[Kim Jinsoo, Edaily Reporter] July 29, Shares of South Korean pharmaceutical and biotech companies surged Monday amid growing investor interest in obesity treatments. Leading the rally were CKD Pharmaceutical and PharmGen Science, both linked to the rising demand for weight-loss medications.

Hanmi Science and Hanmi Pharmaceutical also saw their share prices rise, as they were categorized as obesity-related stocks.

CKD Pharmaceutical stock trend. (KG Zeroin)

CKD Pharmaceutical Soars on Wegovy Distribution Hopes

ChongKunDang Pharmaceutical shares jumped 15.29% to close at KRW 96,500, after climbing as much as 27.60% during intraday trading. The surge follows reports that the company is nearing a final agreement to co-promote and distribute Wegovy, Novo Nordisk’s blockbuster GLP-1-based obesity drug, in South Korea.

Currently, Wegovy is distributed nationwide by Zuellig Pharma and several wholesalers. Industry analysts say Novo Nordisk’s move to partner with ChongKunDang Pharmaceutical, one of the country’s top sales forces, is aimed at strengthening its position ahead of the anticipated launch of Eli Lilly’s rival drug, Mounjaro, next month.

According to data presented at this year’s European Congress on Obesity (ECO), Mounjaro achieved a 20.2% average weight reduction after 72 weeks of treatment, outperforming Wegovy’s 13.7%. In the U.S. market, Mounjaro captured a 53.3% market share in Q1, surpassing Wegovy.

For ChongKunDang Pharmaceutical, the partnership could also restore momentum following the end of a co-promotion deal for the reflux drug K-CAB with HK Inno.N, which cost the company roughly KRW 100 billion in annual revenue.

A ChongKunDang Pharmaceutical official declined to confirm details, stating, “Nothing has been finalized regarding Wegovy distribution.”

PharmGen Science Jumps on Diabetes Drug Approval

PharmGen Science shares rose 16.02% to KRW 4,925 after gaining as much as 29.33% earlier in the session. The company announced it had received regulatory approval for its oral diabetes drug Miglis, a generic version of Migvos Film-Coated Tablets developed by Daewon Pharmaceutical.

Miglis, which targets type 2 diabetes, works by inhibiting α-glucosidase enzymes in the small intestine to delay carbohydrate absorption and stimulate GLP-1 secretion, contributing to both blood sugar control and potential weight loss. The reference drug has been used off-label in South Korea for obesity management.

PharmGen Science’s recent weight-loss portfolio includes products like Lopet and Wellfit, and the company is now setting its sights on developing a novel, long-acting GLP-1 analog. Using ImmunoForge’s ELP half-life extension platform and BBB-penetrating linker technology, the firm aims to create a once-monthly injectable therapy a significant improvement over current GLP-1 drugs, which require daily or weekly dosing.

“This is just the beginning of our anti-obesity drug pipeline,” a PharmGen Science spokesperson said. “We’ll continue advancing development with full commitment.”

Hanmi Shares Rise on Pipeline Expectations

Hanmi Science rose 8.27% to KRW 49,750, while affiliate Hanmi Pharmaceutical gained 1.27% to close at KRW 280,000. Investors attributed the gains to anticipation surrounding Hanmi’s growing obesity pipeline.

Hanmi’s lead candidate, efpeglenatide, a long-acting GLP-1 receptor agonist, is nearing the end of Phase 3 trials. The company plans to file for South Korean regulatory approval later this year, with commercial launch targeted for the second half of 2025.

Two other candidates, HM15275 and HM17321, are also in development. HM15275, a triple agonist targeting GLP-1, GIP, and glucagon receptors, has completed Phase 1 and is expected to enter Phase 2 later this year. HM17321, a UCN2 analog targeting CRF2 receptors rather than incretin pathways, is designed to reduce fat while preserving or increasing muscle mass.

Hanmi classifies HM15275 as a potential “Best-in-Class” drug and HM17321 as a “First-in-Class” innovation.

“Our goal is to enhance the value of Hanmi’s pipeline through active licensing efforts in obesity, oncology, and rare diseases,” a Hanmi Science official said. “We are also committed to identifying and supporting new modality opportunities.”