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Forxiga prescriptions 'drop' after a 'withdrawal notice'
by Kim, Jin-Gu Apr 25, 2024 05:50am
(Clockwise from top-left) Product photos of Forxiga, Envlo, Dapalon, and Trudapa. The prescription sales of ‘Forxiga (dapagliflozin),’ an SGLT-2 inhibitor class treatment for diabetes, have declined to 22% over a year. After announcing its withdrawal from the Korean market at the end of last year, the company has distributed only the remaining stocks of Forxiga in South Korea, which may have impacted prescription sales significantly. Pharmaceuticals benefiting from Forxiga’s absence include generics, which were launched after Forxiga’s patent expiration last year, and Daewoong Pharmaceutical’s Envlo (ingredient: enavogliflozin), a new diabetes drug that falls into the same class as Forxiga. As of Q1 this year, Forxiga generics hold a 25% share of the SGLT-2 inhibitor market, while Envlo has expanded to 6%. Prescription sales of Foxiga in Q1 dropped by 22%...↑continued decline since the decision to withdraw from the Korean market According to the medical market research firm UBIST, Forxiga’s outpatient prescriptions in Q1 this year amounted to KRW 11.3 billion, a 22% decline over a year compared to KRW 14.5 billion in Q1 last year. The analysis suggests that the decline in the prescription performance of Forxiga can be attributed to the release of generics following Forxiga’s patent expiration and its withdrawal from the Korean market. Forxiga has been a top-selling drug in the market since competition in the SGLT-2 inhibitor market competition has started, expanding its prescription performance. Its sales peaked in Q1 last year, generating prescription sales of KRW 14.5 billion. Forxiga’s quarterly prescription sales (unit: 100 million, source: UBIST). However, its patent expiration in April led to release of generics into the market. Although the government’s 30% price reduction measure in response to generic releases was suspended via administrative litigation, generics containing the same ingredient have been expanding their presence in the market, shaking Forxiga’s position. Indeed, after the launch of generics, Forxiga’s sales began to trend downward. The decline in prescription performance in Q1 this year was further influenced by AstraZeneca Korea‘s decision to withdraw Forxiga from the Korean market. In December last year, AstraZeneca Korea made a decision to withdraw Forxiga from the Korean market. The company plans to withdraw Forxiga, a monotherapy drug, and only leave 'Xigduo,' a combination therapy drug containing metformin. Currently, AstraZeneca Korea only provides the existing stock without additional imports from the global headquarters. In Q1 of this year, supply decreased due to inventory depletion, leading to a significant decline in prescription performance. Monthly prescriptions for Forxiga decreased over time, from KRW 4.3 billion in December last year to 4 billion in January this year and to KRW 3.6 billion each in February and March. Forxiga gap, filled by domestic companies in South Korea… with generics accounting for 25% of the market share and Envlo for 6% As Forxiga, the market’s No.1 product, is set to withdraw from South Korea, other products are competing to fill the gap left by Forxiga. Analysis of the Q1 performance indicates that generics and Daewoong Pharmaceutical’s Envlo are emerging as contenders to fill this gap. In Q1 this year, Forxiga generics recorded a total of KRW 10.2 billion. After April last year, 64 Forxiga generics were launched. These products expanded sales rapidly, generating KRW 3.9 billion in Q2, KRW 6.8 billion in Q3, and KRW 8.3 billion in Q4. In Q1 this year, Forxiga generics expanded its market share to 25% in the entire SGLT-2 inhibitor monotherapy market (KRW 40.6 billion). This represents pulling market share to a quarter of the KRW 150 billion market size within just one year of its launch. Regarding product sales, Boryung’s 'Trudapa' and Hanmi Pharm’s 'Dapalon' have grown significantly. In Q1, Trudapa recorded prescription sales of KRW 1.2 billion, while Dapalon recorded KRW 1 billion. Moreover, Aju Pharm’s 'Daparil,' Chong Kun Dang Pharmaceutical’s 'Exiglu,' and Kyung Dong Pharma’s 'Dapazin' have recorded over KRW 500 million in Q1. However, the other Forxiga generics have very low prescription performance. In Q1, out of 64 generic products, 59 (92%) had less than KRW 500 million prescription sales. Among these, 41 products had less than KRW 100 million in quarterly prescriptions. The average amount prescribed for a generic product is about KRW 159 million. Trends in the prescription market for SGLT2 inhibitor (SGLT2i) class diabetes treatment (unit: KRW 100 million, source: UBIST). Daewoong Pharmaceutical’s Envlo is rapidly expanding its market share. Envlo’s Q1 prescription sales were KRW 2.6 billion (including the prescriptions of HanAll Biopharma’s 'Eaglex'). Envlo is the first SGLT-2 inhibitor developed in Korea, and it was launched in May. Envlo recorded KRW 500 million in Q2 last year, KRW 1.3 billion in Q3, and KRW 1.9 billion in Q4. In Q1 this year, it expanded its market share by 6% in the SGLT-2 inhibitor monotherapy market. Following Forxiga, 'Jardiance,' which ranked second in the market, also benefited. Jardiance’s Q1 prescription sales were KRW 15.3 billion, up 10% compared to KRW 13.9 billion in Q1 last year, becoming the No.1 in the market. However, Jardiance’s market share in the SGLT-2 inhibitor market decreased from 47% to 38%, a 9% drop. While prescription performance increased due to the absence of Forxiga, it is analyzed that it failed to expand market share because of competition from Forxiga generics and Envlo. The pharmaceutical industry expects the market share of Forxiga generics and Envlo to accelerate further after Q2 this year when Forxiga withdrawal begins in full swing. AstraZeneca Korea is anticipating the timing of domestic withdrawal once the remaining stock is depleted. As of Q1, the prescription sales gap, valued at over KRW 10 billion, will be divided between Forxiga generics and Envlo.