Price reductions for obesity medications have begun 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 drop in the prices of GLP-1 based products.

Wegovy's Price Decrease

According to the China-based Yicai, Novo Nordisk has reduced the list price of the two highest doses of the popular GLP-1 treatment Wegovy by half in some provinces. This discount was made due to the impending expiration of the patent protection for its 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 lead to increased competition and provide consumers with more options.

Price Reductions and Market Trends

Eli Lilly announced that it will reduce the price of its GLP-1 drug Mounjaro, used for weight loss, starting from January 1st. On China's popular food ordering platform Meituan, the 10 mg Mounjaro injector pen is listed at 445 yuan ($63), which is significantly lower than the previous price 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 taken its place on the shelves as the third GLP-1 injection, administered weekly, following Wegovy and Mounjaro.