China's Budget-Friendly Ozempic Alternatives: Disrupting the Market
China Set to Shake Up Weight Loss Medication Market
As China gears up to bolster its weight loss medication market, the Danish pharmaceutical company behind popular drugs like Ozempic and Wegovy might soon find itself facing stiff competition. According to a recent report by Reuters, Chinese drug manufacturers are in the process of developing around 15 generic versions of glucagon-like peptide-1 agonist drugs, posing a potential threat to Novo Nordisk, the maker of Ozempic. Despite Novo’s significant success in the region – with Ozempic sales in China nearly doubling over the past few years and reaching close to $700 million – the company’s dominance could be challenged by emerging competitors aiming to capitalize on the lucrative GLP-1 market.
Having received approval for sale in China in 2021, Novo is anticipating the green light for its weight-loss drug Wegovy later this year. However, the increasing number of generic alternatives entering the market may lead to a decrease in sales margins for Novo’s brand-name medications, which are already more affordable in China compared to the United States. Although Novo currently holds an exclusive patent on the active ingredient semaglutide in China, that patent is set to expire in 2026. While over a dozen generic versions are currently undergoing trials, they are not expected to be available in Chinese markets until after the patent expiration – unless a prolonged legal dispute over a patent invalidation ruling, now in its second year, accelerates the process.
Among the leading contenders in the race to introduce generic semaglutide in China is Hangzhou Jiuyuan Gene Engineering. The company claims that its semaglutide variant exhibits similar clinical efficacy and safety as Novo’s Ozempic. Although Hangzhou Jiuyuan Gene Engineering has applied for sales approval, it plans to hold off on commercializing its product until either the semaglutide patent expires in 2026 or Novo’s legal appeal against the invalidation ruling is resolved in 2022. In response to the increasing competition, a spokesperson from Novo Nordisk expressed the company’s openness to healthy competition.
As the landscape of the weight loss medication market in China undergoes significant changes, Novo Nordisk may face a challenging road ahead. With the potential influx of generic alternatives and the looming expiration of its patent protection, Novo’s once secure position in the market could be at risk. If these developments result in further price reductions for these costly medications, Novo may find itself having to adapt to a new era of increased competition and shrinking market share.
