Bollywood stars endorse, prices plummet by 40%! Eli Lilly and Novo Nordisk battle in the Indian weight loss drug market

Global pharmaceutical giants Eli Lilly and Novo Nordisk are engaged in a fierce competition to capture the rapidly growing weight loss drug market in India before low-cost generics flood the market.

With the obesity drug market in this most populous country projected to exceed $1 billion within two years, both companies are employing aggressive strategies such as significant price reductions, accelerated product launches, and hiring Bollywood stars for endorsements to solidify their leading positions locally.

According to Reuters, in response to Eli Lilly's drug Mounjaro's first-mover advantage in the Indian market, Novo Nordisk has adopted an aggressive pricing strategy, reducing the price of its weight loss drug Wegovy by about 37% in November and accelerating the launch of its well-known diabetes drug Ozempic. Vikrant Shrotriya, Managing Director of Novo Nordisk India, acknowledged that to improve product accessibility, the company must take price-cutting measures to compete with rivals in this price-sensitive market.

In contrast, Eli Lilly primarily relies on its early market entry advantage and high-profile brand marketing strategies. Eli Lilly not only leads in sales temporarily but has also collaborated with well-known Bollywood actors for social media promotional campaigns and launched advertising campaigns aimed at raising awareness about obesity. Although the price of Mounjaro has not been reduced and remains higher than its competitors, Eli Lilly claims to maintain a dominant position in sales due to its more significant weight loss effects.

Behind this duopoly battle is the urgent pressure of patent cliffs. More than 20 local Indian pharmaceutical companies, including Dr Reddy's, Cipla, and Sun Pharma, are targeting this market, preparing to launch generics expected to be priced 60% lower after Novo Nordisk's key patent expires in March 2026. This forces the two global giants to establish brand moats as deeply as possible through sales networks and patient education in second- and third-tier cities before that time.

Price War and First-Mover Advantage

Although the United States remains the largest weight loss drug market globally, early sales data from the Indian market shows astonishing growth rates.

Eli Lilly's Mounjaro was launched in India in March this year, approved for diabetes and weight loss, and quickly penetrated the market due to its "first-mover" advantage. Data shows that by October, Mounjaro had become the best-selling therapy by value, with sales doubling within months of its launch, surpassing Novo Nordisk's Wegovy, which entered the Indian market in June.

To turn the tide, Novo Nordisk initiated a price war. The company significantly reduced the price of Wegovy in November, with the monthly cost for its lowest dose (0.25 mg) dropping to 10,850 rupees (approximately $121.34). Additionally, Novo Nordisk launched Ozempic in India last week, with a monthly fee set at 8,800 rupees (approximately $98.42). In comparison, Eli Lilly's Mounjaro has a monthly fee of about 13,125 rupees (approximately $146.79), with the highest dose reaching as much as 25,781 rupees (approximately $288.33) Dr. Anoop Misra, an endocrinologist and executive chairman at Fortis C-DOC Hospital, pointed out that although Mounjaro has a significant first-mover advantage and strong demand, price-sensitive patients are reassessing alternatives.

However, Vishal Manchanda, an analyst at Systematix Institutional Equities, believes that Mounjaro targets the severely obese population and has a differentiated advantage in efficacy, meaning Eli Lilly currently faces less pressure to lower prices. Eli Lilly declined to comment on its pricing strategy but stated that the early market response is "encouraging."

Imminent Wave of Generic Drugs

For the two giants, the biggest threat comes from India's strong domestic generic drug industry. Analysts expect that once the patent for the active ingredient semaglutide in Wegovy and Ozempic expires in March 2026, generics priced about 60% lower will flood the market. Currently, over 20 Indian pharmaceutical companies plan to launch competing products at that time.

To defend its market share, Novo Nordisk has sued Dr Reddy's and Sun Pharma in local courts, attempting to enforce patents and prevent generics from entering the market before March 2026. Vikrant Shrotriya downplayed concerns, stating that Novo Nordisk will focus on quality and trust rather than solely relying on patent protection.

In contrast, Eli Lilly is in a more favorable position regarding patent defense. Analysis indicates that the patent protection period for Mounjaro's active ingredient tirzepatide extends at least until the mid-2030s, providing Eli Lilly with a longer time window to build brand loyalty.

Emerging Markets and Marketing Offensive

In addition to price and patents, the battle for distribution channels has also begun. As the demand for weight loss treatments spreads from urban elites to middle-class families, office workers, and residents of small towns, both companies are actively seeking local partners to expand their reach.

Eli Lilly has partnered with Cipla, the third-largest pharmaceutical company in India, to launch a second tirzepatide brand, Yurpeak, specifically targeting the small-town market, and has invested over $1 billion to expand its contract manufacturing business in India. At the same time, Eli Lilly is collaborating with Apollo Hospitals to raise public awareness of obesity and has launched a campaign called "WeKnowNow."

Novo Nordisk is also not to be outdone, partnering with Emcure Pharmaceuticals to launch a second semaglutide brand, Poviztra, to extend its distribution network beyond major cities. Due to India's ban on direct advertising of prescription drugs, Novo Nordisk has launched the "WeGoWithYou" initiative, attempting to define obesity as a disease and guide patients to consult doctors through newspapers, billboards, and airport displays.

The Billion-Dollar New Battlefield

India is rapidly becoming a key battleground for global weight loss drugs. Data analytics firm Pharmarack stated in July that the current valuation of this market is approximately 6.28 billion rupees (about $70.23 million), having grown fivefold since 2021 Despite the fact that most patients in this most populous country need to pay out of pocket for medications, the market potential remains enormous.

Shrikant Akolkar, Vice President of Nuvama Institutional Equities, predicts that the obesity drug market in India will exceed $1 billion within two years. Analysts expect that by the end of this decade, the global market size for such drugs will reach $150 billion annually, and with India projected to have the second-largest overweight or obese population in the world by 2050, it will undoubtedly be a significant engine for this growth