Diabetes drugs have become another cash cow for LG Chem Ltd., chemical and battery making unit under South Korea’s major conglomerate LG Group, as sales of its self-developed drugs to treat diabetes are expected to top 70 billion won ($62.2 million) this year.

According to LG Chem on Monday, the accumulated outpatient prescription sales of its diabetes drug ‘Zemiglo’ and its combo agent ‘Zemimet’ recorded 54.9 billion won in the third quarter ended September. It expects the figure to top 70 billion won by the end of this year for the first in the country’s homegrown drug pipeline.

The company’s share in local diabetes market based on accumulated sales of dipeptidyl peptidase-4 (DPP-4) inhibitor jumped to 16.4 percent in the third quarter this year from 12.9 percent in 2016. Multinational pharmaceutical brands have dominated local diabetes drug market with Januvia of MSD claiming the largest 32.0 percent share and Trajenta of Boehringer Ingelheim the second-largest 23.5 percent last year. They recorded zero growth or contraction this year.

LG Chem bets explosive sales in Zemiglo once it hits the global market. The patient needs to take only one dose of its diabetes drug per day, and the drug does not cause any gastroenteric troubles, common side effects of existing diabetes treatments, or hypoglycemia complications.

The drug upon receiving permit in 2012 began to sell in Korea in 2013. Sales stopped at 5.6 billion in the first year. The figure jumped to 55.7 billion last year.

LG Chem recently released ‘Zemiro,’ a combination drug for treating diabetes and hyperlipidemia, and plans to make more aggressive sales and marketing moves with an aim to achieve 700 billion won in drug sales for full 2017. It plans to export its diabetes drug to 30 markets across the world over the next three years, said an LG Chem official. It is in final stage to win marketing go-ahead in India, Thailand, and Columbia.

According to preliminary earnings report for the third quarter, the company’s operating profit surged 71.7 percent on year to 789.7 billion won and sales up 26.6 percent on year to 6.4 trillion won on robust performance across the board from its traditional field of chemicals on top new business of batteries and life science.

Shares of LG Chem closed Monday unchanged from the previous session at 405,500 won.

By Kim Hye-soon and Cho Jeehyun

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