Eli Lilly and Company (NYSE:LLY) is facing growing pressure from India's fast-expanding generics market. Lower-cost versions of its blockbuster drugs are weighing on the company's sales, with the most significant impact seen in its diabetes and weight-loss drug Mounjaro.

Mounjaro Losing Its Exclusivity

Mounjaro, which was previously a top-selling drug, is now facing headwinds as competitors enter the market, according to a report by Bloomberg. Its sales dropped to $12.3 million in March from $14.6 million a month earlier, per Pharmarack data.

The decline came amid the launch of multiple cheaper alternatives that mimic the effects of Lilly's therapies. This has eroded Lilly's market share among cost-conscious patients and intensified competition in one of the world's largest diabetes markets.

According to Pharmarack, semaglutide’s market share in the Indian GLP-1 segment rose to 33% in March from 25% in February. Tirzepatide – the active ingredient in Lilly's Mounjaro – share fell to 64% from 71%, per the researcher.

This is a gold rush phase as generics come on board, said Sheetal Sapale, vice president of commercial at Pharmarack. Though Mounjaro still dominates the market in India, it's taken a "major hit" following the launch of semaglutide copies, she said.

Other Drugs Show Promise

Earlier in the month, the U.S. Food and Drug Administration (FDA) approved Foundayo for adults with obesity, or those who are overweight. Foundayo is a once-daily oral GLP-1 pill that can be taken at any time of day without food or water restrictions, offering a more convenient alternative to injectable treatments.

The approval has enhanced Lilly's competitive position in the booming market for GLP-1 treatments, putting it on par with Novo Nordisk A/S (NYSE:NVO), which launched Wegovy, a weight-management injection, earlier this year. Eli Lilly stock is up 3.6% following the Foundayo approval on April 1.

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