China makes up the second-largest pharmaceutical market in the world, and approximately 180 million people in the country are considered obese. This is 80 million more than the number of obese patients reported in the U.S., according to the Centers for Disease Control and Prevention. As such, the country is a lucrative market for weight-loss drugs such as Novo Nordisk’s Wegovy.
Novo first gained approval for its drug in China in June of this year, but the company is only now officially launching its treatment. In the past, Novo gained approval for its diabetic drug Ozempic in China in 2021.
The launch of the drug was first announced by a Chinese financial media outlet, after which a representative from the Danish drugmaker confirmed the news in the U.S.
What is notable about this launch is that while a month-long supply of Wegovy is listed in the United States for over $1,300, in China the same amount is expected to cost consumers a fraction of the price, less than $200 (1,400 yuan).
It should be noted, however, that China’s national healthcare insurance, which provides basic coverage for most of the country’s 1.4 billion people, will not be reimbursing Wegovy. This is why the company will initially target patients willing to pay out of pocket for the drug. In the long run, Novo will be looking towards commercial insurance as a means to make the weekly injectable drug more accessible and affordable to patients.
An announcement on Novo’s WeChat account said that the launch of the drug will be complemented by the inauguration of a digital patient service platform for patients who will take the medicine.
Apart from the U.S., where Novo first launched Wegovy in 2021, 15 other countries also sell the drug. Record sales globally have caused share prices for the company to soar, and the company currently has a market capitalization of about $449 billion.
Although Eli Lilly has yet to launch its rival therapy tirzepatide, known as Zepbound for weight loss and Mounjaro for diabetes, the company was able to gain approval for its therapy in the former category only a month after Novo, in July of this year.
Where Eli Lilly might be able to trump Novo when it comes to this multimillion-dollar market is patent expirations. While the patent for Novo’s drugs expires in 2032 in the U.S., they only have two years in China. In comparison, the patent covering tirzepatide, which was first approved in China for diabetes, is not expiring in China until 2036.
The weight-loss market is projected by analysts to exceed $150 billion by the beginning of the next decade, and as such, both Novo Nordisk and Eli Lilly have been ramping up production to capitalize on it.
