Danish pharmaceutical company Novo Nordisk has seen a significant surge in sales of its diabetes drug Ozempic in China. Sales nearly doubled last year to reach almost $700 million, constituting 5 percent of global sales for the drug.
While Ozempic was initially approved in China for diabetes treatment in 2021, its popularity has been driven by its anti-obesity component, semaglutide, earning it the nickname “internet celebrity weight-loss drug” among Chinese consumers.
Social media influencers and vloggers in China have played a pivotal role in promoting Ozempic, particularly on platforms where “beauty challenges” glorifying thinness are prevalent. This aligns with the prevailing beauty standards in China, where being thin is often equated with beauty.
The demand for Ozempic reflects a broader trend in China, where many individuals, not just young women focused on beauty, are eager to try various methods and supplements to shed excess weight. China has the largest population of overweight or obese individuals globally, making it a lucrative market for pharmaceutical companies like Novo Nordisk.
Recognizing this potential, Novo Nordisk has applied to expand the use of Ozempic in China, with speculation that it seeks approval for marketing the drug specifically for weight loss. Additionally, other companies, including Eli Lilly and Hangzhou Jiuyuan Gene Engineering, are also entering the market with their weight-loss drugs.
Despite efforts to meet the demand, supply shortages persist, leading to inflated prices on e-commerce platforms. Counterfeit versions of semaglutide products have also proliferated, highlighting the challenges in regulating the market.
Observers believe that competition among suppliers will intensify in the coming years, with state intervention and regulation playing a crucial role in shaping the market landscape. Recent actions by Chinese authorities, including censorship of social media posts and crackdowns on unregulated products, indicate a growing involvement in overseeing the weight-loss drug market.
Moreover, patent disputes between foreign and Chinese companies add another layer of complexity to the market dynamics. While Chinese companies aim to launch their own versions of Ozempic, concerns persist about preferential treatment and the level playing field for foreign firms in China.
As the weight-loss drug market in China continues to evolve, it serves as a test of China’s commitment to openness and fairness in its business environment.
