Danish pharmaceutical company Novo Nordisk announced on Monday that it has launched its popular weight loss drug Wegovy in China. China is the second largest pharmaceutical market in the world, and it is estimated that more than 180 million people are suffering from obesity.
The introduction of the drug in China will increase competition between Novo Nordisk and its rival Eli Lilly. Eli Lilly received approval for its weight loss drug in China in July this year, but has yet to launch it. Both companies are ramping up production capacity to meet the growing demand for weight loss drugs. According to analysts, the value of the weight loss market is likely to cross $150 billion by the beginning of the next decade.
A spokesperson for Novo Nordisk confirmed the news to Reuters after the news was revealed by Chinese financial media Yisai. A one-month supply of Wegovy costs about $1,349 in the US. However, Novo’s spokesperson did not comment on the price of the drug in China.
Novo Nordisk received approval for Wegovy in China in June this year. They have initially targeted only those Chinese patients who are willing to pay out of pocket for the drug.
Novo first launched Wegovy in the US in 2021. Shares of Novo Nordisk hit record highs on strong sales of the drug in 15 other countries, including the US. Currently, the market value of the company is around $449 billion.
However, China’s National Health Insurance (which provides basic health care to most of the country’s 1.4 billion people) has not approved any reimbursement or financial support for Wegovy.
Obesity has increasingly become a major health problem in China. In such a situation, there is a huge opportunity in the market for drugs like Wegovy. However, it will be important to see how many Chinese consumers will take advantage of the drug due to its cost and insurance limitations.
Novo Nordisk has expressed high expectations for sales in China based on Wegovy’s success globally. However, this market may prove challenging for the company due to competition from Eli Lilly and other competitors.