Lowest price of dapagliflozin set at 30% of original price

In only 2 months after generics started being listed in April... stepped pricing applied after the entry of over 20 generics

The 90-day prescription will cost KRW 19,818 for the original, KRW 6,507 for the lowest-price generic

Original

In 2 months after the entry of generics in the market, the price difference between the original diabetes treatment Forxiga Tab (Dapagliflozin propanediol hydrate) and its generics has become one-third.

 

This is because in April last year when many Forxiga generics were listed at once to exceed 20, the insurance price ceiling dropped significantly as the listed drugs were applied a stepped pricing model.

 

According to the industry sources on the 26th, the upper insurance price limit was set at KRW 241 for Ahngook New Pharm's ‘Newpharm Dapagliflozin Tab.

 

10mg’ that was listed on June 1st.

 

Its price had been set at 85% of the 38.69% of the highest price, as more than 20 identical drugs have already entered the market.

 

When more than 20 identical drugs are listed, the price is set at 85% of the lowest price of identical drugs,or 38.69% of the upper limit of the same product, whichever is lower.

 

Based on the calculation standards, the price has fallen to one-third of the original Forxiga’s 10mg highest price (KRW 734).

 

In the case of Forxiga generics, 20 generics immediately entered the market, therefore any additional listings will continue to discount the price.

 

Diabetes treatments such as Forxiga are so cheap, such differences in drug price do not have a significant impact on prescriptions.

 

However, in the case of long-term prescriptions, the patient's burden of cost does increase.

 

For example, Forxiga’s KRW 734 for 90 days amounts to KRW 66,060, whereas the cheapest generic’s KRW 241 for 90 days amounts to KRW 21,690.

 

At 30% of the co-payment rate, the patients will have to bear at most KRW 19,818 for the original and KRW 6,507 for the lowest generic, bringing the price difference borne to KRW 13,311.

 

In other words, the analysis is that generics can be a sufficient alternative to original drugs if the patient wants a cheaper option.

 

However, in Korea, where doctors have the right to prescribe, not many doctors consider the economic feasibility during prescriptions.

 

Therefore, the industry emphasizes that the government should focus on policies that encourage the use of cheaper generics, rather than concentrating only on devising formulas that can reduce drug prices.

 

Meanwhile, the price of the original Forxiga was supposed to be forcibly reduced to KRW 514 following the introduction of generics, but the previous price of KRW 734 won has been maintained as AstraZeneca Korea, the seller, applied and was allowed a stay of execution for the pricing discount from the court.