Innovent Bio's newly launched weight loss medication is gradually penetrating the Chinese domestic market. The company is intensifying competition with Western rivals through increasingly effective marketing strategies.

The drug, named "Xinermei," launched in July this year, becoming the third weekly injectable GLP-1 (glucagon-like peptide-1) weight management therapy available in the Chinese market, following Novo-Nordisk A/S's "Wegovy" (semaglutide) and Eli Lilly's "Mounjaro" (tirzepatide).

Novo-Nordisk A/S's Wegovy and Eli Lilly's Mounjaro launched in China in late 2024 and January 2025 respectively (both months after regulatory approval). Analysts predict China's weight loss drug market could be worth billions of dollars in the coming years.

Innovent Bio Chief Financial Officer Rachel You stated during last month's earnings call that despite being a late entrant, the company's objectives include raising social awareness about weight management and emphasizing to core customers the drug's proven efficacy in reducing liver fat.

"Compared to foreign companies, Chinese companies may have more advantages in the Chinese market — they better understand brand building and are more familiar with local consumers," said Allan von Mehren, Copenhagen-based economist at Danske Bank.

Market share data for China's weight loss drug market remains opaque, with companies including Innovent Bio and Eli Lilly not disclosing specific sales figures. Eli Lilly stated in a statement that the company is committed to "providing patients with valuable treatment options."

Novo-Nordisk A/S, facing competitive pressure from companies like Eli Lilly, plans to cut 9,000 jobs globally. The company claims it "maintains a leading position" in the Chinese market.

According to Reuters calculations based on Novo-Nordisk A/S investor report data, the company's obesity care product sales in Greater China reached approximately 158 million Danish kroner ($24.8 million) in Q2 2025, significantly down from 704 million Danish kroner in Q1.

When asked about the sales decline, Novo-Nordisk A/S stated there were "certain inventory fluctuations between quarters."

Morningstar predicts that Xinermei (generic name: mazdutide) will contribute over 600 million yuan ($84.4 million) in revenue to Innovent Bio this year, with sales reaching a peak of 3.5 billion yuan by 2029, accounting for approximately 20% of Innovent Bio's total revenue.

In comparison, the research firm expects Novo-Nordisk A/S's Wegovy to generate approximately 2.2 billion Danish kroner ($346 million) in China this year, with an estimated 30% growth in 2026, followed by a decline due to generic competition.

Morningstar stated it currently lacks sales projection data for Eli Lilly's Mounjaro in the Chinese market.

As Chinese biotech stocks have generally recovered, Innovent Bio's share price has risen approximately 155% since the beginning of this year, while Novo-Nordisk A/S shares fell 38% and Eli Lilly shares declined nearly 3% over the same period.

Intensifying Competition

You stated last month that Innovent Bio is actively expanding partnerships with online platforms, retail pharmacies, private hospitals, and clinics to broaden Xinermei's coverage and improve patient experience.

The company also mentioned in a statement that it will further enter the public hospital market but did not disclose additional details about its marketing strategy.

Reuters investigation found that in the Beijing area, suppliers on China's mainstream e-commerce platform JD.com generally offer Innovent Bio's weight loss drug, along with its weekly injectable competitors (Wegovy, Mounjaro).

All these medications are high-priced prescription drugs currently not covered by China's national health insurance for weight loss treatment reimbursement.

A recent Goldman Sachs report showed that calculated at maximum weekly doses, Wegovy's monthly cost at China launch was approximately $400, while Mounjaro was about $900. Innovent Bio stated in a statement that Xinermei's highest dose (4 units of 6mg injection pens) has a recommended retail price of 2,920 yuan ($411).

In 2019, Innovent Bio obtained exclusive development and commercialization rights for mazdutide in China from Eli Lilly, with specific financial terms not disclosed publicly.

"Currently Innovent Bio mainly focuses on promoting the weight loss indication, but subsequently mazdutide will also be used for type 2 diabetes treatment, potentially expanding to more indications in the future," said former Eli Lilly diabetes business president Enrique Conterno when discussing Innovent Bio's application plans for mazdutide. "In my view, this drug has the potential to become a blockbuster product in the Chinese market."

Innovent Bio announced last Friday that mazdutide has received approval from Chinese regulators for treating type 2 diabetes. Meanwhile, Eli Lilly continues advancing mazdutide's global development.

Unlike Wegovy and Mounjaro, mazdutide also acts on a hormone called GCG (glucagon). Innovent Bio believes this mechanism of action may benefit liver health. A study showed that Xinermei can help some people reduce liver fat content — excessive liver fat can cause serious health problems.

Ji Linong, Director of Endocrinology at Peking University People's Hospital, stated that some obese patients diagnosed with fatty liver have proactively visited the hospital to inquire whether they can use Xinermei.

When asked about prescription volumes for Xinermei, Wegovy, and Mounjaro, Ji stated that this data relates to each drug's market launch timing.

All involved pharmaceutical companies will face more local competition in the Chinese market: Novo-Nordisk A/S's Wegovy active ingredient semaglutide's patent expires in 2026, with Chinese companies including CSPC Pharmaceutical Group and Hangzhou Jiuyuan Genetic Biopharmaceutical Co developing generic versions of the drug.

"If mazdutide truly succeeds, it will impact Western competitors," said Tony Ren, Head of Asia Healthcare Research at Macquarie Capital. "We also know that semaglutide generics may launch in China in 2027, possibly as early as 2026. But in our view, whether mazdutide can withstand the impact of semaglutide generics remains unclear."