Essential pediatric drugs are disappearing in South Korea due to low birth rates and government-imposed price controls. Pharmaceutical companies are reluctant to produce these medicines due to high costs and limited demand, leaving child patients to bear the consequences.
According to the medical community, Yuhan Corporation has recently halted production of Newfactan, the only domestically produced neonatal respiratory distress treatment (pulmonary surfactant) that was even exported overseas. Once the current stock is depleted, South Korea will rely entirely on imported products starting in the second half of next year. The drug is used for premature infants who suffer from respiratory distress due to underdeveloped lungs and is made from a substance extracted from bovine lungs. While two imported alternatives exist, any supply disruptions caused by issues with foreign pharmaceutical companies or global pandemics could significantly hinder treatment. The pharmaceutical company explained, “We can no longer produce the drug with our current facilities due to stricter government standards for sterile drug manufacturing and quality control. Considering declining sales and other factors, we have decided to halt production.”
Pharmaceutical companies avoid producing pediatric drugs due to low profitability. Drug prices are set low, while raw material costs continue to rise, and declining birth rates reduce demand, creating a situation where selling more leads to losses. Hanmi Pharmaceutical also announced it would stop supplying Suspen, the only pediatric fever and pain relief suppository in South Korea, due to production costs.
