Ozempic Patent Expiry Opens Opportunities for API Manufacturers

ozempic-patent-expiry-opens-opportunities-for-api-manufacturers
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Indian pharmaceutical companies are moving early to capture opportunities from the upcoming expiry of patents on Novo Nordisk’s weight-loss drugs Wegovy and Ozempic, both based on semaglutide. With patents set to lapse in 2026 across major markets such as Brazil, Canada, India, and China, generic manufacturers see a multi-billion-dollar opening.

Indian Players Step Up API Capacity

Leading firms including Dr. Reddy’s Laboratories and Macleods Pharmaceuticals are gearing up to supply the active pharmaceutical ingredients (APIs) needed for generic production. APIs, the core building blocks of drug formulations, are central to this strategy. Dr. Reddy’s has invested in a facility capable of producing 550 kilograms of peptides, including semaglutide. Granules India has launched a dedicated division, Ascelis Peptides, to expand peptide API output.

Smaller Suppliers Join the Race

Beyond the majors, smaller firms are also entering the field. A Surat-based manufacturer, led by Vasu Jindal, has begun supplying semaglutide to larger generics companies for R&D purposes. While the firm expects to produce 10 kg of the API by year-end, it projects demand to rise sharply to 240 kg annually from next year.

Challenges on the Horizon

Despite strong momentum, Indian firms face stiff competition from Chinese manufacturers, who currently control about 80% of the global bulk drug market. Many Indian producers also rely on China for critical chemical inputs, leaving supply chains vulnerable. Another hurdle is semaglutide’s structural complexity. Scaling up production requires precision in both starting materials and purification processes to maintain consistent quality.

Strategic Preparations Underway

Industry insiders stress that early action is key. By securing raw material supplies, investing in peptide-making capacity, and building robust, quality-assured processes today, Indian API producers are positioning themselves to capture a substantial share of the post-patent semaglutide market. As reported by knnindia.co.in, with global demand for weight-loss and diabetes treatments surging, India’s proactive strategy could secure its place as a major supplier in the next wave of generic semaglutide products.