Novo Nordisk (NOVOb.CO) announced on Monday that it has officially launched its popular obesity treatment, Wegovy, in China—the world’s second-largest pharmaceutical market, where more than 180 million people are estimated to be living with obesity.
This launch intensifies competition with Eli Lilly (LLY.N), which received approval for its own weight-loss drug in China this past July but has not yet begun selling it. Both companies are ramping up production in anticipation of a rapidly growing weight-loss market, which analysts predict could surpass $150 billion by the end of the decade.
A spokesperson for the Danish pharmaceutical company confirmed the launch to Reuters, following an initial report by the China-based financial outlet Yicai. According to Yicai, the cost for a month’s supply of Wegovy’s starter dose in China will be 1,400 yuan ($193.27), compared to around $1,349 for a month's supply in the U.S. However, the Novo Nordisk spokesperson did not comment on the price.
Novo Nordisk secured approval for Wegovy in China in June and plans to initially target patients who are willing to pay out-of-pocket for the weekly injectable treatment.]
Novo Nordisk launched Wegovy in the U.S. in 2021, and strong sales there, along with in 15 other countries where the drug has since been introduced, have driven the company’s shares to record highs. Novo’s market capitalization is now approximately $449 billion.
However, Wegovy will not be covered by China’s national healthcare insurance, which provides basic coverage to most of the country’s 1.4 billion people. To make the drug more accessible, Novo is exploring options such as partnering with commercial insurance providers, according to an executive quoted in the Yicai report.