Novo Nordisk Wins Approval in China for GLP-1 Obesity Drug Wegovy

1. Approval in China: Novo Nordisk's Wegovy, a GLP-1 obesity drug, has been approved in China for long-term weight management, marking a significant milestone in the world's second-largest economy.
2. Restricted Launch: Due to ongoing global shortages, Novo Nordisk plans to restrict initial sales of Wegovy in China to ensure a steady supply for patients who start treatment.
3. Market Potential: Over half of China's adult population is overweight or obese, creating a significant market for Wegovy.
4. Patent Expiration: Novo Nordisk's patent on semaglutide, the active ingredient in Wegovy, is set to expire in China in 2026, allowing for cheaper generics and biosimilars to enter the market.
5. Competition: Novo Nordisk faces competition from Eli Lilly's Mounjaro and other GLP-1 biosimilar candidates in development, with at least 15 candidates reported.
6. Manufacturing Expansion: Novo Nordisk is investing $4.1 billion in a new manufacturing facility in North Carolina to address shortages and enhance production capacity.
7. Global Demand: Wegovy has seen strong demand globally, with skyrocketing sales in the United States, leading to ongoing shortages since 2022.