April is likely to be a ‘gloomy’ month for Pfizer Korea, AZ Korea, MSD Korea, and Novartis Korea. The reassessment on the cost-effectiveness of high cholesterol medications will be conducted next month, and the prices of these companies’ major products may continue to go down, which will have a significant impact on their total sales.

 

Moreover, Pfizer Korea (-16%) and Sanofi-Aventis Korea (-2%) experienced unprecedented losses in sales last year, so they may post negative rates compared to the previous year when they report their sales growth status in April. First of all, in the case of Pfizer Korea, the reassessment will include two items, Lipitor and Caduet. By the IMS report last year, Lipitor made \87.5 billion in sales, and Caduet made about \20 billion. When the average 15% price reduction is applied, the sales of Lipitor will go down by \12 billion, and the sales of Caduet will fall by \2.5 billion.

 

The exemplary assessment will be conducted twice, this year and next year, so the total sales may decrease by almost \30 billion. In fact, the total sales of Pfizer Korea had decreased due to the last year’s price reduction for high cholesterol treatment drugs including Novarsc. It is a relief that the Policy Reform Subcommittee decided to discuss again on how much the price of Lipitor should be reduced.

 

In the case of AZ Korea, the price of Crestor will be reassessed. AZ Korea is in deep trouble since Crestor is the drug with most sales among its major products. Crestor made about \44 billion on the IMS standard last year. When the average 15% price reduction is applied, its sales will be reduced by \12 billion in two years.

 

In the case of MSD Korea’s Vytorin, it is even worse. Currently, Vytorin is prescribed as a primary medication. However, the Ministry for Health, Welfare, and Family Affairs (MIHWF) is preparing a revised bill for tertiary medications. If Vytorin is downgraded to a tertiary medication, its sales will immediately decrease to a great extent. The academic society is conducting a debate now, and the decision on the tertiary medications will be made in April.

 

Vytorin made \24 billion in sales last year. When the price reduction policy is applied, its sales will likely be reduced by about \10 billion. Lescol XL SR tab. of Novartis Korea is also included in the reassessment. Lescol XL SR tab. made about \10.2 billion in sales last year. Its sales are expected to decrease by about \2 billion.