Korea orders drug companies to make more common cold medicines

People are seen at a pharmacy in downtown Seoul on Wednesday. [YONHAP]

Common cold medicines are set to become 40 percent more expensive as the Korean government orders emergency manufacturing of the pills.

That 50 won (3.9 cent) tablet will now be priced at 70 won, though national insurance will cover the difference.

An emergency production order was issued on Dec. 1 to 18 pharmaceutical companies for 18 medicines used to treat colds and flus. The decree came from the Ministry of Food and Drug Safety because of the twindemic of Covid-19 and the flu that is hitting Korea and many other countries.

Medicine shortages are being reported globally, in Europe, the United States and China.

The 18 medicines covered by the Korean order include Tylenol 8-hour tablets from Janssen Korea, Penzal AR tablets from Chong Kun Dang and Suspen 8-hour tablets from Hanmi Pharmaceutical.

With the order in place, the companies will have to increase production by up to 60 percent through the winter.

The aim is to increase the average monthly supply from 45 million tablets to 67.6 million. During the time of changing seasons, the total will be increased to 72 million tablets.

Commandeering pharmaceutical companies is allowed under a regulation on emergency production in place since March last year. It was updated in September to specify medicines and companies covered under the rules.

This is the first time Korea has ordered drug companies to increase production.

As the government raises the price of tablets, the increase will be covered by national health insurance. A tablet that originally cost around 50 won will be priced at 70 won. The additional 20 won will be covered by the government. Janssen Korea’s Tylenol 8-hour tablet is the most expensive at 90 won per tablet, and Huvist Pharmaceutical’s Tyrepen 8-hour 650 milligram tablet is priced at 70 won.

The government warned that it will claw back the coverage if pharmaceutical companies fail to meet the additional production quantity, leading to complaint from the manufacturers. It is also negotiating with the companies now to limit any increases.

“Additional production is a promise between pharmaceutical companies and the government and it is confounding that they would talk about retrieving the cost,” said a source at a pharmaceutical company.

Some companies are converting their production lines to produce common cold medicines.

“We are already operating 24 hours a day and managing two to three teams to take shifts,” said another source in the business. “We are increasing production facilities as the orders are coming from the government, but there will be excess facilities once the pandemic dies down again and it worries us.”

The Ministry of Food and Drug Safety also sent out an letter on Dec. 7 to companies importing materials for cold medicines from China, asking them to purchase materials in advance so that there are no disruptions in production.

BY SHIN SUNG-SIK, LIM JEONG-WON [lim.jeongwon@joongang.co.kr]