Novo Nordisk Responds to Limited Supply of 'Weight-Loss Wonder Drug' Wegovy in China: Committed to Responsible Global Allocation

On June 27, market news indicated that Novo Nordisk's "weight-loss wonder drug" Wegovy would be sold in limited quantities in China. Wegovy is the English trade name for the weight management indication of semaglutide injection, with the Chinese trade name being NovoGain.

Regarding the aforementioned news, on June 28, Novo Nordisk China told The Paper that since the approval of Wegovy, it has officially started the relevant procedures for drug supply according to plan, and will bring this significant product to the Chinese market as soon as possible, benefiting patients with obesity. Currently, Wegovy has been launched in more than 10 countries worldwide. "To meet patient needs, we are working hard to increase the product supply of GLP-1 drugs. We will allocate the existing product supply in the global market responsibly, following consistent standards, focusing on ensuring the continuity of patient medication and the accessibility of innovative drugs."

On June 25, Novo Nordisk China announced that the National Medical Products Administration had approved the listing application of NovoGain in China. This is the world's first and currently the only glucagon-like peptide-1 receptor agonist (GLP-1) weekly formulation for long-term weight management, which can achieve an average weight loss of 17% (16.8kg).

Novo Nordisk China stated that there is a significant amount of unmet medical needs in the obesity treatment field. As Novo Nordisk serves an increasing number of patients, the GLP-1 injectable product portfolio is facing substantial market demand. In China, following the principle of being responsible to patients, Wegovy will be supplied in a well-planned manner after its market launch to ensure continuity of treatment for patients, meaning that patients who have already started treatment can continue to receive it.

According to previous reports, a Novo Nordisk executive mentioned in an interview that the company plans to launch the product in China soon, with initial supplies not significantly impacting global availability. It's no secret that the demand for Wegovy far exceeds its supply. "We can't open it up to all centers and all doctors on the first day, and then end up in a situation where, for example, the product is launched on Monday, but by Wednesday or Thursday, those who started using it on Monday run out."

In the past two years, GLP-1 weight-loss drugs have gained significant global attention, with Novo Nordisk's semaglutide undoubtedly being the star product. Novo Nordisk's Q1 report shows that the sales of the weight-loss version of semaglutide, Wegovy, reached 9.377 billion Danish kroner, a year-on-year increase of 106%. Including products for diabetes indications, semaglutide is also considered by the industry as a heavyweight product with the potential to challenge the title of "world's best-selling drug."

Due to issues such as demand and manufacturing processes, production capacity is the key to competition in GLP-1 drugs. Novo Nordisk has repeatedly increased the capacity construction of semaglutide. On June 25, Novo Nordisk announced that it would invest $4.1 billion to build a new 1.4 million square-foot factory at its Clayton site in North Carolina to boost the production supply of its blockbuster weight-loss drug Wegovy and diabetes treatment Ozempic. This expenditure is part of Novo Nordisk's planned $6.8 billion investment in manufacturing this year.

Novo Nordisk also announced in February this year that its major shareholder, Novo Holdings, would acquire the U.S. pharmaceutical company Catalent, Inc. in an all-cash transaction worth $11.5 billion. Including assumed debt, the total value of the deal reached $16.5 billion. This acquisition granted Novo Nordisk ownership of three filling plants under Catalent. In its Q1 earnings release, Novo Nordisk also mentioned the acquisition, stating that the agreement would enable the company to serve more patients with diabetes and obesity in the future.

Regarding how to ensure the production capacity of semaglutide, Novo Nordisk China previously stated in a written interview with The Paper that all its manufacturing plants are working全力以赴 to ensure the supply of products for existing patients. Between 2022 and 2023, the company invested over 5 billion US dollars across all relevant manufacturing facilities to expand production capacity in response to the growing market demand.

Many domestically produced semaglutides have also entered the market for semaglutide generics. Previously, in China,Livzon Group（000513）、Hanmi Pharmaceutical(300199), CSPC Pharmaceutical Group (1093.HK), and other pharmaceutical companies have successively announced that their semaglutide weight-loss indications have been approved for clinical trials. This means that China-produced semaglutide is expected to provide more production capacity in the future. In addition to semaglutide, there are other Chinese players entering the GLP-1 weight-loss innovative drug market, which is expected to meet the huge demand of weight-loss patients. In the GLP-1 innovative drug sector, Renhui Biotech took the lead, obtaining approval in July 2023, marking the first original innovative drug in China's weight-loss field. In May this year, Eli Lilly's tirzepatide was approved in China for diabetes treatment. The weight-loss indication for tirzepatide is also expected to be approved in China within this year.