Korea’s pharmaceutical and bio industry anticipated that the Trump administration’s policy to lower prescription drug prices could have a positive impact on domestic companies. (Image courtesy of Pixabay/CCL)
SEOUL, May 14 (Korea Bizwire) — South Korea’s pharmaceutical and biotech companies view the Trump administration’s push to lower U.S. prescription drug prices as a potential tailwind for domestic drugmakers, particularly those in the biosimilar space.
Former President Donald Trump, who is expected to run again in the 2026 election, issued an executive order last week instructing the U.S. Department of Health and Human Services to reset drug prices within 30 days, citing that Americans pay more than three times the cost of medicines compared to other OECD nations. Should the mandate go unmet, federal reimbursement for those drugs could be capped.
While the order targets high-priced originator drugs, Korean companies such as Celltrion believe the reform could enhance the competitiveness of biosimilars — lower-cost alternatives to biologics — by improving price transparency and disrupting entrenched distribution systems.
“The current rebate-driven system involving PBMs (Pharmacy Benefit Managers) often results in biosimilars being listed at prices nearly equal to the original drugs, giving patients little financial relief,” Celltrion said in a statement. “If this structure is dismantled, biosimilars will become more affordable and more widely prescribed, much like in Europe.”
The company expects market expansion for biosimilars if pricing negotiations shift from PBMs to direct talks between manufacturers and the U.S. government. “The dominance of high-profit originator drugmakers could be weakened, creating room for biosimilar competition,” it said.
Huons, which exports several FDA-approved injectables including lidocaine and saline solutions, downplayed the immediate impact of the policy, noting that its core export products are not classified as high-cost pharmaceuticals. “The pricing gap for local anesthetics between the U.S. and Europe is relatively small,” a company official said.
Still, concerns linger over potential tariff risks for pharmaceutical goods. Trump recently announced a 90-day pause in the U.S.-China trade conflict but excluded medicines from the temporary truce. He has hinted that product-specific tariffs on pharmaceuticals could be revealed within weeks.
The Korea Biotechnology Industry Organization urged continued diplomacy, emphasizing that South Korean pharmaceuticals contribute to lowering U.S. drug costs and pose no competitive threat. “We’ve communicated to the U.S. that Korea should be seen as a cooperative partner, not a target,” the group said.
However, how Washington will interpret and act on those assurances remains uncertain.
As U.S. drug pricing policy enters a new phase, Korean pharma firms are preparing to capitalize on potential structural changes—while staying vigilant amid geopolitical and trade uncertainties.
Ashley Song (ashley@koreabizwire.com)
