Boryung starts in-house producing lung cancer drug 'Alimta'

Boryung obtains in-house production approval after the voluntary withdrawal of the previous item

The company is expected to fully produce the item once the remaining stocks have been depleted and it applies for reimbursement listing

As Boryung has started in-house production of 'Alimta (pemetrexed),' a non-small cell lung cancer (NSCLC) treatment that Boryung acquired the sales right in 2022, attention is drawn to the background.

 

Analysis indicates that Boryung aims to take a share of the market worth KRW 20 billion as part of a synergistic strategy for operating a manufacturing facility at the Yesan Campus.

 

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According to the pharmaceutical industry on December 25, Boryung withdrew its import approval for two 'Alimta Inj' items that the company had imported from Lily.

 

After that, Boryung is reported to have acquired approval for domestic production of the items.

 

The current approval and withdrawal are intended to transition from imported to domestically produced items.

 

Boryung's 'Alimta' is an NSCLC treatment approved in the U.S.

 

in 2004.

 

Alimta is used as a chemotherapy or used in combination with the immune checkpoint inhibitor Keytruda for treating patients with nonsquamous NSCLC.

 

After commencing the anticancer agent business in 2019, Boryung has expanded the anticancer cancer agent business.

 

In line with this, Boryung signed an agreement to acquire domestic sales rights from Lily in 2022.

 

At that time, Boryung invested about KRW 100 billion to acquire Lily's sales rights and approval for Alimta in South Korea.

 

Ahead of the time of the contract, the sales of Alimta in 2021 amounted to approximately KRW 20 billion, and Boryung had been focusing on anticancer business, such as acquiring 'Gemzar (gemcitabine).' After the acquisition, Boryung transitioned an acquired item to in-house production in about two years.

 

The rate of return is expected to be significantly greater.

 

Alimta's sales increased after the acquisition.

 

Based on Boryung's business report, Alimta generated KRW 22.6 billion in 2023.

 

Boryung's sales performance has risen to KRW 30.5 billion, based on the business report in Q3.

 

Considering that in-house produced items yield a higher rate of return than imported items, Boryung will likely have an improved rate of return amid rising sales.

 

Additionally, in-house production of 'Alimta' is expected to increase the capacity utilization rate of its manufacturing plant.

 

The average capacity utilization rate of Boryung's manufacturing plant for anticancer injectables in Yesan Campus is 74.07%, based on the Q3 business report.

 

Consequently, when the company fully produces 'Alimta' in-house, it will likely improve the rate of return and more use of the anticancer injectable manufacturing line.

 

Yet, the introduction of in-house produced items is estimated around early 2025.

 

The estimated product entry relates to remaining stocks of imported items and reimbursement procedures for newly approved items during the in-house production process.

 

"Once imported volume is all used, we will receive pricing of the in-house produced item, then launch," Boryung's representative stated regarding this issue.

 

"Drug pricing is expected to be around February 2025."