Taiwan launches US$767 million program to boost 'medical resilience'

Taipei, Dec. 4 (CNA) The Cabinet on Thursday approved an initiative aimed at subsidizing the local production of at least 50 drugs to boost Taiwan's "medical resilience."

The initiative will receive NT$24 billion (US$766.96 million) in funding over four years to support the production of active pharmaceutical ingredients, generic drugs, biopharmaceuticals, and radiopharmaceuticals from 2026 to 2029.

The funding will also go toward research on manufacturing these pharmaceuticals domestically and to building a "smart" logistics center to ensure the timely supply of medicine to local medical institutions.

Premier Cho Jung-tai (卓榮泰) green-lit the initiative following a briefing by the Ministry of Health and Welfare (MOHW) at a Cabinet meeting Thursday.

Few details on the specifics of the initiative, such as which drugs might be emphasized, how exactly the funds will be distributed, and how involved the government will be, were provided Thursday.

According to Wang Te-yuan (王德原), deputy director-general of the Food and Drug Administration, however, the MOHW will compile a list of drugs deemed critical and the Nuclear Safety Commission will be responsible for developing manufacturing processes and overseeing storage of radiopharmaceuticals.

Also, the Ministry of Economic Affairs (MOEA) will subsidize research into developing the identified drugs, and the Ministry of Finance will provide rent and tax reductions as incentives, Wang said.

In explaining the policy, the MOHW said in a statement that global pharmaceutical supplies have trended toward being dominated by monopolies, and a comprehensive strategy and action plan are needed to bolster Taiwan's pharmaceutical autonomy, drug reserves, and medicine supply network.

Yet while Taiwan is seeking greater drug autonomy, establishing an international mutual assistance alliance will also be crucial to achieving the goals under the initiative, the ministry said.

Though the government argued Taiwan is being hurt by international monopolization of the production of certain drugs, its own national health insurance system has also suppressed drug prices, discouraging some local manufacturers from producing certain medications.

Some local pharmaceutical sector players have suggested the government amend the Act for the Development of Biotech and Pharmaceutical Industry to offer tax breaks to makers of eligible medications, Health Minister Shih Chung-liang (石崇良) said Thursday at a weekly Cabinet news conference.

The ministry will discuss such proposals with the MOEA to determine whether they are feasible in addition to the subsidies, Shih said.

Also, in April, the National Health Insurance Administration revised the payment standards and price adjustment rules for pharmaceuticals, Shih said.

Drugs that use domestically produced active pharmaceutical ingredients, are manufactured locally for clinical trials, or break patent linkage barriers are now eligible for an additional 10 percent reimbursement, he said.