Entering 2024, the track of weight loss pills remains hot.
On January 23rd local time, Danish pharmaceutical giant Novo Nordisk and Swiss biotechnology company EraCal Therapeutics (hereinafter referred to as "EraCal") reached a potential cooperation and licensing agreement for weight loss products worth 235 million euros (current exchange rate equivalent to approximately 1.834 billion yuan).
In this transaction, Novo Nordisk will acquire all exclusive development and commercialization rights for EraCal, an oral small molecule drug with a novel mechanism of action for controlling appetite and weight, and treating obesity. And EraCal may receive a potential total of RMB 1.834 billion in advance payments, development and commercialization milestone payments. In addition, after the product is launched and sold, EraCal will also receive further royalties.
"Old rival" Lilly Pharmaceuticals is also unwilling to fall behind. On January 4th, Lilly launched a digital healthcare project called LillyDirect, whose most important service is to provide door-to-door delivery services for groups including those with obesity. Lilly told Time Finance, "This service is mainly conducted in the US market, and currently in China, the long-term weight management indications for Tilposide have not yet been approved, and the commercial strategy is still being planned."
Currently, the number of obese individuals worldwide is rapidly increasing. According to the 2023 World Obesity Map released by the World Obesity Alliance in March 2023, it is predicted that by 2035, more than 4 billion people worldwide will be obese or overweight, accounting for 51% of the global population. The expansion of this number also means an increase in the demand for weight loss in the market. More and more pharmaceutical companies are flocking to the weight loss market, especially in pursuit of the receptor agonist GLP-1, with the intention of getting a share of the pie.
Novo Nordisk's "horse racing enclosure"
As a "big factory" gathering metabolic drugs such as diabetes and obesity, Novo Nordisk has been in the weight loss market for many years. Despite holding the phenomenal large single product of Smegglutide, it has not stopped its pace of "running errands and seizing territory" in the weight loss market.
Prior to partnering with EraCal, on August 30, 2023, Novo Nordisk announced that it had acquired a biopharmaceutical company, Embark Biotech (hereinafter referred to as "Embark"), for 15 million euros (approximately $16.29 million). According to the agreement, Novo Nordisk will acquire Embark's metabolic project, which has entered a three-year research and development cooperation phase, mainly aimed at treating obesity and related complications. This peptide drug for cardiovascular and metabolic diseases has been identified, as well as a small molecule "energy expenditure activator" currently being studied for obesity, which can promote weight loss by accelerating glucose uptake and increasing energy expenditure.
After this agreement takes effect, Embark will also receive a prepayment of 15 million euros in cash, as well as potential development, regulatory, and commercial milestone payments, up to 456 million euros (approximately 496 million US dollars).
Just 20 days before the announcement of this acquisition, on August 10, 2023, Novo Nordisk decided to acquire Canadian biotechnology company Inversago Pharma for $1.075 billion. The project developed by the company is precisely for the treatment of obesity, diabetes and metabolic disorders related complications.
Externally, Novo Nordisk utilizes external expansion methods such as purchasing pipelines and acquiring companies to empower weight reducing pipelines; Internally, as the creator of Smegglutide, Novo Nordisk is also taking advantage of the heat to expand production and increase energy.
According to Novo Nordisk's Q3 2023 report, Smegglutide has contributed over 100 billion yuan in sales to Novo Nordisk this year (including subcutaneous injection preparation Ozempic for blood sugar lowering, oral tablet Rybelsus for blood sugar lowering, and weight loss product Wegovy).
Novo Nordisk once told Time Finance, "We are doing our best to meet the global medical needs of Smegglutide by enhancing our existing production capacity and increasing investment to expand production."
The market for weight loss in a group of fierce competitors
As an old rival of Novo Nordisk, Lilly has also frequently increased its layout in the field of weight loss.
In November 2023, Lilly's weight loss product Telposide was approved for market by the US Food and Drug Administration (FDA), which requires weekly injections. Tilposide is the first and only approved dual GIP/GLP-1 receptor agonist, available in six dosage forms: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg, priced at $1059.87 per month.
In terms of discounts, Telposide also plans to launch a commercial savings card program to allow insured individuals to purchase prescription drugs for one or three months at a price of $25. Even uninsured individuals can buy telposide for $550 per month, which is 50% of the listed price.
In order to seize more market share, Lilly has also launched a convenient service in the US market. On January 4th of this year, Lilly announced the launch of Digital Healthcare LillyDirect, which provides independent healthcare services, customized support, and home delivery services for groups including obese patients. Among them, Lilly will provide delivery services through third-party pharmacies.
As Novo Nordisk and Lilly compete, more and more pharmaceutical companies see the two as benchmarks and are launching GLP-1 projects to enter the weight loss field.
Roche Pharmaceuticals announced in January 2024 that it is seeking more biotechnology partners to help it challenge the two leading companies, Novo Nordisk and Lilly, in the field of obesity therapy.
In fact, as early as early December last year, Roche Pharmaceuticals announced the acquisition of American biotech company Carmot Therapeutics to enter the weight loss drug market. The R&D portfolio of Carmot Therapeutics includes subcutaneous and oral incretin at the clinical stage, which is a "potential unit" for the treatment of obesity in patients with type 2 diabetes and non type 2 diabetes.
On the domestic side, Xinda Biotechnology (01801. HK) announced on January 9, 2024 that its product, the glucagon like peptide-1 receptor (GLP-1R)/glucagon receptor (GCGR) dual agonist, Masalidomide (R&D code: IBI-362), achieved the primary endpoint and all key secondary endpoints in the first phase III clinical study (GLORY-1) of overweight or obese adult subjects in China. Xinda Biotechnology stated that it plans to submit its first new drug marketing application (NDA) for the weight loss indication of Masalidomide to the National Medical Products Administration (NMPA) Drug Evaluation Center (CDE) in the near future.
The first GLP-1 receptor agonist drug approved for obesity or overweight in China, "Lilupin," has also made the latest sales progress.
According to the research report disclosed by East China Pharmaceutical on January 11, 2024, the company attaches great importance to the listing promotion and market channel coverage of Liraglutide Injection (product name: Liraglutide). As of now, the company's Liraglutide injection has achieved admission sales in over 800 large hospitals, and the number of hospitals covered is still growing rapidly. It is expected to complete admission coverage for over 1000 hospitals by the end of the first quarter of this year. In addition, in the off campus market, Liraglutide Injection has completed the coverage of 20000 terminal single drug stores and plans to complete the target of 30000 terminal single drug stores before and after the Spring Festival.