Chinese Companies Diversify into Generics Amid Fading US Weight-Loss Demand

Chinese companies are turning to generics as shipments for US weight-loss products decline. Eli Lilly and Company, a leading pharmaceutical group, has seen a significant drop in sales for its weight-loss products, leading to a shift towards generics. The decline in sales is attributed to the fading popularity of weight-loss products in the US.

In response to a significant drop in sales for weight-loss products in the United States, Chinese companies are pivoting towards producing generic versions of these medications. This shift is particularly notable for Eli Lilly and Company (LLY), a leading pharmaceutical group that has seen a substantial decline in sales for its weight-loss products.

Eli Lilly's weight-loss products, such as Zepbound, have faced a decrease in popularity and sales in the U.S. market. This trend has led to a reduction in shipments of raw ingredients from Chinese suppliers, as reported by Reuters [4]. The decline in demand for these products has created an opportunity for Chinese companies to produce generic versions of the medications.

The shift towards generics is not just a response to the declining popularity of weight-loss products but also a strategic move by Chinese companies to capitalize on the market demand for these medications. According to Reuters, at least eight Chinese companies have been involved in supplying raw materials for generic weight-loss drugs in the U.S. market [4].

The decline in shipments of weight-loss products from Chinese suppliers has opened the door for compounding pharmacies, which were fueled by telehealth firms that grew during the COVID pandemic, to supply cheap copies of these drugs to the market. This trend is likely to continue as patents on branded weight-loss drugs expire in various countries, allowing generic drugmakers to enter the market.

The situation is complex, as manufacturing semaglutide, the main ingredient in some of these weight-loss drugs, is a highly specialized process. Companies seeking to produce generic versions of these drugs may face challenges in scaling up their production capabilities.

In summary, the decline in sales for weight-loss products in the U.S. market has led to a shift towards generic versions of these medications produced by Chinese companies. This trend is likely to continue as the market demand for these drugs remains high, and patents on branded versions expire.

References:
[1] https://finviz.com/news/151072/eli-lilly-and-company-lly-a-bull-case-theory
[2] https://www.fiercebiotech.com/biotech/lilly-ends-2-3-mid-stage-trials-oral-glp-1-contender-naperiglipron
[3] https://drugstorenews.com/chinese-companies-reportedly-going-generics-shipments-behind-us-weight-loss-craze-dim
[4] https://www.reuters.com/business/healthcare-pharmaceuticals/chinese-companies-turn-generics-shipments-behind-us-weight-loss-craze-fade-2025-09-02/