Price reductions for obesity drugs have begun in China.

Price Reductions from Eli Lilly and Novo Nordisk

Eli Lilly (LLY) and Novo Nordisk (NVO) are making noteworthy price reductions in the obesity medication market in China due to increased competition. This strategic move has significantly lowered the prices of GLP-1 based products.

Wegovy's Price Drop

According to 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 because the active ingredient semaglutide will lose its patent protection in March.

Ease of 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 alternatives to Wegovy. This will lead to increased competition and provide consumers with more options.

Price Reductions and Market Trends

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

In addition, the obesity treatment Xinermei launched by Innovent Biologics in July has accelerated the price reductions of Eli Lilly and Novo Nordisk. Xinermei has entered the market as the third GLP-1 injection administered weekly, following Wegovy and Mounjaro.