Zemimet’s price drops 9.7% in 5 years…discounted 5 times

Subject to PVA every year since reimbursement in 2017…industry “should provide preferential treatment for homegrown new drugs”

NHIS “Difficult to provide incentives for homegrown new drugs to preserve system purpose or equity”

LG Chem’s incrementally modified new diabetes treatment, ‘Zemimet Tab,’ has once again been subject to Price-Volume Agreement negotiations this year and its price will be discounted as of the 1st of next month.

 

This is the fifth price cut made through the PVA system for the drug since its reimbursement approval.

 

Its price had fallen nearly 10% during the period.

 

According to the industry on the 29th, Zemimet Tab was applied Type C of PVA negotiations, the ceiling price of all four strengths of Zemimet SR Tab were discounted.

 

The discount rate varies by strength but was in the 1.1% to 1.5% range.

 

This is already the fifth price discount made through the PVA system, indicating the exponential increase of Zemiglo users in Korea.

 

Although the system was established to secure and expand NHI finances, on the company’s part, the company should inevitably feel frustrated as the system hampers product growth.

 

In the case of Zemimet ST Tab 50/500mg, its price has been lowered every year from 2018 to this year through the PVA system.

 

The ceiling price, which had been ₩815 during the initial listing, had fallen to ₩736.

 

This is a 9.7% discount.

 

The industry had been raising voices that PVA negotiations for drugs like Zemimet SR Tab need to be limited to reflect the R&D efforts made by homegrown new drugs.

 

The industry suggested that a maximum number of negotiations should be limited to three, or other incentives are provided for new homegrown drugs from Korea Innovative Pharmaceutical Companies.

 

However, the NHIS is negative about only granting incentives to domestically developed drugs for reasons of equity.

 

During the correspondents’ briefing that was held on the 23rd, Haemin Jeong, Deputy Minister of NHIS Pharmaceutical Management Department, said, “The NHIS agrees on the need for Korea Innovative Pharmaceutical Companies to receive preferential treatment in consideration of the social and industrial values ​​of such companies, but a more cautious approach is required to apply measures like easing price cuts to the PVA system.” He added, “The PVA system adjusts drug prices to share the financial risk held by drugs whose expenses exceed a certain level, and drugs that affect NHI finances must be managed, regardless of whether it is a drug produced by Korea Innovative Pharmaceutical Companies or not.

 

Providing preferential treatment for such innovative pharmaceutical companies is difficult in reality in terms of equity due to international trade issues, and would require discussion with relevant organizations.” Although Jeong’s response was limited to the provision of incentives for Innovative Pharmaceutical Companies, the response can also be interpreted as that it is difficult to give preferential treatment to domestically-developed drugs through the PVA system.