India Targets Obesity With Launch Of Low Cost Weight-Loss Drugs, Government Tightens Grip Amid Rising Concerns Over GLP-1 Black Market

The first batch of generic versions of semaglutide, originally developed by Novo Nordisk, hit the Indian market over the weekend. At least five domestic pharmaceutical companies have introduced cheaper alternatives, slashing prices by as much as 80% following the expiry of Novo’s patent on March 20, 2026. The Danish drugmaker is now striving to hold onto its dominant position in this highly lucrative segment.

India represents a key market, with roughly 100 million people living with diabetes and nearly a quarter of the population classified as obese. Known as the “world’s pharmacy,” the country’s robust generic drug industry supplies around 20% of global off-patent medicines, reportedly.

Sun Pharmaceutical Industries, one of the world’s leading generics manufacturers, launched its version of semaglutide on Saturday at a starting price of ₹750 per weekly dose, or about ₹3,400 per month—significantly lower than Novo’s price range of ₹8,800 to ₹10,000, depending on dosage as reported by CNBC. Meanwhile, Dr. Reddy’s Laboratories has introduced a diabetes-focused version priced at around ₹4,200 per month and is planning to expand into markets such as Canada, Turkey, and Brazil later this year.

Speaking at a virtual launch, Deepak Sapra of Dr. Reddy’s said the company aims to make GLP-1 therapies more accessible globally, targeting sales of 12 million semaglutide pens in the first year across markets, including India.

More than 50 brands are expected to roll out generic semaglutide in the coming months, though this remains relatively limited by Indian standards due to the complexity of manufacturing peptide-based drugs, which require stringent quality controls.

While semaglutide will remain under patent protection in the U.S. until 2032, expiries in markets such as India, Canada, Brazil, and China this year are expected to impact Novo’s revenues. The company has already projected a potential sales decline of 5% to 13% in 2026. It is also facing stiff competition from rivals like Eli Lilly, alongside pricing pressures in the U.S. market.

Novo had already reduced the price of its weight-loss drug Wegovy in India by 37% in December, ahead of the patent expiry. Analysts suggest further price cuts may be necessary, with some indicating the company could retain significant market share if it maintains a modest premium over generic alternatives.

Despite the anticipated impact of generics, Novo has historically managed to retain leadership even after losing patent protection, particularly in insulin markets, where competitors have struggled to scale production.

Demand for GLP-1 drugs in India has surged sharply, with annual sales rising 178% year-on-year to ₹14.46 billion in February, according to Pharmarack data. However, high costs remain a barrier—diabetes specialist Rajiv Kovil estimates that while about half of his patients could benefit from such treatments, only 5% currently use them.

At the same time, Indian authorities are tightening oversight. The Drugs Controller General of India, under the Ministry of Health and Family Welfare, has stepped up monitoring to curb unauthorized sales and misuse of GLP-1 drugs. Officials have raised concerns about their easy availability through pharmacies, online platforms, and wellness clinics, warning that unsupervised use could lead to serious health risks.

The regulator has initiated targeted actions in coordination with state authorities to prevent unethical practices across the supply chain. Patients have been advised to use these medications strictly under medical supervision. In India, semaglutide is approved only when prescribed by specialists such as endocrinologists, internal medicine doctors, and, in certain cases, cardiologists.

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