Novo Nordisk's Ozempic sales double to $700 M in China, driven by weight-loss demand

Last year, Novo Nordisk, the Danish pharmaceutical giant, witnessed a significant surge in the sales of its diabetes drug Ozempic in China, doubling its revenue to almost $700 million.

This remarkable growth accounts for 5 percent of Ozempic’s global sales, underscoring China’s pivotal role in the drug's international market.

Initially approved in China in 2021 to treat diabetes, it is Ozempic's active ingredient, semaglutide, known for its anti-obesity effects, that has sparked a surge in demand, earning it the moniker "internet celebrity weight-loss drug" among Chinese consumers.

Social media boosts demand amid rising obesity rates

Chinese female influencers and vloggers have been pivotal in promoting Ozempic on social media, contributing significantly to its popularity.

These platforms, known for hosting various “beauty challenges” showcasing thinness, have amplified the drug’s appeal.

The allure of Ozempic extends beyond young, beauty-conscious women on social media.

China grapples with the highest number of overweight or obese individuals globally, with about half of its population carrying excess weight.

The intersection of rising obesity rates and stringent beauty ideals presents a lucrative market for weight-loss drugs like Ozempic.

Pharmaceutical companies race to tap into the booming market

Novo Nordisk is not the only player eyeing the burgeoning Chinese market.

The company has applied to China’s drug regulator to expand Ozempic’s use, speculating it hopes to gain approval for marketing the drug specifically for weight loss.

Additionally, Novo Nordisk expects its drug Wegovy, explicitly intended for weight loss, to receive approval for sale in China this year.

In May, Eli Lilly, a pharmaceutical company based in Indianapolis, Indiana, received approval from Chinese regulators for its Ozempic rival, Tirzepatide.

Moreover, China’s Hangzhou Jiuyuan Gene Engineering, a subsidiary of pharmaceutical giant Huadong Medicine, applied for approval earlier this year to sell the first homegrown rival to Ozempic.

Despite these advancements, the demand for weight-loss drugs has outpaced supply, with Eli Lilly anticipating continued shortages into 2024.

On Chinese e-commerce platforms like Taobao, the price of Ozempic has soared to 1,000 yuan ($138), double the cost at public hospitals.

This surge in demand has also led to a proliferation of counterfeit semaglutide products online.

Consumers have managed to purchase Ozempic without a prescription, driving off-label use and limiting availability for diabetics.

Authorities crack down on unregulated sales amid high demand

In response to the unregulated sale of weight-loss drugs, Chinese authorities have intensified their crackdown efforts.

In February last year, censors removed over 5,000 posts from the social media platform Xiaohongshu related to weight-loss experiences attributed to Ozempic.

By March, police investigations into unregulated semaglutide products led to multiple arrests and convictions.

Last month, six individuals were prosecuted for selling weight-loss chocolates containing banned substances after a child who consumed them was hospitalized.

Western companies currently dominate China’s weight-loss drug market, but increased state intervention could shift this dynamic.

Novo Nordisk is engaged in a patent dispute initiated by Huadong Medicine, which is attempting to introduce a Chinese competitor to Ozempic.

In 2021, Huadong Medicine contested the validity of Novo Nordisk’s patent for semaglutide in China, leading to its invalidation in 2022.

Novo Nordisk has since appealed, and the patent office has yet to deliver a final decision.