Joint sales agreements for pharmaceuticals are on the rise

Chong Kun Dang changes its joint sales items...signing Wegovy while terminating deals for Atozet andFexuclue

Boryung and Hanmi secure external items….speeds up the expansion of the pharmaceutical portfolio

The focus is on channel strengths rather than the number of sales representatives...collaboration between domestic companies is rising

Joint sales across South Korea's pharmaceutical and biotech industry are shifting rapidly. As joint sales agreements increase, expiring contracts and partner transitions are also rising.

Chong Kun Dang has focused on a generational portfolio transition over the past year by clearing out multiple legacy co-promoted products while securing major new items. Meanwhile, Boryung and Hanmi Pharm are driving top-line revenue expansion through co-promotion by sequentially adding external products to their commercial portfolios.

Changes in the types of joint sales partnerships are common. Market analysis notes an increasing number of cases where the focus is shifting away from selecting partners based solely on large sales forces and nationwide networks toward partnering with companies with distinct competitive strengths in specific channels, such as general hospitals, outpatient clinics, or retail pharmacies.

New contracts to partner transitions...24 joint sales agreements over past year

According to the pharmaceutical industry on the 2nd, 24 co-promotion agreements have been signed across the South Korean biopharmaceutical industry over the past year.

Late last month, the joint sales agreement between Organon Korea and Chong Kun Dang for Nasonex ended. In turn, Organon signed an agreement designating Boryung as its new commercial partner for Nasonex.

The joint sales of Fexuclue between Chong Kun Dang and Daewoong Pharmaceutical is also ending. The joint sales contract between the two companies ended on August 31. Daewoong Pharmaceutical plans to transition to exclusive in-house commercialization going forward. The 20 mg package will transition to sole distribution immediately, while the 10 mg and 40 mg packages will be distributed exclusively by Daewoong starting in December. If existing channel inventories are depleted earlier, distribution will transition immediately to Daewoong's exclusive framework.

In July, Daewoong Bio and Yungjin Pharmaceutical entered into a joint sales agreement for Pulmicool and Risenolin. Gunil Pharm and Yungjin Pharm expanded their joint sales agreement for Rosomega. Eisai Korea signed a new co-promotion agreement with SK Chemicals for Dayvigo, under which SK Chemicals covers hospitals and clinics with 300 beds or fewer. In comparison, Eisai oversees institutions with more than 300 beds. In addition, Organon Korea and Chong Kun Dang concluded a co-promotion agreement for Atozet and Vytorin. For Atozet, Boryung will co-promote the product in place of Chong Kun Dang, while Organon will sell Vytorin exclusively.

Additionally, multiple new agreements were executed earlier this year, including: new co-promotion agreements between ▲Celltrion Pharm and Daewon Pharmaceutical for Edarbi, Edarbyclor, and Edarbipine ▲Ferring Korea and Hanmi Pharm for Minirin and Nocdurna ▲Vivozon Pharm and Hanmi Pharm for Unafra (in January) ▲SK chemicals and Kyung Nam Pharm for Nose-R Soft Cap ▲MSD Korea and Kwangdong Pharmaceutical for the adult pneumococcal conjugate vaccine Capvaxive (both in February) ▲Tanabe Pharma Korea and HK inno.N for Vadanem ▲Servier Korea and Bukwang Pharm for seven products including Acertil and Vastinan ▲Sanofi and Huons for five vaccines including Vaxigrip (all in March) ▲Alteogen Biologics and GC Wellbeing for Tergase Inj. In June, the joint sales partnership between Alvogen Korea and Chong Kun Dang for Qsymia concluded, with Alvogen intending to seek a new co-promotion partner for the product.

Chong Kun Dang focuses on portfolio shift...Boryung and Hanmi expand external growth

Among pharmaceutical companies active in co-promotion, Chong Kun Dang, Boryung, and Hanmi Pharm stand out.

Chong Kun Dang has actively pursued new commercial assets while streamlining many of its legacy co-promoted products. Late last year, Chong Kun Dang executed a domestic co-marketing and sales agreement with Novo Nordisk Korea for the anti-obesity therapeutic Wegovy targeting local hospitals and clinics. In December, it partnered with Bayer Korea to co-promote Eylea, with Chong Kun Dang leading sales focused on primary clinic channels. In the same month, the company signed a joint sales agreement for Apnotrack, a digital sleep apnea diagnostic aid developed by Asleep.

Conversely, several joint sales agreements, beginning with Qsymia, followed by Atozet, Vytorin, Fexuclue, and Nasonex, have concluded over the past year. Industry analysis report a generational turnover of Chong Kun Dang's co-promotion portfolio is underway as the company adds major products such as Wegovy and Eylea while winding down partnerships for Atozet and Fexuclue.

Boryung is expanding its presence in the joint sales landscape by stepping into positions vacated by Chong Kun Dang. Following Atozet, Boryung joined as the new distribution partner for Nasonex, marking two consecutive cases where the partner transitioned from Chong Kun Dang to Boryung. In 2024, the joint sales partner for HK inno.N's K-CAB also shifted from Chong Kun Dang to Boryung.

Hanmi Pharm is broadening its co-promotion scope by entering into new partnerships across multiple companies. Following an agreement in October of last year to distribute and market three respiratory therapeutics from Boehringer Ingelheim Korea domestically, Hanmi expanded its commercial footprint this year with co-promotion agreements with Ferring Korea for Minirin and Nocdurna, and with Vivozon Pharm for Unafra Inj.

For Boryung and Hanmi Pharm, top-line expansion is expected immediately. Boryung previously achieved KRW 1 trillion in annual revenue buoyed by the co-promotion of K-CAB. Analysis suggests that leveraging established commercial networks enables top-line growth, while expanding product portfolios creates synergies with in-house proprietary products.

'Channel Strengths' prioritized over 'sales representative number'...A shift in joint sales efforts

The most prominent change in recent joint agreements is the increasing granularity of partner-selection criteria. In the past, joint sales contracts were predominantly structured around multinational pharmaceutical companies leveraging the nationwide distribution networks and extensive sales forces of domestic manufacturers. Multinationals provided the products and brand equity, while domestic pharmaceutical firms deployed their commercial teams to target healthcare institutions.

Increasingly, contracts are taking this approach a step further by dividing sales channels based on each company's specific competencies. For example, joint sales of Minirin and Nocdurna between Ferring Korea and Hanmi Pharm show this trend. Ferring focuses on general hospitals, while Hanmi Pharm leads sales and marketing across outpatient clinics and small- to medium-sized hospitals. Hanmi Pharm's commercial coverage includes small and medium-sized hospitals with 30 to 300 beds and handles nationwide distribution. Rather than a single firm handling all tiers of healthcare facilities, this model segments the market based on each partner's respective advantages.

Joint sales of Dayvigo between Eisai Korea and SK Chemicals similarly splits the commercial territory by hospital bed capacity. Likewise, joint sales of seven hypertension and dyslipidemia therapies between Servier Korea and Bukwang Pharm divides roles around bed scale.

Other partnerships leverage specialized commercial strength within the retail pharmacy channel, exemplified by the co-promotion of Nose-R between SK chemicals and Kyungnam Pharm. SK chemicals plans to accelerate Nose-R sales by leveraging Kyungnam Pharm's dedicated marketing and sales capabilities in retail pharmacies.

Joint sales agreements in the pharmaceutical industry are evolving beyond simply borrowing sales representatives into a more segmented approach that matches complementary commercial capabilities across specific products and targeted channels.

Increased domestic-to-domestic joint sales deals can be explained in this context. Partnerships between Celltrion Pharm and Daewon Pharmaceutical, Daewoong Bio and Yungjin Pharm, and Vivozon Pharm and Hanmi Pharm are all examples of domestic pharmas combining products with complementary commercial networks. Original drug developers with proprietary products can access specific channels without establishing dedicated in-house sales organizations, while distribution partners can expand their commercial portfolios by leveraging existing sales infrastructure.