SEOUL - Just a few days after South Korea's Ministry of Health and Welfare announced it would not allow sales of OTC drugs at supermarkets and convenience stores, the ministry is reversing its position, saying it will now push for a revision of Korea's drug law to allow sales of OTC products in the stores.

Health Minister Chin Soo-hee, apparently shocked by rising public anger and dissatisfaction expressed by President Lee Myung-bak over the ministry's stance against OTC products, said June 10 she would push for a revision of the drug law by submitting a revised bill to the National Assembly this year.

Drugs in Korea are classified in three categories - prescription drugs, nonprescription drugs and non-drug/quasi-drugs. The ministry hopes to revise the drug law so that nonprescription fever reducers, pain killers, anti-inflammatory products and cold medicines are reclassified as quasi-drugs so they can be sold in supermarkets and convenience stores, health ministry official Park Chan-soo told PharmAsia News.

Quasi-drugs - which include disinfectants, some smoking cessation products, and low-strength vitamin supplements - have no sales restrictions in Korea.

This is the second time the ministry has reversed its position. Last week the ministry stepped back from its recent support for wider access of OTC drugs, drawing strong criticism from the public (Also see "Korea's Health Ministry Rescinds Support For Expanded OTC Drug Sales, Triggering Criticism" - Scrip, 8 June, 2011.).

The health ministry's Central Pharmaceutical Affairs Council will hold a meeting June 15 to discuss details needed for the reclassification of some non-prescription products.

Dong-A's Energy Drink Bacchus Seen Among Biggest Gainers

Dong-A Pharmaceutical Co. Ltd. is expected to benefit substantially if access is expanded for products like its blockbuster nonprescription energy drink Bacchus, which is classified as a nonprescription drug in Korea and accounts for 15% of Dong-A's annual sales.

"We believe non-prescription drug sales at supermarkets would be a strong positive for Dong-A, which sells "Bacchus," a blockbuster nonprescription drug with 2010 sales of KRW128.3 billion [$118.5 million]," Tong Yang Securities analyst Kim Miriam said in a June 7 analyst note. "In our view, the government is likely to allow non-prescription drugs to be sold at supermarkets, considering that this is already done in many advanced nations, albeit with some differences in scale. In Japan, this issue was first raised in 1994 and the first round of deregulations came in 1997."

"As health drinks witnessed a rise in sales in Japan in the past, I expect a rise in our sales when our OTC drug Bacchus is allowed in supermarkets," a Dong-A official said. "It is definitely a positive factor for us."

Analysts such as Chung Bo-Ra with Daishin Securities have noted that Korea may not see as large of a boost in OTC sales compared to Japan given that Korea's proposed OTC revision is limited to a small cross-section of therapeutic areas (Also see "Korea Health Ministry Mulling Expansion Of OTC Drug Sales: Will Korea Follow The Japan Model?" - Scrip, 18 May, 2011.).

"Nevertheless, this issue will have positive implications on the future OTC market given that a survey showed 86% of [Korean] respondents said they have an intention to purchase OTC drugs at retail stores, and there may be some differences between Korea and Japan in terms of drug purchasing patterns," Chung said.

- Peter Chang (p.chang@elsevier.com)

Korea's Health Ministry Flip-Flops Again On OTC Drug Position; Now Seeks Expanded Consumer Access

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