The competitive landscape of the Global market is changing.

Investor Network Jordan

Recently, Elon Musk publicly stated that he is using the weight loss drug Tirzepatide developed by Eli Lilly and Co (LLY, US) and praised its effectiveness. This statement instantly sparked market discussion, bringing massive attention to Tirzepatide and intensifying competition in the Global weight loss medication market.

At the same time, China's pharmaceutical companies are also accelerating their layout, challenging international giants with independent innovation and cost advantages. For example, Gan & Lee Pharmaceuticals (603087.SH) recently launched phase III clinical trials for GZR18 injection, aiming to compete with Novo-Nordisk A/S's Semaglutide in terms of efficacy and safety.

The strong market demand is prompting giants to increase their investment in production capacity.

Tirzepatide is a GLP-1 medication introduced by Eli Lilly and Co, primarily used for treating obesity and type 2 diabetes. According to the clinical data released by Eli Lilly in 2023, Tirzepatide shows outstanding weight loss results in obese patients, with an average weight reduction of 20.2% over 24 weeks. This achievement not only greatly exceeds the efficacy expectations of traditional weight loss medications but has also quickly drawn high market attention, making it a star product in the Global pharmaceutical field.

Over the past year, GLP-1 medications have become a popular track for many pharmaceutical giants to explore. Barclays projects that by 2030, the scale of the Global weight loss medication market is expected to exceed $150 billion. Musk's public endorsement undoubtedly provides additional momentum for Tirzepatide. As a globally renowned entrepreneur, Musk's comments have triggered a strong public opinion effect on Social Media, further driving market demand for Tirzepatide.

In terms of sales performance, the sales of Tirzepatide and Semaglutide are both continuously growing. Novo-Nordisk's Q3 2024 report shows a revenue growth of 23% year-on-year and a Net income growth of 18%; Eli Lilly's revenue during the same period increased by 27.21% year-on-year, with Net income growing by 102.58%, with Tirzepatide sales reaching $11.028 billion.

To further consolidate market share, both companies have increased capacity investments this year. Novo-Nordisk has invested approximately 0.556 billion USD in Tianjin to expand its production line, which is expected to be completed by 2027; Eli Lilly and Co has announced an investment of 1.5 billion yuan to upgrade its Suzhou plant and expand the production capacity of teriparatide.

Domestic pharmaceuticals are accelerating innovation, striving for a curve overtaking.

Against the backdrop of intensifying competition in the global weight loss drug market, Chinese pharmaceutical companies are also accelerating innovation布局，striving to compete with international giants. Gan & Lee Pharmaceuticals is one such representative. GZR18 is a GLP-1 drug independently developed by Gan & Lee Pharmaceuticals, which is currently undergoing Phase III clinical trials, and early clinical data has demonstrated excellent efficacy.

According to the Phase IIb clinical trial results released by Gan & Lee Pharmaceuticals, after 24 weeks of treatment, GZR18 injection showed excellent performance in reducing glycated hemoglobin (HbA1c), outperforming the semaglutide control group. At different doses, GZR18 achieved reductions of: 1.87% for the 12mg dose group, 2.28% for the 18mg dose group, 1.94% for the 24mg dose group, and the 24mg dose group administered once a week achieved the highest reduction, reaching 2.32%. All these data surpassed the 1.6% reduction in the semaglutide group, further validating GZR18's advantages in blood sugar reduction.

In treatment-naive patients, GZR18 injection also outperformed semaglutide, with a maximum HbA1c reduction of 2.98%, higher than the 2.04% in the semaglutide group. In weight management, GZR18 patients achieved a maximum weight loss of 5.42 kilograms from baseline, better than the 3.25 kilograms in the semaglutide group. Furthermore, GZR18 also improved metabolic indicators such as fasting blood sugar, blood pressure, and blood lipids, demonstrating comprehensive potential for metabolic improvement.

In addition to Gan & Lee Pharmaceuticals, other Chinese pharmaceutical companies such as INNOVENT BIO (01801.HK), Brightgene Bio-Medical Technology Co.,Ltd. (688166.SH), Hybio Pharmaceutical (300199.SZ), and Jiangsu Hengrui Pharmaceuticals (600276.SH) are also actively developing GLP-1 class drugs. INNOVENT BIO's IBI362 (masreotide) has initiated Phase III clinical trials; Brightgene Bio-Medical Technology Co.,Ltd.'s BGM0504 has completed Phase II clinical trials; Hybio Pharmaceutical's HY310 injection has also started Phase III clinical studies for obese patients; Jiangsu Hengrui Pharmaceuticals' HRS9531 has also entered the clinical trial stage.

International giants and domestic companies enter fierce competition.

Currently, the number of diabetes patients is continuously increasing, providing a broad space for the weight loss drug market. According to data from the International Diabetes Federation (IDF), it is expected that from 2019 to 2030, the number of diabetes patients in China will increase from 0.119 billion to 0.143 billion, with an annual growth rate of 1.7%; globally, the number of diabetes patients will increase from 0.487 billion to 0.607 billion, with an annual growth rate of 2.0%.

The global weight loss drug market competition has entered a heated stage. Currently, Novo-Nordisk A/S's semaglutide and Eli Lilly and Co's tirzepatide are the mainstream drugs in the market, occupying leading positions in the global weight loss drug market. However, with the acceleration of the global drug approval process, more and more new drugs are entering the market, especially as the innovation pace of Chinese pharmaceutical companies has significantly accelerated. Gan & Lee Pharmaceuticals' GZR18 is expected to become an important competitor in the global weight loss drug market in the coming years, thanks to its strong clinical data and cost advantages.

However, competition in the weight loss drug market is not only reflected in efficacy. For domestic companies like Gan & Lee Pharmaceuticals, how to make efforts in multiple dimensions such as innovation, production costs, marketing, and channel layout, especially in gaining advantages in cost control and rapidly responding to market demands, will be key to determining whether they can establish a foothold in the global market. (Produced by Sivi Financial)