Varying sales of Korean subsidiaries of multinational pharma

Sales of Pfizer·MSD·Gilead declined…demand for COVID-19 therapeutics↓

New drugs for diabetes·obesity·immune diseases on the rise…Novo Nordisk·AbbVie experience upswing in sales

The 2024 sales performance of multinational pharmaceutical companies' subsidiaries in South Korea varied.

 

Pfizer Korea, MSD Korea, and Gilead Sciences Korea experienced a significant drop in sales due to the impact of COVID-19 becoming endemic.

 

Novo Nordisk saw substantial external growth following the launch of new drugs for diabetes and obesity, while AbbVie also achieved growth by advancing new drugs for immune-related disorders.

 

According to the Financial Supervisory Service (FSS) on the 15th, the sales of the 31 major multinational pharmaceutical companies' subsidiaries in South Korea decreased by 5.5% from KRW 9.717 trillion in 2023 to KRW 9.187 triillion last year.

 

Among the 31 Korean subsidiaries, sales declined at 13 companies, including Pfizer, MSD, AstraZeneca, Viatris, Bayer, Gilead, Lilly, Kyowa Kirin, Ferring, UCB Pharma, Menarini, Guerbet, and Biogen.

 

The company with the largest decline in sales was Pfizer Korea.

 

Last year, Pfizer Korea's sales amounted to KRW 783.7 billion, down 50.3% compared to the previous year.

 

During the same period, operating profit dropped by 57%, from KRW 63.8 billion to KRW 27.2 billion.

 

This was the first time in four years since 2020 that Pfizer Korea's sales fell below KRW 1 trillion.

 

Pfizer Korea was hit directly by a decline in sales due to the endemic phase.

 

Pfizer Korea succeeded in joining the KRW 1 trillion sales club in 2021 through its COVID‑19 vaccine 'Comirnaty' and treatment 'Paxlovid,' but its sales dropped as COVID‑19 stabilized.

 

Pfizer began developing an mRNA vaccine in March 2020 in partnership with Germany's BioNTech as COVID‑19 spread globally.

 

The collaboration between BioNTech, which possesses mRNA technology, and Pfizer, with its extensive global clinical experience, resulted in successful synergy.

 

Consequently, Pfizer Korea's sales increased significantly.

 

The company's sales reached KRW 1.6940 trillion in 2021, exceeding KRW 1 trillion for the first time, and then surged to KRW 3.2254 trillion in 2022.

 

Compared to its 2020 sales, the company saw a 723% increase within two years.

 

However, companies' sales declined as governments announced COVID-19 transitioning into the endemic phase in 2023.

 

Pfizer Korea's sales in 2023 amounted to KRW 1.6018 trillion, a 50% decrease from the previous year, and last year, its sales fell short of maintaining the KRW 1 trillion mark at KRW 783.7 billion.

 

Last year's sales represent a 76% decrease compared to 2022 when the highest sales performance was recorded.

 

MSD Korea also experienced a sales decline of nearly KRW 100 billion from the previous year due to the impact of COVID‑19.

 

MSD Korea's sales last year were KRW 667.8 billion, a 12.2% decrease compared to the prior year.

 

Although the company developed the COVID‑19 therapeutic 'Lagevrio' during the pandemic, its sales declined as the situation transitioned to an endemic phase.

 

MSD Korea explained that the current sales performance reflects the combined effects of decreased COVID‑19 cases and a strategic shift toward focusing on innovative drugs and vaccines.

 

Korean MSD is not only driven by its chief immuno-oncology product, Keytruda, but is also expecting growth from vaccines and innovative new drugs.

 

The company is preparing for domestic launches later this year, including a first‐in‐class pulmonary arterial hypertension activin signal inhibitor, 'Winrebair,' and the first adult customized pneumococcal vaccine, 'Capvaxive.' Gilead's sales last year reached KRW 319.8 billion, a 16.7% decrease compared to the previous year.

 

Analysis suggests that Gilead's sales declined as its COVID‑19 therapeutic, Bekluri, decreased prescription volume.

 

Bekluri is used for patients hospitalized with severe COVID‑19 who have an oxygen saturation of 94% or lower or require supplemental oxygen therapy.

 

The sales of AstraZeneca, the first company to develop a COVID‑19 vaccine, also decreased slightly.

 

AstraZeneca Korea's sales fell by 5.7%, from KRW 639.3 billion in 2023 to KRW 602.7 billion last year.

 

Driven by the domestic launch of its COVID‑19 vaccine, AstraZeneca Korea recorded sales of KRW 655.3 billion in 2021, marking a 31.6% increase compared to the previous year.

 

However, with the emergence of follow-on vaccines from companies such as Pfizer, Moderna, and Janssen, sales slightly decreased to KRW 615.1 billion in 2022.

 

Last year, AstraZeneca Korea decided to withdraw its SGLT-2 inhibitor Forxiga from the market.

 

The withdrawal of a product that had recorded over KRW 50 billion in annual sales significantly impacted overall sales decline.

 

In contrast, the external prescription volume for the non–small cell lung cancer therapy Tagrisso reached KRW 136.8 billion last year, a 52.9% increase compared to the previous year.

 

Additionally, sales declined at several companies, including Biogen Korea (–61.6%), Kyowa Kirin Korea (–29.9%), Viatris Korea (–5.2%), Bayer Korea (–3.6%), Korea Ferring (–2.5%), Korea Lilly (–2.2%), Korea Menarini (–2.0%), Korea UCB Pharma (–1.6%), and Guerbet Korea (–0.1%).

 

New obesity drugs·new drugs for immune diseases are growing, sales surges for Novo Nordisk·AbbVie Meanwhile, innovative new drugs have been performing strongly, resulting in substantial increases in sales for Novo Nordisk, AbbVie, and Sanofi.

 

Novo Nordisk

Novo Nordisk Korea’s sales increased by 63%, from KRW 230.2 billion in 2023 to KRW 374.7 billion last year.

 

Operating profit rose by 65% during the same period, from KRW 8.3 billion to KRW 13.7 billion.

 

Wegovy drove the growth in Novo Nordisk’s sales.

 

According to market research firm IQVIA, Wegovy recorded KRW 60.3 billion in sales in just one quarter following its launch in October last year.

 

Wegovy, which was approved in South Korea in April 2023, is a GLP‑1 agent containing semaglutide that has demonstrated efficacy in reducing HbA1c levels and body weight.

 

Novo Nordisk developed Wegovy as a once‑weekly obesity treatment after observing weight loss effects during clinical trials of its GLP‑1 diabetes drug candidates.

 

The sales growth of Novo Nordisk’s diabetes products also contributed to overall performance.

 

According to market research firm UBIST, the GLP‑1 agent liraglutide and the insulin degludec combination product, Xultophy, recorded sales of KRW 15.1 billion last year, up 26% compared to the previous year.

 

In addition, the once‑weekly insulin product Tresiba and the insulin combination product Ryzodeg recorded sales of KRW 38.0 billion and KRW 31.3 billion last year, up 3% and 7%, respectively.

 

Sanofi also demonstrated notable growth, with its Korean subsidiary’s sales reaching KRW 529.6 billion last year, an 18.1% increase compared to the previous year.

 

Sanofi expanded its overall market presence through the steady growth of its original products.

 

The antithrombotic agent Plavix recorded sales of KRW 128.5 billion last year, up 2% compared to the previous year.

 

Prescriptions for the insulin product Toujeo reached KRW 27.2 billion last year, an 11% increase over 2023, while the antiarrhythmic agent Multaq achieved sales of KRW 12.4 billion, up 14%.

 

Sanofi

Sanofi is also anticipating robust growth for its biologic Dupixent.

 

Sanofi expects Dupixent's sales to increase further.

 

Dupixent also received expanded approval for chronic obstructive pulmonary disease (COPD) earlier this year.

 

Current COPD treatment guidelines, both domestic and international, now include recommendations for Dupixent.

 

According to market research firm IQVIA, Dupixent's sales reached KRW 143.2 billion in 2023, making it a mega blockbuster product.

 

AbbVie Korea also experienced double-digit growth last year.

 

AbbVie Korea's sales increased by 32%, from KRW 234.7 billion in 2023 to KRW 308.9 billion last year.

 

AbbVie Korea also experienced double-digit growth last year.

 

AbbVie Korea's sales increased by 32%, from KRW 234.7 billion in 2023 to KRW 308.9 billion last year.

 

The strong market positioning of Rinvoq and Skyrizi contributed to substantial growth in AbbVie Korea's sales.

 

Rinvoq, a JAK1-selective inhibitor, was approved in Korea in 2020 for the treatment of rheumatoid arthritis.

 

After that, Rinvoq was approved in 2021 for atopic dermatitis and expanded its indications in 2022 and 2023 to include ulcerative colitis and Crohn's disease, respectively.

 

With the addition of new indications, Rinvoq's sales have begun to climb.

 

According to market research firm UBIST, Rinvoq's sales increased by 450%, from KRW 1.4 billion in 2021 to KRW 7.7 billion in 2022.

 

After breaking KRW 10 billion in early 2023, Rinvoq's sales reached KRW 26.1 billion last year, setting a new sales record.

 

AbbVie

AbbVie Korea is also expecting strong growth from 'Skyrizi,' a biologic that targets interleukin (IL)-23, in addition to Rinvoq.

 

Skyrizi was initially approved in 2019 as a treatment for plaque psoriasis, followed by approval in 2022 for psoriatic arthritis, and last year for palmoplantar pustulosis.

 

According to IQVIA, Skyrizi's sales are on a steep upward trend.

 

Skyrizi's sales increased from KRW 8.4 billion in 2021 to KRW 16.5 billion in 2022 and KRW 27.6 billion in 2023.

 

As of 2023, the combined sales of Rinvoq and Skyrizi have surpassed KRW 50 billion.

 

A successful generational transition from Humira in the autoimmune disease sector is being made.