India is set to introduce incentives to promote local manufacturing of GLP-1 drugs, primarily used for treating diabetes and obesity. Originally approved for diabetes management, GLP-1 drugs such as semaglutide (found in medications like Wegovy and Ozempic) are increasingly recognized for their efficacy in aiding weight loss by slowing digestion. With the patent for Novo Nordisk's semaglutide expiring in India in 2026, several pharmaceutical companies have applied for the government's production-linked incentive (PLI) scheme to commence manufacturing.

Mr. Arunish Chawla, Secretary of the Department of Pharmaceuticals, confirmed that these companies will receive incentives once production begins after the patent expiry. This move is aimed at fostering domestic production and reducing dependence on imported pharmaceuticals.

The market potential for anti-obesity medications is substantial, with projections by Goldman Sachs Research indicating it could grow to US$ 100 billion by 2030. In India, companies like Sun Pharmaceutical Industries Ltd. are advancing their formulations for weight loss treatments. Similarly, Cipla Ltd. and Dr. Reddy’s Laboratories Ltd. are focused on developing generic versions of these drugs to cater to the rising demand for effective obesity treatments.

India's high obesity rates, exacerbated by increased consumption of junk food and sedentary lifestyles, highlight the urgent need for innovative healthcare solutions. The introduction of incentives for GLP-1 drug manufacturing aligns with India's strategic goals to enhance healthcare accessibility and reduce disease burden associated with chronic conditions like obesity and diabetes.

In conclusion, India’s initiative to incentivize GLP-1 drug manufacturing underscores its commitment to healthcare innovation and domestic pharmaceutical production. This article provides insights into the economic implications and industry advancements shaping India’s pharmaceutical sector in response to global health challenges.

Also Read : Indian Stock Market Soars on Positive Global Cues and Gains in Financial and IT Sectors

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.