Competition in Weight Loss Drugs Shifts to 'User-Friendly Injectables' [Weekend Money]

Global Pharma Bets on Long-Acting Injection Technologies
Domestic Companies Collaborating with Big Pharma Draw Attention

Novo Nordisk, the manufacturer of the obesity treatment Wegovy, signed a technology licensing agreement worth up to 1.16 billion euros with Swedish company Nanexa in September 2026. The deal is for long-acting injectable (PharmaShell) technology, which makes it possible to administer obesity and diabetes drugs just once a month or even once a quarter.

Jisoo Lee, a research analyst at Daol Investment Securities, stated in a recently published report that “competition in obesity treatments is expanding from weight loss efficacy to dosing convenience.” She analyzed that demand for related platforms will continue as global pharmaceutical giants—also referred to as “big pharma”—keep pursuing technology partnerships.

Big pharma strike successive deals...While scope of applications broadens, each drug still requires separate validation

Long-acting injectables are formulations designed to release medication slowly, reducing the number of doses required. Currently, most obesity drugs are injected once a week. Nanexa’s technology coats drug particles with a thin inorganic layer to control the rate of release.

Other major pharmaceutical companies have inked similar agreements. Eli Lilly, for example, signed a contract in 2025 with UK-based Camurus for its FluidCrystal technology, which forms a gel under the skin after injection and slowly releases the drug. In June of this year, Lilly expanded the application of this technology to amylin (a hormone that regulates satiety) receptor agonists. In January this year, AstraZeneca entered into a deal with China’s CSPC Pharmaceutical Group for a formulation intended for monthly administration.

Lee explained, “This demonstrates that the scope of long-acting technologies can be extended to emerging drug classes.” However, she also stressed that due to the differing characteristics and required dosages for each drug, it is necessary to confirm whether results achieved with existing substances can be replicated with other candidates.

Three domestic partners ramp up facility investment...Maintaining consistent quality as operations scale is a key challenge

Image explaining the principle of microparticle-based long-acting injectable drug. Daol Investment & Securities

Relevant to this, Lee highlighted three Korean companies: G2GBio, Inventage Lab, and Peptron. Each has a platform that encapsulates drugs in microparticles (tiny particles containing the active ingredient), allowing for slow and sustained release. G2GBio is collaborating with three global enterprises including Boehringer Ingelheim, while Inventage Lab is conducting joint research with Boehringer Ingelheim.

Peptron has held a feasibility evaluation agreement with Eli Lilly, starting in October 2024, to test the applicability of its technology; the contract is set to expire on the 7th. Lee noted that whether the companies proceed with technology transfers or further negotiations after this evaluation will be a distinguishing factor for each company.

The three companies are also investing in increasing production capacity. G2GBio is investing 80 billion won in constructing a second factory, while Peptron is allocating 89 billion won for a second Osong plant. Inventage Lab aims to produce 30 million vials annually by 2028.

Lee stated, “Even as production volume increases, it is essential to maintain consistent quality. Therefore, domestic companies should closely monitor formulation development data and production capabilities for each drug.” She also forecasted that “as global pharma expands its adoption of long-acting technologies and broadens the range of applicable drugs, demand for these platforms is expected to continue.”

This content was produced with the assistance of AI translation services.