Price reductions for obesity drugs have started in China.

Price Reductions from Eli Lilly and Novo Nordisk

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

Wegovy's Price Drop

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 comes as the active ingredient semaglutide is set to lose patent protection in March.

Market Entry Made Easier

The expiration of semaglutide’s patent creates a significant opportunity for local drug manufacturers. 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 Reductions and Market Trends

Eli Lilly announced that it will lower the price of its GLP-1 drug Mounjaro used for weight loss starting January 1. The 10 mg Mounjaro injector pen is listed at 445 yuan ($63) on China’s popular food delivery platform Meituan. 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. Xinermei has joined the shelves as the third GLP-1 injection administered weekly, following Wegovy and Mounjaro.