Why Did Jeil Pharmaceutical Introduce a New Antibiotic That "Doesn't Make Money"?

On February 2, when Jeil Pharmaceutical launched Petroja (ingredient name: cefiderocol), a new antibiotic introduced from the Japanese company Shionogi, the market reaction was calm. On the same day, Jeil Pharmaceutical's share price closed down 2.59% from the previous trading day. Despite the positive news of launching an innovative new drug, investors showed little response, which is interpreted as stemming from concerns about the inherently low-profit structure of the antibiotic market. This contrasts with the situation in hospitals and other medical settings, where the introduction of Petroja has been eagerly awaited for a long time.

Petroja is the world's first siderophore cephalosporin antibiotic. It targets multidrug-resistant gram-negative bacteria, including carbapenem-resistant Enterobacteriaceae (CRE), which have neutralized even carbapenems, currently referred to as the "strongest antibiotics." By stealthily using the bacteria's iron uptake channels to penetrate, its so-called "Trojan horse" mechanism breaks through the robust double membrane of gram-negative bacteria.

원본보기 아이콘

According to the pharmaceutical and medical communities on February 6, the introduction of a new-mechanism antibiotic like Petroja into the Korean market is the first in about nine years since the launch of Zerbaxa (ingredient names: ceftolozane and tazobactam) in 2017. The long gap is analyzed as being due to a structure in which it is difficult for pharmaceutical companies to secure profits. To prevent the spread of resistance, antibiotics are restricted in both target population and duration of use. As prescription volume increases, it is evaluated not as a "success" but as a "failure of stewardship," so in actual clinical practice, use is strictly controlled through antimicrobial stewardship programs (ASP). In other words, the so-called "blockbuster model," which scales up sales through mass prescriptions, is structurally impossible.

Jeil Pharmaceutical appears to have prioritized clinical necessity over business potential in pushing ahead with the launch of Petroja. During the process of listing Petroja for National Health Insurance reimbursement, a risk-sharing agreement (RSA) was applied. This is a system under which, when there is significant uncertainty regarding a new drug's effectiveness, utilization, and financial impact, the pharmaceutical company refunds part of the drug cost or sets an overall expenditure cap to jointly share the burden on the insurance budget. When RSA is applied to drugs like antibiotics, whose eligible patient population is limited and whose sales are difficult to predict, the structure requires the pharmaceutical company to bear a certain level of financial risk. The industry views the reimbursement listing of Petroja more as a case of prioritizing patient access than as a strategy to expand sales.

Peteuroja product advertisement image. Jeil Yakpum

원본보기 아이콘

There is also growing interest in the possibility that institutional changes could transform the overall environment of the antibiotic industry. The view is that it has become possible to set drug prices more flexibly for new drugs with high clinical necessity, as seen in the application of an economic evaluation exemption track to Petroja. Some analysts also suggest that technology transfer and in-licensing activities could become more active in the future. Sumi Kim, Executive Director of the Global Business Division at Jeil Pharmaceutical, said, "In the case of technology transfer for multidrug-resistant antibiotics, I believe it is highly likely to focus not on simple modifications of existing antibiotics, but on so-called 'super antibiotics' with differentiated mechanisms targeting hospital pathogens that current therapies cannot address." In other words, since there is still clinical demand for treating resistant bacteria that are difficult to manage with existing antibiotics, antibiotics capable of filling this therapeutic gap are expected to be highly valued in the future technology transfer market.

Demand for new drugs to combat antibiotic-resistant bacteria is expected to grow further. According to the market research firm Fortune Business Insights, the global antibiotic market is projected to grow from about 44.8 billion dollars (approximately 6.5 trillion won) in 2026 to 64.3 billion dollars (approximately 9.4 trillion won) in 2034. As the spread of resistant bacteria coincides with an increase in severe infections, their strategic importance as essential medical infrastructure is analyzed to be rising even further.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.