Market for Pulmicort and Pulmican soars 2.6 times in 2 years

amid endemic and drug pricing raises

Asthma medications with a single component of budesonide recorded prescription sales of 9.9 billion won last year, up 163% compared to two years ago

In December of last year, the price of budesonide raised by up to 19% to address the supply and demand issues

Increased drug pricing has resulted in an increase in production and expansion of the treatment market

Last year, the prescription market for asthma medications containing the ‘budesonide’ ingredient expanded to its largest size ever.

 

There have been significant demands for the treatment due to the circumstances surrounding the pandemic and endemic.

 

At the end of last year, the drug pricing increase led to manufacturing and the prescription market expansion.

 

Raising drug prices during shortages yielded a virtuous cycle of resolving the imbalance between supply and demand.

 

According to UBIST, a pharmaceutical market research agency, on the 14th, outpatient prescription sales of asthma medications with a single component of budesonide totaled 9.9 billion won last year, representing an increase of 39.1% compared to the previous year.

 

Budesonide is a medication used to treat asthmatic bronchitis and acute bronchitis in the larynx of infants and young children.

 

There are two available budesonide products in Korea, including AstraZeneca’s Pulmicort and Kuhnil’s Pulmican.

 

The yearly sales of Pulmicort and Pulmican in outpatient prescriptions (Unit: 1 million won, Source: UBIST).

Pulmicort and Pulmican prescription sales last year rose 163.1% in two years compared to the 3.8 billion won generated in 2021.

 

In the same period, Pulmicort rose 155.6%, from 2 billion won to 5 billion won, and Pulmican rose 171.3%, from 1.8 billion won to 4.9 billion won.

 

Since the end of 2021, the treatment market for budesonide has expanded significantly due to the rapid increase in the number of COVID-19 patients.

 

There was a higher demand for Asthma medications last year due to an increased number of patients with the common cold or influenza in addition to COVID-19 patients.

 

The surge in demand resulted in an inadequate supply of drugs due to an imbalance between supply and demand.

 

The increase in drug pricing of Pulmicort and Pulmican in the end of last year may have contributed to market expansion.

 

The Ministry of Health and Welfare (MOHW) raised the insurance upper price limit of Pulmican by 18.5% from 946 won to 1,121 won.

 

Pulmicort price rose 12.5% from 1,000 won to 1,125 won.

 

The ministry reached an agreement with pharmaceutical companies to increase drug prices to encourage production expansion.

 

This was to address the issue of drug shortages resulting from rising demand.

 

Pulmicort and Pulmican coproduced prescription sales of 1 billion won in November of last year.

 

After the increase in drug pricing, prescription sales in December rose by 39.4% to 1.4 billion won compared to the previous month.

 

Compared to the 1 billion won in December 2022, the sales rose 36.1% YoY.

 

Pulmicort generated prescription sales of 700 million won in December last year, a 43.3% expansion compared to the previous month and an increase by 76.8% YoY.

 

Pulmican generated prescription sales of 500 million won in November and 700 million won in December, an increase by 35.5%.

 

The monthly sales of Pulmicort and Pulmican in outpatient prescriptions (Unit: 1 million won, Source: UBIST).

Prescription volumes for both Pulmicort and Pulmican increased more than the rate of drug price increases.

 

Pharmaceutical companies expanded supply following insurance price raises, and with supply imbalances resolved, the prescription market showed growth rates higher than those of drug price increases.

 

The increase in drug pricing for Pulmican and Pulmicort is the fourth instance of drug pricing adjustments for drugs in short supply.

 

The MOHW raised the insurance upper price limit of 18 items containing acetaminophen 650 mg by up to 76.5% beginning in December 2022.

 

The insurance upper price limit of acetaminophen 650 mg used to be between 43 to 51 won, but it has now increased to 90 won.

 

Since pharmaceutical companies were reluctant to expand production due to the low-profit cost structure, the MOHW decided to raise the prices collectively.

 

The MOHW initially agreed to collectively adjust the prices to 70 won last December and maintain the raised price until March.

 

The MOHW increased the drug pricing of laxatives with magnesium hydroxide as an ingredient.

 

Magmil’s price grew by 27.8%, from 18 won to 23 won.

 

Cho-A’s Marogel price increased from 15 won to 22 won.

 

Sinil Pharm’s M Tab.

 

Sinil saw an increase in price from 16 won to 22 won.

 

In October of last year, the prices of four pseudoephedrine drugs with a single-component were raised by up to 45%.

 

Insurance upper price limit of Shinil Pharmaceutical's Sinil Pseudoephedrine increased from 20 won to 29 won, up by 45%.

 

Samil Pharmaceutical's Sudafed increased from 23 won to 32 won, up by 39%.

 

Sama Pharm's Schdafen and Kolon Pharma's Cosue also saw their insurance drug prices adjusted upwards by more than 30%, from 23 won to 30 won and 31 won, respectively.