Lilly's Weight-Loss Drug Tirzepatide Launches in China at Premium Pricing Over Semaglutide

The strongest competitor of Novo Nordisk's semaglutide has officially been commercially launched in China.

On December 25, reporters from The Paper observed that several e-commerce platforms now offer diagnosis and prescription services for Eli Lilly's glucose-dependent insulinotropic polypeptide (GIP)/ glucagon-like peptide-1 (GLP-1) receptor agonist tirzepatide (brand name: Mounjaro). The indications for tirzepatide include diabetes and weight management. Currently, prices vary among different merchants on the platforms, with a reminder that the final price will depend on the specific store chosen.

Tirzepatide by Eli Lilly Available on Multiple E-commerce Platforms

Taking a certain internet hospital merchant as an example, the quotation for 0.5ml: 2.5mg*4 vials is 2480 yuan. Based on this calculation, the price per vial is 620 yuan.The merchant claimed that its medicines are genuine, with quick registration and reservation services. A reporter from The Paper contacted the merchant's customer service as a consumer, and the staff stated that the medicine can be used for weight loss and can also be delivered by courier.A pharmaceutical e-commerce pharmacy quotes 1,758 yuan for 0.5ml: 2.5mg*4 vials, with each vial costing approximately 440 yuan on average, but shows out of stock in multiple regions. Another medical e-commerce flagship store offers the same specification at 2,580 yuan, available for direct purchase.

Tirzepatide is Eli Lilly's flagship product. Just the weight-loss version, Zepound, generated $3.018 billion in revenue in the first three quarters of 2024, placing it in the top tier of the global GLP-1 market alongside Novo Nordisk's GLP-1 drug, semaglutide. In May this year, tirzepatide received approval in China for its diabetes indication, and in July, its weight-loss indication was officially approved as well. Now, with tirzepatide officially entering commercialization, patients with diabetes and those seeking weight loss in China will be able to access this medication under the guidance of a doctor.

Regarding the price of Tirzepatide, Eli Lilly and Company told reporters from The Paper that currently, Mounjaro (Tirzepatide Injection) is a self-funded drug. For specific pricing, please refer to the pricing of various pharmaceutical institutions. As for the production capacity of the drug, Eli Lilly stated that the factory is operating around the clock, and new manufacturing facilities are also being constructed overnight.

▍Tirzepatide Prices Higher Than Semaglutide in China; Previously Available for 500 Yuan Reservation on E-commerce Platforms

Beyond the heated competition in the GLP-1 field, Novo Nordisk and Eli Lilly, known as the "GLP-1 dual giants," are engaged in a "battle of the titans," particularly in the weight loss sector.

In terms of weight loss effectiveness, on December 4 local time, Eli Lilly announced that at 72 weeks in a trial targeting obese or overweight adults, Zepbound outperformed the weight-loss version of semaglutide, Wegovy, on the primary endpoint and all five key secondary endpoints. Compared to Wegovy, Zepbound’s weight loss effect was 47% higher.

In terms of pricing, Eli Lilly has also challenged Novo Nordisk. When its weight-loss indication was approved in the U.S., Eli Lilly revealed that the monthly price of tirzepatide would be approximately $1,059.87, about 20% cheaper than Novo Nordisk's semaglutide 2.4mg. Eli Lilly also implemented a commercial savings card program, which includes individuals with commercial insurance for Zepbound potentially qualifying to pay as low as $25 for a one-month or three-month prescription; those with commercial insurance that does not cover Zepbound may qualify to pay as low as $550 for a one-month Zepbound prescription, which is approximately 50% lower than the list price.

Novo Nordisk's weight-loss version of semaglutide was officially commercialized on November 17. According to e-commerce platform quotes, the price of a single semaglutide pen is over a thousand yuan. Specifically, the 1.5ml (0.68mg/ml, 0.25mg/dose * 4 times) version costs 1,396 yuan, the 3ml (2.27mg/ml, 1.7mg/dose * 4 times) version costs 2,126 yuan, and the 3ml (3.2mg/ml, 2.4mg * 4 times) version costs 2,706 yuan.

From the current prices on e-commerce platforms, the price of tirzepatide is generally higher than that of semaglutide.

Before the emergence of medical consultation and prescription services, some e-commerce platforms had already introduced reservation services for tirzepatide. Some clinics offered reservation services on e-commerce platforms priced at 500 yuan. A reporter from The Paper consulted the customer service staff as a consumer, and the representative confirmed that the 500 yuan is a deposit.

As the two star weight-loss drugs, semaglutide and tirzepatide, are successively commercialized in China, Novo Nordisk and Eli Lilly and Company have officially kicked off their commercial battle in the Chinese market. Regardless of who secures a higher market share or revenue, it is certain that the Chinese market will drive the performance growth of both pharmaceutical companies.

▍Eli Lilly China Responds to Tirzepatide Production Capacity: Producing and Shipping Every Day, This Scale Is Unprecedented

High demand but unable to purchase products, both semaglutide and tirzepatide have experienced shortages globally, with production capacity being a key factor for companies holding GLP-1 drugs to gain a competitive edge.

On December 16 local time, Danish pharmaceutical company Novo Nordisk announced plans to invest 8.5 billion Danish kroner (approximately 8.7 billion yuan) to build a brand-new production facility in Odense, Denmark's third-largest city. The facility is scheduled for completion in 2027. Covering an area of over 40,000 square meters, the facility will produce various product types, including therapies for rare diseases such as hemophilia. Novo Nordisk did not disclose whether the plant would produce its star GLP-1 drug, semaglutide, but relevant officials stated that the plant would utilize advanced technology and innovative equipment to ensure the highest quality medicines for patients and meet the growing global demand for life-changing drugs.

Also in December, on December 5 local time, Eli Lilly and Company announced a $3 billion investment to expand the manufacturing plant in Wisconsin that the company acquired earlier this year. Eli Lilly stated that the expansion project is set to begin next year, marking another step in the company's historic manufacturing expansion agenda aimed at helping more people who rely on its medications. Earlier, in April 2024, Eli Lilly held a groundbreaking ceremony for a new factory in Frankfurt, Germany. This factory will mainly be used for producing injectable drugs and injection pens, with operations expected to commence in 2027 and shipments to be distributed globally. It is reported that Eli Lilly plans to invest $2.5 billion in the plant to address shortages of medications, including the GLP-1 drug Zepbound.

Regarding the production capacity of tirzepatide, Eli Lilly China told reporters on December 23 that Eli Lilly is producing and transporting large quantities of tirzepatide every day at an unprecedented scale to meet patient demand. "Our factories are operating around the clock, and new manufacturing facilities are being constructed overnight." In July this year, Eli Lilly China informed reporters that currently, a total of seven factories are either increasing capacity or under construction, with the goal of achieving earlier projections set for 2024 — to increase the production of incretin-based drugs by at least 1.5 times compared to the first half of 2023 by the second half of 2024.

According to the approved information, tirzepatide is suitable for long-term weight management in adults with a body mass index (BMI) meeting the following criteria, in addition to dietary control and increased exercise: greater than or equal to 28 (obesity) or greater than or equal to 24 (overweight) with at least one weight-related comorbidity (such as hypertension, dyslipidemia, hyperglycemia, obstructive sleep apnea, cardiovascular disease, etc.). Semaglutide targets overweight and obese patients with an initial BMI (body mass index) greater than or equal to 30, or between 27 and 30 with at least one weight-related comorbidity.

It needs to be emphasized that neither semaglutide nor tirzepatide is suitable for everyone for weight loss or diabetes treatment. Patients should undergo a series of professional assessments under the guidance of a doctor before using these drugs in a standardized manner. In October this year, the National Health Commission of China released the "Obesity Diagnosis and Treatment Guidelines (2024 Edition)," which highlighted the issue of weight rebound associated with GLP-1 weight-loss drugs. Real-world data based on the U.S. population showed that among patients who started using GLP-1 as a weight-loss drug in 2021, about two-thirds discontinued the drug within a year due to various reasons (including side effects, financial burden, health insurance coverage, etc.). Some studies have already focused on the weight-loss effects after discontinuing GLP-1, and results consistently indicate varying degrees of weight rebound after stopping the drug, while continued use can lead to further weight reduction.

Source: The Paper