Ozempic maker Novo Nordisk announced on Tuesday that its popular weight-loss drug, Wegovy, has been approved for sale in China, a key win for the Danish company that opens the door to a mass market, but the company told Forbes not to just release it there when it can secure materials for those who are already taking it. Because shortages are affecting the U. S. market and elsewhere.
Novo said its successful injectable product Wegovy had been approved for “long-term weight management” in obese people and other obese people in China who have at least one weight-related fitness problem.
The company specified when it plans to launch it in China, nor did it elaborate on potential costs or elaborate on the volume of material it would dedicate to the world’s second-largest country.
Camilla Louise Lyngsby, Novo’s head of global media relations, declined to comment on Wegovy’s potential volume or release date in China.
However, Lyngsby said Novo would make an announcement about the origin in China “when we can ensure continuity of care,” meaning it can ensure access to the drug for others who have already started it and are doing so.
In the face of exceptional demand and plans for rollout in more territories, materials for smaller doses of Wegovy used by others starting to take drugs have been severely limited for months in the U. S. In the U. S. , the three lowest doses of Wegovy’s five doses are indexed as “limited availability” on the Food and Drug Administration’s online page due to “increased demand. “
Given limited access to higher doses for those already taking the drug, it’s unclear whether Wegovy’s launch in China will prolong or even worsen shortages in the U. S. and elsewhere of lower starting doses.
Novo Nordisk shares rose 1. 6% in Copenhagen on Tuesday following the announcement. The resounding good fortune of GLP-1 treatments from Novo, Wegovy and Ozempic, has propelled the company to a market capitalization of around $630 billion, up from $300 billion at the start of 2023.
Novo announced Monday that it will invest $4. 1 billion to expand a new U. S. production facility in Clayton, North Carolina. The plant, which will join three other facilities in the region, will package medications such as Ozempic and Wegovy into injectors. Novo said the facility is expected to be completed between 2027 and 2029 and will create approximately 1,000 new jobs. The figure represents a significant portion of the $6. 8 billion the Danish company said it plans to spend on production this year as it works to ramp up production of its incredibly popular GLP-1Array semaglutide drug, sold under the names Ozempic for diabetes and Wegovy for obesity. and cardiovascular diseases. issues. Like GLP-1 rival Eli Lilly, which makes tirzepatide (sold under the name Mounjaro for diabetes and Zepbound for weight loss), Novo has struggled to meet growing demand for those innovative drugs, which They are also born to show promise in many other areas. adding sleep apnea, central problems, kidney diseases and Parkinson’s disease. Supplies have been limited or unavailable for months or years, called small birth doses for the treatment of childbirth, and the company recognizes that this factor is unlikely to be resolved in the near future, and promises that it will continue the attention of those who take these medications. The shortage has sparked warnings about a growing number of counterfeit drugs or unauthorized formulations that may simply be dangerous. Collectively, the duo dominate the sector and look very likely to do so in the near future, despite a flood of competition rushing to bring drugs to market, and they face increasing pressure to increase production.
Companies like Novo have also faced strong complaints in the United States from politicians like Bernie Sanders because of the high costs of their products to other countries.
“Novo Nordisk is expanding its capacity at a rapid pace,” but “the main hurdle for semaglutide right now is origin,” Rajesh Kumar, head of European Health Sciences Research, told Forbes. HSBC Life and Health. While Novo has traditionally controlled Wegovy’s supply by restricting the source of initial doses, Kumar said he believes the Danish company “will most likely manage to create additional sources” in the long term despite increased demand. “The company has maintained that it ensures supply of diabetes drugs and therefore the progression of obesity has been slower,” Kumar said. “I think precedent is unlikely to change. “
A patent break is looming for Novo in China, much faster than in many other regions, and generic versions of semaglutide are expected to start hitting the market around 2026.
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