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  • Pharma-distributor 'margin war' heats up again
  • by Son, Hyung Min | translator Hong, Ji Yeon | Jun 13, 2025 06:03am
Janssen Korea notifies a 2%p margin reduction¡¦Korean pharmaceutical companies join in
The distribution industry collectively protests as a group, as seen in the cases of GSK¡¤Handok
"Even 1%p reduction significantly affects the business taking account of commissions¡¤labor fees¡¦survival is at stake"
The pharmaceutical industry and distribution industry are in conflict over profit margins. Janssen Korea reportedly notified its training companies of a 2%p reduction in margins and continuing negotiations with individual companies. Some domestic pharmaceutical companies are implementing margin reductions starting this year.

Pharmaceutical companies are citing sluggish sales, drug price reductions, and increasing debt ratios as background for these margin cuts. However, the distribution industry is showing strong resistance, claiming that if they bear labor costs, delivery fees, and other commissions, they will incur losses with every transaction.

Domestic and foreign pharmaceutical companies announce margin re
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