[Ip-health] U.S. FTA may cost drug industry $1.2 billion

[heeseob nam]

http://english.hani.co.kr/arti/english_edition/e_business/165065.html

U.S. FTA may cost drug industry $1.2 billion: gov't
Plan to insure only generic drugs met with opposition from U.S.

A proposed free trade agreement with the United States is expected to
cost as much as 1 trillion won (US$1.2 billion) in damage to the South
Korean pharmaceutical industry if the U.S. proposal for the deal is
accepted, the South Korean government said.

In a parliamentary audit session on October 16, Health and Welfare
Minister Yoo Si-min said, "Under free trade talks, the damage to the
South Korean pharmaceutical industry may total between 600 billion won
to 1 trillion won if the U.S. proposal is accepted. If [the South
Korean] proposal is accepted, the damage may total between 350 billion
won to 630 billion won."

Yoo's remarks were made after Rep. Hyun Ae-ja of the minor opposition
Democratic Labor Party claimed, "If South Korea accepts all U.S.
requests, it will cost [the pharmaceutical industry] 941.8 billion won
and people will suffer from price hikes," citing figures from a report
by the National Health Insurance Corporation.

"The U.S. demands that South Korea extend the patent period of new
drugs," Hyun said. If this extension is made, he said, prices will
soar, citing the same report by the National Health Insurance
Corporation. The report said a three-year patent extension would cost
504.5 billion won and a four-year extension would cost 722.5 billion
won, depending on the results of the free trade talks.

Yoo said that the burden on prescription-holders will not be as great
if the South Korean government's plan to offer insurance coverage for
the lowest-cost, generic version of a drug is put into effect.

However, Hyun said, if the U.S. plan is accepted, "local
pharmaceutical companies will be hurt, given their savings in selling
generic drugs. The damage will be transferred to the people."

Posted at : Oct.17,2006 14:49 KST

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HeeSeob Nam
IPLeft (www.ipleft.or.kr)
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