Capitalizing on Expiring Patents
Biocon Ltd., a leading Indian pharmaceutical company, is strategically shifting its focus towards anti-obesity therapies. This move comes in anticipation of the expiring patents for blockbuster weight-loss medications, which is expected to unleash a wave of generic competition in a market projected to reach $100 billion by 2030.
Biocon has already secured an early win with the UK approval for the first generic version of liraglutide injectible, a drug previously sold under the brand name Saxenda by Novo Nordisk. This approval marks a significant milestone as Saxenda becomes one of the first groundbreaking medications in this category to lose patent protection.
Biocon's ambition doesn't stop there. The company has 15 additional peptide formulations under development, with one or two expected to seek regulatory approval this year. Additionally, applications for liraglutide have been filed with US and European regulators.
This strategic move positions Biocon as a frontrunner among Indian drugmakers in the race to capture a share of the lucrative anti-obesity market. Other major players like Sun Pharmaceutical Industries Ltd., Dr. Reddy's Laboratories Ltd., and Cipla Ltd. are also developing their own anti-obesity drugs, intensifying the competition.
The global success of weight-loss drugs like Ozempic and Wegovy, manufactured by Novo Nordisk, and tirzepatide (Zepbound) by Eli Lilly, has fueled a gold rush for generic manufacturers. As patents for these medications expire in the coming years, cheaper generic versions are expected to flood the market, filling supply gaps and making these treatments more accessible.
Biocon is actively preparing to capitalize on this opportunity. The company is building capabilities to take advantage of the "strategic peptide opportunity" presented by GLP-1 agonists, a class of medications that includes liraglutide, Ozempic, Wegovy, and Zepbound.
Biocon's CEO, Siddharth Mittal, expressed confidence in the company's ability to capture this emerging market. He highlighted the UK approval as a testament to Biocon's potential to succeed in the coming years.
While the weight-loss drug market is booming globally, its impact in India is yet to be fully realized. Despite the country's growing affluence and rising obesity rates, these drugs have not yet gained widespread adoption.
Biocon is currently exploring options for marketing its anti-obesity drugs in India. The company is seeking a partner after selling its branded formulations business to Eris Lifesciences Ltd. last month.
Mittal remains optimistic about the long-term potential of the anti-obesity market. He believes that over the next 20 years, this space will offer significant opportunities for Biocon. The UK approval serves as a strong indicator of the company's ability to capitalize on this emerging market and establish itself as a major player in the global anti-obesity landscape.