Price Reductions for Obesity Drugs Have Started in China

Price Reductions by Eli Lilly and Novo Nordisk

Eli Lilly (LLY) and Novo Nordisk (NVO) are making noteworthy price reductions in the obesity drug market in China due to increasing competition. This strategic move has led to a significant decrease in the prices of GLP-1 based products.

Price Drop of Wegovy

According to China-based Yicai, Novo Nordisk has halved the list price of the two highest doses of its popular GLP-1 treatment Wegovy in some provinces. This reduction was implemented due to the impending expiration of the patent protection for the active ingredient semaglutide in March.

Facilitating Market Entry

The expiration of semaglutide's patent creates significant opportunities for local drug manufacturers. Companies like CSPC Pharmaceutical Group and Hangzhou Jiuyuan Genetic Biopharmaceutical are preparing to launch their own versions of Wegovy. This situation will increase competition and provide consumers with more options.

Price Reductions and Market Trends

Eli Lilly announced it would reduce the price of the GLP-1 drug Mounjaro, used for weight loss, starting January 1. On China's popular food delivery platform Meituan, the 10 mg Mounjaro injector pen is listed at 445 yuan (63 dollars). This price is significantly lower than the previous value of 2,180 yuan.

Additionally, the obesity treatment Xinermei launched by Innovent Biologics in July has accelerated the price reductions of Eli Lilly and Novo Nordisk as it enters the market. Xinermei has become the third GLP-1 injection available in China, alongside Wegovy and Mounjaro, administered weekly.