Catching the Hair Loss Population... Intense Competition in Low-Cost Hair Loss Medication Market

Hair loss related image [Photo by Asia Economy DB]

The market for male pattern hair loss treatments is heating up again.

According to recent reports from the pharmaceutical industry, a hair loss drug containing finasteride, priced more than 10% lower than existing treatments, has emerged. Previously, after the patent for the oral male pattern hair loss treatment "Propecia Tablets" (active ingredient finasteride), developed by the global pharmaceutical company MSD (Merck & Co., USA), expired in 2008, generic versions flooded the domestic market, sparking price competition. In 2019, the introduction of generics priced at half the cost of the original led to a general reduction in drug prices. Recently, a hair loss drug emphasizing an even lower price has appeared. Hair loss treatments are non-reimbursable prescription drugs not covered by the National Health Insurance.

Jung Yoon-taek, Director of the Pharmaceutical Industry Strategy Research Institute, stated, "Typically, developing a new drug requires astronomical costs and time for research and development (R&D) and clinical trials, but generics, which replicate the original drug's active ingredients, only need to pass the bioequivalence test (proving the same active ingredient). The technical barrier is virtually zero," adding, "It seems that companies believe they can still make sufficient margins through a low-price, high-volume strategy amid ongoing generic competition."

According to the Ministry of Food and Drug Safety, there are as many as 232 types of prescription drugs containing finasteride. An industry insider predicted, "Pharmaceutical companies will inevitably face pressure to lower prices to avoid losing market share."

According to the pharmaceutical market research firm Ubist, the domestic market size for oral male hair loss treatments grew from 100 billion KRW in 2019 to 134.8 billion KRW last year. Among these, finasteride formulations account for 112.7 billion KRW, representing the majority.