In 2021, Ozempic got the green light in China for diabetes treatment, but it’s the drug’s star ingredient, semaglutide, that has captured the spotlight as a weight-loss marvel. This phenomenon has Chinese female influencers and vloggers buzzing on social media, dubbing it the “internet celebrity weight-loss drug.”
Social Media’s Role in Promoting Thinness
Chinese social media platforms have long been a breeding ground for various “beauty challenges,” often showcasing young women flaunting their slim figures. “Thinness is the gold standard of beauty for women in China, and some go to great lengths to achieve it, even at the expense of their health,” says Pan Wang, a senior lecturer in Chinese and Asian studies at Australia’s University of New South Wales. The soaring demand for Ozempic, she adds, is no surprise given the lengths people are willing to go to shed pounds.
The Broader Weight-Loss Craze
It’s not just the beauty-obsessed youth turning to weight-loss solutions. China, home to the world’s largest number of overweight or obese individuals, sees about half its population grappling with excess weight. This rising obesity rate, combined with high beauty standards, makes China a lucrative market for weight-loss drugs like Ozempic. “There’s significant money to be made here,” Wang points out.
Pharmaceutical Giants Race to Meet Demand
Pharmaceutical companies are racing to tap into this booming market. Novo Nordisk is pushing to expand Ozempic’s use, eyeing approval to market it specifically for weight loss. They also expect their weight-loss drug Wegovy to hit the Chinese market this year. Meanwhile, Eli Lilly, an Indianapolis-based pharma giant, got the nod from Chinese regulators for its Ozempic rival, Tirzepatide, in May. Not to be left out, China’s own Hangzhou Jiuyuan Gene Engineering, part of the Huadong Medicine empire, is aiming to launch the first homegrown Ozempic competitor
Supply Struggles and the Surge of Counterfeits
Despite these efforts, the demand for weight-loss drugs still outpaces supply. Eli Lilly predicts this trend will continue into 2024. On platforms like Taobao, Ozempic prices have skyrocketed to 1,000 yuan ($138), double the price at public hospitals. The shortage has also fueled a boom in counterfeit versions of semaglutide products, with the “grey market” for these drugs thriving online.
Regulatory Crackdowns and Market Dynamics
The Chinese government has started to crack down on this unregulated market. In February last year, authorities deleted over 5,000 posts on Xiaohongshu promoting Ozempic for weight loss. By March, police investigations had led to several arrests for illegal semaglutide product development and sales. Recently, six individuals faced prosecution for selling weight-loss chocolates with banned substances after a child’s hospitalization.
The Future of Weight-Loss Drugs in China
With new drugs entering the Chinese market, regulatory oversight is expected to tighten. Von Mehren, a chief analyst at Danske Bank, notes, “The market has been like the Wild West, but increased state intervention will shape who dominates.” Western firms currently lead, but this could change with more local involvement. Novo Nordisk, for instance, is embroiled in a patent dispute with Huadong Medicine over semaglutide, a battle that could reshape the market.
The Patent Battle and Its Implications
In 2021, Huadong Medicine challenged Novo Nordisk’s semaglutide patent, set to expire in 2026. The patent was invalidated in 2022, but Novo Nordisk appealed, leaving the final decision pending. If the patent is ultimately invalidated, it could open the floodgates for Chinese companies to produce their own Ozempic equivalents, potentially easing the supply crunch.
The Impact on Foreign and Domestic Firms
This situation raises questions about market fairness. At the World Economic Forum in Davos, Chinese Premier Li Qiang assured foreign investors of China’s openness and potential. Yet, the patent dispute and regulatory actions in the weight-loss drug market could be a litmus test for whether China will level the playing field for foreign firms.
In the end, the battle for China’s weight-loss drug market is about more than just business; it’s about health, beauty standards, and the interplay of domestic and international interests. How this unfolds will be telling for both the pharmaceutical industry and China’s broader market dynamics.
