U.S. pharmaceutical company Eli Lilly & Co.’s (LLY) weight loss medication called “Mounjaro” has been approved for use in China.
Chinese regulators gave approval To Eli Lilly’s weight less drug a month after approving the weight loss medication of rival pharmaceutical giant Novo Nordisk (NVO).
China’s National Medical Products Administration approved Eli Lilly’s monthly injection for long-term weight loss. The regulator had previously approved the drug for treating diabetes.
China’s health authority estimates that half of the country’s 1.4 billion citizens are overweight, and the Chinese market represents a huge opportunity for both Eli Lilly and Novo Nordisk.
Specifically, China’s National Health Commission estimates that 34% of the population is overweight and 16% are severely overweight or obese.
Approval to sell its weight loss drug in China comes at a pivotal time for EIi Lilly with illegal and
generic versions of its drugs flooding the global marketplace.
At the same time, competing pharmaceutical companies are pushing their own weight loss drugs through late-stage clinical trials in hopes of regulatory approval as soon as 2025.
The stock of Eli Lilly has risen 87% over the past 12 months to trade at $848.90 U.S. per share.
