Pharmaceutical News
Strengthening Pharmaceutical Resilience: MOHW Aims to Submit Dedicated Legislation by Year-End / Shih Chung-Liang (石崇良): Committee to Establish a List of Critical Medicines and Review Drug Pricing Policies
2026/06/15

The Ministry of Health and Welfare (MOHW) recently established the Pharmaceutical Resilience Promotion Committee (PRPC) and convened its inaugural meeting. The committee will meet quarterly to monitor progress on related policy initiatives. Minister of Health and Welfare Shih Chung-Liang (石崇良) stated that the government aims to submit a draft Pharmaceutical Resilience Act by the end of this year. Through the committee, the MOHW will identify critical medicines, review drug pricing policies, and develop intelligent allocation mechanisms to strengthen Taiwan’s pharmaceutical supply resilience.

Shih noted that the Executive Yuan approved a national pharmaceutical resilience preparedness program last year, allocating NT$24 billion over four years to support related initiatives. Five working groups have been established under the committee to advance key strategies, including domestic production of medicines, domestic utilization of locally manufactured medicines, smart allocation, regulatory reform, and international partnerships. Among these efforts, the committee has screened more than 60 potential critical medicines from a pool of over 500 essential pharmaceutical products, based on criteria such as high domestic demand, limited market competition, concentrated supply sources, reliance on special import programs, and pediatric-specific formulations. These medicines will undergo further assessment to determine supply risks and the potential impact of shortages before a formal critical medicines list is finalized.

Regarding pharmaceutical pricing policies, Shih emphasized that without adequate pricing support, supply disruptions may persist even if domestic production capacity is expanded. Therefore, the committee will review National Health Insurance (NHI) drug pricing policies, including pricing mechanisms for critical medicines, management of drug price differentials, and related incentive measures. If supply instability occurs, the government may consider restricting drug price differentials to help stabilize the market.

In addition, Shih stated that the MOHW plans to establish an smart allocation system covering pharmaceutical manufacturing, importation, utilization, and reimbursement reporting, while incorporating AI-based early warning mechanisms to prevent stockpiling and distribution failures. For medicines that have long relied on special import programs and face challenges in obtaining formal marketing authorization—such as Penicillin G, an antibiotic used to treat syphilis—the government will also consider establishing a special management mechanism through dedicated legislation.

Shih also stressed that no country can domestically manufacture all critical medicines, highlighting the importance of building regional cooperation frameworks with like-minded partners to enhance pharmaceutical supply security.

【2026-05-31/UDN