Will Ferinject be reimbursed this time?

Soon to complete pricing negotiations with the NHIS

60-day negotiation period will end this month... talks had broken down in 2020

High-dose iron supplement effect, popular in the field... Its price of KRW 250,000 remains a barrier

Reimbursement for JW Pharmaceutical’s high-dose iron injection ‘Ferinject Inj’ is imminent in Korea.

 

Although the company failed to pass the pricing negotiation stage once in 2020, analysts are seeing a true possibility for its reimbursement this time, as the company's willingness for its reimbursement is stronger than ever.

 

According to industry sources on the 4th, the reimbursement application for Ferinject passed the Health Insurance Review and Assessment Service’s Drug Reimbursement Evaluation Committee meeting in January and is currently in the drug pricing negotiation stage with the National Health Insurance Service.

 

The 60-day drug pricing negotiation period will end at the end of this month.

 

Therefore, depending on the speed of the negotiations, Ferinject can be reimbursed in Korea as early as next month.

 

However, given the short period left to report to the Health Insurance Policy Review Committee this month, it is likely that the drug will be included in the reimbursement list in May.

 

The drug, which was introduced by JW Pharmaceuticals from the Swiss company Vifor and released in Korea in 2011, is a high-dose iron injection that has the advantage of supplementing iron with just a single injection.

 

On January 11, the Ministry of Food and Drug Safety determined that the drug was adequate for reimbursement in treating iron deficiency.

 

This is the 4th time the company attempted reimbursement listing for Ferinject.

 

In 2014 and 2018, the drug failed to pass the DREC review, and in 2020, the drug was recognized as adequate for reimbursement at the DREC level but filed to complete negotiations.

 

Despite such setbacks, the company has been posting strong sales in the non-reimbursement market.

 

In 2022, the company's consolidated annual sales reached KRW 20.5 billion.

 

While conventional intravenous iron injections take more than 40 minutes per dose and require multiple hospital visits, Ferinject can quickly replenish iron in the body with up to 1,000 mg of iron per day in 15 minutes, making it an effective alternative to blood transfusions for surgical patients who need to raise their hemoglobin levels in a short period of time, and for mothers who experience hemorrhage due to childbirth.

 

Its high efficacy and convenience have made it popular in the non-reimbursement market, and its market has been growing strongly every year.

 

However, its cost, which is around KRW250,000 per injection, is posing a financial burden for the patients.

 

According to the company, it needs to be reimbursed to make it more affordable for more patients.

 

The problem is if the drug is reimbursed, its price has to become lower than its non-reimbursed price.

 

Therefore, JW Pharmaceuticals is expected to struggle over the change in profit margin and balance the increased usage and price difference during drug price negotiations.

 

However, as it is the second drug price negotiation, the industry believes that there is a higher chance of the NHIS and the company reaching an agreement than in the last negotiation in 2020.

 

This is because if the negotiations fall through again, it will be difficult to attempt reimbursement again.

 

An industry official said, “The deadline for negotiations is the end of March, but it will take a while for the two to reach an agreement.

 

Depending on the progress, the drug may be listed in April, but I don't think the company will deliberately speed up the process."