South Korea is mulling setting up a state-owned pharma firm as lawmakers, government officials and experts reach consensus during a recent public hearing that official intervention and control could help stabilize drug supplies and promptly deal with public health and other emergency situations.

Amid continued disruptions in medicine supplies and growing need to develop orphan drugs, South Korea’s government plans to submit a bill to parliament that will enable it to designate "innovative medicines" for the treatment of fatal or incurable diseases, help speed up the development and approval of innovative drugs, as well as ease supply disruptions.

South Korea repeatedly faced drug supply disruptions when dealing with the outbreak of bird flu and new influenza, and when pharma firms refused to produce inexpensive but essential medicines, or drugs for rare diseases, due to low profitability. A local research paper now says the country may need a state-run pharma to ensure stable future supplies of essential medicines.