The FTSE 100 pharmaceutical company Hikma is positioning itself to capitalize on the expiring patents of blockbuster weight loss medications, with plans to launch generic versions of Novo Nordisk's Ozempic and Wegovy as early as next year.
Hikma is actively engaged in discussions with partners worldwide to prepare for the production and distribution of generic semaglutide, the active ingredient in these highly sought-after medications. According to company information, patents for the branded drugs will begin expiring in 2026 in Canada, China, India, and Brazil, with additional markets following between 2028 and 2032.
The Transformative Impact of GLP-1 Medications
Riad Mishlawi, Hikma's Chief Executive Officer, emphasized the revolutionary nature of these medications, comparing their significance to the discovery of penicillin.
"It's not only because of the weight loss... It is because the weight causes a lot of other diseases," Mishlawi explained. "So when you treat this, indirectly, you're treating a lot of diseases. So that's why it has been a big craze and a lot of people are jumping on it."
The market for weight loss medications has exploded in recent years, with analysts estimating its potential value between $80 billion and $140 billion (€73.8-€129 billion). Mishlawi believes the current generation of medications represents "only the beginning," noting the substantial pipeline of obesity drugs under development.
Addressing Affordability Challenges
The high cost of these medications has created significant barriers to access. In the United States, a month's supply of Wegovy carries a list price exceeding $1,300, leading many U.S. health insurers and European healthcare systems to restrict coverage despite the enormous patient population that could benefit.
Generic medications typically cost 80-85% less than their branded counterparts, according to the U.S. Food and Drug Administration. This dramatic price reduction could substantially increase accessibility when patents expire, potentially addressing a critical public health need given the global obesity epidemic.
Hikma's Strategic Position
Founded in Jordan, Hikma has established itself as the second-largest pharmaceutical manufacturer in the Middle East and North Africa by sales, trailing only French pharmaceutical giant Sanofi. The company's shares have risen 17% over the past year, reflecting investor confidence in its growth strategy.
Hikma has already demonstrated its capabilities in this therapeutic area by launching liraglutide, a generic version of an earlier Novo Nordisk weight loss drug, in the U.S. market in December. Liraglutide, which Novo Nordisk markets as Victoza for diabetes and Saxenda for weight loss, has shown more modest efficacy in clinical trials—helping patients lose approximately 5-7% of body weight compared to the 15% average weight loss achieved with Ozempic or Wegovy.
Competitive Landscape and Market Dynamics
Despite having only two manufacturers—Hikma and Teva—producing generic liraglutide in the U.S. market, Mishlawi noted that prices have already dropped significantly.
"I don't think it has hit rock bottom yet, but I think with one or two more players, it will easily get to that level," he said, highlighting the competitive nature of the generic pharmaceutical market.
For its part, Novo Nordisk acknowledged that patent expiration is a "natural part of the pharmaceutical product lifecycle" and stated that the company is "exploring new molecules, combinations and formulations of treatments, both organically and through external opportunities."
The Danish pharmaceutical giant remains optimistic about future growth, adding that "the market potential and opportunity to treat more patients continues to remain strong."
Regional Implications
Mishlawi indicated that weight loss medications are particularly popular in the Middle East, where Hikma maintains a strong presence. The company consistently aims to be the first to market with generic products in the region, leveraging its established distribution networks and manufacturing capabilities.
As patents begin to expire in various global markets, Hikma's strategic positioning could allow it to capture significant market share in the rapidly expanding weight loss medication sector, potentially transforming treatment accessibility for millions of patients worldwide.
