
Weight-loss drugs: A game changer for India’s top pharma companies

Summary
- Unless you’ve been living under a rock, you know that weight-loss drugs are the talk of the town. GLP-1 drugs, in particular, have been making waves as potential ‘miracle’ treatments for obesity
Over 650 million adults globally suffer from obesity, and this number is only expected to rise. Simultaneously, the market for weight-loss drugs is experiencing a revolutionary shift, driven by advances in treatments like Ozempic, Wegovy, and Zepbound—three drugs that are showing remarkable results in combating obesity. What makes these drugs so special? They belong to a class of medicines known as GLP-1 receptor agonists, which were initially developed to treat type 2 diabetes but have now become the cornerstone in obesity management.
What are GLP-1 drugs?
GLP-1 (glucagon-like peptide-1) drugs mimic the action of a natural hormone that helps regulate blood sugar levels. These drugs are primarily used to manage Type 2 diabetes, but their effectiveness in weight loss has opened new doors for treating obesity. By slowing down digestion, GLP-1 drugs help people feel fuller for longer, making it easier to reduce calorie intake. The result? A significant reduction in body weight, which is what makes these drugs so appealing.

The global weight-loss revolution
The market for GLP-1 drugs is booming, and analysts predict it could exceed $100 billion by 2030. As the demand for these drugs soars, pharmaceutical giants like Novo Nordisk and Eli Lilly have seen massive profits, with Novo’s GLP-1 sales raking in over $6 billion in 2023 alone. Despite the success, both companies have struggled to meet the overwhelming demand, leading to widespread shortages of their products. This has paved the way for other players to enter the market, including Indian pharma companies, who are eager to grab a slice of the lucrative pie.
This rapid rise is a reflection of not just increased awareness about obesity but also the proven effectiveness of these drugs in helping individuals lose significant amounts of weight. For instance, Wegovy—the leading drug in this category—has shown weight loss results of up to 15% of body weight in clinical trials.
Another heavyweight in the GLP-1 space is Ozempic, which gained widespread attention after showing significant results in weight loss for diabetic patients. While Ozempic is primarily marketed for managing type 2 diabetes, its weight-loss benefits have garnered a lot of attention. Clinical trials have shown that Ozempic can help patients lose up to 12% of their body weight, making it a go-to treatment not just for diabetes but also for obesity management.

The popularity of Wegovy, Ozempic, and other GLP-1 drugs lies in their ability to mimic natural hormones in the body that regulate hunger and glucose metabolism. This means they not only aid in weight loss but also improve overall metabolic health, which is crucial in an era where chronic conditions like diabetes and cardiovascular diseases are on the rise. As these drugs gain traction in Western markets, all eyes are now turning to India, where a massive opportunity awaits.
India’s obesity problem
India, with its fast-growing population and changing lifestyle, is facing an obesity epidemic. It’s estimated that by 2035, 11% of adults in India will be obese. This presents a massive opportunity for the pharmaceutical industry. The market for diabetes drugs alone was valued at $3.8 billion in 2023 and is projected to hit $14.5 billion by the end of the decade. With a booming market for both diabetes and obesity treatments, Indian pharma companies are looking to capitalize on this demand.
India’s rising players in the GLP-1 market
Indian pharmaceutical giants like Sun Pharma, Cipla, Dr. Reddy’s, Natco Pharma, and Lupin are in a fierce race to bring obesity drugs to the Indian market. While some are focused on developing versions of Novo Nordisk's Wegovy and Eli Lilly’s Zepbound, others are securing First-to-File (FTF) status to gain exclusivity benefits. Each company is charting its own path—Sun Pharma is creating a novel drug for obesity and Type 2 diabetes. In contrast, players like Dr. Reddy’s and Cipla are working on generic versions of existing treatments. Here’s how each company stands to benefit from weight loss drug revolution.
1. Sun Pharma: Focusing on utreglutide
Sun Pharma has made significant strides in the GLP-1 weight loss drug space with the development of its own drug, Utreglutide. This drug has shown promising results in early clinical trials, demonstrating not only substantial weight loss but also marked improvements in blood sugar control and lipid levels. These early-stage results have generated considerable optimism about its potential effectiveness. However, Utreglutide still needs to undergo several more phases of clinical trials before it can be commercialized.
Sun Pharma is keen on addressing the global obesity crisis, and its efforts extend beyond India. The company plans to launch Utreglutide on a global scale, hoping to tap into the growing demand for obesity treatments worldwide. Given Sun Pharma’s strong international presence and expertise in drug development, it is positioning itself as a key player in the rapidly expanding GLP-1 market.
Also read: Sun Pharma: Down but not out?
2. Cipla: Entering the market with generics
Cipla, one of India’s most well-established pharmaceutical companies, is focusing its efforts on the development of a generic version of Wegovy (semaglutide), an obesity treatment developed by Novo Nordisk. Wegovy, which has been praised for its efficacy in promoting weight loss, currently comes with a high price tag, limiting access for a large section of the population. Cipla plans to bring a more affordable alternative to the Indian market, which could significantly increase access to treatment for those struggling with obesity.

In addition to this, Cipla is also exploring partnership with global pharmaceutical giant Eli Lilly to market to market its weight loss drugs in India. This partnership will allow Cipla to tap into the growing demand for GLP-1 drugs while it continues to prepare its own generic formulations. With these efforts, Cipla aims to secure a strong foothold in India’s emerging weight-loss drug market.
3. Dr. Reddy’s Laboratories: Preparing for Semaglutide generics
Dr. Reddy’s Laboratories, another prominent player in the Indian pharmaceutical industry, is taking a similar approach to Cipla by focusing on the generic version of Wegovy. The company is closely monitoring the expiration of the patent on semaglutide in India, which would open the door for them to produce a more affordable version of the drug.
Dr. Reddy's has a long history of making high-quality generics, and its expertise in this area could make it a major contender in the GLP-1 market once the patent expires. By offering a more cost-effective alternative to Wegovy, Dr. Reddy’s aims to improve access to obesity treatments in India, where the demand for weight-loss drugs continues to rise due to increasing rates of obesity and associated health conditions. The company’s global presence further positions it to potentially expand its reach to international markets as well.
4. Biocon Ltd.: Pivoting to anti-obesity therapies
Biocon, based in Bengaluru, is making a significant pivot toward anti-obesity therapies in response to the expiration of patents for key blockbuster medications. The company’s strategy is aligned with the growing demand for GLP-1 drugs, which are expected to become a $100 billion market by 2030. Biocon has already scored a notable early win with the UK approval of its generic version of liraglutide injectables, sold under the brand name Saxenda by Novo Nordisk. This approval is particularly significant as liraglutide is among the first of the widely-used GLP-1 drugs to lose patent protection.
In addition to liraglutide, Biocon is also developing other GLP-1 therapies, including Semaglutide (branded as Ozempic and Wegovy by Novo Nordisk) and Tazepetide. The company is particularly focused on Semaglutide, having entered into an exclusive licensing and supply agreement with Biomm S.A., a Brazilian pharmaceutical company, to commercialize the drug in Brazil. This is seen as a major growth area for Biocon, as it aims to capitalize on the increasing acceptance of weight-loss drugs and their growing market demand globally. Biocon’s strong pipeline in the GLP-1 space, combined with its established reputation in the biosimilars market, positions it to become a major player in the obesity treatment sector, particularly in emerging markets where affordability is key.
5. Natco Pharma: A strategic partnership with Mylan
Natco Pharma has made headlines for its collaboration with global pharmaceutical company Mylan to bring generic versions of the highly sought-after diabetes and obesity drug Ozempic (Semaglutide) to market. As part of this partnership, Natco holds the Sole First-to-File (FTF) status under Paragraph IV for Ozempic's 8mg/3ml and 2mg/3ml strengths, as well as for all strengths of Wegovy, the Semaglutide variant for weight loss. This strategic positioning could secure Natco an exclusive marketing period, subject to USFDA approval.
Globally, Ozempic recorded $14 billion in sales in 2023, a staggering 66% increase year-on-year, with projections of $17–18 billion for 2024. Wegovy, another blockbuster drug, generated $4.5 billion in the same year. Natco’s Sole FTF status for Wegovy and shared FTF rights for certain Ozempic strengths could translate into a substantial market share in the coming years.
Although the settlement terms between Novo Nordisk, Mylan, and Natco remain confidential, the collaboration extends beyond the US. Mylan will oversee operations in key regulated markets, while Natco will retain rights in other global regions, potentially unlocking new revenue streams. In India, Natco is gearing up for a first-wave launch of Semaglutide generics post-patent expiry in March 2026. Analysts predict that regulatory approval in India will be a game-changer, given the soaring demand for diabetes and weight-loss treatments.
Also Read: Natco Pharma’s high-stakes game of risk and reward. Will it pay off?
Conclusion
As the patent expirations of blockbuster weight-loss drugs like liraglutide and semaglutide open the door for generics, Indian pharmaceutical companies are positioning themselves to take advantage of this rapidly growing market. With a focus on both developing their own GLP-1 drugs and bringing affordable generics to the market, companies like Sun Pharma, Cipla, Dr. Reddy’s, Lupin, Biocon and Natco are positioning themselves as key players in this expanding sector. As demand for effective and affordable obesity treatments continues to rise, these companies are well-placed to capture a significant share of the global weight-loss drug market.
If they are successful at this, it could be a lucrative opportunity for these pharma companies. Only time will tell, however, whether these companies make the most of it.
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Disclosure: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
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Sonia Boolchandani is a seasoned financial content writer with over four years of experience in delivering clear, engaging, and insightful content on various financial topics. She has contributed her expertise to prominent firms, including 5Paisa, Vested Finance, and Finology, where she has crafted content that simplifies complex financial concepts for diverse audiences.
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