The Korea Herald

지나쌤

Generics thrive in Korean pharmaceuticals market

Lilly’s blockbuster erectile dysfunction treatment drug Cialis outsold by Korean generic copiers

By 손지영

Published : Oct. 18, 2015 - 16:45

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When the patent for U.S.-based Eli Lilly’s blockbuster erectile dysfunction treatment drug Cialis (tadalafil) expired in South Korea early last month, 60 domestic pharmaceutical companies immediately rolled out more than 150 cheaper, generic copies of the drug.

About a month has since passed, and data shows that generics launched by Hanmi Pharmaceutical and Chong Kun Dang Pharm have risen above their competition to take the lead in the segment, shaking up the market previously dominated by Cialis.

Hanmi Pharmaceutical’s Gugu (left) and Chong Kun Dang Pharm’s Cendom (Hanmi Pharmaceutical/CKD Pharm) Hanmi Pharmaceutical’s Gugu (left) and Chong Kun Dang Pharm’s Cendom (Hanmi Pharmaceutical/CKD Pharm)

According to local health care market analyst UBIST, Hanmi’s Gugu recorded the highest prescription volume in September at 62,776 units prescribed, closely tailed by CKD’s Cendom at 56,887 units. Lilly Korea’s original Cialis stood in third place with 32,705 units prescribed.

“Gugu seems to have posted a high prescription volume given it tends to be prescribed for everyday use in small dosages,” said an industry official.

In terms of sales, Gugu racked up around 1 billion won ($884,000) last month, while Cendom recorded 860 million won during the same period. Though Cialis managed to post the highest sales at 1.8 billion won, the figures reflect a 30.8 percent decline in comparison to its sales record prior to the patent expiration.

Daewoong Pharmaceutical’s Taore and Kolmar Korea’s Camarapill also recorded high prescription volumes in September at 26,808 units and 13,648 units, respectively. Taore’s sales stood in fourth place at 390 million won followed by Camarapill at 140 million won.

Behind the success of locally made generic alternatives to Lilly’s famed impotence treatment drug are competitive pricing, detailed preparation and well-executed marketing strategies, according to market analysts.

While a single Cialis pill is priced at 15,000 won, the generics can be purchased for around one-third -- or sometimes as low as one-seventh or one-tenth -- of the original’s price.

Eli Lilly’s erectile dysfunction treatment drug Cialis (Lilly Korea) Eli Lilly’s erectile dysfunction treatment drug Cialis (Lilly Korea)

Moreover, industry watchers say Hanmi and CKD were able to steal away Cialis’ market share in just a month’s period on the back of carefully prepared marketing strategies including catchy product naming schemes and successful advertising.

“Unlike biologic drugs, chemical drugs (like Cialis) can be exactly replicated by reproducing the chemical formula. In other words, the generics more so deliver the same effects as the original drug,” said a pharma industry insider.

“As a result, the success of generic drugs in a market hinges less on a drug’s properties or perceived effectiveness, but more on successful marketing strategies upon the original’s patent expiration period,” she said.

Hanmi’s Gugu -- the Korean pronunciation for 99 -- was named in association with the age 99, as a follow-up to its bestselling Viagra generic Palpal, which means “highly energetic” as well as the age 88. The company has been pursuing the catchphrase “Be energetic (palpal) until the age of 99.”

“We named Gugu in association with our signature product Palpal. Combined with our marketing and sales abilities, we were able to take the lead in the erectile dysfunction treatment market,” said a Hanmi official, adding, “Hanmi will continue to make efforts to retain its dominance in the field,”

CKD, which imports and sells Bayer’s impotence treatment drug Levitra, was also reportedly able to reap early success on the back of its accumulated sales experience in the erectile dysfunction drug sector.

Cendom was named by combining “central” with Switzerland’s highest mountain Dom, also evoking associations with the Korean word “ssen,“ which means strong, as well as the English words “dominion” and a building’s round “dome,” according to the Korean drugmaker.

Meanwhile, another competition among local generic drugmakers is forecast to heat up once again in May of next year, when a separate patent held by Lilly on Cialis’ treatment of prostatic hyperplasia is scheduled to expire.

Lilly currently holds an independent patent on Cialis’ ability to treat enlarged prostate gland symptoms in addition to its recently expired patent on the drug’s erectile dysfunction abilities.

Upon the additional patent’s expiration in 2016, Hanmi, CKD, Daewoong and Kolmar are geared to partake in another fierce competition to promote the Cialis generics’ additional medical effects and expand the drug’s positioning in a bid to further drive up their sales.

By Sohn Ji-young (jys@heraldcorp.com)