Sales of Pfizer, Gilead, and MSD soared last year

...thanks to innovative new drugs

Sales at 30 of the 38 Korean subsidiaries of multinational pharmaceutical companies see a rise in sales

Pfizer records highest sales of KRW 3.2 trillion...MSD’s sales exceed KRW 800 billion

Operating profit improved in 21 companies...5 companies suffer operating loss

Last year, Korean subsidiaries of multinational pharmaceutical companies made external growth in general.

 

Pfizer Korea, MSD Korea, and Gilead Sciences Korea have enjoyed an increase in sales of COVID-19 vaccines and treatments.

 

The high sales growth of new drugs such as Keytruda, Gardasil 9, and Prolia also contributed to the increase in sales.

 

According to the Financial Supervisory Service on the 18th, combined sales in 37 of the 38 Korean subsidiaries of major multinational pharmaceutical companies, excluding Viatris totaled at KRW 11.72 trillion, up 27.7% from the previous year's KRW 9.18 trillion.

 

During the same period, operating profits increased by 9.8% from KRW 361.2 billion to KRW 396.5 billion.

 

The figure excludes Viatris Korea, which changed its settlement date from the end of November to the end of December last year.

 

About 80% - 30 of 38 Korean subsidiaries of multinational pharmaceutical companies - increased sales.

 

More than half (21) also saw an improvement in their operating profit.

 

The sales expansion of multinational pharmaceutical companies' Korean subsidiaries can be attributed to the high sales growth of new drugs.

 

The companies enjoyed the special procurement demand that arose due to the COVID-19 pandemic by developing vaccines and treatments for COVID-19.

 

New drugs for diseases other than COVID-19 have also shown even growth in sales.

 

According to the market research institution IQVIA, 9 of the top 10 drug sales last year were products from multinational pharmaceutical companies.

 

MSD, Viatris, Amgen, AstraZeneca, Sanofi, and Roche evenly placed their names on the ranking list.

 

Pfizer Pharmaceuticals Korea, which posted the highest sales last year, recorded an overwhelming annual sales of KRW 3.23 trillion last year.

 

This is the highest figure recorded among pharmaceutical and bio companies in Korea.

 

The company made more sales than Samsung Biologics, which recorded KRW 3.13 trillion last year.

 

Operating profit also increased significantly to KRW 120.1 billion, a 102.8% increase from the KRW 59.2 billion won in the previous year.

 

The COVID-19 pandemic drove the high growth for Pfizer Korea.

 

Pfizer is the only one among domestic and foreign companies that supply both a COVID-19 vaccine and treatment.

 

The COVID-19 vaccine ‘Comirnaty’ and the treatment ‘Paxlovid’ that was developed by Pfizer had been supplied through Pfizer Korea in Korea.

 

Thanks to this, sales in its Korean subsidiary soared from KRW 391.9 billion in 2020 to RKW 1.70 trillion in 2021, then to KRW 3.23 trillion in 2022.

 

As distribution and marketing for COVID-19 vaccines and treatments were virtually conducted by the government, the company was able to generate high profits thanks to low SG&A expenses.

 

Pfizer Korea’s operating profit, which suffered a loss of KRW 7.2 billion in 2020, succeeded in turning a profit in 2021 and exceeded KRW 100 billion last year.

 

Gilead Sciences Korea showed the second most growth in sales after Pfizer Korea.

 

Last year, Gilead's Korean subsidiary posted KRW 565.4 billion in annual sales, a 96.1% increase from the previous year's KRW 288.4 billion.

 

Gilead Sciences Korea, whose sales did not belong in the Top 10 among Korean subsidiaries of multinational pharmaceutical companies, jumped to 5th last year.

 

Operating profit increased by 84.1% from KRW 12.5 billion to KRW 23 billion.

 

Sales of its COVID-19 treatment ‘Veklury (remdesivir)’ is deemed to have contributed to Gilead Sciences Korea’s marked growth.

 

The number of COVID-19 patients increased significantly last year, and the number of critically ill patients also increased.

 

Veklury was approved for use in hospitalized patients with severe COVID-19 whose oxygen saturation level is less than 94% or who need supplemental oxygen treatment.

 

MSD Korea also posted an all-time high in terms of annual sales by making KRW 820.4 billion last year.

 

Overtaking AstraZeneca Korea, the company ranked second in sales among multinational pharmaceutical companies’ Korean subsidiaries.

 

Sales of the COVID-19 treatment ‘Lagevrio,' the immuno-oncology drug ‘Keytruda,’ and the cervical cancer vaccine ‘Gardasil 9’ drove the company’s growth.

 

Last year, the government purchased 242,000 courses of LAgevrio from the company.

 

If the contracted amount was introduced last year as planned, sales of KRW 169.4 to KRW 193.6 billion (KRW 700,000 to KRW 800,000 per person) were generated.

 

In addition, sales of Keytruda, the lead product among domestic drug sales, and Gardasil9, which ranks 3rd, reached KRW 356.6 billion based on an IQVIA.

 

On the other hand, the company’s operating profit halved to KRW 28.6 billion due to the rise in the price of finished products the company had purchased from its headquarters and a large amount of money spent on SG&A expenses.

 

In addition, Organon Korea (20.8%), Sanofi-Pasteur (19.9%), Ipsen Korea (19.2%), Abbott Korea (17.6%), Merck (16.8%), Roche Korea (16.6%), Novo Nordisk (16%) %) achieved high sales growth.

 

In particular, sales of Sanofi Pasteur Korea, the vaccine division of the Sanofi Group, surpassed KRW 100 billion in annual sales for the first time last year thanks to strong sales of influenza (flu) vaccines last year.

 

In other words, more than half of the 38 Korean subsidiaries of multinational pharmaceutical companies saw an improvement in their operating profit.

 

However, except for Pfizer Korea, which marked an explosive growth in operating profit last year, the operating profit of the remaining companies fell 8.7% from KRW 302.9 billion in 2021 to KRW 276.5 billion in 2022.

 

This means that the deuteration experience by the other companies was greater than the improvement in operating profit seen by 20 companies other than Pfizer Korea.

 

Also, 5 companies whose operating profits turned to or continued to be a loss.

 

In particular, MSD Korea (-50.7%), Sanofi-Aventis Korea (-60.4%), Jansen Korea (-47.2%), GSK Korea (conversion to a deficit), Abbott Korea (increased deficit), Mandipharma Korea (conversion to a deficit), and Menarini Korea (conversion to a deficit) were among the companies that saw a significant drop in operating profit last year.