Prescriptions of pseudoephedrine rise 35% in 1H

But its supply is unstable in the market

Q2 prescriptions rise 53% YoY

Demand for pseudoephedrine surged despite the end of the pandemic due to the rise in the number of cold patients... supply shortage prolonged

The insurance price is only KRW 20... a need to raise its price like AAPs is being suggested on-site

The prescription market for ‘pseudoephedrine,’ which continues to show an unstable supply and demand in the market, has expanded significantly.

 

Despite the end of the pandemic, demand for the drug has increased significantly due to the increase in flu and cold patients.

 

Accordingly, the need to raise the insurance price ceiling for the low-priced drug is being raised to increase production.

 

According to the market research institution UBIST, outpatient prescriptions of the single-agent pseudoephedrine had been KRW 3.3 billion, up 35.3% YoY.

 

Prescriptions of pseudoephedrine had increased 20.5% YoY to reach KRW 1.6 billion in Q1, and then 53.1% YoY to record KRW 1.7 billion in Q2 this year.

 

Pseudoephedrine is used for common colds, paranasal sinusitis, upper respiratory allergies, etc.

 

It is a prescription drug that is widely prescribed to cold patients.

 

Quarterly outpatient prescriptions of single-agent pseudoephedrine (Unit: KRW 0.1 billion, Data:UBIST)

Although the market size for pseudoephedrine had not been large, its demand has surged recently.

 

Quarterly prescriptions of single-agent pseudoephedrine had been below KRW 1 billion from Q2 2020 to Q3 2021.

 

However, after 7 quarters in Q4 2021, prescriptions exceeded KRW 1 billion and then rose to KRW 1.7 billion in Q4 last year.

 

By Q2 this year, pseudoephedrine prescriptions had increased 149.9% from Q2 2020.

 

In 2020 and 2021 the pseudoephedrine market was directly affected by COVID-19 and caused the market contraction.

 

The number of patients with infectious diseases such as flu and colds had decreased sharply after the spread of COVID-19 due to strengthened personal hygiene management such as washing hands and wearing masks, and shrinking related treatment markets.

 

However, the demand for pseudoephedrine increased significantly with as many as hundreds of thousands of confirmed COVID-19 cases pouring out every day from the end of 2021.

 

The recent increase in pseudoephedrine prescriptions seems to be not only due to confirmed COVID-19 patients but also due to the increase in cold and flu patients.

 

This year, the number of flu patients had continued to exceed the epidemic standard until June.

 

According to the Korea Disease Control and Prevention Agency, the number of suspected influenza patients per 1,000 outpatients dropped from 52.5 in the first week of 2023 to 11.7 in March.

 

However, the number of suspected flu cases rose again from April.

 

For 6 consecutive weeks from the 17th week (fourth week of April) to the 22nd week last week of May), the number of suspected influenza patients per 1,000 outpatients continued to be over 20.

 

This greatly exceeds the flu epidemic standard of 4.9 set by the KDCA.

 

The supply shortage of pseudoephedrine is being prolonged.

 

Its demand has soared in a short period, but due to limited production, supply is not keeping up with the demand.

 

The Korean Pharmaceutical Association is working with the Korea Pharmaceutical Distribution Association and related pharmaceutical companies to ensure an even supply of single-agent pseudoephedrine.

 

The KPA has been receiving online orders from pharmacies for Samil Pharma’s ‘Sudafed Tab’ or Kolon Pharmaceutical’s ‘Cosue.’ Pharmacies can order one of the two, and the KPA has been supplying one or two packer vials (500 tablets/vial) of the drug to each pharmacy.

 

The low price of pseudoephedrine is another reason why companies cannot easily increase production of pseudoephedrine.

 

According to the Health Insurance Review and Assessment Service, seven single-agent pseudoephedrine 60mg are listed for reimbursement in Korea, and their insurance price ceiling is a mere KRW 23.

 

Of the 7, 6 products were listed at KRW 23 and 1 at KRW 20.

 

If the supply shortage continues, the industry suggested that there may be a need to raise its drug price like acetaminophen.

 

The Ministry of Health and Welfare raised the insurance price ceiling of 18 acetaminophen 650mg items by up to 76.5% in December last year.

 

The insurance price limit for 650mg acetaminophen, which was only KRW 43 to 51 before then, was raised to KRW 90.

 

The government made an unprecedented decision to raise the price of all acetaminophen products unilateraly when pharmaceutical companies expressed reluctance to increase production due to the drug’s poor cost structure.

 

However, it is a temporary increase that will be adjusted to KRW 70 from December this year.

 

Pharmaceutical companies had promised to increase production of acetaminophen in line with the price hike.