예산과 합쳐 규모를 더 키울 수 있도록 협업 방안을 만들고 있다.아울러 복지부는 중기부와 협력해 상반기 중 제약바이오 벤처와 협의체를 만들어 의견을 수렴하고 규제 완화 요구안과 지원안 등을 정리하는 작업도 추진한다. 이를 근거로 하반기부터 규제 선진화 작업과 내년도 예산 작업에 나선다는 게 임 과장 계획이다.임 과장은 "글로벌 오픈이노베이션 예산으로 지원하게 될 대상 기업 수는 32개사 정도다. 플랫폼 기술개발 R&D의 경우 올해 기획해서 내년 예산에 담는 방안을 검토 중"이라며 "기존 R&D가 주로 후보물질-전임상-임상에 집중됐다면 앞으로는 플랫폼 기술 자체에 대한 투자도 지원하려 한다"고 말했다.이어 "제약바이오 산업과란 명칭으로 전담과가 새로 생긴 건 상징적 의미가 크다. 책임감을 느낀다"며 "지난해 9월 발표된 제약바이오 대도약 전략의 후속 예산과 행정 조치가 올해부터 본격적으로 실행된다. 산업계에 변화된 모습을 제시할 것이고 첫 메세지가 혁신형 제약사 인증제 개편안 발표가 될 것"이라고 덧붙였다.
Policy
Pharma-MOHW disagree on drug pricing policy
by
Lee, Jeong-Hwan
Jan 16, 2026 08:52am
The Korean pharmaceutical industry has announced its stance that the government's drug price reform plan, which centers on generic price cuts and preferential pricing for "Innovative Pharmaceutical Companies," is too vague and requires both a delay in implementation and significant revisions.The industry requested a sufficient grace period, arguing that the plan excludes long-term impact assessments on the pharmaceutical-bio industry and public health, which could lead to industrial contraction.In contrast, the government stated it has no intention of delaying its plan to submit and finalize the reform at next month's (February) Health Insurance Policy Deliberation Committee for full implementation in July. This has left the gap between the two sides unbridged.As the pharmaceutical industry and the government have not bridged the divide in opinion, the conflict over drug pricing reform is expected to continue.On the 14th, the "National Assembly Forum on Drug Price Policies for Becoming a New Drug Powerhouse," hosted by Democratic Party Representatives Lee Un-ju, Seo Young-seok, and Kim Yoon, brought together the MOHW and industry representatives to exchange views.Pharmaceutical Industry, "Concerns over job losses, supply instability, and slowed growth"Hong Jeong-Ki, Managing Director of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA), pointed out that repeated drug price cuts, executed 10 times since 1999, have gradually shrunkne the industry's overall profitability and investment capacity.Hong also expressed concerns that large-scale cuts to generic prices, as foreshadowed by the MOHW, would inevitably deepen reliance on low-cost imported raw materials and finished imported drugs.While price cuts might yield short-term fiscal savings, Hong warned that, based on implementation of policies in the past, they could lead to long-term employment shrinkage, instability in the supply of essential medicines, and a slowdown in industrial growth.Hong argued that the implementation of price cuts should be reconsidered after a comprehensive assessment of the impact on the industry and public health. Hong argues the need for a sufficient grace period for a successful landing and the establishment of a government-industry governance system.Furthermore, he requested fair compensation for companies that contribute to innovation and supply stability.The compensation aims to provide uniform preferential pricing for all Innovative Pharmaceutical Companies and to grant price benefits to non-certified companies that demonstrate excellent R&D performance and facility investment."The current reform plan is structured such that damages from strengthened regulations increase while compensation for innovation and supply stability remains limited," Hong pointed out. "This could act as a barrier to becoming one of the world's top five pharmaceutical powerhouses."He emphasized, "The implementation of drug price cuts must be reconsidered after an assessment of both short- and long-term impacts. We request a sufficient grace period to ensure a soft landing for the system," adding, "It is also necessary to establish a government-industry governance structure for constructive discussions on drug price policy."He further stressed, "By specifying the innovation-based price addition period and ensuring fair value compensation, we must build a virtuous cycle that accelerates innovation, such as through R&D reinvestment, and leads to the creation of global new drugs," and maintained, "Cuts to the prices of existing listed generics should be minimized to secure investment capacity and ensure supply stability.""Preferential pricing plan fails to reflect company contribution and diversity"Kim Sang Jong, Managing Director of Hanmi Pharmaceutical, also criticized the reform, stating it could weaken the foundation for domestic companies to continue investing in new drugs.Kim argued that cutting existing generic prices without accounting for a company's contribution to new drug R&D creates a structure in which larger companies with higher investment volumes incur greater absolute losses. In his view, the policy is becoming an overall price cut premised on the notion that Korean generics are expensive compared to overseas markets, rather than a system that guarantees fair returns on investment.Notably, Kim highlighted that limiting preferential pricing to "Innovative Pharmaceutical Companies" and a few others fails to benefit the many firms that contribute to the industry through Phase 2/3 trial investments, manufacturing facility expansions, quality advancements, and employment of research personnel.Kim added that extending the price increase period for Innovative Pharmaceutical Companies by three years is only effective in the early stages of the patent-expired market. Once generic market share expands in the later stages, prices drop significantly, making the compensation effect felt by companies very limited."The resources needed for new drug R&D, maintaining production facilities for stable supply, and maintaining employment currently come from generic sales," Kim criticized. "It is questionable whether an overall price-cutting policy aligns with reward investment."Kim further criticized, "The financial resources required for new drug R&D, maintaining production facilities for stable supply, and sustaining employment come from the sales of existing listed generics. For now, this is unavoidable," adding, "While the MOHW stated it would focus on outcomes such as innovation, I question whether implementing a blanket price-cutting policy, based on the idea that high generic prices can now be lowered, actually aligns with the policy goal of rewarding investment."He added, "It is questionable whether it is truly necessary to further divide preferential drug pricing among Innovative Pharmaceutical Companies into upper and lower tiers. Once the three-year preferential period ends, generic expenditures drop significantly. We are not sure if this can be considered a reward for Innovative Pharmaceutical Companies," adding, "Pharmaceutical companies also need to analyze the reorganization of the drug price system. Since the announcement on November 28 last year, time has been needed to run simulations to determine how to manage operations in line with the policy goals. A grace period (for the drug price cuts) is necessary."MOHW "Current system has reached its limit... will reform to minimize industry concerns"Despite such requests from Hong and Kim to delay implementation and revise the preferential pricing policy, the MOHW rejected these requests, stating that the current system has reached its limit and cannot be further delayed.Kim Yeon-Sook, Head of the Division of Pharmaceutical Benefits at the MOHW, explained, "This reform is being implemented because the current system has reached its limit. It is a structural policy change designed to improve these limits, strengthen the supply stability of both new and essential drugs, and maintain the sustainability of national health insurance," and explained, "Other countries also periodically adjust generic prices while considering fiscal efficiency.""While our drug price system has previously lacked predictability and fallen short of achieving the goal of generic activation, this reform is different," Kim added. "Unlike past approaches focused solely on reducing drug expenditures, this reform includes mechanism to reward innovation based on investment, even for generics."Kim concluded, "The government views this reform as a golden time for structural improvement and a leap forward for the industry, centered on Innovative Pharmaceutical Companies. We will implement a drug price system that leads to rewards for the industry to minimize the concerns of domestic pharmaceutical firms."
Company
‘Mounjaro’ enters pricing negotiations for diabetes
by
Eo, Yun-Ho
Jan 16, 2026 08:52am
Passed Drug Reimbursement Evaluation Committee review at year-end...Clinical data suggest potential for remissionMounjaro, the blockbuster obesity drug that has taken the market by storm, has entered the final stage toward reimbursement listing for diabetes treatment in Korea.According to industry sources, the Ministry of Health and Welfare has recently instructed the National Health Insurance Service (NHIS) to begin price negotiations for Mounjaro (tirzepatide), Eli Lilly Korea’s dual GIP/GLP-1 receptor agonist.Mounjaro passed the Drug Reimbursement Evaluation Committee under the Health Insurance Review and Assessment Service (HIRA) in December.Accordingly, once the NHIS negotiation team is formed, substantive discussions are expected to commence. It remains to be seen whether Mounjaro can swiftly conclude price negotiations and secure its place on the reimbursement list in Korea.Mounjaro is currently approved in Korea as an adjunct to diet and exercise for improving glycemic control in adults with type 2 diabetes, as well as for chronic weight management in adults with obesity or overweight accompanied by at least one weight-related comorbidity (hypertension, dyslipidemia, type 2 diabetes, obstructive sleep apnea, or cardiovascular disease).The recommended starting dose is 2.5mg once weekly for both indications, intended solely for treatment initiation. After four weeks, the dose is increased to 5mg once weekly. If further dose escalation is required, the dose may be increased by 2.5mg at intervals of at least four weeks, up to a maximum of 15 mg once weekly.Mounjaro has drawn significant attention as the first drug to demonstrate the potential for remission in diabetes.In the Phase III SURPASS trial, which supported its regulatory approval, Mounjaro showed statistically superior reductions in HbA1c and body weight compared with all comparator treatments, including semaglutide (Ozempic), insulin degludec, and insulin glargine.Furthermore, at the European Association for the Study of Diabetes (EASD) conference held last September, Lilly presented results from the SURPASS-CVOT Phase III clinical trial, which directly compared Mounjaro with the GLP-1 receptor agonist Trulicity, adding data on cardiovascular prevention effects and overall survival improvement.
Policy
‘Drug innovation is concentrated around specific diseases’
by
Jung, Heung-Jun
Jan 16, 2026 08:52am
The OECD has raised concerns that pharmaceutical innovation is increasingly concentrated in specific disease areas, while placing healthcare financial sustainability at the center of policy debate.It has stressed that the price increases of new drugs must be reviewed to determine if they actually lead to meaningful health gains, and that a comprehensive evaluation is necessary when assessing access to medicines.On the 15th, the Health Insurance Review and Assessment Service (HIRA) announced the results of its research on the Revised OECD Health System Performance Assessment framework indicators.The OECD HSPA framework is designed to compare how effectively national healthcare systems are functioning across countries.According to HIRA’s analysis, pharmaceuticals and medical technologies were newly positioned as core foundational elements determining system performance in the 2024 revised OECD HSPA framework.The revision reflects lessons from the COVID-19 pandemic, during which vulnerabilities in global supply chains for essential medicines and medical devices, as well as shortages in intensive care capacity and healthcare infrastructure, were exposed.Sustainability perspectives were particularly strengthened. The HIRA research team explained, “(The revised framework) critically questions whether rising prices of new drugs translate into actual improvements in health value and addresses the sustainability of health finances as a key policy challenge.”They added, “The OECD also points out the imbalance created by innovation being concentrated in specific disease areas, and calls for a fundamental review of the pharmaceutical incentive structure and the rationality of current pricing models.”Changes were also made to concretize the concept of drug accessibility. This signifies that accessibility should be evaluated as a multidimensional, people-centered concept, not merely based on a product's availability.The research team stated, " The revised framework defines access to medicines as a multidimensional concept encompassing availability, affordability, geographic accessibility, acceptability, and quality. This implies the need for a comprehensive assessment of barriers across the entire medicine lifecycle, including regulatory approval, health technology assessment, reimbursement listing, and prescribing and dispensing practices.”They further noted, ”The OECD has published a report that serves as a foundation for developing indicators to monitor such complex dimensions of access."
Policy
MOHW·KHIDI to focus on fostering innovative pharma companies
by
Lee, Jeong-Hwan
Jan 16, 2026 08:52am
The Ministry of Health and Welfare (MOHW) and the Korea Health Industry Development Institute (KHIDI) have set fostering of 'Innovative Pharmaceutical Companies' as a primary focus for the New Year. As the executive government bodies overseeing Innovative Pharmaceutical Companies, the MOHW and KHIDI plan to fully utilize the certification system for Innovative Pharmaceutical Companies as a core engine for the global expansion of the domestic pharmaceutical and bio-industry.These are the details from the New Year's policy directions announced by the MOHW Pharmaceutical and Bio-Pharma Industry Division on the 15th, as well as the major business report from KHIDI.Currently, the Innovative Pharmaceutical Company certification system is facing a shift. The core of the government's drug price system reform plan, which it announced will be implemented this year, involves significantly differentiating drug price preference rates based on whether a company holds the Innovative Pharmaceutical Company certification. The MOHW is preparing to improve the certification system to address controversies over its practical effectiveness.In this context, the MOHW and KHIDI have expressed their determination to leverage innovative pharmaceutical companies to advance the domestic pharmaceutical industry.First, Yim Kang-seop, Head of the Division of Health Industry Policy at the MOHW, plans to lead the structural improvement of the domestic industry through the reorganization of the certification system.Since the certification status is linked to the drug price reform plan, which determines the preferential price ratios for pharmaceutical companies, the reorganization aims to provide companies with specific signals regarding innovation.Yim explained, "Over the past 10 years, innovative pharmaceutical companies have contributed to some extent in shifting the domestic industry ecosystem toward a focus on new drugs. However, even among the 48 certified companies, a significant number still rely on generics, accounting for more than 40% of their sales. We must objectively acknowledge that some companies are becoming complacent with generics."Yim further emphasized, "We will strengthen systems so that innovative pharmaceutical companies can drive changes across the entire industrial ecosystem. We are engaged in sophisticated, strategic deliberation to ensure the drug pricing system functions as a mechanism that drives innovation, new drug development, and global expansion. We will enhance performance through the certification system reform."KHIDI also stated its goal of actively fostering the pharmaceutical industry to realize the Lee Jae Myung administration's national task of becoming one of the global top 5 pharmaceutical and bio-health powerhouses.First, KHIDI will support the National Bio-Innovation Committee, a governmental governance body, to provide more professional and systematic support for bio-health policies, and will establish statistics-based policies to respond to AI and new technology environments.Additionally, KHIDI will take full responsibility for managing the expanded healthcare R&D budget of KRW 1.2 trillion.KHIDI plans to focus on strengthening industry competitiveness by identifying policies that systematically cultivate innovative pharmaceutical companies.Hong Heon-Woo, KHIDI's Director of Planning, announced, "We will systematically foster innovative pharmaceutical companies and pursue global expansion through linked support from AI-based advanced medical device R&D to commercialization," adding, "KHIDI's plan includes striving to achieve KRW 2 trillion in healthcare R&D by 2030 and promoting strategic R&D investment centered on promising technologies by discovering representative technologies that citizens can experience."
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