In a recent development within the central nervous system (CNS) drug sector, Samil Pharmaceutical has successfully secured the distribution rights for 'Efexor,' a leading antidepressant. The company has expanded its market presence by acquiring various originals and products from Sandoz, thereby reinforcing its 'depression portfolio.'

Industry sources revealed on February 6th that Samil Pharmaceutical will assume control of the South Korean distribution for two variants of the antidepressant 'Efexor XR Sustained-Release Capsules (active ingredient Venlafaxine),' previously supplied by Viatris Korea. Efexor, recognized as a representative serotonin-norepinephrine reuptake inhibitor (SNRI) for depression treatment in Korea, is lauded for its heightened receptor selectivity compared to commonly used tricyclic antidepressants, offering similar efficacy with reduced side effects.

The drug has garnered clinical recognition not only for depression but also for various conditions such as premenstrual dysphoric disorder, post-traumatic stress disorder (PTSD), social anxiety disorder, panic disorder, and blushing, expanding its therapeutic applications in both labeled and 'off-label' uses in medical practice.

According to pharmaceutical market research firm UBIST, Efexor XR Sustained-Release Capsules achieved approximately $2.0 million in over-the-counter prescription sales in 2023. Despite a slight decrease of around $75,000 compared to 2022, this figure remains the highest among formulations containing the active ingredient 'Venlafaxine.' Among generics, Hanlim Pharmaceutical's 'Venexor' commands the highest selling price, but in comparison to Efexor XR, it only represents half of the sales. Even considering formulations containing the subsequent 'Desvenlafaxine' ingredient, Efexor XR ranks second, following Pfizer Korea's 'Pristiq.'

The discussion surrounding this distribution contract surfaced in late November 2023. As Samil Pharmaceutical continues to build a diverse product lineup for external growth, the emergence of the Efexor issue holds significance. The interpretation of this distribution agreement underscores the company's commitment to strengthening its CNS drug lineup, a recent focus, while pursuing overall growth with a diverse product portfolio.

Samil Pharmaceutical has notably increased its revenue through the distribution and sales of a substantial portion of Viatris Korea's products. This includes other mechanisms of action such as the antidepressant 'Zoloft,' the anxiolytic 'Xanax,' and the antipsychotic 'Zeldox.' Consequently, the revenue for this business unit reached $15.8 million in 2022. Moreover, securing licensing rights for the products of the discontinued South Korean Sandoz business has empowered Samil Pharmaceutical, with licensing rights for approximately $12.8 million worth of CNS products, further solidifying its position in the CNS drug market.

As a latecomer in the CNS market, Samil Pharmaceutical is making significant strides, leveraging its collaboration with Viatris and the recent acquisition of Sandoz's products, including the prominent antidepressant Efexor. Positioned among notable players in the field, the company's entry into the original prescription sector is viewed positively, especially in medical institutions with high trust in original prescriptions for conditions like psychiatry and neurology. The industry is closely watching Samil's potential for substantial growth, competing with other latecomers such as Hyundai Pharmaceuticals and Dongwha Pharmaceutical, who have been strengthening their presence in the CNS field in recent years.