As the Ministry of Health and Welfare announced a list of newly certified “innovative pharmaceutical companies” companies for 2023, attention is drawn to new additions.

On Thursday, the ministry said in a public notice that it had designated four more companies – Bridge Biotherapeutics, GI Innovation, Pharmbio Korea, and Qurient – as new innovative pharmaceutical companies. The four increased the total number to 47.

The innovative pharmaceutical company system is aimed to certify Korean drugmakers with capabilities for research and development and global advances and support them intensively introduced by the ministry in 2012. Those selected as innovative pharmaceutical companies receive benefits, such as participation in state R&D projects, tax support, and eased rules in building R&D facilities.

To maintain the certification, the companies must undergo a re-certification process every three years.

The currently certified companies are GC, Daewoong, Daewon, Medytox, Helixmith, Boryung, Bukwang, BC World, Samyang Holdings, Celltrion, Shinpoong, ST Pharm, Yuhan, Isu Abxis, Chong Kun Dang, Crystal Genomics, Taejoon, Otsuka Korea, Korea United, Genuonesciences, Handok, Hanlim, Hyundai, HK inno.N, JW, LG Chemical, SK Chemical, Genexine, Corestem, Pharmicell, Tego Science, Alteogen, ABL Bio, Ildong, AstraZeneca Korea, Janssen Korea, Dongkoo Bio, Dongkook, Dongwha, OliX, and BMI Korea.

Recently, some lawmakers called for granting real benefits in drug pricing to innovative pharmaceutical companies, raising these companies’ expectations. Rep. Suh Jeong-suk of the ruling People Power Party proposed an amendment to the “Special Act to Foster and Support Pharmaceutical Industry” in December.

“The government introduced a clause which called for providing drug-pricing benefits for products made by innovative pharmaceutical companies in December 2018 but has yet to enact follow-up laws, and the preferential treatment of innovative firms are now in name only,” Rep. Suh said, explaining the background for her proposal.

In response, the nation’s four pharmaceutical associations issued a joint welcome statement, saying, “We welcome Rep. Suh Jeong-suk’s proposal for the bill amending the special law.” The four are the Korea Pharmaceutical and Pharma Manufacturers Association, the KoreaBio, the Korea Pharmaceutical Industry Association, and the Korea Pharmaceutical Traders Association.

However, other experts also pointed out that although the ministry could deprive some companies of the innovative pharmaceutical companies’ title due to rebate offerings and other social responsibilities violations, it has never done so.

For example, they noted Shinpoong Pharmaceutical, which recently caused controversy due to managers’ suspected embezzlement, maintained its status in the latest announcement.

In contrast, some new entrants expressed expectations.

“While most of the companies certified as innovative drugmakers are listed companies, we are pleased to win recognition as a company capable of advancing to global markets as an unlisted company,” said Lee Byeong-keon, CEO of GI Innovation. “We will continuously endeavor to grow into a company that can move to the global stage through ceaseless innovation and R&D activities.”