Challenges and Prospects for Taiwan's New Drug Development

Challenges and Prospects for Taiwan's New Drug Development

The Taiwanese government, through platforms like the Biotechnology and Pharmaceutical Industry Strategic Advisory Board (BTC), is actively integrating the nation’s strengths in ICT with its biomedical foundation. The goal is to build a "precision health" ecosystem, pushing into emerging fields like cell therapy, digital medicine, and aging technology. While these policies are supported by strategies such as regulatory adjustments, talent cultivation, funding, and international connections, the new drug development sector still faces significant challenges that need to be addressed by both the government and the industry.

First and foremost, there's an urgent need for a more friendly regulatory and National Health Insurance (NHI) system. New drugs developed by Taiwanese biotech companies often face delays in getting to market due to complex review processes and unfavorable reimbursement policies. This not only postpones patient access to innovative therapies but also prevents local companies from accumulating crucial clinical and real-world evidence. Without a track record of success at home, it becomes incredibly difficult for these companies to compete on the global stage. Therefore, the government must streamline regulations and create a more flexible reimbursement framework to help local drugs get to market faster, creating a virtuous cycle of innovation.

Second, talent cultivation is the cornerstone of sustainable growth. While Taiwan has a strong pool of R&D talent, it faces a severe shortage of professionals in global marketing and commercialization. Many startups, despite having cutting-edge technology, lack the strategic vision and practical experience needed to bring their products to international markets. The government should encourage companies to invest more in cultivating globally-minded business managers and provide opportunities for local talent to thrive beyond just R&D roles. This would not only broaden companies' international horizons but also inject new energy into the entire industry.

Furthermore, the government should help Taiwanese biotech startups adopt a global market access mindset. New drug development is a high-risk, long-term endeavor, often taking a decade or more from discovery to launch. However, many startups focus only on advancing through clinical trial phases without a long-term commercialization strategy. The government should play a more active role by providing early-stage guidance and commercialization training, helping these smaller companies think about global market entry from the very beginning, rather than simply viewing drug approval as the final goal.

Finally, the biotech industry requires a capacity for sustainable operations and long-term planning. A drug's success doesn't end with regulatory approval; it’s followed by a long and complex process of market promotion and management. The government needs to integrate resources, especially to assist small biotech companies, by providing comprehensive commercialization training and support during the early development stages. Only when these startups are equipped with a long-term business vision, guided by the government to build a healthy ecosystem, can Taiwan’s biotech industry truly overcome its current challenges and shine on the international stage.