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| LG Chem researchers conduct experiments to find new drugs. Courtesy of LG Chem |
This is the first in a series of articles to highlight the growing importance of the biotech industry after the outbreak of the COVID-19 pandemic and shed light on the nation's biotech companies. ― ED.
By Baek Byung-yeul
The outbreak of COVID-19 served as a momentum to further highlight the importance of fostering the nation's biotech industry. President Moon Jae-in has outlined the country's vision to become a biotech powerhouse and vowed to provide active support to nurture future experts in the sector and help local firms develop new drugs.
In line with the country's vision to expand the biotech industry to produce Korea's core exports, which already include semiconductors and electric car battery cells, LG Chem is also strengthening its biopharmaceutical business.
The chemical, battery and biotech affiliate of LG Group said the company has been expanding its presence in neighboring countries such as China and Japan with its hyaluronic acid filler, "Yvoire," and rheumatoid arthritis treatment, "Eucept."
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| LG Chem's Yvoire and Y-Solution fillers / Courtesy of LG Chem |
Yvoire filler sees market share increasing in China
LG Chem launched its Yvoire filler product in China in 2013 as the second imported brand there. The company has been increasing its market share in China every year since 2016, which now stands at around 25 percent. The Chinese filler market is scaled at an estimated 600 billion won ($508 million).
Taking a cue from the success in China, LG Chem has exported Yvoire to a total of 44 countries in Asia, Europe and Latin America.
LG Chem said it was able to succeed in China thanks to its market-oriented strategy and the product's quality.
"At the time of the launch of Yvoire, China's filler market was extremely polarized. Local Chinese companies dominated the low-priced market, while European imports were the only products available on the high-priced market," an LG Chem official said.
"The filler treatment cost in China was about three to four times higher than the average cost in Korea and the main customers were in the middle or high-class segments. As it is difficult to increase market share simply by selling low-priced products there, we have focused on providing reliable and high-value products," he added.
Due to the high preference for reliable brands, LG Chem provided mid-priced, high-quality and cost-effective products and was able to secure the largest market share in just three years.
Also effective was a dual-marketing strategy targeting both doctors and consumers. For doctors there who are unfamiliar with filler procedures, LG Chem invited experienced Korean doctors and held conferences to pass on knowhow and share experiences.
For general consumers, the company recruited influencers on social network services to let them experience the effectiveness of its Yvoire fillers. Thanks to these efforts, Yvoire has grown into a famous filler product in China.
In order to improve its presence in the high-end filler market, LG Chem plans to launch the premium filler brand, "Y-Solution," which is more effective for temporary wrinkle improvement and volume restoration by injecting cross-linked hyaluronic acid containing lidocaine.
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| LG Chem's rheumatoid arthritis treatment Eucept / Courtesy of LG Chem |
Eucept rheumatoid arthritis treatment boosts presence in Japan
LG Chem is also expanding its presence in Japan's medical market with its rheumatoid arthritis treatment, "Eucept."
Eucept is a biosimilar version of multinational biotech firm Pfizer's "Enbrel." Industry data shows Eucept's market share among drugs with the same ingredients in Japan, including Enbrel, rose to the mid-30 percent range in the first quarter of 2021. In other words, one out of three users administers LG Chem's Eucept in the Japanese market, where five products, including Enbrel, are competing.
The market share of Eucept stood only at around 5 percent in 2018 when the product was launched in Japan. However, the figure grew to 18 percent only a year later and reached the 30 percent milestone in 2020.
The expansion of market share was largely due to the launch of Eucept as a biosimilar product, LG Chem said.
"Patients with rheumatoid arthritis in Japan have to pay 30 percent of the drug price. Patients who were using Enbrel can save about 100,000 won per month when replacing them with a biosimilar product like Eucept," the company official said.
The LG Chem official said Eucept's presence in Japan will continue to increase due to the price advantage and product quality.
"In the Japanese rheumatoid arthritis market, the preference for biosimilar products continues to increase because the difference in drug prices is directly related to the patient's direct cost," he added.
Since LG Chem launched Eucept, three additional Japanese pharmaceutical companies have released products, but the market share of its competitors stands at only about 10 percent, while Enbrel's share has fallen sharply to 50 percent in two years.
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