China Approves Lilly's Weight Loss Drug, Escalating Novo Rivalry

In a significant move set to heighten competition in the rapidly growing Chinese market for weight loss medications, Eli Lilly announced on social media that Chinese regulators have approved its popular dual GIP/GLP-1 receptor agonist tirzepatide. This approval arrives just weeks after Novo Nordisk's Wegovy (semaglutide) received similar authorization in the crucial Asian market.

Tirzepatide, which is marketed as Mounjaro for diabetes and Zepbound for weight loss in other regions, marks Lilly's entry into China's potentially profitable obesity treatment sector. Chinese authorities had previously approved the drug for diabetes treatment in late May. These swift approvals highlight the Chinese regulator's awareness of the increasing obesity rates in the country. According to the latest national survey conducted by China's National Health Commission between 2015 and 2019, 34.3% of Chinese adults are overweight, with 16.4% classified as obese.

The recent approval of Zepbound in China coincides with Eli Lilly's efforts to enhance its global production capabilities. The company has recently invested $5.3 billion to expand a production site in Indiana to address shortages of both Mounjaro and Zepbound. This investment follows a prior commitment of $3.7 billion. Novo Nordisk has also been tackling supply issues for its GLP-1 drugs and has announced plans to construct a $4.1 billion fill-finish facility in the United States. Moreover, Novo Nordisk plans to expand its manufacturing site in Tianjin, China, which is anticipated to become operational by 2027.

A retrospective observational study published in JAMA Internal Medicine recently suggested that Lilly's drug has a weight-loss advantage over Wegovy. This finding may hint at the outcomes of an ongoing head-to-head trial between the two leading GLP-1 drugs.

The competition in the obesity drug market extends beyond Lilly and Novo Nordisk. Pfizer recently announced its ongoing development of a once-daily formulation of its oral GLP-1 agonist danuglipron. The company expressed optimism about advancing a "competitive oral GLP-1 molecule into registration enabling studies." Additionally, Roche has reported promising early-stage data for both its oral GLP-1 receptor agonist CT-996 and its injectable dual GLP-1/GIP receptor agonist CT-388.

This burgeoning field reflects a broader recognition of the urgent need to address obesity, which poses significant public health challenges globally. With major pharmaceutical companies intensifying their efforts and investments, the landscape of obesity treatments is poised for rapid evolution and expansion.