Noh Yeonhong "K-Pharma Bio at a Turning Point... R&D Must Be Strengthened Through Drug Pricing System Improvement"

"Last year, we achieved remarkable results in establishing the Pharmaceutical Bio Innovation Committee and preferential pricing for raw materials of pharmaceuticals, which were our goals. We believe that the pharmaceutical and bio industries will become global leaders, and this year, we will set new goals and strive to deliver results."

Noh Yeon-hong, Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, is speaking at the New Year's press conference held on the 30th at the association building in Seocho-gu, Seoul.
[Photo by Lee Chun-hee]

On the 30th, Noh Yeon-hong, Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, stated at the New Year's press conference, "We will strengthen our innovation capabilities to leap forward as a pharmaceutical and bio-centered nation," and pledged, "This year will be the 'Year of Strengthening Innovation Capabilities' for that purpose."

Chairman Noh defined the recent industry situation as a "turning point." He said, "We are transferring innovative new drug technologies to global big pharma and continuously developing new drugs that can compete in the global market," and evaluated, "During the COVID-19 pandemic phase, we contributed to overcoming the national crisis by ensuring stable supply of pharmaceuticals." In this context, he identified key tasks to continue these achievements as ▲establishing an ecosystem that produces innovative outcomes ▲stabilizing the pharmaceutical supply chain ▲accelerating open innovation ▲preparing future strategies. At the same time, he strongly urged the government to play a role in establishing legal grounds for the Biohealth Innovation Committee, focusing support on late-stage clinical trials, improving drug pricing systems, supporting technological innovations such as AI new drugs, and preparing institutional support measures for overseas market entry.

The first issue to be resolved is the improvement of the drug pricing system. Chairman Noh said, "The unpredictable drug pricing system and unstable supply system for essential and raw pharmaceutical materials are weakening the industrial foundation," and requested, "Please support the activation of corporate investment through appropriate value compensation for R&D innovation outcomes and a simple, predictable drug pricing policy."

Chairman Noh focused on pointing out that the drug pricing system is complex and causing difficulties for companies. He said, "Policies should be simple and clear to minimize social costs when implemented," and added, "If the system is not transparent and predictable, companies find it difficult to invest in the future." He particularly criticized the government's approach of re-evaluating prices based on comparisons with overseas drug prices. Chairman Noh said, "It is a policy with weak logical grounds," and stated, "If prices need to be cut because they are higher than foreign drug prices, one cannot help but question why other detailed policies exist."

He also believed that such improvements in the drug pricing system would lead to stability in pharmaceutical supply. Chairman Noh emphasized, "The biggest reason for the pharmaceutical shortage crisis is that the profitability for companies does not match," and said, "Since pharmaceutical supply is conducted by profit-oriented industries, there is a realistic gap." The association plans to prepare comprehensive measures to solve these problems, including expanding the list of national essential medicines and withdrawal prevention medicines, and timely reflecting cost increase factors.

Noh Yeon-hong, Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, is speaking at the New Year's press conference held on the 30th at the Korea Pharmaceutical and Bio-Pharma Manufacturers Association building in Seocho-gu, Seoul.
[Photo by Korea Pharmaceutical and Bio-Pharma Manufacturers Association]

Regarding the Biohealth Innovation Committee, Chairman Noh expressed expectations but mentioned that legal grounds must be established for a more definite role. He said, "The Prime Minister is the chairman, and ministers and vice ministers from 12 ministries participate as members in this official government committee," and drew a clear line against concerns about weakened functions arising from the committee being established based on a presidential decree, stating, "Matters resolved must be executed by the government as an obligation." However, he added, "There is a proposal to amend the law to firmly establish its legal status for clearer guarantees," and explained, "If this work proceeds swiftly this year, concerns will be dispelled."

In terms of securing practical innovation capabilities, he repeatedly emphasized AI new drug development. He said, "The association is leading the 'K-Melody' project, which accelerates federated learning by expanding the existing AI New Drug Development Support Center into the AI New Drug Convergence Research Institute," and suggested, "Although our AI level is evaluated as sixth in the world, the system for accelerating new drug development is still insufficient, so please promptly prepare policy incentives."

This content was produced with the assistance of AI translation services.