While Novo Nordisk A/S NVO faces challenges in meeting the global demand for its highly sought-after weight-loss treatment, Wegovy, Indian drugmakers see an opportunity to enhance global access and affordability.
Indian pharmaceutical players, including Sun Pharma, Cipla, Dr. Reddy’s Laboratories Ltd RDY, and Lupin, are aggressively pursuing the development of their versions of Wegovy.
Industry analysts anticipate a significant increase in volume once the patents expire, making these drugs more accessible to a broader population.
In India, where high obesity rates and the second-highest number of people with type 2 diabetes prevail, the potential for the success of these drugs is substantial.
“We expect volume expansion to increase multi-fold by the time patent expires, which is a few years from now,” Reuters noted quoting Systematix analyst Vishal Manchanda. “They will also be available at a much lower price by generic drugmakers.”
Citing Cipla Global CEO Umang Vohra, Reuters highlights the significant market potential in India, which is driven by lifestyle choices and health concerns.
Novo Nordisk plans to introduce Wegovy in India by 2026, providing a timeline for Indian drugmakers to compete. The patents for Wegovy are set to expire in various regions between 2026 and 2032, paving the way for generic versions and potential market competition.
While Sun Pharma takes a unique approach by developing its experimental drug, others like Dr. Reddy’s and Cipla focus on creating generic versions of Wegovy.
The Indian market for diabetes drugs alone was estimated at ₹316 billion ($3.81 billion) in 2023 and is projected to hit ₹1.2 trillion ($14.48 billion) in the next decade, Reuters notes, citing the data from Expert Market Research.
As Indian pharmaceutical companies strive to make inroads into the weight-loss market, they face the unique challenge of building a market for anti-obesity drugs in a price-sensitive environment, unlike in other countries where existing markets can be leveraged.
Price Action: NVO shares are up 1.96% at $123.30 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Wegovy. Image Via Shutterstock
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