Pharmaceutical and Bio-Pharma Association to President Lee: "R&D Policy Must Be Restructured to Focus on Tangible Outcomes"

Through a Congratulatory Statement on the Inauguration

Exterior view of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association in Bangbae-dong, Seocho-gu, Seoul. Photo by Korea Pharmaceutical and Bio-Pharma Manufacturers Association

The Korea Pharmaceutical and Bio-Pharma Manufacturers Association has issued a statement congratulating President Lee Jaemyung on his inauguration, emphasizing the need to restructure R&D (research and development) policy to focus on tangible outcomes.

On June 5, the association released a statement titled "Congratulations on the Inauguration of Lee Jaemyung, the 21st President," noting, "Despite global low growth and economic recession, the global pharmaceutical and bio-pharma market continues to experience stable and sustained growth." The association also stated, "The domestic pharmaceutical and bio-pharma industry has established itself as both a safety net protecting public health and a key industry invigorating the national economy."

The statement continued, "Korea now stands at a turning point where it can leap forward as a powerhouse in pharmaceuticals and bio-pharma." It added, "Through continuous investment in research and development, the pharmaceutical and bio-pharma sector has developed 39 new drugs to date and holds the third-largest new drug pipeline in the world."

In particular, the association stressed, "Achieving the status of a leading pharmaceutical and bio-pharma nation is only possible when the relentless challenges and innovations of the industry are combined with bold government support, bringing together all capabilities of both the public and private sectors." The association further stated, "The government's pharmaceutical and bio-pharma R&D policy framework must be restructured to focus on delivering tangible results."

According to the association, only 13.5% (as of 2023) of the government’s pharmaceutical and bio-pharma R&D budget is allocated to supporting industry sites such as companies, which is significantly lower than the proportion for IT (44.5%). The association stated, "It is urgent to expand R&D support for late-stage clinical trials and companies that are close to commercialization," and added, "The industry will use the government’s bold support as a stepping stone to accelerate innovation and challenges, and deliver results."

The association also emphasized the need to reform the drug pricing system to promote R&D in the industry. It stated, "Enormous time and resources are invested in developing new drugs, but the probability of success is low." The association added, "The fruits of innovation must be given fair value, and a structure must be established in which profits are reinvested into research and development through predictable and integrated post-market management."

Furthermore, the association stated, "A 'healthy society' is a historic responsibility that both the Korean pharmaceutical and bio-pharma industry and the nation must shoulder together," and emphasized, "Today, as the capabilities to develop and produce pharmaceuticals are recognized as core assets for economic development and national security, the most reliable way to ensure both economic growth and public health is to strengthen the competitiveness of the pharmaceutical and bio-pharma industry."