Hanmi prices first Korean-developed obesity drug at half the cost of rivals

Hanmi Pharmaceutical has reportedly set the starting monthly price of its obesity drug Eppe (efpeglenatide), South Korea’s first domestically developed glucagon-like peptide-1 (GLP-1) treatment for obesity, at 129,800 won ($97), roughly half the initial treatment cost of competing drugs Wegovy and Mounjaro.

However, the price gap narrows as dosage levels increase, raising questions about how much the lower starting price will contribute to wider adoption.

According to pharmaceutical industry sources on Wednesday, Hanmi recently finalized the supply and distribution prices for different doses of Eppe.

Under the disclosed pricing schedule, treatment will cost 129,800 won in the first month, 228,800 won in the second, 277,200 won in the third and 299,200 won per month from the fourth month onward. All prices include value-added tax.

The first month’s treatment consists of two 2-milligram pens and two 4-milligram pens. A box containing two 2-milligram pens costs 48,400 won, while a box containing two 4-milligram pens costs 81,400 won, bringing the combined first-month cost to 129,800 won.

From the 6-milligram dose onward, each box contains four pens. The monthly prices are set at 228,800 won for the 6-milligram dose, 277,200 won for the 8-milligram dose and 299,200 won for the 10-milligram dose.

Eppe’s main competitive advantage is its pricing.

According to Hanmi’s data, the drug’s initial treatment cost is 37 percent lower than that of Novo Nordisk’s Wegovy and 53 percent lower than Eli Lilly’s Mounjaro. During the maintenance phase, Eppe is priced 17 percent below Wegovy and 19 percent below Mounjaro.

The pricing strategy appears designed to reduce the financial burden of starting obesity treatment while offering savings to patients who require long-term medication.

However, Eppe’s distribution price may differ from the amount patients ultimately pay at pharmacies.

Wegovy and Mounjaro, both available in South Korea, currently cost several hundred thousand won per month depending on dosage. Neither drug is covered by the country’s national health insurance for obesity treatment, meaning patients’ out-of-pocket expenses vary by medical institution and pharmacy.

Eppe’s entry into the market at a relatively lower price could also influence the pricing strategies of existing treatments.

Hanmi received marketing approval for Eppe from South Korea’s Ministry of Food and Drug Safety on Oct. 7.

The drug is the 45th novel medicine developed domestically and the country’s first homegrown GLP-1 obesity treatment.

It is approved for adults without diabetes who have a body mass index (BMI) of 30 or higher, as well as overweight adults with a BMI of at least 27 but below 30 who have weight-related conditions such as hypertension or dyslipidemia.

Eppe is the result of more than a decade of development by Hanmi.

The company licensed the drug to global pharmaceutical company Sanofi in 2015, but the rights were returned in 2020.

Hanmi subsequently continued development and conducted a Phase 3 clinical trial involving Korean patients with obesity.

The trial demonstrated an average weight reduction of 9.75 percent at 40 weeks.

By comparison, pivotal clinical trials for Wegovy and Mounjaro evaluated weight loss over 68 and 72 weeks, respectively. Differences in trial duration and patient characteristics make direct comparisons of the drugs’ efficacy inappropriate.

Alongside its pricing advantage, Hanmi is emphasizing supply stability through domestic manufacturing.

The company produces Eppe entirely at its Pyeongtaek Bio Plant, from active pharmaceutical ingredients to finished products, reducing reliance on imported medicines and supporting a stable supply for domestic demand.

Hanmi is preparing to launch Eppe by the end of October and aims to generate annual sales exceeding 100 billion won over the medium to long term.

The company also plans to pursue a diabetes indication for Eppe while continuing development of next-generation treatments, including triple-acting obesity drugs and therapies designed to increase muscle mass.

Whether Eppe’s lower price will translate into a significant increase in prescriptions remains to be seen.