Pharma Stocks Climb Over 4% On The Heels of Semaglutide Patent Expiry

Shares of pharmaceutical companies rose as much as 4% on Friday after Novo Nordisk’s patent for semaglutide is set to expire on Saturday. This has opened doors for lower-cost versions of the drug.

The development has triggered expectations that Indian drugmakers could introduce generic alternatives to blockbuster therapies such as Ozempic and Wegovy in the near term.

Market participants pushed up pharma stocks through the session, reflecting optimism around a fresh revenue stream tied to weight-loss and diabetes care. Several companies are seen as potential early entrants into the segment.

Pharma Stocks That Recorded Gains

At 1:35 pm, Laurus Labs shares climbed over 4% on Friday, leading gains among drugmakers. Other frontline names also moved higher. Glenmark Pharmaceuticals gained over 4%, while Lupin and Biocon gained over 3% each, respectively.

The timing stands out. Demand for weight-loss therapies has climbed sharply worldwide over the last two years. Treatments based on semaglutide have driven much of that rise. Still, high costs have kept many patients out in several markets.

The expiry of the patent changes that. It clears a major hurdle and opens the space for generic drugmakers, subject to approvals. Indian companies, which have a strong base in generics, are likely to act once regulatory processes are in place.

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Low Penetration, High Pricing

Industry data indicate that GLP-1 therapies have limited reach in India. They are used by around 5% of people with diabetes and about 4% of those dealing with obesity.

This comes even as the patient base remains large. As per estimates, India has over 100 million diabetics and close to 250 million people with obesity. The gap highlights the room for growth if affordability and access improve.

Prices, however, remain a constraint. Monthly treatment with Ozempic costs between ₹8,800 and ₹11,175. Wegovy is priced higher, with monthly costs ranging from ₹10,850 to ₹16,400.

Other options are even more expensive. Mounjaro, made by Eli Lilly, is priced at ₹13,000 to ₹26,000 per injection, depending on the dose.

Source

The Economic Times