Rising COVID-19 Cases Spark Concerns Over Paxlovid Price Hike

Amid rising COVID-19 infections driven by new variants, industry reports suggest that the government supply price of Pfizer’s Paxlovid may soon increase. With limited treatment options available, there is growing concern within the industry about the need to stabilize the supply price.

According to reports from pharmaceutical media on August 19th, discussions have emerged regarding a potential price hike for Paxlovid. During the peak of the pandemic (2020-2022), the government prioritized keeping Paxlovid’s supply price low. Currently, Paxlovid’s consumer price in the U.S. ranges from $520 to $740 per full course, and it is expected that Pfizer may set a similar or slightly higher price in South Korea. Given Pfizer’s consistent price increases in other countries, speculations of a price adjustment in Korea have persisted. Reports indicate that the government is carefully considering its options in light of the recent emergence of new COVID-19 variants.

If the government agrees to a higher supply price for Paxlovid, South Korea may only be able to import half of the originally planned quantity. Last year, the Korea Disease Control and Prevention Agency (KDCA) allocated $136 million for COVID-19 treatments, a 53.2% reduction from the previous year’s $290 million budget. This funding was intended to cover essential costs before transitioning to the national health insurance system. With a significantly reduced budget, maintaining an adequate supply will be challenging, even with the use of emergency funds, as experts anticipate a surge in variant-driven infections.

On August 12, Young-Rae Sohn, Director of the Infectious Disease Crisis Management Bureau at KDCA, warned that the summer wave of COVID-19 variants could last an additional two weeks. In early August, 861 COVID-19 patients were hospitalized across 220 hospitals nationwide, nearly matching the total hospitalizations for all of February. In response, the KDCA announced plans to expand its COVID-19 response team to enhance treatment supply management. This initiative follows surveys conducted by the Korean Pharmaceutical Association, highlighting ongoing supply concerns, including for MSD Korea’s Lagevrio.

However, the potential price increase complicates these plans. While the supply of Lagevrio is reportedly more stable than Paxlovid, it remains limited due to its emergency use authorization status, making widespread distribution difficult. Some industry insiders argue that the government should consider approving other treatments currently in use abroad. For example, the antiviral drug Zokova, co-developed by Il-Dong Pharmaceutical and Japan’s Shionogi Pharmaceutical, has not received emergency use authorization in South Korea, though it is seen as a viable alternative if approval is granted.

Il-Dong Pharmaceutical has withdrawn its import approval application and submitted a formal request for approval. The drug, effective against both mild and severe COVID-19 cases, has clinical support, as evidenced by the Japanese government’s 1 trillion yen purchase in 2022. Experts suggest that it likely meets the minimum clinical data requirements for emergency use authorization. Meanwhile, Lagevrio remains a potential alternative given its relatively stable supply.

A representative from Pfizer Korea clarified, “We have not communicated any information regarding a twofold price increase for Paxlovid to the health authorities. Price adjustments announced by our headquarters are determined based on local conditions and do not automatically apply to South Korea. We are working closely with the government to ensure that Paxlovid is made available to patients in need as quickly as possible.” When asked about possible price changes, the representative declined to comment, citing confidentiality agreements.