A pharmacist displays a box of Mounjaro, a tirzepatide injection drug used for treating type 2 diabetes made by Lilly at Rock Canyon Pharmacy in Provo, Utah, U.S. March 29, 2023. Reuters-Yonhap

Eli Lilly launched its blockbuster diabetes and weight-loss drug Mounjaro in India on Thursday, beating rival Novo Nordisk for a much-awaited entry into the world's most populous country that is grappling with increasing rates of obesity and diabetes.

U.S.-based Lilly and Danish Novo Nordisk have seen skyrocketing global demand for their innovative weight-loss drugs, with investor interest also boosting the drugmakers' valuations.

Mounjaro, a once-weekly injection approved by India's drug regulator, is priced at 4,375 rupees ($50.67) for a 5 mg vial and 3,500 rupees ($40.54) for a 2.5 mg vial, its lowest dose, the company told Reuters separately.

"The dual burden of obesity and type 2 diabetes is rapidly emerging as a major public health challenge in India," said President and General Manager Winselow Tucker at Lilly India.

India, a country of more than 1.4 billion people, has seen an increase in obesity rates. A government survey conducted between 2019 and 2021 showed that 24 percent of women and nearly 23 percent of men between the ages of 15 and 49 were either overweight or obese, up from 20.6 percent of women and 19 percent of men in 2015-2016.

Lilly's Mounjaro, chemically known as tirzepatide, is currently sold in the U.K. and Europe under the same brand name for both diabetes and weight-loss. It is sold as Zepbound for obesity in the U.S.

In the U.S., Mounjaro carries a list price of $1,086.37 for each fill, while Lilly offers 7.5 mg and 10 mg vials of Zepbound for $499 a month via its website.

Novo's weight-loss drug Wegovy can cost non-insured U.S. patients more than $1,000 a month.

"The launch is ahead of Novo Nordisk and the first mover advantage should help...but pricing seems high (for the Indian market). At highest dose, a patient will have to spend close to 700,000 rupees (around $8,100) per annum," Vishal Manchanda, analyst at Systematix Institutional Equities said.

Novo's India team has been pushing the global leadership to launch Wegovy as early as 2025 in the country as opposed to the company's previous target of a 2026 launch. The company's shares were down 1.1 percent at 0934 GMT, underperforming the broader European market.

However, Novo is not the only competition Lilly will have to confront. Indian drugmakers such as Sun Pharma, Cipla, Dr. Reddy's and Lupin have been racing to make generic versions of these drugs grab a share of the global market estimated to be valued at $150 billion in the next decade.

The active ingredient in Wegovy is semaglutide, which is likely to go off patent in 2026 in India.

Wegovy and Novo's diabetes drug Ozempic, which has the same main ingredient, and Mounjaro, belong to a class of therapies known as GLP-1 receptor agonists that help control blood sugar and slow digestion, making people feel fuller for longer. (Reuters)