Stay informed with our newsletter.
.webp){kind=spacer}
EN
Boston Brand Media brings you the latest - Novo Nordisk is gearing up for potential competition in China as generics pose a threat to its drugs Ozempic and Wegovy. The pharmaceutical company is strategizing to address this challenge and maintain its market position in the face of increasing competition.
In May, CSPC stated its anticipation for the approval of its semaglutide diabetes medication by 2026. According to an October report by brokerage firm Jefferies, United Laboratories is projected to introduce semaglutide treatments for diabetes by 2025 and for obesity by 2027. Despite requests for comment, United Laboratories remained unresponsive.
By 2030, it's projected that the number of overweight and obese adults in China will soar to 540 million and 150 million, respectively, up by 2.8 and 7.5 times from the levels seen in 2000, according to a study conducted by Chinese public health researchers in 2020. Analysts suggest that if Chinese drugmakers can demonstrate the safety and efficacy of their products comparable to Novo's, it will intensify competition and drive down prices.
Goldman Sachs analysts, in an August report, estimated that generics could slash prices for semaglutide in China by approximately 25%. Currently, the weekly Ozempic injection costs roughly $100 for each 3mL dose through China's public hospital network, as stated by Clarivate's Verma. Novo is aware of the escalating competition.
Maziar Mike Doustdar, a Novo executive vice president, informed investors in March that more players might enter the market in 2026 and 2027 due to ongoing clinical trials in China. However, he expressed doubts about some players' ability to generate significant volumes, emphasizing that Novo will closely monitor developments as the market approaches.
Boston Brand Media also found that Novo Nordisk also confronts competition from globally recognized companies like Eli Lilly (LLY.N), whose diabetes drug Mounjaro gained approval in China in May. Analysts at HSBC anticipate China's approval for Lilly's weight loss drug, which shares the same active ingredient, either this year or in the first half of 2025. Despite requests, Eli Lilly did not provide a comment on the Chinese approval of the drug, known as Zepbound in the U.S.
Supplies of both Wegovy and Zepbound remain limited, but both companies have been ramping up production. Zuo Ya-Jun, general manager of weight loss drugmaker Shanghai Benemae Pharmaceutical, emphasized that a product's competitiveness would hinge on factors such as efficacy, treatment durability, and a company's sales capabilities. She noted the market's intense competition, adding that predicting the leader in this scenario is challenging.
For questions or comments write to writers@bostonbrandmedia.com
Source: Reuters
