The Delhi High Court division bench on Monday reserved its verdict on Danish drugmaker Novo Nordisk's appeal against a single-judge order permitting Dr Reddy's Laboratories to manufacture semaglutide in India and export it to countries where the blockbuster diabetes and weight-loss drug lacks patent protection. Justice C. Hari Shankar and Justice Om Prakash Shukla heard comprehensive arguments from both parties in this closely watched pharmaceutical patent dispute.

Case Background and Lower Court Ruling

The appeal challenges a December 2, 2025 order by Justice Manmeet Pritam Singh Arora, who ruled on a prima facie basis that semaglutide was not clearly distinct from earlier inventions covered by Novo's broad "genus" patent. The single judge determined that Novo Nordisk had failed to establish a strong case for an interim injunction to prevent Dr Reddy's from exporting the drug to non-patent jurisdictions.

Novo Nordisk's Arguments

During the hearing, Novo Nordisk contested the lower court's findings on multiple grounds. The company argued that the earlier patent referenced by generic manufacturers covered only a broad class of GLP-1 molecules without specifically disclosing or teaching semaglutide's unique properties. Novo emphasized that semaglutide possesses a distinct chemical structure and long-acting properties that differentiate it from the broader molecular family.

The Danish drugmaker further contended that merely falling within a broad chemical family does not establish prior invention, asserting that the court relied on hindsight analysis to reach its conclusion. Novo warned that permitting exports during the patent's active period would cause serious and irreparable harm to its global business operations while weakening its patent rights.

Market Impact and Industry Implications

Semaglutide, marketed as Ozempic for diabetes treatment and Wegovy for weight management, represents one of the world's most valuable and contested pharmaceuticals. The drug works by mimicking the GLP-1 hormone to control blood sugar levels, suppress appetite, and promote weight loss for patients with type-2 diabetes and obesity.

The division bench's upcoming ruling carries significant implications for the pharmaceutical industry, affecting not only Dr Reddy's and Sun Pharma but also other companies like Natco preparing to launch generic versions post-patent expiry. Several Indian manufacturers have already secured regulatory approvals, including Sun Pharma, Dr Reddy's Laboratories, and Alkem Laboratories.

Expanding Indian Market

The dispute unfolds against the backdrop of India's rapidly expanding diabetes and weight-loss drug market. According to Pharmarack data, the GLP-1 segment has experienced remarkable growth:

Novo Nordisk recently launched its blockbuster Ozempic brand in India for type-2 diabetes treatment, seeking to maximize market presence before losing patent exclusivity. The company has also implemented strategic price cuts for Wegovy as competition intensifies in the weight-loss drug segment.

The division bench is expected to announce its decision before Novo's semaglutide patent expires on March 20, 2026, making this ruling crucial for determining the competitive landscape in India's burgeoning diabetes and obesity treatment market.

Novo Nordisk has implemented substantial price cuts for its obesity medication Wegovy across multiple Chinese provinces, as the Danish pharmaceutical company prepares for increased competition following an upcoming patent expiration. The company confirmed that the price reduction aims to help alleviate the treatment burden for patients and improve their quality of life.

Significant Price Reductions Across Chinese Regions

According to drug-procurement documentation from the southwestern Chinese provinces of Yunnan and Sichuan, Novo Nordisk has reduced list prices for Wegovy's two highest dosages by approximately 50.00%. Local media outlet Yicai reported these price changes, which have been implemented across various Chinese regions.

The price adjustments are reflected on JD.com's online marketplace, where patients throughout China can order the medication following online consultations with healthcare providers. This distribution method allows nationwide access to the reduced-price obesity treatment.

Patent Expiration Drives Strategic Pricing

The timing of these price cuts aligns with Novo Nordisk's approaching patent expiration for semaglutide, the active ingredient in both Wegovy and Ozempic. The company's patent protection is scheduled to expire in March, opening the door for local manufacturers to introduce generic alternatives at potentially lower price points.

Local Chinese pharmaceutical companies have positioned themselves to capitalize on this patent expiration, preparing to launch more affordable generic versions of the semaglutide-based treatments once intellectual property protections end.

Intensifying Market Competition

The competitive landscape in China's obesity treatment market has already begun shifting with the approval of a domestic weight-loss medication developed by Innovent Biologics Inc. This development represents part of a broader global competition that positions Novo Nordisk against major rival Eli Lilly & Co.

The approval of Innovent Biologics' weight-loss drug marks a significant milestone in the Chinese pharmaceutical market, as domestic companies increasingly challenge international pharmaceutical giants in specialized treatment areas. This competitive pressure likely influenced Novo Nordisk's decision to proactively reduce Wegovy pricing before facing direct generic competition.