Indian Pharma’s Big Bet on Peptides

India is gearing up for a big pharma moment, and it has everything to do with a category of drugs called GLP-1 Peptide Drugs. These are the same revolutionary treatments behind global blockbusters like Ozempic and Wegovy, used for managing diabetes and obesity. And here's the exciting part: the patent for semaglutide, the key peptide molecule behind these drugs, expires in India in 2026, and Indian pharma companies are getting ready to pounce. What Exactly Are GLP-1 Drugs? GLP-1 receptor agonists were originally developed to control blood sugar in patients with type 2 diabetes. However, these drugs have recently gained massive global attention for their secondary benefit—weight loss. By slowing digestion and increasing the feeling of fullness, they serve as dual-purpose therapeutics in the fight against diabetes and obesity, two of India’s fastest-growing lifestyle diseases.

Why 2026 Is So Important?

The key compound in Ozempic and Wegovy is called semaglutide, and the patent for it in India expires in 2026. That means Indian pharma companies will finally be allowed to make generic versions, which will be way more affordable and available to a much larger chunk of the population.

Indian Pharma Gears Up

Several Indian pharmaceutical giants are already sharpening their focus on the GLP-1 opportunity:

• Biocon, Sun Pharma, Cipla, Dr. Reddy’s, and Lupin are progressing in R&D and regulatory readiness.

• Glenmark entered the space early by launching a generic version of liraglutide in 2024.

• Piramal Pharma is leveraging its USFDA-approved facility in Turbhe for GLP-1 peptide manufacturing.

While diabetes remains the initial use case, extending GLP-1 drugs to obesity treatment in India will require regulatory nods—a crucial step for market expansion.

What’s the Market Potential?

The GLP-1 market in India is currently worth around USD 115 million (as of 2024), and it’s expected to grow at 24.7% CAGR over the next decade. That’s huge.

Meanwhile, India’s anti-obesity drug market is expected to jump from USD 3.81 billion in 2023 to USD 14.48 billion by 2033. And GLP-1 drugs will likely take up a big chunk of that.

Here’s what’s happening on the ground:

• Novo Nordisk dominates right now with Rybelsus (oral semaglutide), holding nearly 70% of the GLP-1 market in India.

• Eli Lilly is all set to bring tirzepatide (Mounjaro) to India by 2025.

• Indian giants like Dr. Reddy’s, Lupin, Cipla, and Biocon are not far behind—they’re already building their pipelines for GLP-1 drugs.
  

R&D and Manufacturing Are Booming

India’s pharma ecosystem is going all in on peptide therapeutics, which are key to making GLP-1 drugs. Some recent developments:

• Sai Life Sciences has opened a new peptide R&D center with state-of-the-art equipment.

• Granules India bought Swiss firm Senn Chemicals to boost peptide capacity.

• Aurigene (Dr. Reddy’s) is scaling up biologics and peptides production.

• Neuland Labs approved ₹342 crore to 6x their peptide synthesis by FY27.

• Blue Jet Healthcare is investing ₹40 crore in peptide/GLP-1 R&D.

• Aarti Pharmalabs is shifting into biotech and peptide products from its traditional chemical base.

What Indian Pharma Companies Are Saying:

India’s leading pharma companies are not just betting big on peptides—they’re already laying the groundwork.

Concall Snippets:

Aarti Pharmalabs Ltd

• “Yes, I think we are. Clearly, we understand peptide is where the entire market is going to grow—biotech products, peptide products, anti-cancer products. We like those areas.”

• “We are attempting to do more higher molecular weight products—not very large peptides, but relatively mid-size peptides. We’ve started attempting them and have a few projects which we are going to get ourselves a shot at. We’ve started that journey.”

Blue Jet Healthcare

• “The state-of-the-art R&D center being built at the cost of around Rs. 40 crores shall focus on newer chemistry platforms like peptides, intermediates for GLP-1s, biocatalysts with a focus on immobilized catalysts, and work to augment and strengthen the innovator-oriented pipeline of the Company with a focus on chronic diseases.”

Neuland Laboratories

• “As stated last quarter, our peptide investment is on track. We continue to garner more projects in the space, which further validates our excitement about the opportunities that the segment holds.”
  

• “We have also filed a U.S. DMF for Difelikefalin, which is our first DMF in the peptide space.”
  

• Vivek Patel (Investor Query): “The peptide and Unit 3 capacity utilizations were at the lower end of 30% to 40%. Then what was the rationale behind expanding the capacity and putting up capex of INR 320–350 crores?”
  

• Suchetth Davuluri (Management): “The 30% to 40% was the capacity utilization for Unit 3—it was not the indication we gave for peptide. So the peptide capex was actually dedicated only for peptides, and that’s actually happened in Unit 1 and not Unit 3.”
  

Sai Life Sciences

• "A major highlight of the quarter was the launch of our dedicated Peptide Research Center at our integrated R&D campus in Hyderabad. The facility is equipped with advanced automation, robotics, and high-throughput systems to support complex peptide synthesis and discovery.”

• “As demand rises for peptide-based and other emerging modalities, there are investment positions as well to cater to next-generation therapeutics.”

  
  

India is not just chasing a healthcare win—it’s chasing a peptide-powered pharma revolution. With government support, global patent expiries, and a sharp rise in obesity and diabetes, the time is just right.

I believe If Indian companies play it smart, they could lead the global charge in affordable GLP-1 peptide drugs, impacting millions of lives and creating massive economic value in the process.

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