Price Reductions for Obesity Drugs Have Started in China

Price Discounts from Eli Lilly and Novo Nordisk

Eli Lilly (LLY) and Novo Nordisk (NVO) are implementing significant price reductions in the obesity drug market in China, driven by increasing competition. This strategic move has resulted in a notable 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 therapy Wegovy in some provinces. This discount was implemented due to the expiration of the active ingredient semaglutide's patent protection coming in March.

Market Entry Eases

The expiration of semaglutide's patent presents a significant opportunity for local pharmaceutical manufacturers. Chinese companies such as CSPC Pharmaceutical Group and Hangzhou Jiuyuan Genetic Biopharmaceutical are preparing to launch their own versions of Wegovy. This situation will lead to increased competition and provide consumers with more options.

Price Cuts and Market Trends

Eli Lilly announced it will lower 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 entered the market. Xinermei has taken its place on the shelves as the third GLP-1 injection administered weekly, following Wegovy and Mounjaro.