MSD Korea’s sales rise 69% in 2 years

Sales of Keytruda and Gardasil 9 rise significantly

Annual sales record KRW 820.4 billion last year...a 51% YoY increase

Keytruda and Gardasil 9 are major contributors... sales of the two products combined raise KRW 360 billion

Operating profit cut in half due to increase in sales cost and SG&A

MSD Korea made its highest-ever sales last year, recording annual sales of KRW 820.4 billion last year.

 

The strong sales of Keytruda and Gardasil 9 greatly contributed to the company’s external growth.

 

However, the increase in sales costs and SG&A expenses cut the company’s operating profit by half.

 

According to the Financial Supervisory Service on the 14th, MSD Korea recorded sales of KRW 820.4 billion last year.

 

This is a 51% increase from last year's KRW 541.9 billion.

 

MSD’s sales, which had been KRW 271.6 billion in 2019, then KRW 484.7 billion in 2020, had exceeded KRW 500 billion in 2021.

 

Last year, sales surged by approximately KRW 280 billion to reach KRW 800 billion.

 

Over the past 2 years, sales have increased by 69.3%.

 

As a result, MSD Korea surpassed its pre-spinoff scale only 2 years after its Organon spinoff.

 

According to MSD Korea's audit report in 2020, the company's sales before the spin-off were estimated to be around KRW 800 billion.

 

Its flagship product, Keytruda, was the major contributor to this sales growth.

 

The immuno-oncology drug Keytruda has been holding the highest sales among domestically marketed prescription drugs.

 

According to IQVIA, a market research institute, Keytruda's annual sales exceeded KRW 100 billion in 2019 and KRW 200 billion in 2021.

 

Sales last year were tallied at KRW 239.6 billion for Keytruda alone.

 

Its growth has been accelerating recently.

 

Quarterly sales had temporarily fallen in the aftermath of drug price cuts in Q1 last year but then rebound with the reimbursement expansion last year.

 

In particular, higher growth is expected as its reimbursement was expanded to first-line treatment for non-small cell lung cancer, which has a large number of patients.

 

In Q4 last year, Keytruda's quarterly sales increased to KRW 78 billion.

 

Sales of the cervical cancer vaccine Gardasil9 had also contributed to the company’s increased sales.

 

According to IQVIA, Gardasil 9 sold KRW 117 billion in sales last year and ranked third in domestic drug sales.

 

This is a 61% increase over the previous year.

 

The number of people looking to receive vaccinations with Gardasil 9 has been increasing with the recommended age for female vaccination expanded and the spreading perception that it is not a vaccine for only women.

 

The supply price of Gardasil 9 also rose, and sales more than doubled from 2 years ago.

 

Last year, the combined sales of Keytruda and Gardasil 9 in Korea reached KRW 356.6 billion.

 

In addition, the COVID-19 treatment 'Lagevrio' that had been introduced last year is also analyzed to have contributed to the company's growth.

 

The Korean government purchased 100,000 courses of Lagevrio earlier last year.

 

The company’s operating profit, which turned into a profit in 2021, decreased by half last year.

 

Last year's operating profit was KRW 28.6 billion.

 

MSD Korea posted an operating loss of KRW 18.4 billion in 2019 and KRW 5.8 billion in 2020 and turned to a profit of 58 billion in 2021.

 

This is because management costs such as severance pay due to the spin-off have now decreased.

 

Last year, the company also made a profit, but the amount decreased by 51% compared to the previous year.

 

The rising sales cost and higher SG&A expenses reduced the company’s operating profit.

 

MSD Korea's sales cost had increased 76% from the previous year to record KRW 680.3 billion.

 

This is greater than its sales growth rate.

 

Last year's cost-of-sales ratio was 83%, up 12%p from the previous year.

 

The amount of finished products that MSD Korea purchased from its headquarters last year amounted to KRW 715.9 billion.

 

With the company spending more on sales, advertising, and R&D, its SG&A expenses rose 15% to reach KRW 111.5 last year.