Pricing dispute leaves patients without drugs
A dispute between Novartis and the South Korean government has deprived some patients of the cancer drug, Glivec, for more than a year.
At the heart of the disagreement is a failure to agree on a price for Glivec, the innovative treatment for chronic myeloid leukaemia.
Seoul has argued that multinational drug companies are being greedy by demanding the same prices in South Korea as they charge in more wealthy countries.
The Swiss pharmaceutical giant, Novartis, says its price is based on the formula laid out by the South Korean government for the pricing of innovative drugs.
No agreement
The company made Glivec available to patients in South Korea in April last year through its expanded access programme.
Since June 2001 when the product was registered, discussions with the ministry of health have failed to agree a price.
Novartis has demanded 24,050 Korean won (SFr29.9) per 100mg capsule of Glivec but Seoul says it will not pay more than 17,862 won (SFr22.2).
Some 290 of the estimated 500 chronic myeloid leukaemia patients in South Korea currently have access to the drug.
“We are certainly disappointed that the ministry of health has not yet reached a decision on the reimbursement price,” Frank Bobe, director of Novartis in South Korea, told swissinfo.
“As a result, it means patients continue to be denied access to the drug. We are nevertheless confident that this will be settled soon and we are in continuous discussion with the ministry of health to find an agreement.”
Price guidelines
According to Seoul’s guidelines, the price of innovative drugs is based on the average price in seven advanced countries including Switzerland and the United States.
The disagreement comes as Seoul tries to cut the cost of its cash-strapped health service.
Under South Korea’s current pricing system, two-thirds of drug bills are footed by health insurance with the remainder paid by patients.
“Our proposal is in line with the pricing guidelines of the Korean government,” said Bobe. “In addition we also recognise the government’s healthcare budget difficulties and our proposal is somewhat below the actual average.
“Our proposal is 24,050 won and in the seven advanced countries, the prices are between 25,000 and 35,000 won.
“We are also addressing the financial burden the patients have and are offering to pay one-third of the patients’ payment.”
No one at the South Korean ministry of health was available for comment.
by Vincent Landon
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.