Low strength Esomezole Plus Tab priced same as Eso Duo

Hanmi sets the ceiling price of its low-strength drug the same as Chong Kun Dang’s Eso Duo in line with its higher-strength drug

The two companies are in heated competition to take or maintain their ‘No.1’ position in the ‘PPI+antacid combo’ market… each company’s pride in their sales power in line

Hanmi Pharmaceutical has decided to set the ceiling price of its gastroesophageal reflux disease (GERD) treatment combo ‘Esomezole Plus (esomeprazole+ magnesium hydroxide)’ at the same level as Chong Kun Dang’s ‘Eso Duo (esomeprazole+sodium bicarbonate)’ to directly target Eso Duo in the market.

 

Its lower strength formulation, in addition to its higher strength, is setting out to the market at the same price as Chong Kun Dang’s Eso Duo.

 

According to the Ministry of Health and Welfare, Esomezole Plus 20/350mg Tab will be listed for insurance benefit at a ceiling price of ₩720 from the 1st of next month.

 

This is the same price as Eso Duo 20/800mg Tab.

 

Both products contain 20mg of esomeprazole.

 

Hanmi Pharmaceutical had also listed Esomeprazole Plus 40/350mg Tab at the same price as Eso Duo 40/800mg Tab, at ₩920 in April this year.

 

This is interpreted as a head-on challenge made by Hanmi against the current market-leading product, Eso Duo.

 

Eso Duo, a combination of the PPI esomeprazole and an antacid ingredient, is the product that mainstreamed such combinations in the GERD treatment market.

 

Esomeprazole, which is weak in stomach acid is complemented by an antacid to provide a quicker effect.

 

The drug was released in 2018 and exceeded ₩10 billion in sales, the record set for blockbusters, in the year of its release.

 

Last year, its outprescription sales amounted to ₩18.2 billion according to UBIST.

 

In particular, its growth continued despite the release of dozens of Eso Duo generics last year.

 

Although Hanmi has dominance over the GERD monotherapy market, it is a latecomer to the PPI+antacid combination market.

 

Therefore, the company seems to be pushing to overthrow the current leader in the combination drug market, Eso Duo.

 

Although 29 Eso Duo generics are currently listed in the market, no other drug has the same price set for their drugs higher and lower strength formulations as the original.

 

In addition, Esomezole Plus contains a different antacid from Eso Duo.

 

This means that Hanmi could have listed its drug for a higher price, in line with the highest price of esomeprazole, but had lowered its price to compete with the market leader Chong Kun Dang.

 

Therefore, industry eyes are on who will seize victory among the two companies that have the best sales power in Korea.

 

The pride is in line for the two companies, and whether Chong Kun Dang, the pioneer in the combination drug market will continue exerting its dominance in the market, or whether Hanmi, the sole leader of the monotherapy market will become a sensation in the combination drug market remains to be seen.