Note on Glivec Price Hike in South Korea

January 22, 2003

Today, South Korea government decided to raise the price of Glivec by about 30%.

On 16th November 2001 SK government set the ceiling price of Glivec KRW 17,862 per 100 mg capsule (about USD 15). However, Novartis denied to accept the price and applied for the price adjustment with arguing that the price should be raised by 34%. Novartis said its price was based on the average price of Glivec in seven advanced countries - France, Switzerland, Italy, Germany, Canada, the UK and the US. Accepting most of the Novartis' positions, SK government adjusted the price to be KRW 23,045 (about USD 19.2) that corresponds to 83% of the average price of A7 prices.

With the price advance, previous 30% of cost share by patients was lowered to 20%.

By the decision of today, the cost paid by a leukemia patient ranges from KRW 497,772 to 1,244,430 (about USD 415 to 1,037) per month.

HeeSeob Nam
Patent Attorney, Intellectual Property Left
Dabong Tower Bldg., 10th Fl.,
890-12 Daechi-dong
Kangnam-gu, Seoul, Korea 135-280
Tel. +82 2 3430 4300 Fax. +82 2 3430 4200

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