Korea’s First Homegrown Obesity Drug Begins Prescriptions, Challenging Mounjaro on Price

South Korea's inaugural homegrown GLP-1 obesity medication, Eppe, has commenced prescription sales, posing a challenge to international pharmaceutical giants Mounjaro and Wegovy. Manufactured by Hanmi Pharmaceutical, Eppe's active ingredient is efpeglenatide. The drug became available for prescription at select medical facilities on October 29, with shipments beginning on October 22.

Initial supplies are limited, potentially leading to delayed nationwide distribution. Eppe's primary competitive edge lies in its affordability, with a first-four-week supply price of around $97.20, roughly half of Mounjaro's price and about 40% less than Wegovy's. The pricing per dose is as follows: 2 milligrams for 24,200 won, 4 milligrams for 40,700 won, 6 milligrams for 57,200 won, 8 milligrams for 69,300 won, and 10 milligrams for 74,800 won.

Patients begin at 2 milligrams and incrementally increase their dosage to 10 milligrams. From week 13, a four-week course costs 299,200 won. Since obesity treatments are not covered by national health insurance, patients are responsible for the full cost. Hanmi Pharmaceutical emphasizes the drug's domestic development, stating that the entire process, from candidate discovery to commercialization, was carried out using Korean technology.

A Phase 3 clinical trial involving 448 Korean patients with obesity revealed an average weight loss of 9.75% over 40 weeks, with some participants losing up to 30% of their body weight. Despite Eppe's weight-loss results appearing less impressive than its competitors, direct comparisons are challenging due to differences in patient populations and conditions.

The trial specifically included only Korean patients, whose BMI may differ from those in international studies. Hanmi aims to capture a significant portion of South Korea's GLP-1 obesity drug market, valued at approximately $2 trillion annually, and establish a three-way competitive landscape alongside Mounjaro and Wegovy. The company targets a first-year sales revenue of 100 billion won, representing about 5% of the domestic market.

Eppe's competitive pricing is expected to drive prescription growth in the non-reimbursed market, where patients pay for treatment themselves. Hanmi Pharmaceutical's shares rose following the drug's launch, with the stock closing at 385,000 won on October 29, up 4.19% from the previous close. Analysts view Eppe's commercial performance as a crucial factor in the stock's recovery.

Hanmi is also developing next-generation obesity treatments, including a triple-agonist candidate and HM17321. However, Hanmi faces challenges to its core earnings, with a decline in operating profit for both Hanmi and its Chinese subsidiary Beijing Hanmi. The success of Eppe in translating its pricing advantage into prescription growth and sustained revenue will be a critical test for the company's commercial prospects.