The Race to Produce Generic Weight-Loss Drugs: China's Pharmaceutical Surge

Chinese companies are rapidly producing generic versions of Novo Nordisk's Wegovy, once limited by regulatory crackdowns. These firms have supplied substantial raw materials to compounding pharmacies in the U.S., which catered to demand during branded shortages. As patents expire, these companies are pivoting to international markets.

In a bid to capture the lucrative weight-loss drug market, several Chinese companies are expediting production of generic versions of Novo Nordisk's Wegovy. Known for supplying crucial ingredients to U.S. pharmacies, these firms drove significant sales of weight-loss drugs online amid shortages, according to a Reuters investigation.

Regulatory hurdles have slowed the availability of cheaper versions of Wegovy and Zepbound in the U.S. With expiring patents, the focus is shifting internationally. Industry insiders report that companies like Jiangsu Sinopep-Allsino Biopharmaceutical are launching initiatives to produce and distribute generic drugs.

The changes come with challenges. Manufacturing complex compounds such as semaglutide to injectable form poses difficulties. Despite the hurdles, Chinese suppliers continue to capitalize on market opportunities, providing products at substantial profit margins, though recent trends show a declining shipment rate.

(With inputs from agencies.)