Novo Nordisk is pushing to secure national health insurance coverage for its obesity treatment Wegovy in South Korea. The move comes as Hanmi Pharmaceutical’s Epe, the first domestically developed GLP-1 obesity drug, nears its market launch, prompting expectations that price competition in South Korea’s obesity drug market is about to heat up.

According to pharmaceutical and biotech industry sources on the 12th, Novo Nordisk Korea recently submitted a reimbursement application for Wegovy to South Korea’s Health Insurance Review and Assessment Service (HIRA). The company said the decision was aimed at improving treatment access for patients with severe obesity and comorbidities.

Wegovy is an injectable medication used for weight management in patients with severe obesity or those who are overweight with conditions such as diabetes, hypertension, dyslipidemia, or cardiovascular disease. It is also approved for adolescents aged 12 and older.

A Novo Nordisk Korea official said, “This is not so much a response to competition with Epe or Eli Lilly’s Mounjaro, but rather a reimbursement application based on the approved indications. It is a decision to open up more treatment opportunities for patients with severe obesity who suffer from comorbidities such as cardiovascular disease.”

Reimbursement Card Played Ahead of Domestic Drug Launch

Industry observers are paying close attention to the timing of the reimbursement filing. Hanmi Pharmaceutical is preparing to launch Epe (ingredient name: efpeglenatide), South Korea’s first domestically developed GLP-1 obesity drug, as early as the end of this month. Epe received approval from South Korea’s Ministry of Food and Drug Safety on the 7th, becoming the country’s 45th domestically developed new drug, with Hanmi Pharmaceutical leading the effort from R&D through production.

Epe’s supply price has not yet been finalized, but industry expectations point to a four-week supply at the lowest dose being priced in the 100,000 won range (approximately $75). Wegovy and Mounjaro are both priced in the 200,000 won range (approximately $150) for a four-week supply. With Hanmi Pharmaceutical expected to leverage price competitiveness to capture market share, the interpretation is that Novo Nordisk is countering with the insurance coverage card.

Novo Nordisk previously slashed Wegovy’s price in August of last year when Mounjaro entered the South Korean market. The company is now extending its strategy of responding to global competitors with price cuts to pursuing insurance reimbursement.

If Wegovy gains national health insurance coverage, patient out-of-pocket costs would decrease, but it could strain the national health insurance budget. Reimbursement decisions are made through HIRA’s Pharmaceutical Reimbursement Evaluation Committee review and drug price negotiations with the National Health Insurance Service.

Hanmi Bets on Price, Supply, and Sales Force

Hanmi Pharmaceutical is reviewing Epe’s pricing with a focus on reducing long-term treatment burden rather than simply engaging in a low-price war. A Hanmi Pharmaceutical official said, “We are making company-wide efforts to supply Epe to the market as early as the end of this month,” adding, “We are in the final stages of deliberation on pricing.”

The official added, “We are reviewing pricing with a focus on reducing the number of patients who abandon or discontinue necessary treatment due to cost burden, rather than simply competing on low prices. The final price will be determined by comprehensively reflecting market conditions after approval, distribution structure, the product’s clinical value, and sustainable supply conditions, while clearly maintaining the principle of improving patient access.”

Hanmi Pharmaceutical is touting Korean clinical data as a key differentiator. In a 40-week interim analysis of a Phase 3 trial involving 448 Korean patients with obesity, Epe demonstrated an average weight reduction of 9.75%, with 79.42% of patients in the Epe group achieving at least 5% weight loss. The company plans to manage gastrointestinal adverse events through stepwise dose escalation and secure supply capacity through direct production at its Pyeongtaek bioplant.

Supply stability is considered a key evaluation factor in the market. Obesity treatments have experienced repeated shortages and supply disruptions due to surging demand, making supply availability a potential variable in prescription expansion. Sales force strength is another advantage. Hanmi Pharmaceutical ranked first among South Korean pharmaceutical companies in outpatient prescription sales for eight consecutive years from 2018 to 2025. The company is well-positioned to rapidly expand its prescribing market by leveraging its relationships with physicians who treat obesity patients.

Zemiglo Precedent Revisited

There is precedent for a domestically developed drug gaining traction in a market dominated by imported products. LG Chem’s Zemiglo, South Korea’s 19th domestically developed new drug, entered the diabetes treatment market in 2012 as a latecomer, competing against MSD’s Januvia and Boehringer Ingelheim’s Trajenta. Through accumulation of clinical evidence, launch of combination products, and co-marketing with Daewoong Pharmaceutical, Zemiglo expanded its prescribing base and ranked first in outpatient prescription sales in the DPP-4 inhibitor market in 2023.

Industry observers are watching whether Epe can follow in Zemiglo’s footsteps and demonstrate the presence of domestically developed drugs in a market dominated by global pharmaceutical products. South Korea’s obesity treatment market has been growing rapidly, led by Wegovy and Mounjaro, with global pharmaceutical companies dominating prescriptions and market share.

As a late entrant, Epe faces the challenge of converting clinical results into prescription expansion and revenue. Product quality, along with pricing, supply stability, and sales network, are expected to be key variables in its market establishment. Given the rapid growth and large patient population in the obesity treatment market, commercialization performance is considered even more critical.