1 00:00:02,720 --> 00:00:07,200 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:09,000 --> 00:00:11,520 Speaker 2: It's been a little more than eight years since the 3 00:00:11,600 --> 00:00:15,160 Speaker 2: FDA approved the medical use of semigluetide, that's the key 4 00:00:15,320 --> 00:00:18,959 Speaker 2: ingredient in ozempic. Since then, the market for diabetes and 5 00:00:19,000 --> 00:00:22,279 Speaker 2: weight loss drugs has exploded three hundred percent, which is 6 00:00:22,280 --> 00:00:27,840 Speaker 2: the increase in US sales of ozembic or similar medicines 7 00:00:27,880 --> 00:00:31,920 Speaker 2: between twenty and twenty and twenty twenty two. The popularity 8 00:00:31,960 --> 00:00:34,400 Speaker 2: of those drugs on social media and in clinics is 9 00:00:34,440 --> 00:00:38,519 Speaker 2: soaring and many received. For years, the patent for semaglue 10 00:00:38,560 --> 00:00:41,320 Speaker 2: tide in many countries has been held by one company, 11 00:00:41,600 --> 00:00:42,440 Speaker 2: Novo NORDESK. 12 00:00:42,840 --> 00:00:45,320 Speaker 3: Right now, we are focusing on diabetes, weight loss, and 13 00:00:45,400 --> 00:00:48,199 Speaker 3: overweight and the main reason for it is that the 14 00:00:48,200 --> 00:00:54,560 Speaker 3: combinations of these three areas basically has two billion people 15 00:00:54,760 --> 00:00:56,040 Speaker 3: in the world suffering from it. 16 00:00:56,440 --> 00:00:59,960 Speaker 2: That's Novo CEO Mike Dustar. On Tuesday, he spoke to 17 00:01:00,000 --> 00:01:02,800 Speaker 2: Bloomberg TV about the release of their twenty twenty six 18 00:01:02,920 --> 00:01:06,680 Speaker 2: sales guidance. Dustar also spoke to Novo's earnings projections for 19 00:01:06,720 --> 00:01:07,600 Speaker 2: twenty twenty six. 20 00:01:07,880 --> 00:01:11,200 Speaker 3: While today you see a negative growth on the financial numbers, 21 00:01:11,520 --> 00:01:13,640 Speaker 3: I see a lot of positive growth on the other 22 00:01:13,680 --> 00:01:14,600 Speaker 3: side of the business. 23 00:01:15,200 --> 00:01:18,400 Speaker 2: Novo stock slumped as much as twenty percent on Wednesday 24 00:01:18,640 --> 00:01:22,080 Speaker 2: after the company's Tuesday forecasts showed that sales would fall 25 00:01:22,120 --> 00:01:24,880 Speaker 2: by as much as thirteen percent this year, and the 26 00:01:24,880 --> 00:01:27,560 Speaker 2: company's market value has fallen to about two hundred and 27 00:01:27,600 --> 00:01:30,560 Speaker 2: fifteen billion dollars from more than six hundred billion in 28 00:01:30,600 --> 00:01:33,720 Speaker 2: twenty twenty four. Not a good start to the trading 29 00:01:33,800 --> 00:01:36,240 Speaker 2: day on Wall Street this Thursday. Who Got Shares of 30 00:01:36,280 --> 00:01:38,320 Speaker 2: No Vote down another four percent. 31 00:01:38,080 --> 00:01:42,080 Speaker 4: Eli Lilly down five point three percent. Hims and Hers 32 00:01:42,120 --> 00:01:45,720 Speaker 4: reportedly launched a copy of the WEGV weight loss pill 33 00:01:46,160 --> 00:01:48,040 Speaker 4: starting at forty nine dollars. 34 00:01:48,080 --> 00:01:50,440 Speaker 2: I guess one of the key factors in the company's 35 00:01:50,480 --> 00:01:54,520 Speaker 2: projections competition from generic versions of its blockbuster drug. 36 00:01:55,080 --> 00:01:59,640 Speaker 1: We're now reaching a moment where generic versions of this 37 00:01:59,760 --> 00:02:03,440 Speaker 1: truck will start being available in large markets around the 38 00:02:03,440 --> 00:02:06,400 Speaker 1: world outside the US and outside Europe. 39 00:02:06,600 --> 00:02:10,360 Speaker 2: That's Bloomberg Health reporter Naomi Kreski. Previously, most of the 40 00:02:10,360 --> 00:02:13,920 Speaker 2: world had only limited access to Novo's drugs, but Novo's 41 00:02:13,960 --> 00:02:18,399 Speaker 2: patents for semigluetide are starting to expire in some big markets. 42 00:02:19,000 --> 00:02:22,200 Speaker 5: We saw the first patent fall in Canada in January. 43 00:02:22,600 --> 00:02:26,400 Speaker 5: A bunch more patents are going to lapse or expire 44 00:02:26,560 --> 00:02:30,600 Speaker 5: in March in China and India and a number of 45 00:02:30,680 --> 00:02:31,320 Speaker 5: other countries. 46 00:02:32,160 --> 00:02:35,880 Speaker 2: Amber Toong covers the Asian pharmaceutical industry for Bloomberg. She 47 00:02:35,960 --> 00:02:38,680 Speaker 2: and Naomi have been tracking patent expirations for sema glue 48 00:02:38,720 --> 00:02:42,480 Speaker 2: tide and the ripple effects those expirations will have. This 49 00:02:42,680 --> 00:02:45,800 Speaker 2: effectively clears the way for drug makers to start creating 50 00:02:45,840 --> 00:02:50,200 Speaker 2: generic alternatives to ozempic and Wegovi, another Novo Nordisk drug 51 00:02:50,400 --> 00:02:53,519 Speaker 2: that uses semagluetide. The FDA approved that one for weight 52 00:02:53,560 --> 00:02:57,120 Speaker 2: loss in twenty twenty one. Amber says these changes won't 53 00:02:57,160 --> 00:03:00,240 Speaker 2: happen overnight, but once generic versions of those drugs hit 54 00:03:00,240 --> 00:03:04,160 Speaker 2: the market, the ramifications could be huge, and Novo's sales 55 00:03:04,200 --> 00:03:07,120 Speaker 2: forecast for twenty twenty six could be just the beginning. 56 00:03:07,800 --> 00:03:12,119 Speaker 5: So we imagine it's going to be slow starting to start, 57 00:03:12,200 --> 00:03:14,720 Speaker 5: but then when you look back, it will be a 58 00:03:14,760 --> 00:03:18,640 Speaker 5: seismic change. 59 00:03:21,240 --> 00:03:23,000 Speaker 2: I'm David Gerrett, and this is the big take from 60 00:03:23,040 --> 00:03:26,560 Speaker 2: Bloomberg News Today on the show. As Novo Nordisk's patents 61 00:03:26,600 --> 00:03:29,840 Speaker 2: on semi glue tide runout, other companies are looking to 62 00:03:29,960 --> 00:03:32,520 Speaker 2: cash in. We take a look at what new generic 63 00:03:32,520 --> 00:03:35,200 Speaker 2: weight loss medications could mean for the companies that pioneered 64 00:03:35,240 --> 00:03:48,200 Speaker 2: them and for the consumers who could benefit from them. Today, 65 00:03:48,320 --> 00:03:51,360 Speaker 2: the majority of the world's GLP one medications come from 66 00:03:51,400 --> 00:03:55,760 Speaker 2: two pharmaceutical companies. The first is Danish drug maker Novo Nordisk, 67 00:03:55,880 --> 00:03:59,280 Speaker 2: which uses the active ingredients semigluetide to make ozembic and 68 00:03:59,280 --> 00:04:01,960 Speaker 2: we go v. The other big player in weight loss 69 00:04:02,040 --> 00:04:05,160 Speaker 2: drugs is the American company Eli Lilly, which makes the 70 00:04:05,200 --> 00:04:08,840 Speaker 2: drugs Munjarro and zep bound using a different ingredient called 71 00:04:08,960 --> 00:04:12,920 Speaker 2: true zeppetide. That ingredient still has another decade of patent protection. 72 00:04:13,720 --> 00:04:17,039 Speaker 2: But even with Novo facing more looming competition from Generics 73 00:04:17,200 --> 00:04:19,520 Speaker 2: and a drop in its twenty twenty six sales forecast, 74 00:04:20,040 --> 00:04:24,280 Speaker 2: its CEO told Bloomberg TV he's optimistic about the company's prospects. 75 00:04:24,600 --> 00:04:28,800 Speaker 3: Everyone notices that GOLP one market as a segment is growing, 76 00:04:29,360 --> 00:04:31,800 Speaker 3: and we have been able to actually show that we 77 00:04:31,880 --> 00:04:33,960 Speaker 3: can take part of that growth. 78 00:04:34,520 --> 00:04:38,320 Speaker 2: Bloomberg's Amber Tong says generics could complicate the picture of 79 00:04:38,360 --> 00:04:41,800 Speaker 2: that growth. In twenty twenty six, Amber how quickly. Is 80 00:04:41,839 --> 00:04:44,280 Speaker 2: the market poised to change? Is this something that's going 81 00:04:44,320 --> 00:04:47,640 Speaker 2: to happen overnight we see these patents expire, we go 82 00:04:47,680 --> 00:04:50,359 Speaker 2: over this patent cliff and then boom a host of 83 00:04:50,400 --> 00:04:52,720 Speaker 2: new drugs pop up. Or how long is it going 84 00:04:52,760 --> 00:04:53,040 Speaker 2: to take? 85 00:04:53,320 --> 00:04:56,720 Speaker 5: It's definitely not going to be overnight. We actually have 86 00:04:56,800 --> 00:05:00,479 Speaker 5: to wait until that crucial moment after the pas fall, 87 00:05:00,520 --> 00:05:03,040 Speaker 5: and then the regulators may come in and start issuing 88 00:05:03,080 --> 00:05:03,800 Speaker 5: these approvals. 89 00:05:04,560 --> 00:05:07,000 Speaker 2: Regulators in each market will have to approve the generic 90 00:05:07,000 --> 00:05:10,360 Speaker 2: semaglue tide before it's available to consumers, a process Amber 91 00:05:10,440 --> 00:05:13,880 Speaker 2: says that can take months or even years. First up 92 00:05:14,040 --> 00:05:16,760 Speaker 2: is Canada, where the market open to semi glue tide 93 00:05:16,760 --> 00:05:19,960 Speaker 2: from companies other than Novo Nordisk on January fourth. 94 00:05:20,400 --> 00:05:24,599 Speaker 5: Canada is currently the second largest market for semagluetide in 95 00:05:24,640 --> 00:05:28,719 Speaker 5: the world, and it's really a good example or a 96 00:05:28,800 --> 00:05:31,800 Speaker 5: case study of what's going to happen in a wealthy, 97 00:05:32,320 --> 00:05:34,640 Speaker 5: developed market after the patents fall. 98 00:05:35,200 --> 00:05:38,560 Speaker 2: Novo's US patent on sema glue tide won't expire until 99 00:05:38,600 --> 00:05:41,880 Speaker 2: twenty thirty two, but it'll be a useful litmus test 100 00:05:42,040 --> 00:05:44,120 Speaker 2: generics hitting the market in Canada. 101 00:05:44,520 --> 00:05:47,960 Speaker 5: A pregame of sorts for what's going to happen in 102 00:05:48,080 --> 00:05:50,000 Speaker 5: markets like the US. 103 00:05:50,600 --> 00:05:52,960 Speaker 2: Amber says the rollout in Canada will give her a 104 00:05:53,000 --> 00:05:55,680 Speaker 2: sense of which brands are likely to get more traction 105 00:05:55,800 --> 00:05:58,240 Speaker 2: in the years to come, and how the market for 106 00:05:58,279 --> 00:06:01,040 Speaker 2: weight loss drugs is going to change. And while it 107 00:06:01,080 --> 00:06:03,240 Speaker 2: will be more than five years until generics go on 108 00:06:03,279 --> 00:06:06,280 Speaker 2: the market in the US, some generic semi gluetides sold 109 00:06:06,320 --> 00:06:08,920 Speaker 2: in Canada could make its way south before then. 110 00:06:10,360 --> 00:06:13,680 Speaker 5: We learned from reporting the story that Canada could basically 111 00:06:13,720 --> 00:06:17,080 Speaker 5: cause this market leakage problem for the US. People in 112 00:06:17,120 --> 00:06:19,400 Speaker 5: the US may actually cross the border to get their 113 00:06:19,480 --> 00:06:23,760 Speaker 5: drugs from Canada, or drugs from Canada could be imported 114 00:06:24,279 --> 00:06:26,760 Speaker 5: into the US through states like Florida. 115 00:06:26,880 --> 00:06:29,719 Speaker 2: But Canada isn't going to be a perfect parallel for 116 00:06:29,760 --> 00:06:31,919 Speaker 2: what the rollout of generic weight loss drugs in the 117 00:06:32,040 --> 00:06:35,279 Speaker 2: US is going to be like. For one thing, prices 118 00:06:35,279 --> 00:06:38,360 Speaker 2: of generic drugs in Canada are more highly regulated than 119 00:06:38,360 --> 00:06:41,280 Speaker 2: they are in the US. Some analysts told Naomi and 120 00:06:41,320 --> 00:06:44,720 Speaker 2: Amber that China, where pricing is more dynamic, may be 121 00:06:44,839 --> 00:06:48,559 Speaker 2: a better comparison, and Novo's patent on semi gluetides there 122 00:06:48,880 --> 00:06:50,560 Speaker 2: is set to expire in March. 123 00:06:51,200 --> 00:06:53,919 Speaker 5: One of the big similarities of the US and China 124 00:06:54,000 --> 00:06:57,919 Speaker 5: is that they are both very large countries with a 125 00:06:58,040 --> 00:07:04,720 Speaker 5: pretty sizable population living with obesity. But the current penetration 126 00:07:04,880 --> 00:07:09,080 Speaker 5: of obesity drugs in China is very small compared to 127 00:07:09,120 --> 00:07:12,880 Speaker 5: the US. Some estimate it to be around one percent. 128 00:07:14,480 --> 00:07:17,800 Speaker 2: GLP one medications are much more popular in the US, 129 00:07:18,040 --> 00:07:21,440 Speaker 2: where recent polling has found roughly twelve percent one in 130 00:07:21,520 --> 00:07:24,720 Speaker 2: eight adults have taken them, but Amber says the market 131 00:07:24,760 --> 00:07:28,119 Speaker 2: for obesite drugs in China is poised to take off. 132 00:07:28,560 --> 00:07:31,840 Speaker 5: So the obesity drugs that we go v and Monjaro, 133 00:07:32,000 --> 00:07:34,960 Speaker 5: they have relatively they have only been introduced to the 134 00:07:35,000 --> 00:07:38,520 Speaker 5: market for a very short amount of time. But people 135 00:07:38,560 --> 00:07:41,320 Speaker 5: in China have read from social media, They've read from 136 00:07:41,360 --> 00:07:44,600 Speaker 5: the news, They've heard Elon Musk talk about the life 137 00:07:44,720 --> 00:07:48,920 Speaker 5: changing effects of golp one drugs. So China is actually, 138 00:07:49,160 --> 00:07:50,679 Speaker 5: I guess in the sin it has been hearing about 139 00:07:50,720 --> 00:07:54,760 Speaker 5: the drugs for longer than they have been able to 140 00:07:54,840 --> 00:07:59,120 Speaker 5: use the drug. I think one very distinguishing factor about 141 00:07:59,120 --> 00:08:01,880 Speaker 5: the China market is that Chinese people are really used 142 00:08:01,920 --> 00:08:07,040 Speaker 5: to shopping online. Like e commerce platforms are everywhere, and 143 00:08:07,200 --> 00:08:12,080 Speaker 5: people are just so used to shopping buying things off 144 00:08:12,200 --> 00:08:15,600 Speaker 5: e commerce platform for their everyday needs, and this actually 145 00:08:15,640 --> 00:08:21,280 Speaker 5: created a really fertile soil for the obesity drugs to 146 00:08:21,400 --> 00:08:26,720 Speaker 5: kind of take hold. We see companies like Novo Nordisks 147 00:08:26,720 --> 00:08:31,320 Speaker 5: and Eli Lilly partnering with e commerce giants like jd 148 00:08:31,480 --> 00:08:36,400 Speaker 5: dot Com and Ali Baba Group. They're building these education 149 00:08:36,600 --> 00:08:41,000 Speaker 5: corners on these e commerce apps to educate the public 150 00:08:41,080 --> 00:08:45,679 Speaker 5: about obesity drugs and providing a very easy, way accessible 151 00:08:45,720 --> 00:08:48,840 Speaker 5: way for consumers to buy these drugs. So I think 152 00:08:49,080 --> 00:08:53,920 Speaker 5: in that sense, China is much more primed for the 153 00:08:53,960 --> 00:08:57,199 Speaker 5: consumerization of obesity drugs. 154 00:08:58,120 --> 00:09:01,439 Speaker 2: In India, the newest and most powerful GLP one drugs 155 00:09:01,520 --> 00:09:04,960 Speaker 2: were only approved in twenty twenty five. In March of 156 00:09:05,000 --> 00:09:08,280 Speaker 2: that year, Eli Lilly started selling Munjarro in India and 157 00:09:08,320 --> 00:09:12,079 Speaker 2: Novo Nordisk followed three months later with Wegovi and Naomi. 158 00:09:12,120 --> 00:09:14,920 Speaker 2: Says that set off a wave of demand. 159 00:09:15,240 --> 00:09:17,840 Speaker 1: As soon as obesity drugs were available in India, people 160 00:09:17,880 --> 00:09:21,040 Speaker 1: did start queuing up at the doctor's offices where they 161 00:09:21,040 --> 00:09:23,640 Speaker 1: could get prescriptions to get these medicines. And there is 162 00:09:24,120 --> 00:09:28,800 Speaker 1: a sense that this avalanche of patients is just going 163 00:09:28,840 --> 00:09:31,600 Speaker 1: to become bigger as the generics go on the market. 164 00:09:32,440 --> 00:09:35,199 Speaker 2: The patent for semi glue Tide in India is also 165 00:09:35,240 --> 00:09:38,400 Speaker 2: going to expire in March, and Naomi says the country's 166 00:09:38,440 --> 00:09:41,200 Speaker 2: generic drug makers are preparing to jump in for a 167 00:09:41,320 --> 00:09:43,319 Speaker 2: chance to compete for a slice of the country's weight 168 00:09:43,360 --> 00:09:47,600 Speaker 2: loss drug market. Worldwide, the financial services group no Mura 169 00:09:47,679 --> 00:09:50,640 Speaker 2: projects the market for generic semi glue tide will reach 170 00:09:50,760 --> 00:09:55,040 Speaker 2: nearly eight billion dollars by twenty thirty. About fifteen percent 171 00:09:55,080 --> 00:09:58,480 Speaker 2: of that market will be in India. With all that competition, 172 00:09:58,760 --> 00:10:01,719 Speaker 2: analysts expect the price of weight loss shots there will 173 00:10:01,760 --> 00:10:03,559 Speaker 2: drop by as much as fifty percent. 174 00:10:04,000 --> 00:10:06,760 Speaker 1: The price that some of whuch has sold at in 175 00:10:06,760 --> 00:10:10,800 Speaker 1: India was attainable for well off people there. But if 176 00:10:11,000 --> 00:10:12,960 Speaker 1: we have a price war where the cost goes as 177 00:10:13,040 --> 00:10:16,920 Speaker 1: low as fifteen dollars in India, that just opens up 178 00:10:17,080 --> 00:10:21,680 Speaker 1: a much larger market and enables just a much broader 179 00:10:21,720 --> 00:10:24,400 Speaker 1: cross section of the society to try out these medicines. 180 00:10:24,720 --> 00:10:26,720 Speaker 2: Now we're picking up on that. It makes me wonder 181 00:10:26,840 --> 00:10:29,560 Speaker 2: sort of how these pharmaceutical companies that happened making these 182 00:10:29,600 --> 00:10:33,959 Speaker 2: drugs so Novo and Eli Lilly are thinking about this moment, 183 00:10:34,040 --> 00:10:36,520 Speaker 2: how worried they are about the prospective of generics now 184 00:10:36,520 --> 00:10:38,600 Speaker 2: coming on to the scene. What are we hearing we're 185 00:10:38,640 --> 00:10:41,800 Speaker 2: seeing from those companies as we approach this moment. 186 00:10:42,200 --> 00:10:45,880 Speaker 1: So Novo has tried to put an estimate on the 187 00:10:45,880 --> 00:10:48,600 Speaker 1: impact of generics for this year, and they've told investors 188 00:10:48,640 --> 00:10:52,040 Speaker 1: that it'll have an impact on sales. And I think 189 00:10:52,400 --> 00:10:56,480 Speaker 1: one really interesting thing from a Novo perspective to watch 190 00:10:56,679 --> 00:11:00,240 Speaker 1: is to see how they have dropped the price the 191 00:11:00,360 --> 00:11:05,120 Speaker 1: name brand we go Vi and Ozempic in China and 192 00:11:05,160 --> 00:11:08,440 Speaker 1: in India as well. And they've also introduced these second 193 00:11:08,600 --> 00:11:13,240 Speaker 1: brands so like their Sema glue Tide, but sold under 194 00:11:13,280 --> 00:11:16,600 Speaker 1: a different brand name like their own low cost version. 195 00:11:17,080 --> 00:11:20,320 Speaker 1: So one surmises that that must be an effort to 196 00:11:20,400 --> 00:11:22,880 Speaker 1: also capture some of this market and hang on to 197 00:11:23,000 --> 00:11:23,520 Speaker 1: some of it. 198 00:11:24,880 --> 00:11:27,520 Speaker 2: While the arrival of generic Sema glue Tide is likely 199 00:11:27,559 --> 00:11:29,920 Speaker 2: to drive down the price of weight loss drugs everywhere 200 00:11:29,920 --> 00:11:33,400 Speaker 2: the patent falls, this is not the first market challenge 201 00:11:33,520 --> 00:11:36,320 Speaker 2: drug makers like Novo, Nordisk, and Eli Lilly have faced. 202 00:11:36,840 --> 00:11:49,600 Speaker 2: What's different with generic glp ones that's next. In early 203 00:11:49,640 --> 00:11:53,320 Speaker 2: twenty twenty two, Novo Nordisk was struggling to manufacture enough 204 00:11:53,320 --> 00:11:55,520 Speaker 2: ozempic and we go v to keep up with demand. 205 00:11:56,200 --> 00:11:58,959 Speaker 2: That March, the FDA added those two drugs to its 206 00:11:58,960 --> 00:12:02,720 Speaker 2: shortage list, which open the gates for compounding pharmacies to 207 00:12:02,760 --> 00:12:06,040 Speaker 2: make their own copycat versions of the semiglue tide medications. 208 00:12:06,679 --> 00:12:09,760 Speaker 2: I asked Blomberg's Ambertong, what makes the arrival of generic 209 00:12:09,840 --> 00:12:11,960 Speaker 2: versions of ozempic and we goovy different. 210 00:12:12,480 --> 00:12:16,600 Speaker 5: Compounding is quite unique to the US. Right pharmacies are 211 00:12:16,640 --> 00:12:20,920 Speaker 5: allowed to take the active ingredient of ozempic or wigov 212 00:12:21,280 --> 00:12:27,400 Speaker 5: namely use semagluetide, and create their own concoctions when the 213 00:12:27,520 --> 00:12:32,120 Speaker 5: drugs are in shortage or when the patients require a 214 00:12:32,160 --> 00:12:35,080 Speaker 5: specialized formulation for individual needs. 215 00:12:35,600 --> 00:12:39,760 Speaker 4: Hymns and Hers reportedly launched a copy of the wegovy 216 00:12:39,800 --> 00:12:43,840 Speaker 4: weight loss pill starting at forty nine dollars, which compares 217 00:12:43,880 --> 00:12:46,360 Speaker 4: to one hundred and fifty at the lowest end for 218 00:12:46,440 --> 00:12:50,000 Speaker 4: the starter dose of wegovi, so that sends shares of 219 00:12:50,040 --> 00:12:52,880 Speaker 4: Novo Nordisk as well as Eli Lilly down. 220 00:12:53,320 --> 00:12:57,760 Speaker 5: Compound at semagluhead doesn't need to be approved, but generics 221 00:12:57,920 --> 00:13:01,240 Speaker 5: need to be approved before they be sold on the market. 222 00:13:01,640 --> 00:13:04,720 Speaker 5: And there's much more scrutiny on the regulator side on 223 00:13:05,360 --> 00:13:07,360 Speaker 5: how they're manufactured and how they're sold. 224 00:13:07,600 --> 00:13:10,960 Speaker 2: Bloombergs Naomi Krasky says the market for compounded sema glue 225 00:13:11,000 --> 00:13:14,040 Speaker 2: tides in some ways may have helped see the production 226 00:13:14,320 --> 00:13:15,800 Speaker 2: of generic semagluetide. 227 00:13:16,280 --> 00:13:19,439 Speaker 1: People have told me that, interestingly enough, part of the 228 00:13:19,520 --> 00:13:23,680 Speaker 1: reason why compounders could be so successful in the US 229 00:13:23,880 --> 00:13:28,240 Speaker 1: with compounded wigov is that, you know, the compounders weren't 230 00:13:28,240 --> 00:13:31,320 Speaker 1: making the drug ingredient themselves. They were buying it from somebody. 231 00:13:31,360 --> 00:13:33,800 Speaker 1: So who were they buying it from. They were buying 232 00:13:33,880 --> 00:13:36,800 Speaker 1: it in some cases and probably in many cases from 233 00:13:36,840 --> 00:13:41,120 Speaker 1: generic drug makers that had already figured out and planned 234 00:13:41,280 --> 00:13:48,760 Speaker 1: and started producing someema glue tide in anticipation of the 235 00:13:48,840 --> 00:13:51,559 Speaker 1: you know, drug becoming generic in a lot of markets. 236 00:13:51,640 --> 00:13:55,320 Speaker 1: And so it's not an overnight, sudden, you know, clap 237 00:13:55,360 --> 00:13:57,600 Speaker 1: your hands and it's done thing for a generic drug 238 00:13:57,640 --> 00:14:00,679 Speaker 1: maker to figure out how to copy a complex medicine 239 00:14:00,720 --> 00:14:03,240 Speaker 1: like semaglue tide. And so people have told me in 240 00:14:03,280 --> 00:14:08,240 Speaker 1: the industry that that availability and existence of this drug 241 00:14:08,360 --> 00:14:12,520 Speaker 1: ingredient that had been prepped already just meant that some 242 00:14:12,720 --> 00:14:15,680 Speaker 1: companies could ship it to the US and sell it 243 00:14:15,679 --> 00:14:16,439 Speaker 1: to compounders. 244 00:14:17,000 --> 00:14:20,200 Speaker 2: Essentially, drug manufacturers in China and India got a head 245 00:14:20,280 --> 00:14:22,880 Speaker 2: start on sema glue tide production, and they have those 246 00:14:22,920 --> 00:14:26,840 Speaker 2: compounding pharmacies to thank. As it stands, roughly one in 247 00:14:26,960 --> 00:14:31,000 Speaker 2: four generic drugs Americans take relies on key ingredients from China, 248 00:14:31,480 --> 00:14:34,200 Speaker 2: and the bulk of the US's generic pharmaceuticals are made 249 00:14:34,200 --> 00:14:34,680 Speaker 2: in India. 250 00:14:35,280 --> 00:14:38,040 Speaker 5: China is better at making the raw ingredients the building 251 00:14:38,080 --> 00:14:41,000 Speaker 5: blocks for the drugs, but Indian companies are better at 252 00:14:41,320 --> 00:14:46,440 Speaker 5: actually doing the development work and filing the paperwork to 253 00:14:46,480 --> 00:14:49,680 Speaker 5: secure approval and actually market those drugs overseas. 254 00:14:49,840 --> 00:14:52,440 Speaker 2: And now that patents on semaglue tide are ending, they're 255 00:14:52,480 --> 00:14:54,720 Speaker 2: positioned to get even more dominant. 256 00:14:54,960 --> 00:14:55,640 Speaker 1: I think it's. 257 00:14:55,640 --> 00:14:59,560 Speaker 5: Mainly going to underscore the key role that China and 258 00:14:59,600 --> 00:15:04,360 Speaker 5: India have in manufacturing drugs for the world. So for 259 00:15:04,640 --> 00:15:08,920 Speaker 5: a lot of Chinese and Indian companies, this is actually 260 00:15:09,000 --> 00:15:13,520 Speaker 5: a great business opportunity that they're really hoping to seize. 261 00:15:13,720 --> 00:15:16,760 Speaker 2: Amber and Naomi say the arrival of generic semaglue tide 262 00:15:16,840 --> 00:15:19,440 Speaker 2: is not just a huge event for the pharmaceutical industry. 263 00:15:19,760 --> 00:15:23,640 Speaker 2: It's also potentially a game changer for global health. When 264 00:15:23,680 --> 00:15:27,600 Speaker 2: it comes at a critical moment, I think. 265 00:15:27,440 --> 00:15:30,560 Speaker 5: We should take a step back and imagine what the 266 00:15:30,560 --> 00:15:33,880 Speaker 5: world is going to be like without these drugs. We 267 00:15:33,920 --> 00:15:37,040 Speaker 5: spoke to someone from the World Obesity Federation for the 268 00:15:37,120 --> 00:15:41,560 Speaker 5: story and she noted that currently one billion people around 269 00:15:41,560 --> 00:15:45,800 Speaker 5: the world are living with obesity or overweight, and by 270 00:15:45,920 --> 00:15:49,400 Speaker 5: twenty thirty five that number could grow to four billion, 271 00:15:50,160 --> 00:15:53,360 Speaker 5: and a lot of that burden is falling on global 272 00:15:53,400 --> 00:15:58,400 Speaker 5: sealth countries, developing countries like China, India, and Nigeria. So 273 00:15:58,920 --> 00:16:03,920 Speaker 5: if nothing is done, if things don't change, then the 274 00:16:03,960 --> 00:16:08,840 Speaker 5: population of people with obesity and at risk of the 275 00:16:08,880 --> 00:16:14,360 Speaker 5: consequent cardiometabolic complications and other health issues, that's going to 276 00:16:14,880 --> 00:16:21,880 Speaker 5: really balloon over the next decades. So the availability of 277 00:16:22,000 --> 00:16:26,720 Speaker 5: the generics could play a big role in stopping that 278 00:16:26,960 --> 00:16:29,960 Speaker 5: or at least alleviating that huge growth. 279 00:16:30,800 --> 00:16:34,640 Speaker 1: I think it will be crucial to see how health 280 00:16:34,680 --> 00:16:39,520 Speaker 1: systems can utilize these generics, because it's not just about 281 00:16:40,120 --> 00:16:44,080 Speaker 1: you know, in a consumer type setting, people deciding to 282 00:16:44,240 --> 00:16:47,720 Speaker 1: use generic wigo vy to lose a few pounds, you know, 283 00:16:47,760 --> 00:16:51,680 Speaker 1: I mean, these are powerful medicines. Health systems need to 284 00:16:51,720 --> 00:16:56,440 Speaker 1: address the drugs, not as kind of a cosmetic thing, 285 00:16:56,600 --> 00:17:02,600 Speaker 1: but really use them for their cardiovascular benefits, for their 286 00:17:02,720 --> 00:17:06,199 Speaker 1: liver benefits, for all of the health benefits that they 287 00:17:06,200 --> 00:17:09,720 Speaker 1: can provide in a responsible way. 288 00:17:14,920 --> 00:17:17,160 Speaker 2: This is the Big Take from Bloomberg News. I'm David 289 00:17:17,160 --> 00:17:19,600 Speaker 2: gurat To get more from The Big Take and unlimited 290 00:17:19,640 --> 00:17:22,399 Speaker 2: access to all of Bloomberg dot com, subscribe today at 291 00:17:22,480 --> 00:17:26,520 Speaker 2: Bloomberg dot com slash podcast offer. If you like this episode, 292 00:17:26,600 --> 00:17:28,639 Speaker 2: make sure to follow and review The Big Take wherever 293 00:17:28,680 --> 00:17:31,080 Speaker 2: you listen to podcasts. It helps people find the show. 294 00:17:31,480 --> 00:17:33,360 Speaker 2: Thanks for listening. We'll be back tomorrow.