[ad_1]
Novo Nordisk Facing Competition from Chinese Rivals for Key Diabetes Drug
Novo Nordisk, the Danish pharmaceutical giant, is under increasing pressure as a dozen Chinese corporations are in the process of developing generic substitutes for its groundbreaking diabetes medication Ozempic and its weight loss drug Wegovy, according to records of clinical trials.
Numerous Chinese pharmaceutical companies are competing to make their mark with these drug surrogates. There are currently 11 final stage semaglutide (the active compound in both Wegovy and Ozempic) drug candidates from Chinese companies, according to an examination of a clinical trial records database.
The Danish firm is predicting a sales boom in China for its blockbuster drugs, given that the East Asian country has probably the largest overweight and obese population worldwide.
Novo Nordisk saw Ozempic’s sales doubling to 4.8 billion Danish Krone ($698 million) in the Greater China area last year, after receiving approval in 2021. Furthermore, the company is expecting an approval for Wegovy this year.
Patent Expiry and Ongoing Legal Battle
However, there is an ongoing legal dispute as Novo Nordisk’s semaglutide patent, which is engaged in both Wegovy and Ozempic, is due to expire in the country in 2026. This could lead to the elimination of patent rights for these drugs in China, thus making it the first major market where it loses the patent protection.
The Role of Chinese Drugmakers
Chinese drugmakers are eager to capitalize on this situation. The success of Ozempic in mainland China coupled with the upcoming patent expiry is motivating them to claim this segment of the market as quickly as they can.
Hangzhou Jiuyuan Gene Engineering, a prominent Chinese pharmaceutical company, claims to have developed a treatment that compares equal to Ozempic regarding its “clinical efficacy and safety,” and has applied for sales approval.
Other Chinese firms who are at the last phase of clinical trials for Ozempic substitutes include United Laboratories, CSPC Pharmaceutical Group, Huadong Medicine and a subsidiary of Sihuan Pharmaceutical Holdings Group.
Numerous companies caution that unless there’s a ruling invalidating the patent, they won’t be able to sell their drugs before Novo’s patent tenure concludes in 2026.
Potential Impact on Prices
According to a research conducted by Chinese public health researchers in 2020, it was observed that the number of Chinese adults categorized as overweight or obese could escalate to 540 million and 150 million, respectively, by 2030. Hence, if Chinese pharmaceuticals can develop substitutes for Novo’s medications, it will significantly intensify competition leading to a subsequent fall in prices.
Novo’s Stand on Competition
Despite acknowledging the escalating competition, a Novo spokesperson stated that the company “welcomes healthy competition” and is awaiting the court proceedings regarding its patent. However, they declined to provide further comments on the issue.
Eli Lilly, a globally renowned pharmaceutical firm, visits the market with its diabetes medication, Mounjaro, approved in China in May. The firm anticipates approval for their weight loss medication, same as Novo’s active ingredient, later this year or early next year.
Although supplies of both Novo’s Wegovy and Eli Lilly’s Zepbound (name for the U.S. market) remain limited, production rates are gradually increasing.
[ad_2]
