The domestic pharma industry is paying attention to whether Mundipharma Korea will be included in the series of foreign branch sell-offs by its headquarter office, Purdue Pharma.

Purdue Pharma is selling off its overseas branches to clear debts related to opioid overdose lawsuits. Of its 140 branches worldwide, only 33 are in operation in January 2023. Its U.S. corporation has been changed to a global corporation, and the rest of the branches are also being reorganized, leaving only its distribution network.

In 2021, Purdue Pharma expressed an intention to sell its Chinese branch for $1 billion. However, the sale was suspended in January 2022 because they failed to reach an agreement in the valuation stage.

It has yet to be confirmed whether concrete discussions are being made to sell Mundipharma Korea. However, there remains the possibility now that Purdue Pharma has expressed its intention to sell off Mundipharma. Two Mundipharma affiliates – Rosebay Medical and Hambert BV – each has a 50-percent equity stake of 50 percent in Mundipharma Korea.

Even so, some market analysts predicted that the sales of Mundipharma would be challenging even if Purdue Pharma wanted so due to its Korean offshoot debt.

Two things will hinder the smooth sale of Mundipharma Korea even if its headquarter office pushes it. First, according to the 2022 audit report of Mundipharma Korea, its debt stood at 200 billion won ($157 million). Second, the cause of the U.S. lawsuit was its headquarters office dealt with narcotic painkillers.

In this situation, the atmosphere at Mundipharma Korea appears not to seem very stable.

Adding to the uncertainty was Mundaipharma Korea management’s implementation of an early retirement program (ERP) according to the headquarters office’s large-scale organizational reshuffle. Mundipharma Korea reportedly has suspended some employees who refused the ERP scheme from their duties.

“Narcotic painkillers have been the biggest Cash Cow of Mundipharma Korea, but it is losing strength, and new pipelines are insufficient,” a company official said. “Moreover, Mundipharma’s drug patents will expire in the next few years. So, the headquarter office is trimming workforce to keep its per capital productivity, frustrating its staff members.”

Another company official said, “Mundipharma plays a substantial role in treating pains, but its status is destabilizing. If the external pressure increases, the company should solidify its internal cohesion. However, watching the management suspend the duties of employees who have worked hard for years, I can’t help but have regrets.”

Mundipharma Korea has yet to announce its official position on inquiries about its rumored sell-off or ERP program.