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KMID : 1170320150210020001
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Korean Journal of Health Economics and Policy
2015 Volume.21 No. 2 p.1 ~ p.30
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The role of state-owned pharmaceutical companies & its implications for South Korea
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Kim Sun
Kim Eu-Gene
Paik So-Hye
Yang Bong-Min
Kwonh Hye-Young
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Abstract
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Access to medicines is a central element of health rights, and state has responsibility to ensure it for people. But in reality, for-profit private pharmaceutical companies take lead in production and supply of medicines in many countries, and this makes allocation of medicines to be determined by demands, not by needs. Besides, worldwide reinforcement of patent rights due to the introduction of TRIPS regime in 1995 strengthens monopoly of pharmaceutical companies and hinders access to medicines. Countries including Thailand, India, Indonesia, and Brazil have been operating state-owned pharmaceutical companies to actively ensure access to medicines. The national essential medicines lists are officially announced and these companies have produced and supplied these medicines at low prices and have successfully achieved self-sufficiency. If necessary, essential medicines are produced and supplied by these companies with application of compulsory licensing. These companies are also engaged in importing inexpensive generics from other countries. In Korea, healthcare system and the infrastructures of pharmaceutical industry are not similar to these countries. However, Korea is vulnerable to the strengthened TRIPS and challenged by rising burden of healthcare expenditures, which might affect access to medicines. Although problems in access to medicines, especially resulting from production and supply problem, have been raised several times, there is insufficient policy to ensure stable supply of medicines. Recently, there have been debates on feasibility of establishment of state-owned pharmaceutical company and its specific plan in Korean setting. This study suggests salient policy implications on these issues by reviewing foreign experiences and situations of access to medicines in Korea.
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KEYWORD
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Essential medicines, access to medicines, drug supply management, state-owned pharmaceutical company
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