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Generic Drug Manufacturers Eye Price Adjustments as Novo Reduces Wegovy Costs
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Shotlee
Health & Wellness Team
3 min read
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Following Novo Nordisk's price reduction for its Wegovy injection, generic drug manufacturers are reassessing their pricing strategies. The move comes amid increasing competition in the weight-loss drug market, with potential impacts on affordability and market share.
Generic pharmaceutical companies are reportedly re-evaluating their pricing strategies subsequent to Novo Nordisk, a Danish firm, decreasing the cost of its semaglutide weight-loss injection (Wegovy). According to The Economic Times, firms initially planning to price their semaglutide versions between ₹7,000 and ₹8,000 monthly are now considering a more affordable range of ₹3,000 to ₹5,000.
Earlier this month, Novo Nordisk implemented price cuts of up to 37 percent across different Wegovy dosages to compete against Eli Lilly's Mounjaro. The new pricing structure sets Wegovy at ₹10,850 for the lowest dose (0.25 mg) and ₹16,400 for the 1.7 mg and 2.4 mg doses, representing a month's supply of four injections.
Mounjaro, Eli Lilly's weight-loss drug launched in March, preceded Novo Nordisk's Wegovy, which debuted in June. By October's end, Pharmarack research indicated Mounjaro had generated ₹333 crore in total revenue.
Market pressures are anticipated to intensify with Novo's forthcoming launch of Ozempic in India, expected at a comparable or slightly lower price point. The report suggests Ozempic may be priced up to 10 percent below Wegovy and could launch in the second week of December.
Vikrant Shrotriya, head of Novo India, commented that the company is closely monitoring the situation regarding Ozempic's potential pricing. According to The Economic Times, they aim to maintain competitiveness and will conduct further market research to determine optimal pricing strategies.
The level of competition in the GLP-1 market will hinge on the number of companies launching early. An estimated ten companies, including Dr Reddy's, Sun Pharma, Lupin, Mankind, Zydus, Cipla, Hetero, and Alkem, are anticipated to be in the initial wave.
According to Pharma analyst Vishal Manchanda, generics may initially offer price reductions of at least 50 percent compared to current semaglutide prices, contingent on the number of players entering the market in the first phase.
The report further suggests Novo Nordisk might implement additional price reductions in the coming year to maintain prices close to, yet slightly above, those of generics. Industry sources posit that a minimal price difference between the original drug and generic versions would incentivize many customers to opt for the original brand. Health tracking apps like Shotlee can help monitor medication adherence and efficacy in such cases.
A Novo spokesperson indicated the company's dedication to rapidly introducing new innovations to India, while launch timelines are still being finalized in coordination with authorities.
Even with reduced launch prices, manufacturers can still realize gross margins of 80-90 percent, according to the report. Manchanda noted that margins would remain robust even at prices of ₹4,000-5,000 due to established supply chains and production processes among generic manufacturers. The ultimate profit will depend on marketing expenditures.
India faces a significant obesity challenge, with approximately 254 million individuals classified as obese and an additional 351 million exhibiting abdominal obesity. Obesity can lead to over 230 health complications, including heart disease, fatty liver, joint pain, kidney disease, and Alzheimer's.
⚠️ Disclaimer: This article is for informational purposes only. Consult your healthcare provider before starting any medication or supplement.
Original content from Business Standard
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The U.S. government has successfully negotiated a 71% discount on Novo Nordisk's popular drugs Ozempic and Wegovy for Medicare beneficiaries. These price reductions, resulting from recent legislation, will be implemented in 2027, potentially saving millions of dollars.
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