Novo Nordisk A/S Sponsored ADR Class B (NVO.US) saw a 40% increase in sales of weight-loss drugs in April after prices were reduced in India.

Last month, the sales of Indian diabetes and weight loss drugs increased by 40%, as a result of a significant price reduction which boosted demand for their branded medications - despite a large influx of generic GLP-1 therapies entering the market. According to market research firm Pharmarack, sales of Wegovy, Ozempic, and their branded partner versions reached 32,000 units in April, marking the first complete month of data since the launch of the generic semaglutide in India. Since April 1, Novo Nordisk A/S Sponsored ADR Class B has reduced the initial dose prices of the two drugs by 36% and 48% respectively, bringing the price down to 5660 rupees (approximately $60). Sheetal Sapale, Vice President of Business at Pharmarack, stated that this aggressive pricing strategy "effectively increased the affordability of the medications," helping this Danish pharmaceutical company withstand competition from lower-priced rivals and defend its market share. She pointed out that the sales growth indicated that Novo Nordisk A/S Sponsored ADR Class B - along with Lilly (LLY.US) - would still be the "preferred choice for certain patients and doctors." At the same time, non-branded GLP-1 therapies with prices as low as $14 per month are rapidly expanding the overall market size. Although Lilly maintains the leading position in the sales of GLP-1 drugs in India after early setbacks, the sales of these low-cost generic drugs drove a 56% month-on-month market increase in April, reaching a total of 414,000 units. However, the price reduction strategy of Novo Nordisk A/S Sponsored ADR Class B is not merely for market expansion, but rather a proactive defensive move. Indian pharmaceutical giants such as Sun Pharma and Dr. Reddy's Laboratories are gearing up, eyeing the benefits from the expiration of the patents on semaglutide, with intensive development plans for generic drugs already in place. By adjusting the pricing system in advance, Novo Nordisk A/S Sponsored ADR Class B is attempting to squeeze the profit margins of competitors and weaken the price competitiveness of generic drugs before they flood the market on a large scale. While the wave of generic drugs led by Torrent Pharmaceuticals Ltd. has expanded the channels for new patients, these low-cost alternatives have not yet diminished the demand for branded drugs. "So far, generic drugs have mainly led to market expansion rather than significantly eroding the market share of original research drugs," Sapale stated. In the broader context, India is currently facing a dual challenge of diabetes and obesity, earning the title of the "Diabetes Capital of the World" with a potential patient base exceeding one billion. Although Ozempic is primarily approved locally for the treatment of type 2 diabetes, its exceptional weight loss effects have made it a "star product" eagerly sought after by obese individuals. Novo Nordisk A/S Sponsored ADR Class B's proactive move at this time is not only to address the existing sales growth bottleneck, but also to establish semaglutide as a cornerstone drug for metabolic disease treatment in India during the country's transformation of national health spending, thus building a strong brand moat in this high-growth track. India is the first market where Novo Nordisk A/S Sponsored ADR Class B faces competition from generic versions of semaglutide (the active ingredients in Ozempic and Wegovy), making it a potential indicator for the global promotion of this drug. Canada approved the generic version last month, but the commercial launch date is still unclear. In China, although the patent for Ozempic has expired under the China-Switzerland Free Trade Agreement, the launch of generic drugs is expected to be delayed until next year. As of now, representatives from Novo Nordisk A/S Sponsored ADR Class B and Lilly have not responded to this matter.