Quarterly sales of omega-3 prescription mkt surpassed KRW 50B

Q2 prescription sales for omega-3 monotherapy‧combination therapy amounted to KRW 50.5B…8% rise Year-over-Year

Korea United Pharm, combined sales of monotherapy and combination therapy amounted to KRW 15.4B…Gunil Pharm‧Gunil Biopharm recorded KRW 14.6B in sales

Increased concerns over global supply disruption of omega-3 raw material due to climate changes…manufacturers have started to secure inventory

Quarterly prescription sales in South Korea's domestic prescription omega-3 market have surpassed KRW 50 billion. The market continues to show a steady upward trend centering around Korea United Pharm and Gunil Pharmaceutical.

Variables in this market include global supply shortages of omega-3 active pharmaceutical ingredients (APIs). Most global omega-3 raw materials rely on anchovy catches off the coast of Peru; however, harvest yields have dropped significantly due to recent climate change impacts and stringent conservation measures enforced by the Peruvian government. In response to these global developments, omega-3 manufacturers in South Korea are reportedly focusing on preemptively securing raw material inventories.

Quarterly omega-3 prescriptions surpass KRW 50B… Korea United vs. Gunil compete for the top rank

According to pharmaceutical market research firm UBIST on the 30th, the South Korean prescription omega-3 market reached KRW 50.5 billion in the second quarter of this year, an 8% increase year-over-year.

This is the first quarter that prescription sales for omega-3 pharmaceuticals have crossed KRW 50 billion KRW. The domestic prescription omega-3 market first surpassed KRW 100 billion annually in 2021, followed by KRW 150 billion in 2022. Reaching KRW 189.7 billion last year, expectations are rising that annual sales will expand beyond KRW 200 billion KRW this year.

Prescription market volume of Korean omega-3 by quarter (unit: KRW 100 million, source: UBIST). YELLOW-monotherapy, GREEN-combination therapy

Both the omega-3 monotherapy and statin combination therapy markets continue to demonstrate consistent growth. The monotherapy market expanded by 8% year-over-year, growing from KRW 35 billion to KRW 38 billion. Meanwhile, the market for omega-3 in combination with rosuvastatin or atorvastatin rose 7%, from KRW 11.7 billion to KRW 12.6 billion.

By manufacturer, the market is split between Korea United Pharm and the Gunil Pharmaceutical/Gunil Biopharm alliance. Korea United Pharm holds the omega-3 monotherapy Omethyl Cutielet Soft Caps, along with the atorvastatin combination Atmeg Combigel Soft Cap and the rosuvastatin combination Rosumax CombiGel Soft Cap.

Combined prescription sales of these three products reached KRW 15.4 billion, an 11% increase compared to KRW 14 billion in Q2 of last year. Specifically, Omethyl Cutielet Soft Caps generated KRW 8.8 billion, Atmeg Combigel Soft Cap recorded KRW 7.3 billion, and Rosumax CombiGel reached KRW 2.3 billion. Rosumax CombiGel, in particular, surged 68% year-over-year from KRW 1.4 billion.

Gunil Pharmaceutical markets the monotherapies Omacor and Omacormini, the rosuvastatin combination Rosumega, and the atorvastatin combination Atomega. Through Gunil Biopharm, it also distributes Cicor, G-Maco Mini, and Romega. Combined prescription sales for these products increased 4%, moving from KRW 14.1 billion in Q2 of last year to KRW 14.6 billion in Q2 of this year.

Korea United Pharm and the Gunil alliance are competing fiercely for top spot in the prescription omega-3 market. Gunil Pharmaceutical maintained a solid lead through the third quarter of 2024, after repeatedly handing over the top spot. Since the start of this year, however, Korea United Pharm has taken the lead and is widening the gap against Gunil.

Competition between Korea United Pharm vs Gunil Pharm for the top rank in the omega-3 prescription market (unit: KRW 100 million, source: UBIST). RED-Gunil, BLUE-Korea United

In addition to these top competitors, Hanmi Pharm, Korea Prime Pharm, and Yuyu Pharma recorded quarterly prescription sales exceeding KRW 2 billion in Q2. Arlico Pharm, Yungjin Pharmaceutical, Daewoong Bio, Chong Kun Dang, and Ahn-gook Pharmaceutical each recorded sales exceeding KRW 1 billion.

Rising concerns over omega-3 API shortages amid climate change...Korean manufacturers rush to secure supply

A critical variable for this market is reported as heightened concerns over global supply disruptions.

Purified fish oil, the core active ingredient in prescription omega-3, relies heavily on anchovies harvested off the Peruvian coast. However, severe weather anomalies such as El Niño have caused catch volumes to plummet this year. At the same time, the Peruvian government has implemented strict regulatory actions, including substantial reductions in fishing quotas to protect marine resources.

As a result, crude fish oil prices have skyrocketed while available market supply has plummeted, putting the domestic pharmaceutical industry on high alert.

Major Korean pharmaceutical companies predominantly prefer European-refined APIs due to strict quality and regulatory compliance standards. However, starting material processing for these European API suppliers is largely handled by facilities in China. Ultimately, a "global supply chain butterfly effect" is unfolding: reduced anchovy catches in Peru cause supply disruptions of starting materials in China and refined API bottlenecks in Europe, culminating in acute supply shortages within the Korean domestic omega-3 drug market.

Consequently, pharmaceutical companies producing prescription omega-3 products are taking direct action. A procurement manager from a major domestic omega-3 manufacturer recently took an emergency flight to China to assess raw material supply conditions and secure inventory on-site.

An official from the pharmaceutical company expressed concern, noting, "Relying solely on European API vendors supplying the final refined material creates serious risks of production line shutdowns," and added, "While our existing inventory is sufficient for short-term production, if global API supply shortages persist, widespread stockout events across the entire Korean market could result within six months."