SEOUL, KOREA - Most pharmaceutical companies that expected earlier this year to reach the 1-trillion-won sales goal are finding themselves in a position much worse off than hoped for.

 

All the "big-three" pharmas expect that their sales revenue to remain at the 900-billion-won level, largely due to the government's continued pressure on them to lower drug prices, as well as the economy-wide recession.

 

According to industry sources on December 23, Yuhan Corp., the No. 1 drug company in Korea, will stop short of making the 1-trillion-won club membership and post about 930 billion won. Earlier the company had been considered the likeliest candidate to break the milestone, on the back of brisk sales of drug raw materials and the drugs imported from Boehringer Ingelheim.

 

Dong-A Pharmaceutical, whose 2012 sales revenue was 930 billion won, expects that its 2013 sales would be in the range of 920 billion won. The sales revenue of its main units including Dong-A ST and Dong-A Socio Holdings saw its specialized drug sales decline, although that for its "Bacchus" energy drink rose slightly.

 

Green Cross, which has seen its sales revenue rise fast for the past few years, expects that its 2013 sales revenue would rise 7 percent to 870 billion won. Even though the company saw important achievements in 2013 such as the meeting of $100-million goal in vaccine and I.V. globulin products, it will be unable to reach the 1-trillion-won sales goal at the end of the year.