K-CAB is in talks to extend refund-type PVA

The only item under the refund contract…After the initial contract in 2021, a three-years extension is under review

The company refunds the amount to the NHIS instead of reducing drug prices…The upper limit price is set to the same as the price listed in 2019

HK inno.N

HK inno.N is in talks with the National Health Insurance Service (NHIS) to extend the refund-type price-volume agreement (PVA) for K-CAB (tegoprazan), a drug developed in Korea for gastroesophageal reflux disease.

 

K-CAB is the only drug under the refund-type price-volume agreement (PVA).

 

Since its release in 2019, K-CAB’s claim amount has been on the rise, so the contract extension is highly probable.

 

According to industry sources on April 3, HK inno.N is discussing with the NHIS to extend the refund-type price-volume agreement (PVA) for K-CAB.

 

In 2021, HK inno.N secured the the refund-type price-volume agreement (PVA) for K-CAB with the NHIS.

 

Under the price-volume agreement (PVA) system, a decrease in drug prices can be avoided with the contract.

 

Instead of decreasing a drug price, the pharmaceutical company refunds the portion of the drug’s price to the NHIS.

 

Drugs should meet the standards set by the Health Insurance Review and Assessment Service (HIRA) for impacting healthcare and being developed by innovative pharmaceutical companies to be eligible for the contract.

 

Currently, K-CAB is the only drug under the contract.

 

With the successful extension of the contract, K-CAB will be under the refund-type contract for the next three years.

 

After the initial refund contract, K-CAB was negotiated two times for a price-volume agreement (PVA).

 

Under the refund contract, K-CAB tab 50 mg is set as the initial upper limit price of KRW 1,300 per tablet since its first listing in 2019.

 

The K-CAB products are now three, with K-Cab ODT 50 mg (KRW 1,300 per tablet) listed in May 2022 and K-CAB tab 25 mg listed last January.

 

The products under the price-volume agreement (PVA) are K-CAB tab 50 mg and K-CAB tab 25 mg.

 

According to the last year’s UBIST report, K-CAB’s outpatient prescription amount totaled KRW 158.2 billion, up 20% from KRW 132.1 billion of the previous year.

 

Although K-CAB generic developments are underway, there is still considerable time before any mandatory reduction in the upper limit price due to the entry of subsequent competitors because its patent expires on August 25, 2031.