Market Overview:
Semaglutide is an analog of the human glucagon-like peptide-1 (GLP-1). GLP-1 is a gut hormone that stimulates insulin secretion and decreases glucagon secretion from the pancreas, slowing gastric emptying and reducing appetite. Semaglutide is primarily used to treat type 2 diabetes and obesity. It helps control blood sugar levels and promotes weight loss. The drug is administered through subcutaneous injections once-weekly. Some key advantages of semaglutide include its potent blood glucose lowering effect, weight loss benefits and favorable safety profile compared to other diabetes medications. Being the first GLP-1 analog approved for both type 2 diabetes and chronic weight management, semaglutide is expected to witness high demand over the forecast period.
Market key trends:
One of the key trends in the semaglutide market is the rising prevalence of diabetes worldwide, especially in developing regions. As per the International Diabetes Federation, approximately 537 million adults were living with diabetes in 2021 globally and the number is projected to rise to 643 million by 2030 and 783 million by 2045. This rapid increase in diabetes patient pool is driving the demand for effective diabetes management drugs like semaglutide. Another major trend is the approval and launch of semaglutide for new indications. In 2021, semaglutide was approved for the treatment of obesity in the US and EU under the brand name Wegovy. This expanded its addressable patient population and boosted sales. Ongoing clinical trials evaluating semaglutide for non-alcoholic steatohepatitis and cardiovascular risk reduction indications are also widening its therapeutic scope.
Porter’s Analysis
Threat of new entrants: The Semaglutide Market Demand requires high R&D investments and regulatory approvals which make entry difficult for new players.
Bargaining power of buyers: Individual consumers have low bargaining power compared to pharmaceutical companies and group purchasing organizations which negotiate prices.
Bargaring power of suppliers: A few biotechnology companies have proprietary technologies for manufacturing semaglutide which gives them bargaining power over buyers.
Threat of new substitutes: Currently, no effective drug substitutes exist for semaglutide but intensive research may lead to new therapies in future.
Competitive rivalry: The market is dominated by Novo Nordisk but competition is intensifying as generics penetrate the market and competitors launch newer formulations.
Key Takeaways
The global semaglutide market is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing prevalence of obesity and type 2 diabetes. The market size for 2023 is US$ 15.80 Bn.
Regionally, North America is expected to dominate the semaglutide market during the forecast period due to growing diabetic and obese population. However, Asia Pacific is anticipated to be the fastest growing market due to rising healthcare expenditure and increasing obesity in countries like China and India.
Key players operating in the semaglutide market are Novo Nordisk A/S, HEC Pharma Co., Shenzhen JYMed Technology Co. Ltd., Bachem Holding AG. Novo Nordisk dominates with over 90% share attributed to the success of its once-weekly formulation Ozempic. HEC Pharma plans to launch a less expensive biosimilar to increase access in price-sensitive markets.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it