Print“The efforts are part of Korea’s Pharma 2020 Vision, a national initiative seeking to make the country a global top 10 pharmaceutical producer with exports of $9.9 billion (11 trillion won) in drugs by 2017.”
South Korea’s government says it will spend nearly $9 billion (10 trillion won) to help domestic drugmakers develop 20 new medicines during the next five years. The pledge would more than double the nation’s estimated $860 million annual investment in domestic pharmaceutical R&D.
Pressure on Korean drugmakers to develop new medicines has only grown since 2012 as they have struggled to adjust to government-instituted price cuts for off-patent drugs listed on the national health insurance beneficiary list. Patented drugs and those for hard-to-cure diseases were exempted from the mandate.
In addition to the government’s R&D spending plans, reported first by Yonhap News Agency, it is preparing to offer for tax breaks for local drugmakers investing in research and development and expects to raise a $448 million (500 billion won) fund to assist local pharmaceutical companies to expand their market presence and acquire overseas drugmakers.
The efforts are part of Korea’s Pharma 2020 Vision, a national initiative seeking to make the country a global top 10 pharmaceutical producer with exports of $9.9 billion (11 trillion won) in drugs by 2017. Pharmaceutical exports currently total about $1 billion, according to the Korea Pharmaceutical Manufacturers Association.
In a Spring 2013 article written for the New York Health Forum, Kyeong-ho Lee, chairman and CEO of the association, estimated that 31 new drugs would be commercialized in Korea between 2012 and 2020, suggesting that the goal of 20 new drugs by 2018 is achievable. However, he says it will be necessary for Korean companies to in-license new drug candidate to supplement the nation’s limited R&D resources.
July 25, 2013
http://www.burrillreport.com/article-south_korea_promises_9b_for_new_drugs.html
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