This article first appeared on GuruFocus.
Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) are about to face much tougher competition in India’s weight-loss drug market after Sun Pharmaceutical Industries got the green light to make and sell a generic version of semaglutide.
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Sun said India’s drug regulator has approved it to manufacture and market semaglutide injections for chronic weight management. The company plans to launch the product under the brand name Noveltreat once the semaglutide patent expires in India in March 2026. That approval clears the way for lower-priced alternatives to Novo’s Wegovy in a market where affordability matters far more than brand loyalty.
This isn’t Sun’s first step into semaglutide. Back in December 2025, the company also received approval to sell a diabetes version of the drug and plans to launch it as Sematrinity after the patent expiry. With India’s massive population, generics are expected to spread quickly and put pressure on branded GLP-1 sales.
India is a key growth market for obesity drugs, but generics could compress pricing much faster than in Western markets. Investors will be watching how Lilly and Novo respond as competition ramps up.