[Getty Images Bank]
[Getty Images Bank]

Hanmi Pharm shares tumbled more than 10% on Thursday even as the company's GLP-1 obesity drug received regulatory approval — a classic "sell-the-news" reaction in which a stock rises on anticipation and then drops once the positive development materializes. Analysts say the focus now shifts to whether the drug's price advantage can translate into meaningful market share gains.

According to Korea Exchange, Hanmi Pharm closed down 10.02% at 480,500 won ($359) on Thursday. The move was widely attributed to profit-taking after expectations of approval for efpeglenatide had already been priced into the stock.

Shares had risen for four consecutive trading sessions through Wednesday, buoyed by anticipation of Ministry of Food and Drug Safety approval. The stock had gained 17% over the past three months, with the company widely regarded as the domestic leader in obesity drug development.

The Ministry of Food and Drug Safety approved the sale of Hanmi Pharm's GLP-1 obesity drug "Epeautoinjector" (efpeglenatide) on Wednesday. It is the first GLP-1 obesity treatment independently developed by a domestic pharmaceutical company.

According to Hanmi Pharm, interim top-line results from a Phase 3 trial involving 448 Korean patients showed an average body weight reduction of 9.75%, with a maximum weight loss of 30%.

Hanmi Pharm will now enter an obesity drug market dominated by Novo Nordisk's Wegovy and Eli Lilly's Mounjaro. The key competitive edge for efpeglenatide is price. The current four-week supply at the starting dose is priced at 216,000 won for Wegovy and 278,000 won for Mounjaro, both of which are manufactured overseas and imported.

Efpeglenatide is set to be produced at Hanmi Pharm's biotech plant in Pyeongtaek, Gyeonggi Province, which is expected to reduce distribution costs. Industry sources anticipate a price in the 100,000 won range, though a final price has not yet been announced.

Given that cost is cited as the leading reason patients discontinue obesity treatment, price competitiveness is seen as the key factor in determining market share.

Securities analysts expect efpeglenatide to lower the financial burden on patients and capture a larger share of the market. According to the International Journal of Obesity, cost and insurance issues were the top reason for treatment discontinuation in obesity drug prescriptions, with about 50% of patients stopping treatment for that reason.

"With the domestic obesity market growing rapidly, we expect the drug to secure market share by leveraging its price advantage over existing obesity treatments," said Jung Jae-won, an analyst at iM Securities. "If the drug's price competitiveness is proven, it could serve as a trigger for market share gains at a time when financial burden is the leading cause of treatment discontinuation."

iM Securities raised its price target for Hanmi Pharm from 600,000 won to 650,000 won in a report issued Thursday.


moon@heraldcorp.com