Biotech enterprises struggling to meet growing GLP-1 supply demands?
In a bid to meet the surging demand for GLP-1 drugs, biotech companies have taken significant strides in expanding manufacturing capacity and improving supply chains. The shortage, which began around early 2022, was exacerbated by unprecedented demand increases, supply chain disruptions worsened by the COVID-19 pandemic, and reliance on foreign raw material suppliers.
According to a study published by Doctors Without Borders/Médecins Sans Frontières (MSF), the unavailability and limited access due to high costs already affect patients in low- and middle-income countries, a situation that is likely to have disproportionate effects on people with type 2 diabetes. The European Medicines Agency (EMA) has flagged the GLP-1 drug shortage as a serious public health concern and warned that the shortage is unlikely to resolve within the year.
In response, companies like Novo Nordisk and Eli Lilly have addressed the issue by ramping up manufacturing capacity and improving supply chains. Novo Nordisk is investing more than $4 billion in a facility in North Carolina for filling and finishing its obesity and diabetes drugs Wegovy and Ozempic. The new facility will double the space of Novo Nordisk's existing plants in the state and add 1,000 jobs.
Similarly, Eli Lilly has purchased a plant from U.S.-based Nexus Pharmaceuticals to meet rising demands of GLP-1 drugs, with production set to begin next year. Lilly has committed over $18 billion since 2020 to build, expand, and acquire facilities in the U.S. and Europe to address growth from potential new medicines.
Biotech companies are also making substantial investments to boost GLP-1 manufacturing. Novo Holdings has announced a $16.5 billion buyout of CDMO Catalent to ramp up GLP-1 production. Aurisco Pharmaceutical has launched a facility in Yangzhou, China, for multi-metric ton production of generic GLP-1 peptides. Another biopharma company, whose name is not specified, is also making substantial investments to boost GLP-1 manufacturing.
Basel-based CordenPharma, under the leadership of Stephen Houldsworth, senior vice president and global head of Platform Management & Marketing, is investing €900 million ($981 million) over the next three years to increase GLP-1 drug production in Europe and the U.S.
While the recent resolution of shortages indicates supply largely caught up to current demand, competition is fierce. For example, Eli Lilly's newer drug candidates like Zepbound and retatrutide are viewed as potentially superior to some existing GLP-1s, which could further stimulate demand and require ongoing capacity expansion. Novo Nordisk, previously dominant, faces challenges due to competitors' advanced pipelines and regulatory shifts.
The supply-demand dynamics remain complex. The rising demand for GLP-1 drugs, driven in part by their use for non-medical weight loss, is putting unprecedented pressure on suppliers. Investors in China have plowed $400 million into licensing obesity drugs from Shanghai-based Jiangsu Hengrui Pharmaceutical.
To aid millions of adults with obesity access the medicine they need, Eli Lilly's Zepbound, a GLP-1 drug for weight loss, will soon be available in 2.5 mg and 5 mg single-dose vials at a discounted price. The new option for Zepbound is intended to help those without employer coverage and those who need to self-pay outside of insurance.
However, the supply-demand dynamics remain complex. While the recent resolution of shortages indicates supply largely caught up to current demand, competition is fierce. For example, Eli Lilly's newer drug candidates like Zepbound and retatrutide are viewed as potentially superior to some existing GLP-1s, which could further stimulate demand and require ongoing capacity expansion. Novo Nordisk, previously dominant, faces challenges due to competitors' advanced pipelines and regulatory shifts.
In summary, biotech companies have largely overcome the GLP-1 supply shortage through capacity expansions, supply chain improvements, and regulatory adjustments. The supply is currently meeting or exceeding U.S. demand as of mid-2025. Still, evolving therapies and growing interest in obesity and diabetes treatments mean continuous supply scaling and innovation will be crucial to keep pace with rising demand.
- Biopharma companies, such as Novo Nordisk and Eli Lilly, have undertaken significant investments to expand manufacturing capacity for GLP-1 drugs, addressing the shortage that began in early 2022.
- The biotech sector has made substantial investments to boost GLP-1 manufacturing, with companies like Novo Holdings and Aurisco Pharmaceutical leading the way.
- To cope with the increasing demand for GLP-1 drugs, especially for non-medical weight loss, companies are making continuous efforts to expand their supply chains and manufacturing capacity.
- In the health-and-wellness sector, investors in China have shown keen interest, investing $400 million into licensing obesity drugs from Shanghai-based Jiangsu Hengrui Pharmaceutical.
- The business landscape for GLP-1 drugs is competitive, with new drug candidates like Eli Lilly's Zepbound and retatrutide being perceived as potentially superior to existing GLP-1s, stimulating further demand.
- Acknowledging the disproportionate impact on people with type 2 diabetes in low- and middle-income countries, general-news outlets, such as Doctors Without Borders/Médecins Sans Frontières (MSF), have highlighted the access issues and high costs associated with GLP-1 drugs.
- The European Medicines Agency (EMA) has recognized the GLP-1 drug shortage as a serious public health concern and has warned about its persistence into the year. Education-and-self-development platforms, finance, and lifestyle blogs are discussing the implications of this ongoing issue on the medical-conditions and chronic-diseases landscape.
