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 implementing notable price reductions in the obesity drug market in China due to increasing competition. This strategic move has led to a significant drop in the prices of GLP-1 based products.

Price Drop of Wegovy

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 made due to the expiry of the patent protection for the active ingredient semaglutide in March.

Facilitating Market Entry

The expiration of semaglutide's patent creates a significant opportunity for local pharmaceutical manufacturers. Companies like CSPC Pharmaceutical Group and Hangzhou Jiuyuan Genetic Biopharmaceutical are preparing to launch their own versions of Wegovy. This situation will increase competition and provide consumers with more options.

Price Reductions and Market Trends

Eli Lilly announced it would reduce the price of its GLP-1 drug Mounjaro, which is used for weight loss, starting from 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.

In addition, the obesity treatment Xinermei, launched in July by Innovent Biologics, has accelerated price reductions from Eli Lilly and Novo Nordisk as it enters the market. Xinermei has positioned itself on the shelves as the third GLP-1 injection administered weekly after Wegovy and Mounjaro.