Smaller pharmaceutical firms hesitate to develop generic drugs

Korea’s small- and mid-sized drug makers have rolled up their sleeves to tighten their belts as the government’s massive price-cut plan is expected to deal the hardest blow to their revenue.

Given the unfavorable factor, these firms are hesitating to release generic products to the market, saying the development cost item is estimated to reach at least 80 million won per item.

“The tight-...