Weight-loss and diabetes are prickly issues in a country that is gaining the dubious distinction as a diabetes capital of the world. On Tuesday, Mumbai-headquartered pharma major Lupin entered into a ‘licensing and supply agreement” with Ahmedabad-headquartered Zydus Lifesciences, an innovation-led life-sciences company, “to expand access to innovative Semaglutide Injection (15 mg/3 ml) with a patient-friendly reusable pen device in India.”
Under this agreement, Lupin will have semi-exclusive rights to co-market Zydus’ innovative Semaglutide Injection in India under the brand names Semanext® and Lupin’s Livarise®.
Zydus will continue to market the product under the brand names SEMAGLYNTM, MASHEMATM and ALTERMETM. As part of the agreement, Lupin will pay Zydus upfront licensing fees and milestone payments on achieving pre-defined milestones.
Semaglutide market
Readers of the developments in the Indian pharma sector would wonder what the market size looks like and what could be the attraction. As one of the head honchos of a pharma company (not the two who have jointly announced the deal) says: “There are good reasons why there is so many action in this space. This is at least a Rs 1000 crore to Rs 1200 crore market.” But then how many? Every other day, there is announcement of a company announcing a generic launch of a semaglutide drug. Without wanting to named, he says: “There is a FOMO element.” On the growing interest in the semaglutide market afterall, he feels, “even a 3 per cent share in the market is substantial.
Outside of this space, a Rs 30 crore brand launch is very difficult in generics these days.” Today, there are an estimated over 15 to 20 companies in this space and the number is soon likely to be in the range of 25 to 30 companies. However, some of the pharma leaders who have dealt with the insulin market in India remind that even in the past the innovator companies have not hugely lost their share in the market even after the launch of generic versions although there is an overall reduction in price and thereby shrinking the divide in the access to these medications.
The joint media release explains: “Semaglutide is indicated for the treatment of adults with insufficiently controlled type 2 diabetes mellitus as an adjunct to diet and exercise: 1, as monotherapy, when metformin is considered inappropriate due to intolerance or contraindications, 2, in addition to other medicinal products for the treatment of diabetes.” It is also indicated as an adjunct to a reduced calorie diet and increased physical activity for chronic weight management in adults.
Players with edge
Summing up the whole evolving scene on semaglutides, Utkarsh Palnitkar, a highly regarded Independent Consultant, who has been witness to the key touchstones in the evolution of Indian pharma as the former head of advisory & lifesciences at EY & KPMG, has this to say:
“The semaglutide opportunity is undeniably attractive, but the market will stratify quickly. Early entrants may benefit from pricing power, but over time, value will shift to players who can demonstrate superior outcomes, lifecycle innovation, and patient stickiness, not those who simply scaled first.” Perhaps focus may soon shift to the extent to which the weight loss drugs are shrinking the access differential in the market and the weight to the corporate bottomline.