OB-GYNs fume over the price hike of HPV vaccines

KAOG protests over raising Gardasil 9 price “without any exchange of opinions”

'HK inno.N' also in a fix with its new marketing team for vaccines this year expected to suffer consequences

The medical community is in turmoil over the news that MSD Korea will raise the price of ‘Gardasil 9,’ its 9-valent HPV vaccine.

 

Relevant doctors’ associations are determined to discuss countermeasures for the unilateral price increase carried out by the pharmaceutical company.

 

The Korean company in charge of domestic sales of the vaccine also brace for the burden that it would need to bear due to the price hike.

 

On the 30th, industry sources said that MSD Korea has recently sent a notice that it will increase the supply price of its human papillomavirus vaccine by 15% to front-line clinics and hospitals.

 

MSD Korea's position was that the price hike was inevitable due to the inherent complexity of production, long production periods, and quality control processes required for the vaccine.

 

Some clinics and hospitals have been using the news of the price increase in April as a marketing tool to encourage customers to vaccinate sooner than later.

 

Gardasil 9 is indicated for the prevention of cervical cancer, vulvar cancer, vaginal cancer, anal cancer, and genital warts caused by 9 types of the HPV virus (HPV Types 6, 11, 16, 18, 31, 33, 45, 52, 58).

 

However, as Gardasil 9 is not provided as part of the Korean National Immunization Program (NIP), it is currently administered without reimbursement in front-line clinics and hospitals.

 

The average non-reimbursed price of Gardasil 9 in clinics and hospitals range from 107,928 won to 202,524 won.

 

As Gardasil 9 is administered through a 3-dose schedule, at most, roughly 600,000 won will be required to complete the vaccination.

 

Based on the non-reimbursed price disclosed by the Health insurance Review and Assessment Service (HIRA), a price hike of 15% from April will increase the price of a single dose of Gardasil 9 to range around 120,000 won to 240,000 won.

 

“Clinics and hospitals cannot individually protest against the pharmaceutical company’s unilateral decision to increase the price,” said one gynecologist who owns a clinic in Seoul.

 

“My pharmaceutical sales representative had told me about the rumors of the price increase earlier on this year, so I actually ordered more in advance.” Furthermore, the medical community is voicing complaints as they will not be able to directly charge the 15% price increase applied from April to their patients.

 

“Some hospitals and clinics are encouraging people to vaccinate in advance; however, it is unlikely that the people will be able to receive all three doses of the vaccine in the limited time period," another ob-gyn explained, “We can’t charge or explain the price hike to the patients awaiting their last vaccination if they have already received the first and second dose before March.” Faced with such strong opposition, HK inno.N, the company that signed a joint sales agreement for 7 vaccines including Gardasil 9 with MSD Korea, is also positioned in a fix.

 

HK inno.N had prepared a marketing team dedicated to the sale and marketing of the 7 vaccines this year and was moving to expand its sales capacity.

 

However, HK inno.N’s position is that they have no say regarding vaccine prices.

 

Despite the burden they will have to bear selling the more expensive vaccines to hospitals and clinics, the company has to follow MSD Korea’s decision regarding the price increase.

 

As a result, the Korean Association of Obstetricians and Gynecologists (KAOG) decided to hold a meeting to gather opinions on the matter.

 

The association plans to hold an internal meeting first and discuss countermeasures.

 

”It may already be late, but we plan to discuss the issue and garner opinions at the association’s level.” said Lee Gi-Chul, vice president of insurance at KAOG.

 

“The problem was in the unilateral notice.

 

We will have to discuss the price hike with the pharmaceutical company and then notify our members.” “Up until now, pharmaceutical companies used to consult relevant expert associations before carrying out measures like price increases for vaccines, etc.

 

However, the system seems to have changed now." Lee continued, "We will discuss ways and create a system so that relevant medical groups and pharmaceutical companies can discuss their options in advance when similar issues arise.”