Aspen Aims to Launch Affordable Obesity Drugs by 2026

Africa’s largest pharmaceutical company, Aspen Pharmacare Holdings Ltd., is set to produce affordable generic versions of popular obesity drugs, including Ozempic, Wegovy, and Mounjaro, starting in 2026. As obesity rates rise across the continent, Aspen’s strategy positions it to tap into a burgeoning global weight-loss market projected to exceed $100 billion by 2030. The company’s Chief Executive Officer, Stephen Saad, confirmed in a recent interview that Aspen anticipates offering its version of the drug at less than half the average global price.

Aspen’s plans come as patents for these high-demand medications begin to expire in several countries as early as March. The company is prepared to leverage its manufacturing facilities in South Africa and France to meet the expected demand. Saad noted that revenue from Aspen’s generic semaglutide products could start flowing before June, initially targeting emerging markets and Canada before expanding to Europe, the United States, and Australia by 2030.

Strategic Partnerships and Market Positioning

Aspen is not venturing into this market alone. The company has secured agreements with Eli Lilly & Co. to act as a local distributor and with Novo Nordisk A/S for third-party manufacturing of their diabetes and weight-loss treatments. Saad highlighted that additional approvals for using Lilly’s Mounjaro for weight loss are on the horizon, with stock already in place ready for distribution.

In a move to diversify its product line, Aspen has commenced production of commercial batches of human insulin, anticipating regulatory approval following a technical transfer from Novo. Saad reported that Mounjaro sales in South Africa are performing exceptionally well, projecting that they could reach 1 billion rand (approximately $57 million) within the next few years, marking a significant milestone for the local private market.

Despite these optimistic developments, Aspen’s shares fell by 1.5% in Johannesburg. The company also reported a net loss of 1.08 billion rand for the financial year ending June, a stark contrast to the profit of 4.4 billion rand recorded the previous year.

The ambitious plans of Aspen Pharmacare reflect a significant shift in the pharmaceutical landscape, as the company aims to make essential medications more accessible to a wider audience, particularly in regions facing escalating obesity challenges. As the market evolves, the impact of these initiatives will be closely watched by both consumers and industry competitors alike.