GLP-1 agonist medication like semaglutide (model: Ozempic, Rybelsus) and tirzepatide (model: Mounjaro) have been making waves in western markets, notably america, over the previous yr as weight reduction medication, with main impacts anticipated for the meals business as a result of their appetite-suppressing capabilities.
These GLP-1 agonists mimic the pure intestine hormone GLP-1 and had been initially developed as diabetes drugs, however are actually more and more being recognised for not solely weight reduction advantages but in addition potential roles in cardiovascular and central nervous system advantages.
Nevertheless, regardless of its impression within the west, GLP-1 has not made a really huge splash right here in Asia simply but primarily as a result of prices and accessibility points.
“There are comparatively excessive ranges of weight problems in varied Asian markets, averaging at an total 20% or so,” NielsenIQ Regional Government Director Craig Houliston informed us.
“As such, it’s thought-about a key public well being concern, so in essence there may be willingness and openness by customers right here to attempt it, but in addition a lot larger issues over the prices and uncomfortable side effects than within the west which pose a more durable problem for the drug’s use to develop into widespread.”
The penetration of GLP-1 medication into Asia will undoubtedly decide the entry of GLP-1 companion meals right here, so right here we checklist a number of the key challenges and alternatives that GLP-1 medication – and companion meals – are seeing right here on this area.
GLP-1 drug prices and accessibility
Many GLP-1 medication are coated by insurance coverage in america for diabetic sufferers, and there may be growing protection rising for these to cowl weight problems as properly, although the latter is extra restricted and tends to require sufferers to have a BMI above 30 or above 27 with comorbidities like hypertension or excessive ldl cholesterol.
This consists of protection by nationwide insurance coverage Medicare which covers Ozempic for diabetes, and Medicaid which covers GLP-1 medication for weight problems in 13 states.
Protection is essential, as presently the medication are principally obtainable as injections that have to be temperature-controlled and may price wherever between US$350 to US$1,400 per 30 days. The price relies on the affected person’s insurance coverage scheme, the model of drug and attainable fee programmes.
This remedy must be taken long-term, which signifies that whole prices may be wherever between US$4,200 to US$16,800 per yr – no small sum if transformed to native currencies in Asia.
“GLP-1 consumption continues to be very a lot a distinct segment factor right here even as a result of prohibitive prices, regardless that it is kind of already a mass market within the US – and this has main impacts on accessibility as properly,” Houliston added.
“Prescriptions are nonetheless required however within the US these medication may be obtained at widespread pharmacies like Costco and CVS, even on-line by way of Amazon – there are nonetheless no such platforms right here in Asia and the one approach to entry these is by way of hospitals or clinics, so accessibility is low.”
All this might change quickly although with the just lately launched tablet format – This semaglutide GLP-1 agonist drug was launched beneath the Wegovy model, and is the world’s first oral GLP-1 oral tablet particularly authorised for weight reduction.
“The tablet could make a significant distinction because it doesn’t require refrigeration and has an extended shelf life, making it each cheaper and extra accessible to the common Asian shopper,” he added.
At current costs of the Wegovy tablet vary from US$149 to US$299 per 30 days for uninsured sufferers within the US, considerably cheaper than the injection format.
“If the drug turns into extensively obtainable and generally used, the companion meals market will definitely develop as properly, so it will likely be essential to watch if GLP-1 medication additionally make the transition from diabetes drug to weight reduction drug on this area earlier than meals companies can have a look at GLP-1 companion meals as an enormous class right here,” he stated.
There are different elements that additionally point out potential fast cost-lowering and market penetration within the close to future, such because the patent for main GLP-1 compound semaglutide set to run out in China and India this yr.
China and India
The expiration of patents suggests {that a} wave of biosimilar or generic GLP-1 agonist medication could possibly be on the best way from China and India, and if historical past is something to go by this is able to majorly lower prices within the area.
“Take the electrical automobile for instance: Initially there was simply Tesla and it was a really area of interest class, however at present it’s a large one with many various gamers available in the market together with China’s BYD which is now a mainstay within the business,” Houliston stated.
“What China did for the electrical automobile sector was to essentially make electrical automobiles inexpensive within the area as quickly as they noticed the demand for this – who’s to say they received’t do that for GLP-1?”
Certainly, it appears to be like like China is properly on the best way to doing simply that: The federal government has been including GLP-1 medication to its Nationwide Drug Reimbursement Record (NDRL), a listing of medicine which are eligible for sufferers to say authorities reimbursement. This checklist is taken into account an important pillar of drug affordability in China.
The catch in the intervening time is that this reimbursement continues to be strictly restricted to diabetes remedy, so sufferers nonetheless want to completely pay out-of-pocket for weight problems or weight reduction.
That stated, there’s a fast rise of native firms which are making generic GLP-1 drug choices concentrating on weight problems. China’s Innovent Biologics just lately launched the nation’s first locally-developed weight-loss drug mazdutide, and plenty of extra are on the best way.
Equally, India is all set to see a possible fast growth as properly, with Ozempic, WeGovy and Mounjaro all having entered the market in 2025.
Native gamers have launched these medication beneath their very own native manufacturers and plenty of are gearing as much as manufacture on the market to markets with no patents, in addition to mendacity in await large-scale generic manufacturing for the native market as properly as soon as the India semaglutide patent expires in March 2026.
Because the variety of gamers and drug choices develop, this might doubtlessly open up the floodgates for mass utilization of those GLP-1 medication or biosimilars on the earth’s largest markets, and accordingly for a flood of GLP-1 companion meals to observe.
Challenges stay: Uncomfortable side effects and cost-income ratios
Nevertheless, there may be one main problem GLP-1 medication and companion meals face in Asia which isn’t so simply solved, particularly that of native issues over uncomfortable side effects – or slightly rebound results.
Over the previous two years, a number of research have indicated that sufferers who took GLP-1 for weight reduction are inclined to placed on weight faster than earlier than as soon as they cease the drug – and it is a huge no-no in markets like Taiwan and China the place slimness is taken into account the cornerstone of magnificence.
“That is very a lot linked again to the price of the medication as properly, given that there’s already numerous concern over sustaining job safety and a secure paycheque on this financial local weather,” Houliston added.
“So the query now actually is, I’d give you the option afford the remedy now however will I have the ability to proceed it long-term, and what’s going to occur if I’m pressured to cease midway? The considered weight rebounding again might be one of many greatest fears that can cease Asian customers taking the leap initially.”
“So the query now actually is, I’d give you the option afford the remedy now however will I have the ability to proceed it long-term, and what’s going to occur if I’m pressured to cease midway?”
Craig Houliston, Regional Government Director, NielsenIQ
This doesn’t but keep in mind a number of the different dangers which were related to the medication and are nonetheless beneath investigation. These embody thyroid tumour formation, dangers to the pancreas, kidneys, gallbladder and eyes, in addition to potential interference with the absorption of different drugs.
One other key level to recollect is the positioning of GLP-1 medication as a weight reduction aide signifies that this might not be on high of the checklist of priorities for Asian customers, in a time when financial stability and making ends meet should not certainties.
For instance, regardless that the patent expiry in India has been reported to presumably drive costs down under US$50 a month at an estimated INR4,000 (US$44.36) or so month-to-month, this implies little in a market the place the common salaried feminine employee solely earns INR16,671 (US$184.86) and the common salaried male employee earns INR22,520 (US$249.72) a month, in accordance with Nationwide Statistics Workplace information.
This isn’t counting unsalaried informal or self-employed staff available in the market which make up some 77% of the workforce and earn even much less, between INR6,063 (US$67.23) to INR16,032 (US$177.78) a month.
Because of this customers making non-insured purchases would want to make use of between 17.8% to 66% of their revenue
As such, there may be definitely nonetheless a major marketplace for these medication in richer, city areas like Delhi and Maharashtra the place most salaried staff are situated, however it’s prone to take for much longer earlier than the GLP-1 drug growth, and corresponding companion meals merchandise, actually attain the common mass shopper in India.
What’s going to it take for GLP-1 meals to work right here?
Innovation on this space is quickly advancing although, with a possible India-China collaboration that would yield a GLP-1 drug that solely requires fortnightly administration – and it’s newer merchandise like this that would actually change the sport for GLP-1 all around the world.
In Asia, Houliston believes there may be a further want to make sure full shopper consolation with these merchandise earlier than the growth will attain this area.
“The important thing to getting by means of to Asian customers is basically making certain that GLP-1 drug and companion meals manufacturers that enter the market are in a position to actually crack each belief and affordability challenges,” he stated.
This interprets to a trifecta of issues that should be addressed: The medication should work as much as the usual of shopper calls for; the issue of uncomfortable side effects have to be absolutely cracked; they usually should really feel comfy that they are going to have continued entry to GLP-1 medication for the long-term.
“Firms might want to make sure the science is stable, the efficacy of merchandise are correctly confirmed, and customers are in a position to really feel absolutely comfy that they’ve long-term entry to the merchandise, in the event that they need to thrive on this market the place customers are very discerning about the place and the way they spend,” he concluded.
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