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Korean gov’t to relax price cap on local biosimilar drugs

Collected: 2016.07.09

Distributed: 2016.07.11

Source: Go Direct

Going against the general trend in advanced markets, the Korean government said it will allow biotechnology companies to charge up to 80 percent of the original drug for their biosimilar copies to help them stay competitive in the global market and encourage them to keep on with innovative developments.

Under the new insurance coverage guidelines for biosimilar and new drugs, producers of novel treatment proved to be effective can charge 10 percent more for their new drugs than existing similar cures. Anti-cancer and other drugs that do not have alternative cures can be charged similarly as U.S. or European counterparts.

Biosimilar drugs that had to be sold at 30 percent discount on the original drug price can be sold at 20 percent discount. Europe authorizes discount of an average 20 percent to 30 percent on antibody drugs and ultimately plans to work towards bringing down the price to 40 percent to 50 percent cheaper than the original.

The government explained that the measure is needed to bolster international competitiveness of Korean pharmaceutical brands.

Six pharmaceutical and biochemical companies - Dong-A ST Co., Dongwha Pharm Co., Yungjin Pharm Co., Pharma Research Products Co., Pharmicell Co., and Corestem Inc. - newly joined to list for innovative pharmaceutical companies eligible for government subsidies and policy incentives. The total number of drug companies recognized for their research and development abilities and competence meeting global standards now stands at 46 firms.

By Lee Dong-in

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