Nesp, cheaper than biosimilar due to voluntary price cut

In August, with Nesbel, at the same time, voluntary price cuts and Nesp cuts were wider

Original Nesp (top) and Biosimilar Nesbel (bottom)

The second-generation EPO 'Nesp' (Darbepoetin alfa/Kyowa Kirin, Korea) has become cheaper than biosimilar through voluntary cuts in insurance premiums.

 

According to the MOHW, as of August 1st, Nesp cut its insurance upper limit by 12.5% for each dose.

 

Accordingly, in the case of Nesp PFS 20, it was lowered from \19,898 to \17,411.

 

Last year, Chong Kun Dang, which released Korea's first biosimilar 'Nesbel', also voluntarily cut the price on the same month.

 

However, the price was reversed because the difference in price cuts was less than that of Nesp.

 

Nesbel PFS 20 was priced at about \17,908 from \19,898, about 500 won higher than Nesp.

 

Insurance cap trend for Nesp and Nesbel

Nesbel was registered at 80% of the original in April of last year.

 

The 80% drug price compared to the original is the highest price that a biosimilar can receive.

 

In Korea, biosimilars can receive an insurance premium of up to 70% of the original before expiration of patents, but up to 80% for innovative pharmaceutical companies.

 

Chong Kun Dang was included in the innovative pharmaceutical company and received the highest price of 80%.

 

In the case of the original drug, when the biosimilar is registered, the upper limit is lowered by 20% to 80% of the previous price.

 

Accordingly, from May 8 of last year, Nesp and Nesbel were insured at the same price.

 

However, the price difference occurred when both drugs were voluntarily cut, and the original company's cut was even larger, leading to a reverse phenomenon.

 

Nesp is a second-generation anemia treatment drug based on Darbepoetin alfa.

 

It is a drug that is frequently used for the treatment of anemia in a patient suffering from chronic renal insufficiency .

 

Chong Kun Dang entered the market for the first generic in Korea after developing Nesp biosimilar in 2012.

 

It was also approved in Japan last September.

 

However, it is only a short time since it was released, and sales are largely different from the original.

 

According to data from IQVIA, Nesbel recorded sales of \400 million in Korea in the first quarter, and Nesp posted a performance of \5.7 billion in the same period.

 

However, Nesp suffered negatively 14.9% decrease in sales compared to the same period last year.

 

The voluntary drug price cut is also determined to win the biosimilar competition.

 

It is noteworthy how the market will react when the original becomes cheaper than the biosimilar.