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

Wegovy's Price Drop

According to Yicai, a China-based news source, Novo Nordisk has halved the list price of the highest two doses of its popular GLP-1 treatment Wegovy in some provinces. This reduction comes as the active ingredient semaglutide's patent protection is set to expire in March.

Market Entry Becoming Easier

The expiration of semaglutide's patent presents 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 will lead to increased competition and offer consumers 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 January 1. On China's popular food ordering 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.

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