K-biotech races to capture slice of $200B obesity drug market

South Korean pharmaceutical and biotech companies are mounting an all-front offensive in response to the global boom in GLP-1 (glucagon-like peptide-1)-based obesity and diabetes treatments — pursuing mega-acquisitions, next-generation drug development, production infrastructure expansion and formulation diversification all at once.

According to IQVIA, the global obesity drug market is projected to surge from $30 billion in 2024 to $200 billion by 2030. That explosive growth trajectory has set the entire Korean biotech ecosystem in motion as companies scramble for a share of the market.

The boldest move has come from Samsung Biologics, which signed a deal to acquire Polypeptide Group — a Switzerland-headquartered global peptide contract development and manufacturing organization — for approximately 2.7 trillion won ($1.88 billion), the largest acquisition ever in South Korea's biotech industry.

The deal instantly adds peptide manufacturing capabilities to Samsung Biologics' existing portfolio of antibody, mRNA and antibody-drug conjugate production. The company also gains six global facilities across five countries — Sweden, Belgium, the United States, France and India — along with a workforce of more than 1,500 specialists, positioning it to meet surging global demand for obesity drug ingredients.

SK Group's CDMO subsidiary SK Pharmteco has also bolstered the supply chain, completing a new 12,600-square-meter fifth factory in Sejong. The facility is set to begin commercial production of high-quality peptide active pharmaceutical ingredients at a scale of tens of tons per year starting next year.

Korean drugmakers are also accelerating development of first-in-class therapies designed to overcome what have been identified as critical shortcomings of existing GLP-1 drugs: muscle loss and weight rebound.

Hanmi Pharm is the furthest along among domestic obesity drug developers. The company is preparing to commercialize its GLP-1 obesity drug epeglenatide within the year.

Hanmi Pharm has also used its proprietary AI platform HARP-pSAR to identify a novel drug candidate, HM17321, which the company says would be the world's first therapy to simultaneously reduce body fat and increase muscle mass. A Phase 1 trial in the United States is proceeding on schedule. The company has further strengthened its obesity pipeline with a peptide-based muscle-enhancement treatment (HM500197) and a next-generation triple agonist (HM15275), forming two strong pillars of its obesity drug strategy.

Celltrion is targeting the world's first quadruple-acting obesity treatment with CT-G32, aiming to complete GLP toxicity testing this year, present findings at an academic conference in November, and administer the drug to its first Phase 1 trial patient in the second quarter of next year. Having confirmed that CT-G32 delivers superior weight reduction and lean mass preservation compared with existing triple agonists, Celltrion is also developing a multi-acting oral obesity drug in parallel, with a strategy to more than triple its drug pipeline by 2028.

Efforts to move beyond the limitations of injectable formulations are also bearing fruit. Daewoong Pharma has enrolled its first patient in a domestic Phase 1 trial of DWRX5003 — a patch-based obesity drug developed using heat-free microneedle technology from its subsidiary Daewoong Therapeutics — with clinical testing now underway at Seoul National University Hospital.

DWRX5003 works by attaching to the skin once a week, allowing microneedles containing semaglutide to dissolve and deliver the drug directly into the dermis. Early pilot pharmacokinetic studies showed that more than 80 percent of the drug's efficacy was preserved compared with injectable administration, drawing attention as a next-generation platform that could significantly improve convenience for patients averse to injections.

"The GLP-1 market is expanding far beyond obesity treatment into metabolic disease, cardiovascular conditions, Alzheimer's and other indications — the addressable space is virtually limitless," an industry official said. "Organic collaboration between large CDMO players that have secured global production bases and drug developers armed with differentiated mechanisms and formulations will be the key to expanding K-biotech's global market share."