MUMBAI, March 1, 2024 – Indian drugmaker Dr.Reddy’s Laboratories is set to launch a generic version of Novo Nordisk’s popular diabetes drug Ozempic in March, perhaps reshaping access to care in a massive market and igniting competition in the weight-loss and diabetes drug sector. It’s a move expected to significantly lower costs for Indian patients and challenge Novo Nordisk’s dominance.
- Dr. Reddy’s Laboratories will begin selling generic Ozempic in India in March.
- The launch coincides with the expiration of Novo Nordisk’s patent on Ozempic in India on March 21.
- analysts predict the cost of generic semaglutide could fall to as low as $40 by 2026, less than half the current price.
- The company is also pursuing approval for a generic version of Novo Nordisk’s weight-loss drug, Wegovy.
Dr. Reddy’s Laboratories Ltd.announced it will price its generic Ozempic competitively,aiming to improve affordability for Indian patients with type 2 diabetes. M.V. Ramana, chief executive officer for Branded Markets, told reporters on Wednesday that pricing will be determined by market conditions and competitor strategies. “This would be a major prospect,” Ramana saeid.
What will the impact of generic Ozempic be? Experts believe a cheaper generic semaglutide could significantly alter treatment patterns across India, where millions struggle with the high cost of diabetes medication.
Investors reacted positively to the news. Dr.Reddy’s shares rose as much as 5.8% in Mumbai on Thursday, marking the stock’s largest intraday increase as April. This surge followed better-than-expected earnings reported for the december quarter.
The expiration of the Ozempic patent in India on March 21 is a key factor in Dr. Reddy’s global strategy. CEO Erez Israeli indicated the company also sees strong potential in markets like Turkey, brazil, and Canada.
the launch signals a broader challenge to Novo Nordisk, whose Ozempic and related drugs generate approximately $30 billion in annual sales. Numerous drugmakers are preparing to offer lower-cost versions in markets with limited access, and India, with its ample diabetes population, is a prime target.
Semaglutide is the active ingredient in both Ozempic and Wegovy. According to Nomura analyst Saion Mukherjee, generic semaglutide could be available for as little as $40 by 2026, a substantial reduction from the current Ozempic price in India.
Lower prices could extend access to treatment beyond major cities, potentially leading to increased prescriptions and improved patient adherence. Dr. Reddy’s plans to distribute 12 million pens in the first year, with the active pharmaceutical ingredient manufactured in-house to control costs and ensure a consistent supply.
To expand its reach, Dr. Reddy’s will collaborate with other Indian companies for marketing and distribution. The company has already received the necessary approvals from the Drugs Controller General of India, including both marketing and manufacturing clearances.
Dr. Reddy’s is also seeking approval for a non-branded version of Wegovy, Novo Nordisk’s weight-loss drug, and is awaiting a decision from Indian regulators.
Beyond India, Canada is a notable focus. In November,Dr.Reddy’s responded to a notice of non-compliance from Health Canada regarding regulatory requirements. A decision is expected by May,and Israeli stated the company is prepared to launch instantly upon approval. “If we get approval in this timeframe, we will be first to launch in Canada,” he said, adding that a Canadian launch would be a major step in the company’s global expansion and put pressure on branded drug prices in developed markets.
