Eli Lilly, the U.S. pharmaceutical manufacturer and producer of Mounjaro, plans to position India as a central hub in its global supply chain, according to a company executive. This move is part of the firm’s previously announced commitment to invest $1 billion in contract manufacturing within India.

Sales of the blockbuster weight-loss drug doubled within months of its launch in India, making it the country’s top-selling medication by revenue. This highlights the growing popularity of obesity treatments in India, which is projected to become the world’s second-largest country in terms of obese population by 2050.

Eli Lilly currently does not operate its own production facilities in India. Instead, it intends to leverage India’s established contract manufacturing system to export locally produced medicines to global markets, integrating them into its worldwide supply network.

“We are actively considering India as a hub, as part of our global supply chain, to serve international markets,” said Winslow Tucker, President of Eli Lilly India, during an interview with Reuters on the sidelines of a biotechnology conference in Hyderabad.

“We will continue to advance this investment plan and gradually scale it up,” Tucker noted, though he declined to name the contract manufacturers involved or discuss potential plans for building a dedicated factory.

Tucker also revealed that Eli Lilly plans to introduce more products in India. These may include its Alzheimer’s treatment donanemab, as well as future potential obesity therapies such as the experimental oral weight-loss drug orforglipron, pending regulatory approvals.

Price Competition

In India, Eli Lilly competes with Danish pharmaceutical firm Novo Nordisk, the manufacturer of the weight-loss injection Wegovy.

As the world’s most populous country, India is expected to see a surge in demand for weight-loss medications this year. Novo Nordisk’s patent on semaglutide is set to expire in India next month, prompting local drugmakers to rush to launch more affordable generic versions.

To protect its market share, Novo Nordisk reduced the price of Wegovy by up to 37% last year.

Tucker downplayed concerns about similar pricing pressures affecting Mounjaro, emphasizing that the drug’s formulation and efficacy give it a competitive edge.

“Our pricing for Mounjaro is value-based, and we believe it is justified,” Tucker stated.

Eli Lilly’s current focus is on increasing digital and social media outreach to raise awareness about obesity and expanding Mounjaro’s availability to smaller cities and towns across India. The company has already partnered with Indian pharmaceutical firm Cipla and digital health platforms such as Tata 1MG, Practo, and Apollo to extend its distribution network beyond major metropolitan areas.