HK inno.N wins big in huge shift of global vaccine licenses

HK inno.N takes over vaccine co-marketing deals valued at 140 billion won, SK to compensate with new 30-billion-won deal

GC and Yuhan lose big, but to focus on their own products

Started from late last year, the massive shift in South Korean market sales rights over global vaccines has come to an end.

 

Global companies like MSD, GSK and Sanofi Pasteur, and South Korean companies like GC Pharma, SK Bioscience, HK inno.N, Yuhan Corporation and Handok were involved in the mass migration of the businesses.

 

The industry sees that HK inno.N took the biggest piece of the pie during the process.

 

SK Bioscience letting go of one deal and taking another was also evaluated to have defended its position successfully.

 

Also Handok was able to maintain its deals.

 

However, GC Pharma and Yuhan are to minimize their loss of losing existing deals by concentrating on other items.

 

◆HK inno.N embraces deals worth 140 billion won as MSD entrusts all seven vaccines On Jan.

 

6, SK Bioscience announced it inked the co-marketing contract over five types of GSK vaccines.

 

The announcement marked the end of global vaccine sales license migration in the South Korean market started since late last year.

 

HK inno.N is supposedly the biggest winner of the shift that lasted three months.

 

The Korean company signed the co-marketing and distribution contracts for seven of MSD vaccines in last November.

 

Initially, GC Pharma had three of the deals and SK Bioscience had four of them, but all of them were transferred to HK inno.N.

 

The pharmaceutical market research firm IQVIA says the seven MSD vaccine generated 141.5 billion won in last one year (Q4 2019 through Q3 2020).

 

As a result, HK inno.N is to make 140 billion won more from this year on.

 

◆SK to fill up the 30 billion won loss from MSD vaccine deals with GSK vaccines

The industry views SK Bioscience has done a good job compensating the damage of losing four MSD vaccines with five new GSK vaccine deals.

 

Although HK inno.N took over four MSD vaccine contracts from SK Bioscience in last November, the company actually nabbed five of GSK vaccine deals early this year.

 

When the previous four vaccines used to make 31.4 billion won annually, the new five vaccines would make 26.2 billion won.

 

The simple math may indicate an immediate loss, but the increase in vaccine types could mean potential growth through strengthened sales strategy.

 

Also the five adult vaccines by GSK could create synergy effect with the Korean company’s vaccines, Sky Zoster (varicella virus vaccine) and Sky Cellflu (influenza vaccine).

 

◆Handok and Sanofi extend co-promotion contract valued at 20 billion won annually

Handok was able to successfully defend all existing deals with Sanofi Pasteur.

 

In May 2019, Handok sealed the deals with Sanofi Pasteur on co-promoting six vaccines.

 

The deals expired late last year, but the two companies have agreed to extend the terms before the expiration.

 

The details of the extension have not been disclosed.

 

The six vaccines have generated 21.6 billion won in last 12 months.

 

Handok is to keep the annual income for this year.

 

◆Yuhan and GC lose sales licenses in South Korea, “Concentrating more on our own" Meanwhile, Yuhan Corporation and GC Pharm ended their vaccine deals with GSK and MSD during their contract extension negotiation.

 

The damage of losing Zostavax and Gardasil would cost GC Pharma 110 billion won a year.

 

Yuhan would also miss out on 20 billion won a year due to the terminated contract.

 

The two companies plan to focus on their own products to minimize the loss.

 

Specifically, Yuhan’s focal point would be on a lung cancer treatment lazertinib expected to receive conditional approval in the first quarter.

 

The company has already hired anticancer sales people for the new business.

 

GC Pharma is to also keep itself busy with its own influenza and varicella virus vaccine sales.

 

Apparently, GC Flu’s last year sales have improved significantly in the third quarter due to COVID-19.

 

Also the company’s varicella virus vaccine line-up has been updated to a new generation.

 

Instead of the existing Suduvax, the new Barycela would be sold from this year.

 

A pharmaceutical industry insider noted, “The companies would probably integrate the previously dispersed sales forces for their own products.

 

The sales gap would not be that drastic.”