The drug industry imports about one-third of the raw materials from China.  As the Chinese production lines come to a standstill due to the outbreak of coronavirus, the drug manufacturers in Taiwan are fearing a disruption to production.  The TFDA expressed that the authority will help manufacturers to seek new supply sources in India, the US and the EU in order to ensure the continuous supply of drugs. However, the MOEA conceded that the manufacturing cost could increase by 20-30% due to a price hike in APIs. 

Dr Chen Shih-Chung, the MOHW Minister, said that he already had a meeting with the industry two weeks ago to advise drug companies to approach new potential suppliers.  The government will provide adequate subsidies for the industry, said Dr Chen.

Huang Yen-Ru, the spokesperson of the Taiwan Pharmacists’ Association, pointed out that the impact of the increased costs on the retailing prices depends on the market mechanism and the government’s control measures.  Chang Lien-Cheng, a section chief of the TFDA, expressed that as most essential drugs are reimbursed by the NHI, drug prices should remain quite stable. However, the prices of drug items on the private market may be driven up by the costs.  The public can report on any unreasonable increase in prices.

The MOEA and the MOHW gave a briefing to the Economic Committee of the Legislative Yuan.  In the meeting, the MOEA officials expressed that the Taiwan drug industry mainly serves the domestic market.  Manufacturers usually have 2-3 months of stocking.  Therefore, the short-term impact of this disease outbreak is quite limited.  However, the authority will help manufacturers to seek alternative suppliers in the medium term.  It is estimated that the cost could increase by 20-30%.

Wu Hsiu-Mei of the TFDA expressed that China and India together account for 40% of the total API imports in Taiwan.  Now, the manufacturers should consider importing from other countries.  Legislator Liao Kuo-Tung (KMT) expressed his concerns over the shortage of drugs due the disease outbreak in India and Italy.  Wu Hsiu-Mei replied that the government will plan ahead to ensure the supply of drugs.

Wu Hsiu-Mei also expressed that the authority is actually concerned more about drug stockpiling in hospitals than about shortage.

Legislator Lin Tai-Hua (DPP) requested that the government should subsidize the increased costs and shorten the drug review process from 120 days to 30 days.  Wu replied that the current regulations are in place to make up the price difference; and if drug companies provide all required documents, the drug review process can be completed in one month.

【2020-03-10 / United Daily】