The Indian pharmaceutical landscape is preparing for a significant transformation in early 2026 when patents for the blockbuster weight-loss drug semaglutide expire, creating what industry experts are calling a gold rush opportunity for domestic manufacturers. While companies like Cipla, Sun Pharma, and Dr. Reddy's Laboratories prepare to launch generic versions, two lesser-known Indian companies are positioned to become the essential shovel sellers in this pharmaceutical boom.
The Semaglutide Revolution Comes to India
Semaglutide, the active ingredient in Novo Nordisk's wildly popular Ozempic and Wegovy medications, is set to become more accessible to Indian consumers. The Danish pharmaceutical giant's patent protection ends in early 2026, opening the door for Indian generic drug manufacturers to enter the market with more affordable alternatives.
This breakthrough drug, which works by reducing appetite and improving blood-sugar control, has gained global recognition for its effectiveness in treating type-2 diabetes and obesity. Unlike conventional medications, semaglutide requires specialized administration through pre-filled, disposable injection pens – creating a parallel opportunity for companies manufacturing these delivery devices.
Meet the Shovel Sellers: Shaily Engineering and Gland Pharma
While most attention focuses on drug manufacturers, Shaily Engineering Plastics Ltd and Gland Pharma Ltd have strategically positioned themselves as critical suppliers in the semaglutide ecosystem. Their unique advantage lies in the fact that patients will require injection devices regardless of which company manufactures the drug itself.
Shaily Engineering has established itself as a pioneer in drug delivery systems, holding seven patented injector devices specifically designed for GLP-1 drugs like semaglutide. The company's healthcare division has seen explosive growth, with revenue jumping 171% in the first half of FY26 to ₹176 crore. This vertical now constitutes 38% of the company's total revenue.
The company is making substantial investments to capitalize on the anticipated demand, allocating ₹125-150 crore to expand production capacity from 40-45 million pens annually to 70-75 million pens by FY27. Their partnership network includes approximately 24 GLP-1 companies across India, Europe, and the United States, including major generic manufacturers.
Capacity Expansion and Market Response
Gland Pharma, while less dependent on GLP-1 drugs currently, is also preparing for the semaglutide wave. The company specializes in filling semaglutide into sterile cartridges and pens, a critical step in the manufacturing process. Their strategic response includes tripling cartridge production capacity from about 40 million to 140 million units annually.
The company has already launched its first GLP-1 product, liraglutide, in markets including the UK, Australia, Saudi Arabia, and South Africa. Additionally, Gland Pharma has secured two GLP-1 contracts to support future product launches, positioning itself for the expected market expansion.
Market investors have shown particular enthusiasm for Shaily Engineering, driving its share price up by 83% during 2025. The company currently trades at 41 times estimated FY27 earnings, reflecting strong market confidence. In comparison, Gland Pharma trades at 24 times estimated FY27 earnings, with analysts attributing the relative caution to smaller GLP-1 revenue contribution and operational challenges in its subsidiary Cenexi.
The coming semaglutide revolution represents more than just another generic drug opportunity – it highlights how specialized component manufacturers can build sustainable businesses by solving critical supply chain challenges in the pharmaceutical industry.
