“In a pandemic situation, the supply of imported essential and orphan drugs, including vaccines, could be limited. The same goes for contract manufacturing by private pharmaceutical firms and government-supported manufacturing. We need to build a state-run drug manufacturing center, equipped with manufacturing and R&D capabilities.”

Professor Park Young-joon of the Ajou University College of Pharmacy said this and other remarks at a debate on whether the nation needs to build a state-run drugmaker, held at the National Assembly on Tuesday.

The Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) and the National Assembly Health and Welfare Committee member Nam In-soon jointly held the debate with a topic, “Turning Covid-19 crisis into an opportunity for Korea to become a pharmaceutical powerhouse.”

Experts expressed various opinions on how Korea can enhance the competitiveness of the pharmaceutical and biotech industries, and Park made a presentation on “Supply and Demand of Essential Drugs and Pharmaceutical Sovereignty.”

According to Park, the Korean pharmaceutical industry has grown in size, with the total sale reaching nearly 23 trillion won in 2018. However, he said there is more room to improve people’s access to essential and orphan drugs.

“The total local pharmaceutical production amounted to about 22 trillion won, but they are mostly finished products. Less than half of the drug raw materials and vaccines are locally made,” Park said.

Although the health authorities have made efforts to stabilize the drug supply through drug shortage prevention program, direct supply of orphan drugs, and designation of drugs to report discontinuation of manufacturing/import/supply, he said such efforts had limits.

As outbreaks of infectious diseases continue in a globalized world, a shortage of medicines may appear depending on market situations and the international environment, he said.

To address this problem, Park argued that the nation needs to build a sovereign manufacturing system for essential drugs.

He proposed establishing a public institution that can develop and manufacture drugs.

Such an institution will be able to make and supply drugs for the public’s interest that the public sector had given up due to low profitability.

“A state-run drug center with manufacturing and R&D capabilities will promote research of essential and orphan drugs, which are difficult to invest in the private sector, and develop high-quality but inaccessible drugs, and secure production resources,” Park said.

Before the event, Rep. Nam In-soon of the Democratic Party said localizing drug materials and finished goods should be promoted at the national level to effectively respond to infectious diseases.

“I hope that drugmakers can turn the Covid-19 crisis into an opportunity to make Korea a powerful nation in the pharmaceutical sector,” she said.