The Indian pharmaceutical landscape is witnessing a strategic scramble as companies position themselves to capitalize on the booming market for obesity and diabetes medications. With the patent for blockbuster drugs like semaglutide set to expire, a wave of licensing and distribution partnerships is sweeping the industry, aiming to tap into a market that has already surged past ₹1,000 crore in under a year.
A Surge in Strategic Partnerships
Leading Indian pharmaceutical firms are actively securing alliances to strengthen their foothold in the lucrative GLP-1 (glucagon-like peptide-1) segment. These drugs, which mimic a natural hormone to control appetite and regulate insulin, are used to treat type-2 diabetes and obesity. The complexity of manufacturing the drug compound, the delivery pen, and the fill-finish process is driving companies to collaborate rather than go it alone.
In a significant move, Lupin announced on 29 December a license, supply, and distribution agreement with China's Gan & Lee Pharmaceuticals for a novel fortnightly GLP-1 drug, Bofanglutide. Lupin secured exclusive rights to commercialize it in India. Similarly, Ajanta Pharma inked a deal with Biocon on 23 December to distribute generic semaglutide in 26 African and Asian countries post-patent expiry this year. Ajanta is also exploring a separate partnership for the Indian domestic market.
Earlier, in November, Emcure Pharmaceuticals partnered exclusively with innovator Novo Nordisk to distribute semaglutide under the brand Poviztra. Cipla also signed a deal with Eli Lilly for its weight-loss drug tirzepatide (Mounjaro). These partnerships leverage the strong distribution networks of Indian companies to expand drug access.
Market Expansion and Patent Expiry Fuel Growth
Analysts predict the Indian GLP-1 market could grow ten-fold in the next two to three years. A primary catalyst is the loss of patent exclusivity for Novo Nordisk's Wegovy (semaglutide) in several countries, including India in March 2026. This opens the door for generic competition and more partnerships.
"We will see these [partnerships] happening across markets," said Vishal Manchanda, pharma analyst at Systematix Group. He noted that companies with robust distribution might tie up with leading manufacturers, with more exclusive licensing deals likely overseas. The deal-making intensity for this sub-segment is unprecedented compared to previous diabetes drug patent expiries, largely due to the complex supply chain.
Shrikant Akolkar of Nuvama highlighted the distribution challenge, stating, "...because it is a humongous population... the distribution is going to be very tough. And therefore, companies that have local distribution/marketing presence will get a preference." He anticipates more deals as the Indian patent expiry date in March 2026 approaches.
Differentiation and Regulatory Hurdles
Beyond generic versions, companies are seeking differentiated products. Lupin's deal for a fortnightly drug, as opposed to the standard weekly injection, is a case in point. "The entire goal would be to get a product which is differentiated," Manchanda explained.
However, significant barriers remain. The manufacturing complexity is a hurdle for many, and securing regulatory approval is challenging. While several Indian firms have applied, only Dr Reddy’s Laboratories, Sun Pharmaceutical Industries, and Alkem Laboratories have received approvals so far. Analysts suggest larger players are better poised due to their reach and credibility, which are crucial for this product category.
Globally, the GLP-1 market is projected to be worth a staggering $95 billion by 2030, according to Goldman Sachs. As patents lapse and demand soars, Indian pharmaceutical companies are strategically aligning themselves through partnerships to secure a significant share of this transformative healthcare opportunity.
