MSD Korea is likely to change the partner firm for copromoting its vaccines to HK inno.N from GC Pharma, pharmaceutical industry sources said.

MSD Korea may end the joint vaccine sales agreement with GC Pharma by the end of the year, they said. The multinational drugmaker reportedly selected HK inno.N, a subsidiary of Kolmar Korea Holdings, as a new partner firm. MSD Korea is likely to announce the new agreement this week, sources said.

MSD and HK inno. N are expected to collaborate on the sales of shingles vaccine Zostavax, cervical cancer (HPV) vaccine Gardasil 4, and Gardasil 9. GC Pharma entered the partnership with MSD for the three vaccines' domestic sales and marketing in 2013, and GC Pharma distributed the medicines.

Among them, Gardasil 4 was included in the national immunization program (NIP) in June 2016, becoming available for free for 12-year-old girls.

The three vaccines sold 102.5 billion won in 2018 and 117 billion won in 2019. Gardasil 4 recorded 24.5 billion won ($92.2 million) sales in 2018 and 20.6 billion won in 2019. Gardasil 9 sold 20.9 billion won and 40.5 billion won in 2018 and 2019, respectively. Zostavax posted 57.1 billion won revenue in 2018, and 55.9 billion won in 2019.

As the three vaccines have large shares in each market, GC Pharma’s failure to extend the joint sales agreement with MSD could dent the local drugmaker’s business, observers said.

In contrast, HK inno.N could benefit from the new contract with MSD as it can signal that it would resume vaccine business. The company plans to go public in the first half of next year.

Both MSD Korea and HK inno.N declined to comment on any joint sales agreement changes.