NEW DELHI: The market for weight loss and the hugely popular treatment semaglutide has hit an early speed bump. The slowdown in sales of semaglutide treatments in May has raised fears of inventory losses, with industry estimates putting the value of excess inventory in the commercial channel at around Rs 100 crore, sources told TOI.They added that currently, vendors and wholesalers are holding 50 to 60 days of stock, much higher than the normal range of 30 to 45 days, and have halted new purchases from pharmaceutical companies until existing stocks are cleared. The strong growth witnessed in the Rs 2,000-crore obesity treatment market in April lost momentum in May, with month-on-month value growth slowing to 6% and unit growth at 12%, according to the latest data from market research firm Pharmarac.
By comparison, the market was up 50% month-on-month in value and 88% in volume in April, following a deluge of cheap generic semaglutide launches after the drug went off patent on March 20. The market saw a rapid influx of generic semaglutide brands from players, including Torrent, Sun Pharma and Dr. Reddy’s, after the patent expired.Rajeev Singhal, Secretary General, All India Organization of Chemists and Pharmaceuticals, said: “There is a huge stock of stock in the market, with vendors and wholesalers currently holding approximately 50 to 60 days’ stock of GLP-1 (semaglutide).
Sales in May were slower than expected, prompting channel partners to pause new purchases from manufacturers until existing inventories are cleared. The value of inventory in the trade channel could be close to Rs 100 crore.
AIOCD represents more than 12,000 chemists and stockists across the country.Meanwhile, Eli Lilly’s weight loss shot Mounjaro (tirzepatide) continued to be the top-selling treatment in the pharma market during May as well, with sales rising 12% to Rs 136 crore.
Overall, organized pharma retail sales of Rs 2.5 lakh crore grew around 11% during the month, largely supported by chronic therapeutics.Both semaglutide and tirzepatide belong to the class of GLP-1 (glucagon-like peptide-1) receptor agonists, used for the management of type 2 diabetes and obesity.Industry executives said the moderation in sales after the initial spike may be related in part to government advice and prescribing restrictions around GLP-1 therapies. Guidelines announced in April state that these medications should only be prescribed by qualified professionals.