Pharma Giants Double Down on Obesity Drug Manufacturing Despite Market Uncertainty
Raleigh, NC – As the market for obesity drugs heats up, Roche and Boehringer Ingelheim are making substantial investments in manufacturing capacity, signaling a long-term commitment to the space even as pricing pressures mount. These moves by later entrants aim to position them to compete effectively with current market leaders like Lilly and Novo Nordisk.
Roche is investing over $1.25 billion in North Carolina – $700 million for a metabolic medicines manufacturing facility and $550 million for a continuous glucose monitoring plant – to expand access to care for obesity and diabetes patients. The commitment to the manufacturing facility was made before Phase II data readouts for its dual GLP-1/GIP receptor agonist,CT-388.
“This marks substantial progress in expanding access to holistic care for patients with obesity and diabetes,” a Roche spokesperson told BioSpace.
Construction on the manufacturing site is slated to begin at the end of August, according to Teresa Graham, CEO of Roche’s pharmaceuticals division, who discussed the facility during a July earnings call. Graham addressed concerns about competing with Lilly and Novo amid anticipated GLP-1 pricing declines, stating the new plant is “very specifically designed to support our obesity portfolio” and that Roche is “very aware of the likely pricing dynamics in the space,” with plans “fully geared to compete in that arena.”
boehringer Ingelheim is also actively pursuing the obesity market with survodutide, a long-acting glucagon/GLP-1 receptor agonist currently in multiple Phase III trials evaluating its impact on weight and related health conditions. Completion dates for these trials range from late 2025 to mid-2026, according to ClinicalTrials.gov.
While Boehringer Ingelheim is “continuously investing in the development and change of production capacities and technologies, as well as in strategic cooperations with external manufacturers,” a company spokesperson indicated it is “too early for us to elaborate” on specific manufacturing plans, as the asset remains in late-stage clinical development.
