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2026-10-267 min read2

Drugs Made Before Approval Can Now Be Sold, Not Scrapped — MFDS's October 23 Bio Regulatory Rationalization Plan on Pre-Approval Inventory and Generic/OTC Equivalence Data Waivers, and How Pharma-Bio SMEs Should Redesign Validation Batches and Launch Timelines (2026)

On October 23, MFDS announced that drugs made before approval may be sold after approval and that equivalence data will be waived for some generic and OTC drugs. This guide separates what has been reported from what awaits follow-up notices, and gives pharma-bio SMEs a checklist for redesigning validation batches and documentation.

KITIM Consulting Team

What Was Announced on October 23: The Second Regulatory Rationalization Committee and MFDS's Bio Plan

On October 23, 2026, the President chaired the second plenary meeting of the Regulatory Rationalization Committee at Yeongbingwan, the Cheong Wa Dae state guest house. At that meeting, the Ministry of Food and Drug Safety (MFDS) presented a plan to bring bio regulation "up to the level of competitor countries." Press reports put the number of tasks at six.

This article covers two of them:

  • ① Allowing drugs manufactured before approval to be sold after approval
  • ② Waiving or substituting test data for generics and OTC drugs
  • The CDMO export-manufacturing license, the raw-material certification (under the special act taking effect December 31), and the review standards for AI-enabled drugs are separate matters, so they are not covered here.

    Keep in mind that this announcement sets out a policy direction. Detailed requirements and effective dates will be fixed through amendments to MFDS notices and enforcement rules, followed by administrative pre-announcements. Throughout this article, we separate what has been reported from what still needs to be confirmed.

    Why Pre-Approval Batches Had to Be Scrapped

    To file for marketing authorization, a company must produce process performance qualification (PPQ) batches and pilot batches in advance. Because these batches were made before approval, they could not be released. The usual result was to scrap them and manufacture again once approval came through.

    The loss is largest for high-value biologics and low-volume products. Suppose a product costs KRW 300 million per batch and is validated with three batches. That means roughly KRW 900 million is written off. If raw materials take six months to arrive, re-manufacturing also pushes the launch back by about that long.

    The US and EU let manufacturers build pre-approval inventory at their own risk. The inventory must be made under GMP exactly as described in the application, and it can be released once approval is granted. "Competitor-country level" is best read as a commitment to close that gap.

    Conditions for Post-Approval Sale

    Press reports confirm three conditions:

  • GMP compliance
  • Completed process validation
  • Manufacturing identical to the final approved specifications
  • The third condition is the most important in practice. If the manufacturing process or specifications change during review, for example in response to a deficiency letter, batches made before the change will likely fall outside the scope. Full traceability between change history and batch records will decide whether those batches can be sold.

    The following items should be confirmed in the follow-up notice:

  • Whether shelf life starts at the manufacturing date or the approval date
  • How labeling such as the approval number will be applied after the fact
  • How to prove that storage conditions were met throughout the pre-approval period
  • Whether the rule applies retroactively to inventory that already exists
  • Lighter Review Burden for Generics and OTC Drugs

    According to press reports, some data requirements will be waived or replaced with alternative tests depending on the ingredient and dosage form. Products whose equivalence is self-evident, such as aqueous injectables, will be exempt from submitting equivalence data.

    Some dosage forms already qualify for alternative testing under the current rules. What matters is how far the new plan extends the existing waivers, and that has to be checked against the actual notice text.

    SMEs should review their product portfolios in two groups:

  • Likely waiver candidates: aqueous injectables and simple solutions
  • Likely to still need bioequivalence studies: modified-release formulations and solid oral forms of poorly soluble ingredients
  • A single bioequivalence study typically costs several hundred million won and takes months. Companies may want to put the money and time saved into their next products. It is also worth considering how this ties into existing programs such as the drug-pricing reform and the semi-innovative pharmaceutical company certification.

    What to Do Now: A Checklist for Batch Planning and Documentation

  • Re-plan PPQ batches: Work backward from the target launch date to reset PPQ batch size and timing. Plan them as sellable launch inventory.
  • Set up document reconciliation: Organize batch records, change-control logs, and stability data so each item can be checked against the final approved specifications.
  • Update contract manufacturing agreements: For outsourced products, settle terms with the CMO in advance. The agreement should cover ownership of pre-approval inventory, who has release authority, and responsibilities under the quality agreement.
  • Prepare public comments: Be ready to comment when the follow-up notice is pre-announced. Key points are the scope of the conditions (for example, whether minor changes are tolerated), retroactive application, and how shelf life is counted.
  • How KITIM Can Help

    The Korea Institute of Technology Innovation Management (KITIM) supports the following work:

  • Planning validation batches around your approval timeline
  • Organizing GMP documentation so it can be reconciled with the final approved specifications
  • Reviewing in advance whether each generic product may qualify for a data waiver
  • If your batch plans and documents are ready before the follow-up notice is issued, you can start cutting inventory losses as soon as the rule takes effect. If you have products heading for approval, please reach out through KITIM's consultation request page.

    Pre-Approval InventoryProcess ValidationRegulatory RationalizationGeneric EquivalenceBioequivalence WaiverOTC Drug ReviewGMPLaunch Strategy
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