MSD Korea’s sales 7%↓ due to the transfer of Januvia sales

and the transition to the endemic phase

The sales of MSD Korea last year amounted to KRW 760.9 billion…a 7.3% decline YoY

It sold the sales rights of the Januvia series+Lagevrio’s sales decline might have also contributed to the decline in sales

The sales of cancer immunotherapy 'Keytruda' surged from KRW 239.6 billion→ KRW 298.7 billion

The sales of MSD Korea last year declined by 7.3% year-over-year (YoY).

 

The sales of cancer immunotherapy 'Keytruda' have increased significantly, while the sales of COVID-19 treatment 'Lagevrio' have decreased.

 

The company’s external growth appears to have stalled.

 

Moreover, the transfer of local sales rights of a diabetes drug 'Januvia' series to Chon Kung Dang Pharmaceutical might have also contributed to the decline in sales.

 

According to the Financial Supervisory Service on April 13th, MSD Korea recorded KRW 760.9 billion last year, down 7.3% from KRW 820.4 in 2022.

 

Its revenue amounted to KRW 27.4 billion, down 4.2% YoY.

 

The trend in MSD Korea’s sales performance (unit: KRW 100 million ).

MSD Korea’s sales were KRW 471.6 billion in 2019 and KRW 484.7 billion in 2020, exceeding KRW 500 billion in 2021.

 

In 2022, the company experienced significant growth, reaching KRW 800 billion, but the sales declined slightly the following year.

 

Keytruda, MSD Korea’s main product, saw sales rise 66.4% from KRW 239.6 billion in 2022 to KRW 398.7 billion last year.

 

However, the industry analysis suggests that the absence of the diabetes drug Januvia lineup and the sales decline of COVID-19 treatment Lagevrio may have led to an overall performance decline.

 

In May of last year, MSD Korea transferred the sales rights of its diabetes drug, including the Januvia series, Steglatro and Stegluzan, to Chon Kung Dang Pharmaceutical.

 

At the same time, the company closed the general medicine (GM) business division.

 

According to UBIST, a market research agency, the outpatient prescriptions for Januvia (sitagliptin), Janumet (sitagliptin·metformin), and Janumet XR (sitagliptin·metformin) amounted to KRW 136.8 billion.

 

The sales of Stegluzan (ertugliflozin·sitagliptin) and Steglatro (ertugliflozin) amounted to KRW 11.2 billion.

 

The analysis suggests that the sales decline was caused by the absence of the cash cow, which generated around KRW 150 billion.

 

The decline in sales of the COVID-19 treatment 'Lagevrio' has been pointed out as contributing to the overall decrease in sales.

 

Global sales of Lagevrio amounted to US$1.4 billion, down 75% from US$5.7 billion in 2022.

 

This sharp decline in sales was due to a decrease in COVID-19 patients as the world transitioned to an endemic.

 

Pharmaceutical industry experts postulate that the South Korean market might have experienced a similar situation.

 

In fact, the Korean government cut down on related funds after announcing an endemic.

 

According to the Korea Disease Control and Prevention Agency (KDCA), the budget allocated to purchase COVID-19 drugs decreased by almost half, from KRW 384.3 billion in 2022 to KRW 179.8 billion last year.

 

Additionally, the sales of the HPV vaccine Gardasil 9 experienced a slight decrease.

 

While Gardasil 9 sales significantly increased from KRW 72.6 billion in 2021 to KRW 117 billion in 2022, it decreased by over KRW 10 billion YoY to KRW 106.4 billion last year.

 

With Keytruda receiving reimbursement expansion and the launch of Vaxneuvance, will MSD Korea bounce back? MSD Korea hopes to bounce back with the reimbursement expansion of its cancer immunotherapy Keytruda and newly launched Vaxneuvance, immunization for the prevention of pneumococcal disease caused by Streptococcus pneumoniae.

 

Last year, Keytruda experienced rapid growth in sales, increasing by more than 60% YoY.

 

As of the end of last year, Keytruda's market share was 54.6% in the anticancer immunotherapy market.

 

Keytruda's revenue expanded from KRW 11 billion in 2016 to over KRW 100 billion in 2020, surpassing KRW 200 billion the following year.

 

Last year, the sales topped KRW 400 billion, recording rapid growth.

 

The main driver for Keytruda's growth lies in its expanded indications.

 

Keytruda has the most indications among anticancer drugs, with 26 approved indications in South Korea.

 

However, the health insurance reimbursement applies to only four cancer types: lung cancer, Hodgkin's lymphoma, urothelial carcinoma, and melanoma.

 

MSD is planning to expand reimbursement to various solid cancer types, including triple-negative breast cancer and head and neck cancer.

 

If reimbursement is expanded, Keytruda's sales growth potential is expected to increase.

 

Cancer immunotherapy Keytruda·pneumococcal vaccine Vaxneuvance.

MSD Korea also expects sales growth for its new vaccine, Vaxneuvance, which was released this year.

 

Vaxneuvance is indicated for preventing invasive diseases and pneumonia caused by pneumococcal serotypes (1, 3, 5, 6A, 9V, 14, 18C, 19F, 22F, 23F, 33F).

 

In particular, Vaxneuvance has been included in the National Immunization Program (NIP) starting this month.

 

The NIP vaccination is inteded for infants aged two months to under five years who have not yet received or completed the schedule for the pneumococcal conjugate vaccine.

 

Vaxneuvance is expected to compete with Pfizer's 13-valent pneumococcal vaccine Prevenar13.

 

According to market research firm IQVIA, Prevenar13 recorded sales of KRW 45.8 billion last year.