November 21, 2024

• 

[THE INVESTOR] Samsung Bioepis is heating up competition in Remicade biosimilar market by launching a cheaper version in the US, challenging existing peers, especially its crosstown rival Celltrion.

Samsung Bioepis and its US marketing partner Merck said on July 24 they have started selling Renflexis, their copycat version of Johnson & Johnson’s blockbuster treatment, in the US at 35 percent discount to the listed price of the original drug. 

Renflexis is the second US biosimilar version of Remicade to be sold after Celltrion and its partner Pfizer launched Inflectra late last year at a 15 percent discount, which was later extended to 19 percent.

“Renflexis is expected to serve as a variable for sales of Inflectra in the future,” Korea Investment & Securities analyst Jin Hong-kook said.

The US is an important market as sales of Remicade stood at US$4.8 billion last year, nearly four times that in Europe where both the two companies have already launched their versions.

Samsung Bioepis is banking on the lower price to compete with Celltrion as the rival’s product has expanded its presence, with the first mover advantage.

The US prescription sales of Inflectra rose a whooping 218 percent to US$ 21.35 million in the second quarter, according to its partner Pfizer. The originator Remicade lost 14 percent of its sales in the same period.

Jin said Renflexis, which is sold under the name of Flixabi in Europe, failed to overcome the launch gap of about three years with Inflectra in the European market, and is trying to shorten the period to less than one year in the US.

On the other hand, some analysts said Reflexis won’t pose a significant threat to Inflectra.

They believe that sheer scale of clinical data provides Inflectra a competitive edge over its rival.

“Inflectra is expected to defend itself in the US with prescription data and proven safety as it did in Europe,” Hana Investment & Securities analyst Sun Min-jung said.

Samsung Bioepis launched Renflexis in Europe in September last year but sales growth of the drug has been lagging far behind that of Inflectra, marketed in Europe as Remsima. Introduced in 2014, Inflectra increased its market share to 40 percent in the region last year.

“When doctors prescribe generic drugs, they consider not only the pricing but also relevant clinical data assuring its quality and safety. In the case of Celltrion, we’ve already built up such quality credentials in Europe, and are simply adding competitive pricing to our offering.” Celltrion CEO Kim Hyoung-ki said in an interview with The Investor earlier this year.

By Park Han-na (hnpark@heraldcorp.com)