On December 31, 2025, the Supreme People’s Court in China upheld the validity of Novo Nordisk’s semaglutide compound patent, a decision that preserves the company’s flagship obesity and diabetes drugs—Wegovy, Ozempic, and Rybelsus—against generic competition until the patent’s scheduled expiration in March 2026.
The ruling removes a key legal hurdle that could have opened the Chinese market to dozens of local generic manufacturers. Novo Nordisk had already begun cutting Wegovy prices by up to 50% in several provinces to improve patient access, a strategy that now gains a stronger legal foundation. With the patent protected, the company can maintain its pricing power and continue to capture market share in a country where diabetes and obesity prevalence is rising sharply.
Financially, the decision aligns with Novo Nordisk’s 2025 guidance, which remains unchanged. Management reiterated that the company expects full‑year revenue to stay within the $4.14 billion–$4.15 billion range and that operating income will remain near the $2.15 billion target. The ruling reinforces confidence that the company can sustain its GLP‑1 franchise growth despite competitive pressures from Eli Lilly and other local entrants.
CEO Mike Doustdar said, “This outcome is very positive for semaglutide and demonstrates firm government support for protecting medical innovation. It strengthens confidence for foreign companies’ sustainable development in China and will motivate further development and introduction of innovative medicines for the benefit of patients.” The statement underscores Novo Nordisk’s view that the ruling is a strategic win that supports long‑term innovation and market expansion.
In the broader context, the ruling comes as China’s State Intellectual Property Office had invalidated core semaglutide patents in 2022, prompting Novo Nordisk to appeal. The court’s decision also comes amid a wave of generic filings—at least 15 Chinese companies are reportedly developing semaglutide—making the protection of Novo’s IP critical to maintaining its competitive edge in a rapidly growing market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.