The domestic obesity treatment market is experiencing a "price war." Hanmi Pharmaceutical has launched its domestic obesity drug Efe (active ingredient: efaglenatide) at nearly half the price of competing products, while Novo Nordisk is pushing for health insurance coverage for Wegovy. This raises questions about whether the market, which has been dominated by Eli Lilly's Munjaro, will undergo a significant shift.
According to industry sources on October 16, the GLP-1 (glucagon-like peptide-1) obesity drug market in South Korea has been led by Munjaro, which was released in August 2022. Wegovy, which was launched in October 2024, has been competing by significantly lowering its price to match Munjaro's. Both products are priced around 200,000 won for a four-week supply. Since obesity drugs are not covered by health insurance, patients bear the full cost, making the monthly expense a considerable burden for many.
In this context, Hanmi Pharmaceutical has priced Efe at around 130,000 won for a four-week supply, nearly halving the cost compared to its competitors. Considering distribution margins and medical fees, industry experts estimate that the actual initial cost for patients will be around 140,000 to 200,000 won.
Hanmi plans to leverage clinical results from studies conducted on Koreans and its domestic sales network to target the market. Analysts believe that Efe could attract a significant portion of patients who have been hesitant to start treatment due to cost concerns.
In response, Wegovy is pursuing health insurance coverage. Recently, Korean Novo Nordisk submitted a request for a health insurance benefit decision to the Health Insurance Review and Assessment Service. The targeted beneficiaries reportedly include patients with cardiovascular diseases, adolescents with obesity, and severely obese patients with comorbidities.
Wegovy has demonstrated in large-scale clinical trials that it reduces the risk of major cardiovascular events by 20% compared to a placebo. In October 2022, it also received approval for use in adolescents aged 12 and older. This evidence supports its strategy to seek coverage for patients with significant treatment needs first.
If approved for coverage, patient costs would decrease significantly. The starting supply price for Wegovy at a four-week dosage is 216,000 won, meaning that with a 30% patient co-payment, the out-of-pocket expense would be approximately 64,800 won. However, the timing and certainty of this coverage remain unclear, as it must undergo clinical utility and cost-effectiveness evaluations by the review board, and there are ongoing debates about allocating health insurance funds for obesity drugs.
Industry insiders predict that the competition will intensify as Efe's low-cost strategy clashes with Wegovy's push for insurance coverage. Whether the market leader Munjaro will respond with price reductions remains a key variable.
An industry representative stated, "With Efe's low-cost strategy and Wegovy's insurance coverage strategy in play, the pricing structure and accessibility of the domestic obesity treatment market are likely to change significantly in the coming months."
According to industry sources on October 16, the GLP-1 (glucagon-like peptide-1) obesity drug market in South Korea has been led by Munjaro, which was released in August 2022. Wegovy, which was launched in October 2024, has been competing by significantly lowering its price to match Munjaro's. Both products are priced around 200,000 won for a four-week supply. Since obesity drugs are not covered by health insurance, patients bear the full cost, making the monthly expense a considerable burden for many.
In this context, Hanmi Pharmaceutical has priced Efe at around 130,000 won for a four-week supply, nearly halving the cost compared to its competitors. Considering distribution margins and medical fees, industry experts estimate that the actual initial cost for patients will be around 140,000 to 200,000 won.
Hanmi plans to leverage clinical results from studies conducted on Koreans and its domestic sales network to target the market. Analysts believe that Efe could attract a significant portion of patients who have been hesitant to start treatment due to cost concerns.
In response, Wegovy is pursuing health insurance coverage. Recently, Korean Novo Nordisk submitted a request for a health insurance benefit decision to the Health Insurance Review and Assessment Service. The targeted beneficiaries reportedly include patients with cardiovascular diseases, adolescents with obesity, and severely obese patients with comorbidities.
Wegovy has demonstrated in large-scale clinical trials that it reduces the risk of major cardiovascular events by 20% compared to a placebo. In October 2022, it also received approval for use in adolescents aged 12 and older. This evidence supports its strategy to seek coverage for patients with significant treatment needs first.
If approved for coverage, patient costs would decrease significantly. The starting supply price for Wegovy at a four-week dosage is 216,000 won, meaning that with a 30% patient co-payment, the out-of-pocket expense would be approximately 64,800 won. However, the timing and certainty of this coverage remain unclear, as it must undergo clinical utility and cost-effectiveness evaluations by the review board, and there are ongoing debates about allocating health insurance funds for obesity drugs.
Industry insiders predict that the competition will intensify as Efe's low-cost strategy clashes with Wegovy's push for insurance coverage. Whether the market leader Munjaro will respond with price reductions remains a key variable.
An industry representative stated, "With Efe's low-cost strategy and Wegovy's insurance coverage strategy in play, the pricing structure and accessibility of the domestic obesity treatment market are likely to change significantly in the coming months."
* This article has been translated by AI.
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