Novo Nordisk Bets On Local Tie-Ups, Price Cuts As Generic Weight-Loss Drugs Crowd In

The weight loss treatment market in India is still at its infancy and Novo Nordisk AG will remain competitive in the face of generic rivals to its blockbuster Ozempic and Wegovy, according to a senior executive of the company.

Ozempic is used for type 2 diabetes and Wegovy for chronic weight management. The patent for semaglutide, the active ingredient for both drugs, recently expired in India, Brazil and China, opening the door to cheaper, non-branded copycat drugs. Several Indian drugmakers including majors Sun Pharmaceutical Industries Ltd., Zydus Lifesciences Ltd., Mankind Pharma Ltd., and Dr. Reddy's Laboratories Ltd. have already launched generic versions.

In an interview with UK financial daily The Financial Times, Emil Larsen, Novo Nordisk's executive vice-president of international operations, suggested price cuts could form part of its strategy to compete in India's price-sensitive market.

This month, the Danish multinational pharmaceutical company cut the price of Ozempic by 36% while that of the starting dose of Wegovy by 48% in the world's most populous country.

The number of people in India with diabetes is projected to surge from 10 crore to more than 15 crore by 2050, according to a Lancet report.

ALSO READ: Ozempic Patent Expiry Heralds Weight-Loss Drug Boom In India

Local Partners, Brand Value

Acknowledging that India is a crowded market, Larsen said their goal is to remain competitive at where the prices land over the coming months. The company will underscore the quality of its weight loss products and build on the "trust and brand recognition element that we work with".

He pointed out that although the company's human insulin products lost patent protection decades ago, Novo remains a market leader because of its brand name, quality assurance and large-scale production.

The company has tied-up with local manufacturers that have extensive distribution networks to offset some of the effects of patent expiries. Novo has an agreement to launch 'Poviztra' injection for weight loss with Emcure Pharma Ltd. and 'Extensior' for diabetes with Abbott India Ltd.

Larsen said a bigger challenge than competition from generics was the limited size of the weight-loss drug market in regions like India. "The biggest problem we have from an opportunity perspective in a market like India is not yet competition, it's that there's hardly a market. There are more patients being treated in Denmark with Novo Nordisk products than in the most populous country in the world," he told FT.

He further said the strength of a quality brand with a legacy of delivering good outcomes at a reasonable price "goes a very long way in emerging markets".

ALSO READ: Weight Loss At Rs 900? Three Pharma Companies Announce Semaglutide Injection — Check Prices

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