Generic Pazeo sales 24%↑ after patent dispute win

With the risk associated with patent trials reduced, generic companies will now aggressively market the ‘0.7% high concentration product’

Prescription sales of generic olopatadine eye drops reached 61.3 billion won, showing a 24% YoY growth

Generic companies score a win in patent dispute for Pazeo, which took six years, last August in the Supreme Court

Last year, generic products in the market for eye drops with the active ingredient olopatadine, used to treat allergic conjunctivitis, posted a 24% year-over-year (YoY) increase in prescription sales.

 

It is the most significant sales expansion since 2019.

 

The pharmaceutical industry anticipates a substantial expansion in prescription sales of generic olopatadine.

 

In Q3 of last year, generic companies scored a win in a six-year-long patent dispute for ‘Pazeo 0.7% Eye Drops’.

 

This means that they no longer have the burden of potential infringement of patent and compensation payments.

 

The prescription of olopatadine eye drops tends to increase in the second and third quarters when outdoor activities are more prevalent.

 

Therefore, generic companies aim to market a ‘0.7% highly concentrated product’ that no longer has patent risks.

 

Prescription sales of olopatadine eye drops increased from 57.6 bil to 71.1 bil.

 

Major generics rose 20%↑ According to UBIST, a pharmaceutical market research agency, on the 19th, the market size of outpatient prescription treatments of allergic conjunctivitis (eye drops) containing the active ingredient olopatadine was 71.1 billion won.

 

The market has expanded rapidly over five years, with an approximately 14% yearly growth: 39.4 billion won in 2019, 43.6 billion won in 2020, 50 billion won in 2021, and 57.6 billion won in 2022.

 

Last year, sales increased by 23% YoY, showing a steep growth.

 

It is speculated that generics, which constitute 86% of the market, performed well, contributing to this growth.

 

Original vs.

 

Generics prescription sales of eye drops containing active ingredient olopatadine (Unit: 100 million won, Source: Ubist).

 

Net prescription sales of generic olopatadine increased from 49.4 billion won in 2022 to 61.3 won last year, showing a 24% growth over a year.

 

The sales of the major generic products increased by more than 20%.

 

The sales of Sam Chun Dang’s ‘Oloten'·'Oloten Hi'·'Oloten Plus’ increased from 7.8 billion won in 2022 to 9.4 billion won last year, showing a 20% growth.

 

The sales of Lite PharmTech’s ‘Lite Olon’ series Eye Drops increased from 4.3 billion won to 6.7 billion won, a 57% growth.

 

The sales of Hanlim Pharm’s ‘Olo-Once'·'Olopanol'·'Olopower’ increased from 4.1 billion won to 5.9 billion won, a 44% growth.

 

The sales of Dae Woo Pharmaceutical’s ‘Paradin’ series Eye Drops increased from 4.6 billion to 56 bilion won, a 44% growth.

 

With the risk associated with patent trials reduced, generic companies will now aggressively market the ‘0.7% high concentration product’ The pharmaceutical industry anticipates that generic prescription sales will likely expand even more this year.

 

This is because generic companies won against Novartis in a patent dispute for Pazeo Eye Drops, eliminating patent infringement risks.

 

On August 31st of last year, the Supreme Court dismissed all Alcon’s appeals in the second trial against Hanmi Pharm.

 

The patent dispute over Pazeo Eye Drops that lasted six years ended with generic companies’ victorious win.

 

Novartis owns three original products containing the active ingredient olopatadine, differentiated by dosage: 0.1% Eye Drops named ‘Patanol,’ 0.2% Eye Drops named ‘Pataday,’ and 0.7% Eye Drops named ‘Pazeo.’

Photos of Pazeo.

 

Novartis filed a separate patent for its 0.7% high concentration product.

 

The patent dispute was related to Pazeo.

 

Pazeo, a medication developed by Novartis in 2016, has a higher active ingredient concentration at 0.7%.

 

Novartis filed two separate active ingredient patents for Pazeo, which will expire in 2032.

 

Generic companies filed a patent invalidation trial against two patents.

 

Based on their victory in the second trial, several companies have since launched generics of 0.7% eye drops.

 

However, after Novartis appealed to the Supreme Court, generic companies did not market their products aggressively.

 

The analysis suggests that generic companies were cautious about potential patent infringement and subsequent compensation payments if the Supreme Court ruled in favor of Novartis, leading to their passive marketing of the 0.7% product.

 

There is a noticeable difference in prescription records between the original product and generic products, particularly in terms of concentration.

 

In the case of the original product, prescription records are highest for the 0.7% high-concentration product.

 

Based on last year's prescription sales, Patanol, the 0.1% product, and Pataday, the 0.2% product, each amounted to 1.7 billion and 2.4 billion won respectively, while Pazeo, 0.7% product, reached 5.6 billion won.

 

More than half (57%) of the prescription sales for olopatadine original products comes from Pazeo.

 

On the other hand, for generics, the prescription sales for the 0.7% product are at a minimal level.

 

Taking the market-leading product series from Sam Chun Dang, the Oloten series, as an example, while Oloten, the 0.1% product, and Oloten Plus, 0.2% product, each amounted to 3.2 billion and 5.1 billion won, respectively, Oloten Hi, the 0.7% product, only reached 1.1 billion won.

 

The proportion of the 0.7% product in the entire series is merely 12%.

 

Prescription sales for major products containing the active ingredient olopatadine.

 

The highest prescription volume for the original product is for 0.7% high concentration product.

 

For generics, prescriptions are primarily for the 0.1% and 0.2% products.

It was observed that Hanlim Pharm, which holds the third-largest share in the market, had a similar record of prescription pattern.

 

Last year, the prescription sales for their 0.1% product, Olopanol, and 0.2% product, Olo-Once, were 2.8 billion won and 2.9 billion won, respectively, whereas the 0.7% product, Olopower, only amounted to 300 million won, constituting about 4% of the total.

 

As a result, many companies have opted to launch products with concentrations of 0.1% and 0.2%, instead of the 0.7% product.

 

However, last year’s Supreme Court ruling has greatly reduced risks involved in trials.

 

As a result, generic companies are expected to begin marketing 0.7% high-concentration products aggressively.

 

Sales performance during the second and third quarters will be crucial, as prescriptions are primarily made during the second and third quarters due to the high outdoor acitivities that exacerbate allergic conjunctivitis.

 

A pharmaceutical company with a related product stated, “We have high expectations for the 0.7% product.

 

Especially now that the trial risks have diminished, we anticipate aggressive sales this year.”