Why MSD raised the price of Gardasil 9 for two years?

8.5% in 1 year and 3 months after last year's 15% increase ↑

MSD, it was evaluated at the global level, and it was not only raised in Korea

As MSD Korea raised the supply price of Gardasil 9, a cervical cancer vaccine, by 25% in two years, attention is being paid to the background.

 

Some interpret the decision ahead of the application of Gadasil 9's health insurance benefits, which was President Yoon Seok-yeol's pledge, or an alternative to fill the sales gap due to the reduction of Januvia drug prices.

 

According to MSD Korea on the 17th, the supply price of Gardasil 9 will increase by 8.5% from July 1st.

 

This is the first measure in a year and three months following a 15% increase in April last year.

 

The supply price of Gardasil 9, which was 106,300 won (excluding VAT) early last year, rose 15,945 won to 122,245 won in April of that year.

 

With the decision to raise the price further this year, Gardasil 9 will be supplied at 132,636 won starting in July.

 

Various interpretations have been made about the increase in Gardasil 9 for the second consecutive year of MSD in Korea.

 

It then rose 25% in two years as the price was raised again in a year and three months.

 

The average total inoculation cost of Gardasil 9 (three times), calculated as the average inoculation price per session (215,555 won), amounts to 631,665 won.

 

Various interpretations are exchanged over the measure of raising Gardasil 9 for the second consecutive year by MSD Korea.

 

In particular, the backlash was so strong that a national petition against a price hike appeared last year.

 

This is why attention is focused on the background of pushing ahead with another increase in supply prices despite worsening public opinion.

 

President Yoon promised to expand Gardasil 9 insurance when he was a candidate.

 

The vaccines included in the existing National Essential Vaccination (NIP) are Cervarix and Gardasil.

 

The pledge is to support free vaccination of Gardasil 9, which has a wider range of prevention.

 

The scope of support will also be greatly expanded.

 

It encompasses not only women aged 12 to 17, women from low-income families aged 18 to 26, but also women aged 9 to 45 and men aged 9 to 26, who are currently eligible for NIP.

 

As a way for the government to support Gardasil 9, a plan to expand the scope of NIP and include Gardasil 9 or to provide health insurance benefits for Gardasil 9 is cited.

 

Both measures are more likely to fall in price than before through bidding or drug price negotiations.

 

This is the background of the interpretation that the supply price hike is a preemptive measure in preparation for the future reduction of Gardasil 9.

 

It is also interpreted as a countermeasure to fill the sales gap caused by lowering drug prices of other drugs such as Januvia.

 

MSD Korea asked to "trade off" in negotiations with the government to expand the primary benefit of non-small cell lung cancer of Keytruda, a blockbuster immuno-cancer drug.

 

Instead of expanding Keytruda's benefit, it has decided to voluntarily cut drug prices for 15 items, including Januvia Family, which has an outpatient prescription of 171 billion won, from at least 3.2% to up to 77%.

 

The opinion is that price increase of Gardasil 9 is a strategy to fill the sales gap caused by drug price cuts.

 

In response, MSD Korea drew a line, saying, "The price increase of Gardasil 9 is the result of price adequacy evaluation." The company conducts a price adequacy evaluation of medicines at the global level every year, and this increase is only a result of the evaluation and has no other impact.

 

It was also judged that the drug price cut would not hurt overall sales due to Keytruda's rise.

 

The price increase is not limited to Korea, but also applied to other countries that supply Gardasil 9.

 

While Gardasil 9 price hikes have only recently been carried out in Korea, the company also emphasizes that it has increased by an average of 5% every year in the United States.

 

An official from MSD Korea said, "It is difficult to disclose specific evaluation criteria, but the policy of Gardasil 9 price has only changed, and there is no other impact."