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Novo Nordisk A/S (NYSE:NVO) plans to limit initial sales of its obesity treatment Wegovy in China as the Danish drugmaker faces the challenge of balancing demand while ensuring global supply.
China’s National Health Commission survey revealed over half of its 1.4 billion population is overweight or obese.
Maziar Mike Doustdar, Novo Nordisk’s chief of international operations, stated the company aims to launch Wegovy in China soon, prioritizing continuous supply without affecting availability elsewhere.
China’s health authorities recently approved Wegovy, offering a new weight loss option in a market where Novo Nordisk’s diabetes drug, Ozempic, has been used off-label to shed weight.
As urbanization drives obesity rates, China’s market for GLP-1 drugs like Wegovy could reach 40 billion yuan ($5.5 billion) by 2030, Bloomberg notes, citing HSBC analysis.
However, Novo Nordisk’s patent on semaglutide, Wegovy’s active ingredient, expires in 2026, with Hangzhou Jiuyuan Gene Engineering Co. and Livzon Pharmaceutical Group Inc. already seeking to produce generic versions.
Eli Lilly And Co (NYSE:LLY) is also a key competitor, with its obesity drug under review in China. Lilly and Innovent Biologics Inc. are also developing a local weight-loss drug that is expected to launch next year.
Bloomberg report adds that Novo Nordisk has struggled to meet global demand for Wegovy and Ozempic, but it continues to manufacture semaglutide in Denmark and North Carolina and is planning final production stages in China.
A 4 billion yuan factory expansion in Tianjin was announced in March.
While China’s national health insurance covers Ozempic for diabetes, Wegovy is unlikely to receive similar reimbursement.
As a result, Wegovy will likely target those able to pay out-of-pocket, allowing Novo Nordisk to set prices independently.
Currently, Ozempic is available on major Chinese platforms like JD.com Inc (NASDAQ:JD) and Alibaba Group Holding Ltd.’s (NYSE:BABA) Tmall.
Price Action: NVO shares are down 0.10% at $143.52 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Tobias Arhelger via Shutterstock
