86% of generics for erectile dysfunction are domestic

Palpal is one of hottest items, overtook Viagra following Cendom and Cialis

Gugu overtook the original, the share of domestic products is high

Last year’s market size was ₩114 billion, an increase of 5.3% year-on-year

The sales rate of generic products developed in Korea in the erectile dysfunction market is very high.

 

Hanmi pharm's Palpal is one of hottest items, and Chong Kun Dang's Cendom continued to rise.

 

Domestically developed drugs account for 86% of the erectile dysfunction drug market, and the influence of domestic products is expanding.

 

According to IQVIA, a drug research agency on the 2nd, the market for erectile dysfunction drugs last year was 5.3%, up 5.3% year-on-year.

 

It is growing continuously every year, from ₩98 billion in 2016 to ₩104.5 billion in 2017 and ₩108.2 billion in 2018.

 

Hanmi's Palpal still showed its unrivaled position in the market.

 

Palpal's sales last year were up to ₩22.4 billion, an increase of 7.0%.

 

In the overall market for erectile dysfunction drugs, Palpal's market share is nearly 20%.

 

Palpal, which was released shortly after Viagra's patent expired in 2012, sells most since beating Viagra in 2013 and Cialis in 2015, respectively.

 

Sales of Major Erectile Dysfunction Therapeutics (Unit: KRW million,%, Source: IQVIA)

Palpal has more than doubled the sales of its original product, Viagra (₩9.6 billion).

 

Considering that Palpal is less than half the price of Viagra, it can be calculated that the actual sales volume is more than four times.

 

In recent years, Chong Kun Dang's Cendom (generic for Cialis) sells well.

 

Cendom sold ₩10.4 billion, up 8.7% from last year.

 

Among the total erectile dysfunction treatment products, Cendom is the only product that has exceeded annual sales of ₩10 billion.

 

Cendom, which was released after the Cialis patent expired in September 2015, gradually surpassed Cialis in 2017 as its market share gradually increased.

 

Last year, it was overtaking even Viagra.

 

Hanmi Pharm

The progress of Hanmi Pharm's Gugu (generic for Cialis) was also noticeable.

 

Gu gu's sales reached 4th place last year, reaching ₩7 billion, an increase of 13.7% over the previous year, and it beated Cialis for the first time since release.

 

Three generics including Palpal, Cendom, and Gugu, accounted for more sales than the original drugs.

 

Viagra and Cialis continued to decline last year, beghind in generics.

 

Viagra's sales last year were ₩9.6 billion, down 2.3% year-on-year.

 

Cialis fell 1.0% from ₩6.5 billion in 2018 to ₩6.4 billion last year.

 

Among domestically sold erectile dysfunction treatment products, there are two products of Viagra and Cialis, and they sold a total of ₩16 billion last year.

 

Bayer's Levitra announced the withdrawal of the domestic market in April.

 

New drugs and generic products released by domestic companies account for a total of 86.0%.

 

After 83.3% in 2017 and 84.8% in 2018, the market share is increasing.

 

Domestically developed new drug products, such as SK Chemicals' 'Mvix' and 'Mvix S', and Dong-A ST's 'Zydena', also generate annual sales of ₩6 billion.

 

In the domestic pharmaceutical market, generics continue to strengthen in the erectile dysfunction treatment market.

 

In general, it is extremely unusual for generics to exceed sales of original drugs.

 

That's because it's not easy for generics to surpass the reliability established by original products over time.

 

Recently, in Korea, new drugs whose patents of multinational pharmaceutical companies have expired are increasing.

 

According to UBIST, Last year, Lipitor’s outpatient prescription amount was ₩17.6 billion, an increase of 8.4%.

 

Since 2014, the prescription amount have risen for six consecutive years.

 

Sanofi's anti-thrombotic drug Plavix, last year's prescription performance was ₩88.9 billion, an increase of 17.3%.

 

Prescription amount for Plavix increased 28.1% in two years from ₩69.4 billion in 2017.

 

Original drugs, such as AstraZeneca's Crestor, Boehringer Ingelheim's Twynsta, Ezai's Aricept and Novartis' Exforge, also showed a rise in prescriptions from last year.

 

Due to the nature of the original drug and generic insurance cap, the focus on the original increases.

 

On the other hand, in the non-reimbursed drug market, where suppliers such as erectile dysfunction drugs set the price, it is analyzed that generics have increased their market share by aggressively operating at lower prices than the original drugs.

 

Looking at the sales of erectile dysfunction treatments by company, Chong Kun Dang is facing a challenge to Hanmi Pharm.

 

Sales Trend of Erectile Dysfunction Therapeutics by Company (Unit: KRW 1 million,%, Source: IQVIA)

Hanmi Pharm recorded 25.8% of the total market last year with sales of ₩29.4 billion with Palpal and Gugu.

 

The gap was widened with latecomers with a growth rate of 8.5% year-on-year.

 

Chong Kun Dang recorded 6.1% year-on-year growth with the joint venture of ₩11.3 billion in three generics: Cendom, Cengla, and Yaila.

 

Chong Kun Dang succeeded Hanmi Pharm with a 11.5% market share.

 

Chong Kun Dang is gradually expanding its influence in the Viagra market even though it has fallen behind competitors.

 

Chong Kun Dang signed a business alliance with Bayer in 2007 and renamed Levitra under the name of Yaila, failing to enter the Viagra generic market in 2012.

 

Chong Kun Dang entered the Cialis market shortly after clearing his partnership with Bayer in 2015, and in 2017 launched Cengla, generic for Viagra, five years later than its competitors.

 

Cengla's sales last year stood at ₩1.9 billion, ranking third among the generics for Viagra after Palpal and Nurigra.

 

In 2018, Chong Kun Dang was licensed under Yaila, which previously sold Levitra.

 

Chong Kun Dang is the only company that has all three generic drugs for erectile dysfunction.

 

Pfizer made a joint venture between Viagra and Viagra L film last year at ₩10.1 billion.

 

Chong Kun Dang was the second-largest market share, down 3.3% from the previous year.

 

Sales of two types of erectile dysfunction treatment drugs, SK Chemicals and Daewoong Pharmaceuticals, exceeded Cialis, and ranked 4th and 5th, respectively.