Raon Pharma’s cheap hair loss drug ignites price competition

Raon Pharma said it would sell the “cheapest hair loss treatment,” heating up price competition in the hair loss prescription drug market.

On Monday, Raon Pharma said it would roll out Finaon Tab. 1mg (finasteride). The announcement came 10 months after the launch of Finawin Tab. 1mg (finasteride). Both products are generic drugs of MSD’s original hair loss treatment Propecia.

Raon Pharma released Finawin Tab. 1mg in August last year. The product went out of stock in just two months after the market arrival, and once more later, as words spread quickly among patients that Finawin was cheaper than other treatments.

Cosmax Pharma, the holder of the Finawin’s license, changed the manufacturer from Youngil Pharm to HanAll Biopharma to meet the rising demand.

However, Finawin has been unavailable for a long time due to the shortage of supply.

Industry watchers said the manufacture must have put off the supply of Raon Pharma’s Finawin because too many drugs with the same ingredient competed.

As Finawin became out of stock for a long term, Raon Pharma decided to release a new product, Finaon. DNBIO Pharm owns the Finaon license.

Raon Pharma said it would use a low-cost strategy for Finaon sales, just as it did for Finawin. The company said it would offer the lowest price among rival drugs with the same ingredient.

“Among hair loss treatments, Finaon and Finawin supply costs are the lowest. Some drugmakers offer low prices only to particular hospitals, but Raon Pharma’s products are priced the same in any hospital,” an official at Raon Pharma said. “Patients can get the cheapest hair loss drug at a nearby clinic.”

The official went on to say that the company has not suspended the production of Finawin. “Many issues are involved, but we will release it soon.”

The company hopes that Finaon could relieve the financial burden for patients who have to take the non-reimbursable drug in the long term.

In Korea, 95 generic drugs are registered as generic drugs of Propecia.

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Raon Pharma’s release of low-priced hair loss treatment is likely to intensify price competition among hair loss prescription drugs in Korea.