SK bioscience banks on shingles vaccine as market gap opens and summer arrives

Industry

Published: 03 Jun. 2024, 16:42 Updated: 03 Jun. 2024, 16:44

SK bioscience banks on shingles vaccine as market gap opens and summer arrives

SK bioscience researchers conduct tests at L House, the company’s vaccine manufacturing facility in Andong, North Gyeongsang. [SK BIOSCIENCE]

SK bioscience is seeking a breakthrough with its shingles vaccine amid anticipated summer demand and longtime rival MSD's withdrawal from the shingles vaccine market.

SKYZoster, developed by SK bioscience, was the No. 1 shingles vaccine in Korea last year with 310,159 doses sold. It beat the other two zoster vaccines available locally: GSK's Shingrix with 224,334 doses sold and MSD's Zostavax with 223,842 doses sold.

Shingles, also known as herpes zoster, is an extremely painful illness that is most common in adults over the age of 60. It's a neurological disease caused by the varicella-zoster virus, and occurs in people who have previously had chickenpox. The virus is reactivated in the body's nerve cells due to a weakened immune system.

SKYZoster, SK bioscience's shingles vaccine [SK BIOSCIENCE]

SK bioscience expects increased sales of SKYZoster, as rival manufacturer MSD recently said it would discontinue the distribution of its Zostavax globally. Domestic distribution is expected to end as early as September.

Zostavax has been available in Korea since April 2009 for people aged 50 and older.

"The halt was decided through a thorough review of market conditions as Zostavax showed slowing demand since a new vaccine product was launched in 2017," a spokesperson for MSD Korea told the Korea JoongAng Daily. "The last distribution in Korea will be around September and October."

Launched in 2017, SKYZosternow holds around half of the domestic shingles vaccine market.

With MSD leaving the market, SK bioscience's SKYZoster is considered to be a more promising product than GSK's Shingrix due to its highly competitive price tag. SKYZoster reportedly costs around 100,000 won ($73) for a dose, while Shingrix is priced at around 200,000 won.

Shringrix also requires two doses for complete vaccination, which means it can cost around four times as much as SKYZoster.

The high vaccination rate during the summer is also expected to affect sales.

Local governments across the country, including Gongju city in South Chungcheong, Andong city in North Gyeongsang and Suncheon city in South Jeolla, have started providing free shingles vaccinations to elderly local residents from June, as the number of shingles outbreaks has been on the rise due to the unseasonably hot weather.

When the body experiences sudden changes in temperature, especially in the summer months, it often uses extra energy to adjust. This can cause a significant decrease in immunity.

The body's immune system can also be compromised by the overuse of air conditioning, lack of sleep due to tropical nights and electrolyte imbalances due to excessive sweating.

Vaccination reduces the risk of developing shingles and offers a 67 percent reduction in complications, such as nerve pain, SK bioscience said.

"SKYZoster is being used by many government bodies, which proves its efficacy and safety," said a spokesperson from SK bioscience. "Convenience is also key, as SKYZoster requires only one dose. People highly prefer fewer doses after the pandemic."

The shingles vaccine is one of the main focuses for SK bioscience in terms of its new future growth engine. The company's earnings mostly came from the Covid-19 vaccine and its contract-based manufacture.

SK bioscience posted 28.1 billion won in operating loss in the first quarter, while sales of its shingles vaccines rose by 4.1 billion won.

SKYZoster won marketing approval in Thailand and Malaysia.

SK bioscience is participating in this year's BIO International Convention 2024, the world’s largest biotechnology and pharmaceutical trade show, for the first time to promote SKYZoster.

This year’s BIO USA, which will run from June 3 to 6 in San Diego, is expected to be attended by 20,000 visitors and over 1,500 companies.

BY SARAH CHEA [chea.sarah@joongang.co.kr]