Torrent Pharmaceuticals is positioning itself to capture the first wave of generic semaglutide launches following the expiration of Novo Nordisk's patent early next year. The Ahmedabad-based pharmaceutical company is developing both oral and injectable versions of the weight loss and diabetes drug, with launches anticipated within the next 1-2 years.
Clinical Development and Manufacturing Strategy
Torrent is currently conducting Phase 3 clinical trials for its oral semaglutide products while simultaneously partnering for injectable formulations. Company officials indicated during an investor call that they expect to be among the first generic manufacturers to enter the market once patent protection expires.
"As of now it looks like we could be in the first wave....it will be a reasonable addition to our chronic medicine portfolio in the next 1-2 years," company officials stated during the Monday investor call.
The company plans to manufacture the active pharmaceutical ingredient (API) in-house at its manufacturing plant in Gujarat's Dahej facility. To optimize production costs and timelines, Torrent may outsource the fill-finish work and explore outsourcing some parts of the formulation process while maintaining core manufacturing capabilities internally.
Market Opportunity and Competitive Landscape
Semaglutide, a GLP-1 receptor agonist, serves as the active ingredient in Novo Nordisk's globally popular brands Ozempic, Wegovy, and Rybelsus, which are used to manage type 2 diabetes and obesity. The drug has experienced massive demand surge worldwide, including in India, driven by its dual action on blood sugar control and body weight management.
While Novo Nordisk currently holds monopoly over the molecule in India, generic drugmakers are actively preparing for opportunities following patent expiry. Torrent's strategic positioning as an early mover reflects the high-stakes nature of this market entry.
With Novo Nordisk facing global supply constraints, Torrent's entry could potentially address unmet demand in India's expanding obesity and diabetes segment, which has witnessed increasing interest in GLP-1 drugs among both clinicians and patients.
Financial Performance Context
The semaglutide development announcement comes as Torrent reported strong financial results, with first quarter revenue growing 11% to ₹3,178 crore and net profit increasing 20% year-over-year to ₹548 crore. The company's operating EBITDA stood at ₹1,032 crore, representing 14% growth year-over-year with an EBITDA margin of 32.5%.
