The substance patent in China for semaglutide (Semaglutide), the active ingredient in Novo Nordisk's obesity treatment Wegovy, expires on the 20th, setting the stage for full-fledged price-cutting competition in the global obesity drug market.
Ahead of the patent expiration, generics and homegrown new obesity drugs are speeding up their entry into the Chinese market. China is the world's No. 2 pharmaceutical market after the United States. Attention is on whether the market structure of the global obesity drug sector, long dominated by U.S.-based Eli Lilly and Company and Denmark's Novo Nordisk, will shift.
According to the industry on the 9th, an injection of the new obesity drug ecnoglutide (Ecnoglutide), developed by Chinese biotech Hangzhou Sciwind Biosciences (hereafter Sciwind), has been approved by the National Medical Products Administration (NMPA) as a treatment for overweight and obesity in adults.
Ecnoglutide, like Novo Nordisk's Wegovy and Eli Lilly and Company's Mounjaro, is a GLP-1 receptor agonist that mimics the glucagon-like peptide (GLP)-1 hormone and is administered by injection. It is designed to selectively activate specific signaling pathways crucial for weight loss and metabolic improvement compared with existing GLP-1 drugs.
In phase 3 trials, ecnoglutide showed an average weight reduction of about 15% at 48 weeks, with about 92% of all patients achieving at least 5% weight loss. Wegovy demonstrated an average weight reduction of about 15% at 68 weeks in a global phase 3 trial.
An industry official said, "There are limits to direct comparisons because the clinical trial designs differ, but by the numbers alone, the weight loss effect is assessed to be similar to Wegovy," adding, "In the end, it will likely lean on price competitiveness."
What stands out is the sales and distribution rights. The rights in China were acquired by the Chinese subsidiary of U.S. drugmaker Pfizer, and the rights in Korea are held by HK inno.N, which signed a deal in 2024. A HK inno.N official said, "We are conducting a domestic phase 3 trial targeting type 2 diabetes and obesity," noting, "We plan to complete 40 weeks of dosing within the year and then proceed with the approval application process."
Not only new drugs but also generics are expected to mount an offensive. China's Jiuyuan Genetic Biopharmaceutical (Jiuyuan) is undergoing the approval review process for its Wegovy generic.
The industry expects price-cutting pressure in the global obesity drug market to spread, starting with China. That is because patents are set to expire in succession in India, Brazil, and elsewhere after China. In Korea, the patent is reported to expire in June 2028.
Novo Nordisk and Eli Lilly and Company, which have led this market, are also deploying various response strategies, including price adjustments.
Novo Nordisk and Eli Lilly and Company each cut the prices of their obesity drugs in China starting in December last year. Novo Nordisk plans to reduce the U.S. wholesale acquisition cost (WAC) list prices of Wegovy injection, oral Wegovy, and the oral diabetes drug Rybelsus by about 35% to 50% starting Jan. 1 next year.
Among Korean corporations, Hanmi Pharmaceutical, Celltrion, HK inno.N, Ildong Pharmaceutical, and Sam Chun Dang Pharm are targeting this market by developing new drugs and generics, and the shifts will likely be key variables for their market strategies.
Efpeglenatide, a GLP-1 obesity treatment developed by Hanmi Pharmaceutical, has completed domestic phase 3 trials and is awaiting the result after applying for marketing authorization to the Ministery of Food and Drug Safety. Ildong Pharmaceutical is also accelerating development of a once-daily oral obesity drug. The GLP-1 oral new drug candidate is "ID110521156." The company plans to achieve a licensing deal and enter phase 2 trials this year.
Sam Chun Dang Pharm last year succeeded in a bioequivalence study for an oral (pill) generic of Wegovy. The formulation patent for oral Wegovy remains in force in major countries including the United States, the EU, and Japan until 2039, expiring later than the injection patent. Sam Chun Dang Pharm has said it can avoid the formulation patent of Novo Nordisk's oral obesity drug "Wegovy Pill" through its proprietary formulation technology "S-PASS."
Celltrion is developing both injectables and oral drugs in parallel. The quadruple-action injection "CT-G32" is designed to act simultaneously on four hormone receptors based on GLP-1. The company is also considering extending beyond appetite suppression to promoting fat breakdown and regulating energy metabolism. It is currently conducting animal efficacy evaluations and aims to submit an investigational new drug (IND) application in the first half of next year.
In the industry, the prevailing view is that domestic obesity drugs will set prices lower than global obesity treatments to expand market share. An industry official said, "Because the domestic patent expiration timelines for Eli Lilly and Company and Novo Nordisk drugs differ, the price-cut effects seen in China and the United States will be limited in Korea," adding, "Rapid market entry by domestic obesity drugs is also important to spur price-cutting competition in Korea's obesity treatment market."
☞GLP-1 receptor agonists
This is a drug that imitates the action of a hormone called GLP-1, which is naturally secreted by the gut when the body eats food. This hormone sends a "feeling full" signal to the brain to reduce appetite and slows the rate at which food leaves the stomach. It increases insulin secretion to help stabilize blood sugar. GLP-1 receptor agonists artificially enhance these functions to reduce food intake and aid weight loss and blood sugar control.