S. Korea's Celltrion expects limited impact from US executive order on price reduction

Seoul, May 21 (IANS) Celltrion, a leading South Korean biopharmaceutical company, on Wednesday said it expects limited impact from recent US policy developments stemming from a drug pricing executive order signed by President Donald Trump.

Last week, Trump announced an executive order introducing a most-favoured nation (MFN) pricing model, intended to align US drug prices with the lowest prices paid by peer nations, Yonhap news agency reported.

The US Department of Health and Human Services released follow-up details on Tuesday, setting the MFN target price at the lowest drug price found in an Organization for Economic Co-operation and Development (OECD) country with a gross domestic product (GDP) per capita of at least 60 percent of that of the United States.

"This announcement targets high-cost medicines," Celltrion said.

"The impact on Celltrion's products is expected to be limited, as biosimilars, already available at lower prices and helping reduce drug costs through competition, are not included in the scope of this measure," the company added.

It said the MFN pricing rule will provide an opportunity for biosimilars in the long run as it helps the US drug market become more competitive.

Under the current US pharmacy benefit manager (PBM) system, original biologic drugs are typically given priority in formularies, limiting biosimilar adoption.

Celltrion noted that its autoimmune disease treatment, Remsima SC, is unlikely to fall under the MFN pricing rule, as it is classified as an original biologic in the US but a biosimilar in other countries, while the MFN pricing model seeks to compare the US price of an original drug with its overseas price.

The company pledged to respond swiftly to global regulatory shifts while continuing to grow its business.

In 2024, Celltrion posted 3.56 trillion won ($2.57 billion) in sales.

--IANS

rvt/