[Market Pulse] The Value of Medicine

One New Drug, Decades of Opportunity
Time to Ease Regulations and Strengthen Support

Medicines are as familiar to us as air in our daily lives. When we have a headache, we take painkillers; patients with diabetes or high blood pressure take medication every day. Although medicines have become deeply embedded in our lives, many people have long regarded them as something only patients need. However, the COVID-19 pandemic changed the meaning of medicine. Securing vaccines and treatments became a matter of national survival and protecting the lives of citizens. This has reminded us that medicines are not just consumer goods, but strategic assets directly linked to national security.

Historically, which medicines have had a profound impact on human health? The World Health Organization (WHO) and other organizations have selected the top 10 medicines, including penicillin, aspirin, anesthetics, anti-inflammatory analgesics, and vaccines. Most of these medicines were invented after the 19th century. Can we imagine undergoing surgery today without anesthetics? Before anesthetics were developed in the 19th century, doctors sometimes had to knock patients unconscious to perform surgery.

At that time, a doctor who could finish surgery quickly was considered a skilled physician. Even if the surgery was successful, before the development of antibiotics like penicillin, it was difficult to prevent infections, leading to many deaths. It is truly hard to imagine a world without these medicines that we now take for granted.

Medicines Are Strategic Assets, Not Just Consumer Goods

Medicines are thus vital for protecting lives. Nevertheless, there are still perspectives in society that view medicines only as a "cost." Some believe that reducing drug prices is inherently good for the sustainability of the national health insurance system. Of course, we cannot ignore the need for fiscal sustainability. However, it is important to recognize that medicines should not be seen simply as a financial issue, but rather as an investment that brings benefits to society as a whole.

For example, treatments for high blood pressure and diabetes not only save patients' lives but also prevent complications, significantly reducing social costs. According to research by the Organisation for Economic Co-operation and Development (OECD), appropriate medication reduces the incidence of serious diseases such as stroke and myocardial infarction, saving 20-30% in medical expenses. Cancer drugs go beyond extending life; they help patients continue their roles at home and at work, maintaining social productivity.

Medicines also hold significant economic value. The pharmaceutical and biotechnology industry is considered, alongside semiconductors and batteries, as one of the world's three major future strategic industries. When a new drug is developed, it can generate enormous economic value and create numerous jobs for decades. Although it is a high-risk, high-cost industry, if successful, it can become a growth engine for the national economy, making medicines the seeds of future growth.

Medicines as Seeds of Growth Should Not Be Seen as Mere Expenditure

The social value is also immense. In an aging society like Korea, medicines are a "means of managing quality of life." Improved drugs that enhance dosing convenience increase patient adherence, improving treatment success rates. Treatments for rare diseases are a way to realize the public good by supporting vulnerable groups. High-quality generic medicines also improve access to medicines, functioning as a social safety net that reduces healthcare disparities. In fact, all of the top 10 medicines mentioned above are now off-patent and widely used.

Above all, medicines have become a core asset for health security. Localization of raw materials, securing global contract manufacturing networks, and establishing a national stockpile system for essential medicines are urgent tasks that can no longer be delayed. Just as defense supplies protect a country, medicines protect the lives of its people. Therefore, what is needed now is a shift in how we think about medicines.

We must not view drug costs as mere expenditures, but rather as keys to protecting lives, revitalizing the economy, and opening up the nation's future. The government should strengthen regulatory relaxation and tax support for the development of innovative and improved drugs, while the industry should respond with innovation in developing and producing high-quality medicines. Citizens, too, should recognize the value of medicines anew. This is the path for Korea to become a healthy and sustainable society.

Noh Yeonhong, President of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association