Pharma giants Eli Lilly (LLY) and Novo Nordisk (NVO) will face further competition in the crucial obesity drug market in India, as the country’s top drugmaker Sun Pharmaceutical Industries (IN:SUNPHARMA) has received the regulatory approval to manufacture and sell generic semaglutide, the active ingredient in Novo Nordisk’s blockbuster weight-loss drug Wegovy.
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Competition in India’s Weight-Loss Drug Market Intensifies
Sun Pharmaceutical received approval from the Drugs Controller General of India (DCGI) to manufacture and market a generic version of semaglutide injection. Semaglutide, a glucagon-like peptide-1 (GLP-1) receptor agonist, is indicated for chronic weight management in adults. The company said that it will launch generic semaglutide injection under the brand name Noveltreat after the expiry of the semaglutide patent in India in March 2026.
It is worth noting that in December 2025, Sun Pharmaceutical received DCGI approval to manufacture and market semaglutide injection for the treatment of type 2 diabetes. The company plans to launch the Ozempic generic version under the brand name Sematrinity, after the expiry of the semaglutide patent.
The patent expiry for semaglutide will allow Indian generic drugmakers to launch cheaper versions of Wegovy and Ozempic. India is a very crucial market for weight-loss drugmakers like Eli Lilly and Novo Nordisk, given the country’s massive population. Last year, Eli Lilly launched Mounjaro in India, while Novo Nordisk rolled out Wegovy and Ozempic. The launch of generics is expected to weigh on the sales of the branded offerings of these drugmakers.
Wall Street’s Take on LLY, NVO Stocks
Currently, Wall Street has a Strong Buy consensus rating on Eli Lilly stock, with the average price target indicating 10% upside potential. Meanwhile, Novo Nordisk scores a Moderate Buy consensus rating, with the average price target indicating 11% downside risk.
