Indian Drugmakers Adjust GLP-1 Pricing as Novo Nordisk Reduces Wegovy Cost in India

Indian pharmaceutical firms are modifying their pricing strategies for weight-loss injections. This adjustment follows Novo Nordisk's decision to lower the price of its Wegovy drug. Consequently, generic manufacturers are re-evaluating their anticipated launch prices. Novo Nordisk is also planning to introduce Ozempic to the Indian market shortly. This increased competition is projected to decrease prices within the GLP-1 sector.

Following the decision by Danish drugmaker Novo Nordisk to reduce the prices of its injectable semaglutide, sold as Wegovy, by nearly 40%, Indian generic drug manufacturers are adjusting their pricing strategies. These companies, preparing for the initial semaglutide launches, are reportedly considering a price range of ₹3,000-5,000, a shift from their earlier expectations of ₹7,000-8,000 per month, according to industry sources.

Next month, the pressure is expected to escalate as Novo plans to launch Ozempic in India at a price point similar to or slightly below Wegovy. According to industry insiders, Ozempic could be priced up to 10% lower than Wegovy, with a potential launch in the second week of December. Novo has also partnered with Emcure to introduce a second semaglutide brand.

Industry experts suggest that this adjustment may accelerate price erosion across the GLP-1 segment, even before widespread generic entry. Rajiv Kovil, a leading diabetologist, noted that Ozempic's potential price, 5-10% lower than Wegovy, puts significant pressure on generic manufacturers. He added that these manufacturers, initially expecting to launch at ₹7,000-8,000 for a month's dose, are now considering a price range of ₹3,000-4,000 to undercut the innovator.

Kovil stated that generic manufacturers will need to revise their strategies since they can no longer price their versions at previously planned levels. Earlier this month, Novo Nordisk reduced Wegovy prices by up to 37% across various dosages. This strategic move comes as Novo Nordisk aims to increase sales of its weight-loss injectable in India, where it faces competition from Eli Lilly's Mounjaro (tirzepatide). With the latest price cut, Wegovy injections are priced between ₹10,850 for the 0.25 mg dose and ₹16,400 for the 1.7 mg and 2.4 mg doses, covering a month's supply of four shots.

Vishal Manchanda, a pharma analyst at Systematix Group, suggested that generic companies might initially offer price cuts of at least 50% from current semaglutide prices, depending on the number of market entrants. Industry sources also anticipate further price reductions from Novo Nordisk next year to maintain rates close to generic prices, albeit with a premium.

Sheetal Sapale, vice-president, commercial, at industry tracker PharmaTrac, stated that if the price difference between the innovator product and generic versions is insignificant, many consumers may prefer the innovator product. The level of competition in the GLP-1 market will also depend on the number of companies launching in the first wave. Approximately 10 players, including Dr Reddy's, Sun Pharma, Lupin, Mankind, Zydus, Cipla, Hetero, and Alkem, are expected in this initial phase. Health tracking apps like Shotlee can help monitor the effectiveness of these medications.

However, analysts pointed out that domestic manufacturers could still achieve gross margins of 80-90% even with lower launch prices. Manchanda explained that even at a price of ₹4,000-5,000, gross margins would be robust due to established supply chains, API supply, and fill and finish processes for generic manufacturers. He estimated that they could still achieve 80-90% gross margin, with EBITDA depending on marketing efforts.