Domestic pharmaceutical companies are rapidly moving into the fast-growing market for weight-loss drugs, following the expiry of a key patent.
The shift comes after the patent on semaglutide, the active ingredient used in global blockbuster drugs for diabetes and obesity, expired in India this month. The development has opened the door for domestic companies to introduce cheaper versions, setting off intense competition across the sector.
Within days, several companies, including Sun Pharma, Zydus Lifesciences and Dr Reddy’s Laboratories, among others, have launched their own versions of the drug.
Prices of the drugs have dropped sharply. Weekly treatment costs now range from about `750 to `2,000, marking a drop of 50–90% compared to earlier prices, according to industry estimates.
Nomura expects this to expand the domestic glucagon-like peptide-1 (GLP-1) market to `12,000 crore within five years. The opportunity lies in scale. India has nearly 100 million diabetics and 250 million people with obesity, while the current penetration of GLP-1 therapies remains low at 5% and 4%, respectively.
Nomura estimates that even a 2% penetration in the obese population alone could generate over `2,500 crore in weight-loss drug sales. “Reusable pens by Zydus and Alkem present the best combination of pricing and convenience, with a monthly cost for diabetes at `1,800-2,200 and for obesity at `3,500-5,500,” the brokerage said in a note.
A crowded race
The rapid drop in prices has led to a rush of companies entering the segment. More than 10 pharmaceutical companies have already launched products, while over 40 companies could introduce more than 50 brands in the coming years, intensifying competition, analysts said.
Apart from Sun Pharma, Zydus and Dr Reddy’s, firms such as Torrent Pharmaceuticals, Alkem Laboratories and Glenmark are also joining the race.
“Some companies are also exploring partnerships beyond medicines. Drugmakers and food companies are looking at tie-ups to develop nutrition products tailored for patients using weight-loss therapies,” said Sumit Chadha, a pharma analyst at a domestic broking firm.
Regulation tightens amid surge
The rapid expansion has also raised concerns. India’s drug regulator has stepped up surveillance on the sale and promotion of these medicines, warning against unauthorised use and misleading marketing.
Authorities have inspected dozens of clinics and pharmacies and issued notices for violations linked to illegal sales and improper prescriptions.
Officials are particularly concerned about the off-label use of these drugs for weight loss, as they were originally developed to treat diabetes.
The current wave marks a shift in India’s pharmaceutical landscape, where domestic companies are quickly replicating high-value global therapies and bringing them to market at scale.