 "Generic drugmakers to slash price plans as Novo cuts Wegovy rates")
Generic drugmakers are considering changing their pricing plans after Danish company Novo Nordisk slashed the price of its weight-loss injection semaglutide (Wegovy), according to a report by The Economic Times. Companies preparing to launch their own semaglutide versions were earlier planning to keep a price range of ₹7,000-8,000 a month, but now they are considering a cheaper range of ₹3,000-5,000.
Earlier this month, Novo Nordisk cut Wegovy prices by up to 37 per cent across different doses to compete with rival drug Mounjaro from Eli Lilly. With the new price cut of 20-37 per cent, Wegovy will now cost ₹10,850 for the lowest dose (0.25 mg) and ₹16,400 for the 1.7 mg and 2.4 mg doses. These prices are for a month’s supply of four injections.
Launched in March, Eli Lilly's weight-loss drug Mounjaro preceded Novo Nordisk’s Wegovy, which entered the market in June. By the end of October, Mounjaro had generated total revenue of ₹333 crore, research firm Pharmarack said.
Ozempic launch to increase pressure
The pressure is likely to further increase next month with Novo expected to launch Ozempic in India at a similar or slightly lower price. According to the report, Ozempic may be up to 10 per cent cheaper than Wegovy and may launch in the second week of December.
Commenting on Ozempic’s possible price, Novo India head Vikrant Shrotriya said the company is watching the situation closely. They want to stay competitive and will do new market research to decide whether the price should be the same or different, The Economic Times reported.
Competition in the GLP-1 market will also depend on how many companies launch early. Around 10 players are expected in the first wave, including Dr Reddy’s, Sun Pharma, Lupin, Mankind, Zydus, Cipla, Hetero, and Alkem.
'Generics may start with 50% price cuts'
Pharma analyst Vishal Manchanda told The Economic Times that generics may start with at least 50 per cent price cuts from current semaglutide prices, depending on how many players enter the market in the first wave.
According to the report, Novo Nordisk may introduce more price cuts next year to keep its prices close to, but still slightly higher than, generics. Industry insiders argued that if the price difference between the original drug and the generic versions is small, many customers will prefer the original brand.
A Novo spokesperson told the publication that the company aims to bring new innovations to India quickly, but has not yet confirmed the launch timeline and is working with the authorities to finalise it.
Manufacturers to earn 80-90% gross margins
However, the report noted that even at lower launch prices, manufacturers can still earn 80-90 per cent gross margins. Manchanda said that even if they price it at ₹4,000-5,000, margins will remain strong because the generics makers already have their supply chain and production processes in place. The final profit will depend on how much they spend on marketing.
How serious is India’s obesity problem?
India has around 254 million people with overall obesity and another 351 million with belly (abdominal) obesity. Obesity can lead to more than 230 health problems, such as heart disease, fatty liver, joint pain, kidney disease, and Alzheimer’s.