Taiwan Aims for Drug Resilience Law by Year-End

Taiwan's Ministry of Health and Welfare has established a "Drug Resilience Promotion Committee" to bolster the nation's drug supply security amid global instability. The committee will meet quarterly to track progress on related work.

Minister of Health and Welfare Shieh Jhy-wey announced that the ministry aims to submit a draft special law on drug resilience by the end of the year. The committee will also identify a list of "critical drugs" and explore adjustments to drug pricing systems. The government has allocated NT$24 billion over four years for the "National Drug Resilience Preparation Plan."

“

We hope to submit a draft special law on drug resilience by the end of the year.

The committee's five strategic directions include domestic production, domestic use, intelligent dispatch, regulatory adjustments, and international cooperation. Based on principles like common usage, limited drug licenses, concentrated supply sources, monopolistic situations, or reliance on special import permits, over 60 drugs have been identified from a previous list of 500 basic medications. The committee will assess supply risks and impact of shortages for these items to create the critical drug list. The Ministry of Economic Affairs will then guide manufacturers in domestic production with financial support.

“

If the medical side does not use it and the drug price does not have enough support, there will still be a risk of断货 (discontinuation of supply) in the long run.

To address potential drug shortages, the ministry will review the National Health Insurance drug pricing policy. Measures include a three-year suspension of the Drug Expenditure Target (DET) system starting in March. The committee will also discuss and revise regulations on drug pricing for critical medicines, including adjustments and restrictions on price differences. An intelligent dispatch system will be established from manufacturing, import, usage, and reporting ends, incorporating AI for early warnings. A fund may be needed to cover costs for expired drugs if domestic reserves need to be increased.

Shieh highlighted the need for regional cooperation with friendly nations to ensure stable, complementary drug supplies, as no single country can domestically produce all critical medicines. The ministry hopes to propose the draft special law by year-end to address issues like special import permits for long-standing drugs such as Penicillin G, which currently rely on special import channels due to manufacturers' inability to provide original data for local drug licenses.

“

No country can manufacture all critical drugs domestically, so future regional cooperation mechanisms will also be needed to ensure stable and complementary supplies with friendly countries.