Wegovy seeks insurance edge in Korea's obesity drug war

Competition in Korea's obesity drug market is intensifying.

Novo Nordisk seeks national health insurance coverage for Wegovy, aiming to regain ground against Eli Lilly's market-leading Mounjaro before Hanmi Pharmaceutical launches its newly approved homegrown rival, Eppe.

Novo Nordisk Korea applied to the Health Insurance Review and Assessment Service for reimbursement of Wegovy, pharmaceutical industry sources said Tuesday. The move could significantly lower treatment costs.

Since its Korean launch in October 2024, Wegovy has remained outside the national health insurance system, leaving patients to shoulder the full cost of treatment. The company said the application was part of its efforts to improve access to obesity care.

Approval, however, is far from certain. Wegovy must undergo cost-effectiveness reviews and an assessment of its potential impact on national health insurance finances before qualifying for reimbursement.

The move comes as Novo Nordisk faces mounting pressure on two fronts: Mounjaro's growing dominance and the imminent market entry of Eppe, Korea's first homegrown GLP-1 obesity treatment. The Ministry of Food and Drug Safety approved Eppe in five dosage strengths last week, clearing the way for a launch as early as this month.

Before Eli Lilly's Mounjaro was released in the Korean market for the first time in August last year, Novo Nordisk cut Wegovy’s wholesale prices by roughly 10 to 44 percent based on dosage as the Danish drugmaker sought to keep its market share.

Despite the price cut, Mounjaro has gradually expanded its market presence as more obese patients turned to Eli Lilly's drug. According to BRP Insight, Mounjaro held an 86.7 percent share in Korea's GLP-1 weight-loss drug market in June. Wegovy's share accounted for just 13.2 percent.

The lowest prices for existing obesity drugs are estimated at 270,000 won ($201) for a four-week supply of Eli Lilly’s Mounjaro at 2.5 milligrams and 210,000 won for Novo Nordisk’s Wegovy at 0.25 mg; industry watchers project Hanmi Pharmaceutical's Eppe to be priced at a more affordable cost to signify its entry into the market.

The Korean drugmaker has not finalized its pricing policy for Eppe.

"If Wegovy gets through the health insurance coverage review and eventually becomes available for reimbursement, it would have a great advantage in affordability," said an official from a pharmaceutical firm.

"Before Mounjaro's arrival, Wegovy dominated the market. So a wide gap in pricing may not only bring back Mounjaro users to Wegovy but also bring in new obese people who had not seriously thought about taking obesity drugs due to the hefty price tags ... In this case, Mounjaro and Eppe almost certainly would apply for the same coverage."

[email protected]