Price reductions for obesity drugs have started in China.

Price Cuts from Eli Lilly and Novo Nordisk

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

Wegovy's Price Drop

According to Yicai, a China-based source, Novo Nordisk has cut the list price of the two highest doses of its popular GLP-1 treatment Wegovy by half in some provinces. This reduction comes as the drug's active ingredient semaglutide will lose its patent protection in March.

Ease of Market Entry

The expiration of semaglutide's patent presents a significant opportunity for local pharmaceutical companies. Firms 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 offer consumers more options.

Price Cuts and Market Trends

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

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