CKD expands partnerships after concluding K-CAB deal

Signs 10 copromotion deals with other companies

Chong Kun Dang Signs co-promotion deal with Novo Nordisk for obesity drug Wegovy — expanding its sales base

10 sales & distribution agreements signed since the end of the K-CAB deal … diversifies risk through co-promotion deals

Chong Kun Dang (CKD) has added the obesity drug Wegovy to its portfolio.

 

This marks the company’s 10th sales and distribution agreement since ending its co-promotion deal for K-CAB (tegoprazan) with HK inno.N.

 

Industry observers note that this move not only helps CKD minimize the void left by K-CAB but also diversifies the risks associated with co-promotion deals.

 

On September 18, CKD signed a co-promotion agreement with Novo Nordisk Korea for Wegovy.

 

Starting next month, both companies will jointly handle sales and marketing of the drug at domestic hospitals and clinics.

 

According to IQVIA, Wegovy recorded KRW 213.3 billion in sales in the first half of this year.

 

Analysts say CKD’s move to secure such a blockbuster product as a co-promotion item will help offset the loss incurred with the end of its K-CAB deal and stabilize future revenue growth.

 

The company could also expect stable sales growth with the signing of the deal.

 

Its total sales in 2023 stood at KRW 1.5846 trillion, down 5% from the previous year.

 

The exit of K-CAB contributed to this decline.

 

CKD has been co-promoting K-CAB with HK inno.N since 2019.

 

The contract ended at the end of 2023, and HK inno.N has since partnered with Boryung for the co-promotion of K-CAB.

 

CKD recognized KRW 137.6 billion in sales from K-CAB in 2023.

 

This meant that 8% of its KRW 1.6496 trillion sales in 2023 had departed with K-CAB.

 

In this situation, by securing the blockbuster item Wegovy, CKD has been able to minimize the K-CAB gap while ensuring stable sales growth.

 

It also draws attention that this is the 10th sales and distribution agreement CKD has signed since the exit of K-CAB.

 

Since the end of 2023, CKD has focused on signing joint sales and distribution agreements with domestic and global pharmaceutical companies.

 

In January 2024, immediately after the termination of the co-promotion deal for K-CAB, CKD signed a co-promotion agreement with Celltrion Pharm for the liver agent Godex and the antihypertensive Dilatrend Tab.

 

Then in February, it entered into a joint sales and distribution agreement with Bayer Korea for the chronic kidney disease treatment Kerendia Tab.

 

In April, it agreed with SFI Health to exclusively sell and distribute the OTC brain function improvement drug Braining Cab.

 

In May, CKD partnered with Daewoong Pharmaceutical for joint sales and distribution of Fexuclu Tab.

 

Fexuclu is a P-CAB class treatment for gastroesophageal reflux disease, the same class as K-CAB, meaning CKD would compete with the very product it had just stopped selling.

 

In June, CKD signed a distribution deal with Bayer Korea for Aspirin Protect and Adalat Oros.

 

In November, it signed a joint sales and exclusive distribution agreement with GC Biopharma for the second-generation neutropenia treatment Neulapeg.

 

In December, it entered a joint sales and distribution agreement with Alvogen Korea for the anemia treatment Nesbell.

 

This year, the company continued to focus on expanding co-promotion partnerships.

 

In February, it signed an exclusive sales and distribution agreement with Bayer Korea for the liver cancer treatments Nexavar and Stivarga.

 

In March, it entered into a joint sales and distribution agreement with Pfizer Korea for the new pneumococcal vaccine ‘Prevenar 20’.

 

Industry observers note that by diversifying its partnerships, CKD has been able to spread the risk associated with the termination of co-promotion agreements.

 

This means that even if a situation like the termination of the K-CAB co-promotion agreement occurs in the future, the company can avoid a large-scale sales gap.

 

Furthermore, with the addition of Wegovy, synergistic effects with CKD’s diabetes treatment portfolio are also anticipated.

 

CKD possesses various diabetes treatments across multiple classes: DPP-4 inhibitors (Januvia, Janumet, Janumet XR), TZDs (Duvie, DuvieMet, Duvie-S), SGLT-2 inhibitors (Exiglu, Exiglu-M, Exiglu-S), and SUs (Neomaryl, Neomaryl-M).

 

CKD acquired the domestic rights to the Januvia series from MSD in 2023.

 

Duvie was developed by CKD itself.

 

Wegovy contains the same active ingredient as Ozempic, which was approved as a diabetes treatment in 2022.

 

Although it is approved as an obesity treatment, in addition to weight reduction, it also has blood sugar control effects.

 

CKD is expected to promote Wegovy with its existing diabetes portfolio to target both obesity and diabetes patient groups, thereby expanding its influence in the endocrinology field.

 

Analysts also note the possibility that the agreement could be expanded to include Ozempic.

 

Ozempic is currently under reimbursement review by the government.