Novo and Lilly slash weight-loss drug prices in China before patent cliff
Novo Nordisk and Eli Lilly have voluntarily cut prices of their weight-loss injections in China by up to 40 % ahead of looming patent expiry and local generic entry.
Price war looms as patent shields lift
Shanghai—Patients queued outside Tongren Hospital on Monday for a reason that would have seemed impossible a year ago: the weekly injection they rely on to shed pounds now costs 40 % less. By Friday, the same vial will be cheaper still.
The catalyst? A quiet announcement last week from Novo Nordisk and Eli Lilly that they are voluntarily cutting the list price of their blockbuster GLP-1 medicines in China, effective immediately. The move comes just months before local patents expire and home-grown copycats reach pharmacies.
The numbers behind the cuts
- Novo’s semaglutide (marketed as Wegovy) drops from ¥1,134 to ¥680 per pen.
- Lilly’s tirzepatide (Zepbound) falls from ¥1,256 to ¥753.
- Both companies pledged an additional 25 % rebate for patients enrolled in public insurance.
Why now?
China’s National Intellectual Property Administration will revoke key composition-of-matter patents by September. At least nine domestic labs—including Jiangsu Hengrui and Innovent—have biosimilar versions ready for regulatory filing. “The incumbents are racing to lock in loyalty before the floodgates open,” says Dr. Li Wen, endocrinologist at Peking Union Medical College.
We’d rather cannibalize our own margin than surrender market share to generics.—Novo China spokesperson, briefing reporters in Pudong
Patient impact
For 29-year-old Shanghai accountant Chen Mei, the price drop means she can stay on therapy without borrowing from her parents. “I’ve lost 17 kg since January; at the old price I was about to quit,” she says. Hospital data show monthly new prescriptions jumped 62 % within days of the discount.
Investor reaction
Shares of Novo Nordisk slid 3.8 % in Copenhagen on fears of margin compression, while Lilly dipped 2.4 % in New York. Analysts at Bernstein cut their 2025 EPS estimate for Novo by 7 % but maintained a “buy,” arguing that volume growth in China’s 180 m obese adults will offset price erosion.
What happens next
Regulators are fast-tracking reviews for local generics, with the first approvals expected before year-end. Pharmacy benefit managers predict retail prices could fall another 50 % by 2025. Until then, Novo and Lilly hope brand trust—and aggressive rebates—keep patients from switching.
As Dr. Li puts it, “The battle for China’s waistlines has begun, and the first shots are being fired in the pricing aisle.”