Novo Nordisk Authorized to Market Wegovy in China: A Major Step in the Fight Against Obesity
On June 25, 2024, Danish pharmaceutical giant Novo Nordisk achieved a significant milestone in its Asian expansion with the approval to market its flagship anti-obesity drug, Wegovy, in China. With over 700 million people—more than half the population—classified as overweight or obese, the Chinese market represents a tremendous opportunity for the company. This strategic advancement strengthens Novo Nordisk’s position as a global leader in the rapidly growing obesity treatment market.
A Growing Market with Urgent Needs
China faces a pressing public health crisis. A 2020 report by the National Health Commission revealed that 53% of Chinese adults are overweight or obese, creating enormous costs for the healthcare system and emphasizing the need for effective therapeutic solutions.
Wegovy, based on the molecule semaglutide, offers a breakthrough in tackling chronic overweight and obesity. By enhancing satiety and appetite control, this GLP-1 agonist provides a targeted solution to these conditions. Semaglutide is also the key ingredient in Novo Nordisk’s diabetes medication, Ozempic, which has been widely used off-label for weight loss.
Sales of Ozempic in China surged to €648 million in 2023, reflecting the rising demand for weight-loss treatments. With Wegovy, Novo Nordisk aims to capture an even larger share of this enormous market.
Intense Competition in the Obesity Market
Wegovy’s entry into China comes amid escalating competition in the obesity drug sector. Novo Nordisk faces challenges from Eli Lilly, which recently received approval for its diabetes medication tirzepatide (marketed as Zepbound) and is seeking approval for its weight-loss indication. Meanwhile, Pfizer is developing three new obesity treatments, including two GLP-1 analogs and an innovative molecule.
Despite the rivalry, Novo Nordisk maintains a competitive edge due to its expertise, production capacity, and Wegovy’s global reputation. In 2023, its "diabetes and obesity" segment accounted for nearly 90% of the company’s operations, contributing to a total revenue of over €30 billion.
Opportunities and Challenges in China
The approval of Wegovy in China marks a strategic breakthrough, but challenges loom. The patent for semaglutide in China will expire in 2026, significantly earlier than in Europe (2031) and the U.S. (2032). This opens the door for local generics and intensified competition.
To mitigate this risk, Novo Nordisk is investing in innovation. The company is testing a new molecule, an amylin analog, which could deliver improved tolerance and efficacy compared to GLP-1s. Danish biotech Zealand Pharma is also exploring amylin analogs, potentially paving the way for next-generation obesity treatments.
A Global Market with Massive Potential
The excitement around obesity medications is not limited to China. According to estimates by Goldman Sachs and JPMorgan, the global obesity drug market could reach $100 billion by 2030, underscoring the urgency of addressing this global epidemic. While Novo Nordisk and Eli Lilly dominate the field, both companies are struggling to keep up with the surging demand.
This momentum is reflected in Novo Nordisk’s stock performance. For the first time, the company’s share price exceeded 1,000 Danish kroner, propelling its market capitalization to historic highs. This growth signals strong investor confidence in the company’s position in a rapidly transforming market.
A Medical and Societal Revolution
With Wegovy’s approval in China, Novo Nordisk is not just opening a new commercial chapter—it is playing a pivotal role in addressing a global health crisis. The launch represents a shift in the medical approach to obesity, now recognized as a complex disease requiring innovative treatments.
As demand for these drugs continues to soar, Novo Nordisk is positioning itself as a key player in this transformation and a catalyst for global solutions to one of the 21st century’s most pressing epidemics.
