Novo Nordisk, the Danish pharmaceutical giant renowned for its weight-loss drug Wegovy, is facing mounting challenges in India as it prepares to enter the burgeoning obesity treatment market. While the company has plans to launch Wegovy in India by 2026, it is grappling with global supply constraints and the impending expiration of its patent, which could open the floodgates for generic competition.
Global Supply Constraints
Novo Nordisk has acknowledged that global supply issues are affecting the availability of its GLP-1 receptor agonist drugs, including Wegovy and Ozempic. These medications have been in high demand due to their efficacy in weight loss and diabetes management. The company has been working to ramp up production to meet global needs, but the complexities of manufacturing and distribution have led to delays in some markets, including India.
Patent Expiry and Generic Competition
In India, the patent for semaglutide, the active ingredient in Wegovy, is set to expire in 2026. Companies like Biocon, Dr. Reddy’s Laboratories, and Cipla are already in the race to produce affordable alternatives, which could significantly impact Novo Nordisk’s market share in India. The Indian government’s Production-Linked Incentive (PLI) scheme is expected to further accelerate local manufacturing of these drugs, intensifying competition for Novo Nordisk.
Strategic Response
The company is also exploring partnerships with local manufacturers to enhance production capacity and ensure a steady supply of the drug. However, these efforts may be complicated by the ongoing global supply issues and the rapid development of generic alternatives by Indian companies.
Conclusion
As the patent expiry looms and competition intensifies, Novo Nordisk faces a critical juncture in its strategy for the Indian obesity drug market. The company’s ability to navigate global supply constraints and the emerging generic competition will determine its success in capturing market share in one of the world’s largest and fastest-growing pharmaceutical markets.