Companies that Could Ride Ozempic Gold Rush 

Have you noticed how celebrities these days seem to be turning up in the best shape of their lives? Their bodies and faces look chiselled, and there's that effortless lean look - like they've figured out some wellness mantra the rest of us just haven't cracked yet.

On social media, many of them would attribute this to heathy lifestyles, no sugar routine, green smoothies, and demanding gym routines.

But the transition is too drastic to assume that the same old method is all behind it.

And then, a new word has started popping up in conversations. It is not a diet, or a new workout app, or even a superfood.

In fact, it sounds quite clinical - Ozempic.

Not long ago, Ozempic was a word mostly limited to the vocabulary of medical practitioners or Pharma companies. Until it was whispered in the celebrity circles and found way to gossip magazines. And now's it's becoming mainstream.

So what's behind this rise of Ozempic - and why should you care?

Ozempic, or semaglutide to use its more formal name, is a drug that was approved by the USFDA back in 2017. It was developed by a Danish pharmaceutical giant, Novo Nordisk

Its main purpose was to help adults with type 2 diabetes manage their blood sugar levels, alongside diet and exercise. It works by suppressing a hormone that raises blood sugar and encouraging the body to release more insulin. It was later also approved for comorbidities s like kidney and cardiovascular diseases. Again, in the domain of medical necessity.

But outside the clinic, its other effects were becoming clear. People taking the drug were eating less. They were feeling full and were less troubled by hunger pangs, leading to reduced trips to kitchen and fridge for snacking and lesser guilt trips thereafter.

That also led to a noticeable weight reduction in a short time. And that's when Ozempic made its leap from the pharmacy to the celebrity circles.

Now Ozempic isn't alone. It's part of a broader class of drugs called GLP-1 receptor agonists. These include other names like Wegovy, also by Novo Nordisk, and Mounjaro, from US-based Eli Lilly. While Ozempic was initially approved for diabetes, Wegovy is focused on weight loss, and Mounjaro has the best of both worlds - it's approved for managing both diabetes and obesity. So yes, there's an entire family of these drugs, and they're all starting to make headlines.

For those tracking the Indian pharma space, semaglutide has been a familiar name for quite some time now. In fact, it's been showing up more and more in the investor calls of Indian pharma companies. And there's a very clear reason why - the patent for Ozempic is set to expire in India in early 2026.

That could be a game changer.

India is already dealing with a twin epidemic - diabetes and obesity. It is known as the diabetes capital of the world, and lifestyle-related weight issues are only getting worse. Until now, drugs like Ozempic have been out of reach for most - too niche, pricey , patent protected. But with the expiry on the horizon, there's an enormous opportunity opening up for Indian pharma players to step in.

For today, I'm going to focus on three companies that are eyeing this opportunity and are on my watchlist.

The first is Natco Pharma that has positioned semaglutide as one of its big launches for the year-end. In fact, it was the first to file for it in April 2024 - a significant head start in this race. The company is weighing two strategies: selling it under its own brand with its own sales force, and taking the B2B route. Clinical trials in India have already begun, though it's still waiting for regulatory approval.

Then there's Shaily Engineering, which might seem like an unexpected name in this mix. Known earlier for its work in consumer plastics and furniture, the company has been steadily pivoting into the healthcare space. What makes it relevant here is its role in manufacturing used for delivering semaglutide and other similar drugs. Shaily is a contract manufacturer for major global pharma companies and is seeing strong profit growth as a result. Besides, it has got its own platform devices where it owns the IP or is closely involved in the product design and development.

With high margin healthcare occupying a bigger share of revenue mix, the runway for profits is still long.

And finally, there's Emcure Pharma. Recently listed, the company has made it clear that it's targeting semaglutide as part of its upcoming product portfolio. In its latest management update, Emcure said it plans to be among the first wave of Indian companies to launch post-expiry. While many Pharma companies are planning to do this, what's interesting is that Emcure plans to be vertically integrated - leading to better control over costs and quality. Add to that trained sales force, and you can see why they're worth keeping an eye on.

Of course, this isn't a recommendation to rush out and invest. The pharmaceutical business is complex, and not without its regulatory, legal, and financial risks. But for anyone tracking major industry shifts, this is one story you won't want to ignore.

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