Pharmaceutical companies are seeking new partners to boost drug sales in the 700 billion-won ($644 million) diabetes treatment market.
After Daewoong Pharmaceutical began selling AstraZeneca’s diabetes drug Forxiga, a sodium-glucose transport protein 2 (SGLT-2)-inhibitor, rival companies made a similar move.
CJ HealthCare is near signing a deal to sell Dong-A ST’s diabetes treatment Suganon, a dipeptidyl peptidase 4 (DPP-4) inhibitor, industry sources said.
As Daewoong’s contract to distribute Astellas Pharma Korea’s Suglat has expired, Handok may become Astellas Pharma’s new partner, observers said.
CJ HealthCare has been aiming to increase sales of other diabetes remedies after losing the license of AstraZeneca’s SGLT-2 inhibitor drugs Forxiga and Xigduo XR.
CJ HealthCare is in need of more diabetes lineups because the drugmaker has already turned hypertension treatment Ex-one and hyperlipidemia drug Vivacor into blockbusters.
Dong-A ST’s DPP-4 inhibitor Suganon sold 3.31 billion won in 2017, according to data from pharmaceutical market researcher IQVIA.
Although Suganon is a locally developed novel medicine, Dong-A ST needs a sales breakthrough in diabetes business. Thus, the company is likely to pick CJ HealthCare, a seasoned player in the diabetes market, as a partner firm, industry watchers said. CJ HealthCare has grown the product line of Forxiga to 30 billion won in four years.
“CJ HealthCare seems to have earned a big score for raising the revenue of the SGLT-2 inhibitor dramatically, although the drug had limits in combination therapies and reimbursements,” an executive at a pharmaceutical firm said. “CJ HealthCare must have also been attracted to Suganon as the company needs to sell new diabetes drugs.”
Astellas Pharma is likely to choose Handok as a new partner for Suglat, which Daewwong used to sell.
Handok has become an active player in the diabetes market with Amaryl products such as Amaryl Tab., Amaryl M Tab., and Amaryl-Mex SR Tab.
The drugmaker also has DPP-4 inhibitor Tenelia, which sold 12.96 billion won last year, according to IQVIA.
The company is expected to seek synergies with existing products by securing an SGLT-2 inhibitor, a next-generation product line in the diabetes treatment market.
“Drugmakers that have steadily sold diabetes drugs must have sought partnership with Astellas Pharma,” a pharmaceutical source said. “Astellas is likely to compare and choose a domestic pharmaceutical firm that has already entered the diabetes market.”