Indian drugmakers seized on the patent expiry for Novo Nordisk A/S's blockbuster weight-loss and diabetes medication to roll out cut-price generic versions in a nation with the third-largest overweight population.
Natco Pharma Ltd. plans to make an injection for semaglutide — the active ingredient in both Ozempic and Wegovy — at one of the lowest starting prices of 1,290 rupees ($14) a month. Its pen device is expected to launch by April and cost about 4,500 rupees a month, it said in a filing.
By comparison, Novo's Wegovy pen starts at about 10,480 rupees in India and about $199 in the US under the self-pay model. Monthly treatment prices at peers like Sun Pharmaceutical Industries Ltd., Dr Reddy's Laboratories Ltd. and Glenmark Pharmaceuticals Ltd. start at 1,000 rupees to 5,000 rupees for obesity and type-2 diabetes medication.
While Canada was the first to lose patent protection for semaglutide in January, the Canadian health regulator hasn't approved any generics so far, effectively making India the first major market to see a flood of copycat versions. The ensuing price war will be closely watched as the Danish drugmaker faces patent expiries in key markets including China, Brazil and Turkey.
Bloomberg News parsed company filings and earnings call transcripts to identify at least 12 large drugmakers that have plans to sell generic semaglutide soon after patent expiry. But the true scale of competition will be much higher.
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About 42 drug manufacturers, including smaller ones, are expected to launch products under more than 50 brand names this year, said Sheetal Sapale, a researcher at market data firm Pharmarack.
Photo Credit: Bloomberg
‘Case Study'
India is “an important case-study for the future” loss of exclusivity on this molecule, Jefferies analysts led by James Vane-Tempest wrote in a Feb. 12 note. The brokerage estimates India's weight-loss market at about $500 million, which “could rise to $1 billion with the right pricing, adoption and government incentives.”
Demand for these weight-loss drugs is also high as India's 1.4-billion-plus population faces a higher burden of diabetes and cardiovascular ailments, largely due to increasingly sedentary urban lifestyles. High-calorie diets, dripping with oil and fat, have led to a large overweight population that trails only the US and China.
Generic drugmakers are also experimenting with a range of delivery formats, including syringes, injectors, vials and reusable pens with adjustable dosing, company filings show.
These are aimed at giving patients more flexibility, reducing the cost burden and making adoption of these anti-obesity therapies easier. Novo Nordisk's Ozempic and Wegovy and Eli Lilly & Co.'s Mounjaro in India currently come in a pre-filled pen with four shots.
The tweaked delivery methods can also build brand loyalty. If a patient gets comfortable using a particular device, they usually wouldn't switch, Pharmarack's Sapale said.
“The reputation of the company in this therapy category, as well as the delivery system, will be the differentiators now” since the underlying semaglutide molecule is the same, she added.
Patient Programs
Indian firms are also rolling out programs to boost uptake of the drug. Dr Reddy's Semakare assistance app, as well as metabolic centers, will give it an edge over peers, its Chief Executive Officer for Branded Markets M. V. Ramana told reporters Saturday. It will open 65 obesity clinics in the coming few months, he said.
Drugmakers have also started forging alliances. Zydus Lifesciences Ltd. this week announced a licensing partnership with Lupin and Torrent Pharmaceuticals Ltd. Meanwhile, Eris Lifesciences Ltd. has tied up with Natco Pharma for the marketing of the drug. Dr Reddy's is in partnership with two top Indian firms, Ramana said.
The generic drugmakers will also focus more on smaller cities where innovator firms have not established a widespread presence, Sapale said. “There will be a lot of noise” in the market as firms fight for share, she added.
ALSO READ: Ozempic Patent Ends On March 20 And A Generic Deluge Is Coming Forcing Prices To Fall
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