Daiichi-Sankyo Korea has achieved continuous sales growth over the past five years with Enhertu (ingredient: trastuzumab deruxtecan) and Lixiana (ingredient: edoxaban).
Last year, it recorded sales of KRW 274 billion, nearing sales of KRW 300 billion. Its operating benefit also topped its peak over the past five years.
Japan-based pharmaceutical companies typically prepare audit reports for fiscal years between April 1st and March 31st. Therefore, Daiichi-Sankyo Korea¡¯s sales include performances from April of last year to the end of March this year.
¡ã (From the left) Product photos of Enhertu, Lixiana
Daiichi-Sankyo Korea experienced continuous sales growth for 5 consecutive years¡¦YoY 7.6%¡è
First, last year¡¯s sales were a significant indicator for assessing Daiichi-Sankyo Korea¡¯s growth. Its sales topped KRW 275 billion last year, up 7.6% from KRW 253.1 billion in 2022.
A similar figure has been observed over the past five years. After recording the sales of KRW 190.4 billion in 2019, ¡ãKRW 217.8 billion in 2020 ¡ã245.4 billion in 2021 ¡ã253.1 billion in 2022. Considering the growth trend, this year¡¯s sales is anticipated to exceed the KRW 3 trillion mark.
Daiichi-Sankyo Korea emphasizes its position as the top-selling Korean subsidiary of a Japanese pharmaceutical company since its establishment through the merger of Japan's Daiichi and Sankyo in 2007.
¡ã Daiichi-Sankyo Korea¡¯s sales (blue) and operating profit (red) trend over the past 5 years. (Source: IQVIA, unit: KRW 100 million)
Its operating profit has also been consistently maintained at a certain level, similar to sales. Operating profit over the past three years were: ¡ãKRW 26.1 billion in 2020 ¡ã22.1 billion in 2022 ¡ãKRW 26.6 billion in 2023. Considering that there was additional expenditure of approximately KRW 3 billion for retirement benefits in 2021, the operating profit remained at a similar level.
Furthermore, last year's basic inventory amount was adjusted to be KRW 13 billion higher than that of 2022. Considering that inventory items represent products to be sold in the future, the actual operating performance is expected to have improved further.
In the same period, the selling and administrative expenses increased by approximately KRW 5.2 billion. This rise can be attributed to increased salaries, benefits, and welfare expenses due to an increase in the number of employees from 231 in 2022 to 244 in 2023, as well as an increase in advertising and promotional expenses.
Enhertu starts generating sales¡¦topped KRW 20.4 billion in sales last year
Enhertu, an antibody-drug conjugate (ADC) therapy for cancer, has led the increase in Daiichi-Sankyo Korea¡¯s sales.
Since its approval in September 2022, it started to generate sales in 2023. Last year, Enhertu¡¯s sales amounted to KRW 20.4 billion (according to IQVIA).
In particular, with National Health Insurance coverage starting in April of this year, the sales growth rate is predicted to increase further.
According to industry sources, Enhertu has been approved for reimbursement and has passed the drug committees (DC) of 60 hospitals, including tertiary general hospitals, quickly becoming available for prescriptions.
¡ã Sales of Daiichi-Sankyo Korea¡¯s major products, Enhertu (blue), Lixiana (purple), Nasea (green), and Taleaje (orange), over the past 3 years. (Source: IQVIA, unit: KRW 100 million)
Daiichi-Sankyo Korea is actively expanding its sales and marketing workforce to accelerate market penetration for Enhertu as the new fiscal year begins in April.
The company plans to assemble a marketing team equivalent to AstraZeneca, their co-development partner, to jointly lead the market.
In addition, it added indication for the treatment of ¡®HER2- low metastatic breast cancer¡¯ and ¡®HER2 mutation, metastatic non-small cell lung cancer (NSCLC).¡¯ Although it has yet to be reimbursed, it has expanded options in clinical practice, which is expected to increase influence.
"Daiichi-Sankyo Korea and AstraZeneca Korea will collaborate closely and do our best to ensure that all patients in need of Enhertu therapy receive optimal treatment as quickly as possible," an official from Daiichi-Sankyo Korea said.
Lixiana leads the market among other competitors in the DOAC market
Lixiana, a Direct Oral Anti-Coagulant (DOAC), showed the next significant growth in sales.
Lixiana experienced 11% growth in sales, generating KRW 70.2 billion in 2022 to KRW 78 billion in 2023. During this process, it is notable that it strengthened its market dominance by outperforming prescription records compared to competing products like Eliquis (KRW 64 billion won in 2023).
Meanwhile, generics are expected to enter the market after the Eliquis patent expires in September. It remains to be seen whether Lixiana will benefit from this or if prescriptions for the same ingredient will increase following the generic's introduction.
¡ã Sales of the 'Olmesartan family' over the past 4 years. Olmetec (purple), Olmetec Plus (blue), Sevikar (green), Sevikar HCT (red), and 'Olmesartan family' (orange). (Source: IQVIA, unit: KRW 100 million)
Whereas Enhertu and Lixiana have led Daiichi-Sankyo Korea¡¯s sales, the 'Olmesartan family,' based on olmesartan, recorded consistent sales.
The 'Olmesartan family' of four products collectively generated sales of KRW 113.9 billion last year. While the growth rate in sales is not significant, these products accounted for 41% of Daiichi-Sankyo Korea¡¯s total sales.
Sevikar recorded the highest sales with KRW 51.8 billion last year. Sevikar HCT followed with KRW 32.8 billion. Olmetec and Olmetec Plus recorded sales of KRW 22.4 billion and KRW 6.9 billion, respectively.
Additionally, Taleaje (Ingredient: mirogabalin besilate), which received approval for an expanded indication for the treatment of neuropathic pain in July 2022, recorded the highest sale growth rate. It increased from KRW 900 million in 2022 to KRW 2.7 billion in 2023, although its sales volume remains modest.
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