Acetaminophen syrup receives price hikes to meet demand

Setopen Suspension & Children's Tylenol Liquid Oral Suspension prices set to increase by 55%, starting next month.

Cumulative prescription sales of the two suspension formulations in Q3 totaled 1.9 billion won, a five-fold expansion in two years.

Within a year after price increase for tablets, suspension formulations also receive a price hike… yearly increase of 800M won in prescription sales is postulated.

Starting next month, the maximum reimbursement prices for two acetaminophen suspension formulations will be increased by over 50%.

 

The price hike follows the government’s decision to implement measures aimed at encouraging pharmaceutical companies to expand volume of acetaminophen production.

 

Currently, there is a continuous demand for the drugs due to a high number of patients with influenza and the common cold.

 

Following the drug price increase for pill-type acetaminophen monotherapy last year, suspension formulations have now joined the list of drug receiving pricing increases within a year.

 

The drug pricing increase in acetaminophen suspension formulations is expected to lead to an annual increase by approximately 1 billion won in prescription sales.

 

According to the Ministry of Health and Welfare (MOHW) on 27th, starting next month, the prices of the two acetaminophen suspension formulations will be increased by up to 55.6%.

 

The price of Janssen Korea’s Children's Tylenol Suspension will be increased by 55.6%, adjusted from 18 won to 28 won, and Sama Pharm’s Setopen Suspension will be increased by 52.9%, adjusted from 17 won to 26 won.

 

During the COVID-19 pandemic and endemic, the demand for acetaminophen, an antipyretic drug, has significantly increased.

 

However, the low drug price has made it difficult to expand the production.

 

In response, the government has decided to bring an increase in drug pricing to encourage drug companies to expand their volume of production.

 

According to the data from UBIST, a drug market research agency, cumulative outpatient prescription sales in Q3 this year was1.9 billion won, a significant increase of 94.9% compared to the same period last year.

 

When compared to the cumulative prescription sales of 4 billion won in Q3 2021, this is a five-fold expansion in just two years.

 

An analysis of pharmaceutical industry suggests that the prescription market for suspension formulations has expanded because COVID19-positive patients continued to increase despite the declared end of pandemic, as well as an increase in patients with influenza and the common cold following the end of mask mandate rule.

 

The cumulative prescription sales of Setopen Suspension in Q3 were 1.6 billion won, a five times increase in just two years.

 

While the cumulative prescription sales of Children's Tylenol Suspension in Q3 of 2021 were below 100 million won, they have now reached 300 million won, showing more than three times increase.

 

The quarterly prescription sales of acetaminophen suspension formulations have increased by three times, in particular, prescription sales of Setopen Suspension in Q3 of 2021 was merely 100 million won, but, this year’s YoY sales was 300 million won.

 

In the same line, the prescription sales of last year’s Q2 was nearly 500 million won, which is three-fold expansion compared to two years ago.

 

The prescription sales of Children's Tylenol Suspension in Q1 recorded below 100 million won, but, in Q2, it surpassed 100 million won.

 

The prescription sales of Children's Tylenol Suspension in Q3 were only 70,000,000 won, but compared to two years ago, it has increased by more than two-fold.

 

The market size of suspension formulations is larger than the entire market for acetaminophen monotherapy.

 

The cumulative prescription sales of acetaminophen monotherapy in Q3 of 2021 reached 39.5 billion won, a 148.5% hike from the same period of last year.

 

The margin of increase in prescription sales for suspension formulations was even greater, approximately two times higher.

 

The drug pricing increase of acetaminophen suspension formulations follows that of tablets at the end of last year.

 

The MOHW raised the upper limit for 18 items by up to 76.5%, starting in December 2022.

 

The maximum reimbursement price of acetaminophen 650mg was only 43-51 won, but it has been adjusted to 90 won.

 

The government decided to collectively set the price hike considering that many pharmaceutical companies were reluctant to expand the volume of production due to the poor cost structure.

 

The pharmaceutical companies have agreed to expand production along with the increased drug pricing of acetaminophen.

 

The price of Janssen Korea’s Tylenol 8 hours was adjusted from 51 won to 90 won, recording the highest increase rate of 76.5%.

 

Both Bukwang Pharm’s Tacenol 8hours and Chong Kun Dang Pharmaceutical’s PENZAL were adjusted from 51 won to 88 won, a 72.5% hike.

 

Hanmi Pharm’s Suspen 8 hours adjusted from 50 won to 85 won, a 70% hike.

 

Kolon Pharmaceutical’s Tramol 8 hours is set to increase from 51 won to 85 won, a 66.7% hike.

 

Genu Pharma’s Anisphen 8 hours and Hana Pharm’s Tylicol 8 hours will both be adjusted to 83 won, a 62.7% hike.

 

Sama Pharm’s Setopen and Young Poong Pharmaceutical’s Tifen 8 hours are set to increase from 51 won to 80 won, a 56.9% hike.

 

The adjusted prices of eight items, including Boryung Biopharma’s Cetaphen 8hr, will be raised to approximately 70 won.

 

Initially, the price of acetaminophen 650g was schedule to be collectively adjusted to 70 won starting in December, but the price adjustment will be delayed until March of next year.

 

The recent prescription sales for a year (Q4 of 2022 to Q3 of 2023) of Setopen Suspension and Children's Tylenol Suspension were reported to be 1.3 billion won and 300 million won, respectively.

 

Applying the price increase rates for Setophen Suspension and Children's Tylenol Syrup, the annual prescription sales hike is expected to be 2 billion won and 400 million won, respectively.

 

As a result of the price increase for these two acetaminophen syrup formulations, an expansion of the prescription market by 800 million won annually is anticipated.