[Ip-health] PhRMA statement on Korean drug pricing policy

[heeseob nam]

http://www.pharmalive.com/News/index.cfm?articleid=360200&categoryid=10

Korean Drug Pricing Regulations Threaten Patient Access and Free Trade Agreement


WASHINGTON, July 26, 2006--PhRMA President & CEO Billy Tauzin issued
the following statement today on the issuance of a newly proposed
pharmaceutical pricing and reimbursement policy by the Korean Ministry
of Health and Welfare.


"The radical new proposed regulations issued today by Korea's Health
Ministry will impose stringent restrictions on Korean patients' access
to innovative medicines while not addressing the true cost drivers in
the Korean healthcare system.

"We are very concerned that these implementing regulations
discriminate against the innovative pharmaceutical industry by
'grandfathering' virtually all local drugs even though off-patent
drugs make up 73 percent of Korean drug expenditures. The regulations
would also restrict Korean patients' access to innovative medicines
and will create a two-tiered healthcare system where those that can
afford it will pay for the medicines they need and those who can't
afford it will have to forego potentially life-saving medicines.

"Clearly there are a number of important factors that need to be
thoroughly studied and vetted before the Health Ministry should act.
And we believe there are many ways to improve budget management
without imposing restrictions on patients' access to new medicines for
unmet needs.

"The multinational pharmaceutical industry faces a very difficult
operating environment in Korea resulting from a non-transparent
pricing and reimbursement scheme, preferential treatment for local
companies, tolerance of unethical business practices and stringent
regulatory requirements.  This situation will be made much worse if
the proposed regulations are enacted.

"We believe the Free Trade Agreement (FTA) talks should address the
MHW proposals and the core aspects of Korea's system to ensure Korean
patients will have effective access to the most innovative medicines.
 The Korean and U.S. governments must work together on achieving
strong improvements in the pharmaceutical sector for the FTA to be a
success."

The Pharmaceutical Research and Manufacturers of America (PhRMA)
represents the country's leading pharmaceutical research and
biotechnology companies, which are devoted to inventing medicines that
allow patients to live longer, healthier, and more productive lives.
PhRMA members alone invested an estimated $39.4 billion in 2005 in
discovering and developing new medicines.  Industry-wide research and
investment reached a record $51.3 billion in 2005.

###
Ken Johnson Senior Vice President


Contact:  Mark Grayson
(202) 835-3460

PhRMA Internet Address:  http://www.phrma.org

--
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