Stock Markets February 17, 2026

Lilly Sees India as Export Hub as Mounjaro Sales Surge

Company aims to leverage contract manufacturing in India and expand product lineup while defending pricing and distribution for its leading obesity treatment

By Caleb Monroe
Lilly Sees India as Export Hub as Mounjaro Sales Surge

Eli Lilly has identified India as a strategic node in its global supply chain and intends to scale locally sourced manufacturing as part of a previously announced $1 billion contract manufacturing investment. Rapid uptake of Mounjaro in India has made it the company's top-selling medicine by value there, and Lilly plans further product launches and broader distribution despite competitive price pressure from rivals and impending generic entries.

Key Points

  • Lilly intends to develop India into a hub for its global supply chain, leveraging a $1 billion contract manufacturing commitment.
  • Mounjaro sales in India doubled within months of launch and became Lilly's top-selling product by value, highlighting strong demand for obesity treatments.
  • Lilly plans to introduce additional products in India, including donanemab and potential oral obesity drugs like orforglipron, pending regulatory approvals; it is also expanding distribution through partnerships and digital campaigns.

Eli Lilly is pursuing a strategy to make India a key component of its worldwide production network, a senior company executive said, building on a pledged $1 billion investment in contract manufacturing within the country.

Executives at the U.S. drugmaker have pointed to the swift market traction of Mounjaro after its launch in India, where sales of the weight-loss treatment doubled within months and it became Lilly's highest-selling medicine by value. That performance comes as India is forecast to have the world's second-largest obese population by 2050, a demographic shift that underscores rising demand for obesity therapies.

Global supply ambitions

Although Lilly does not currently own a manufacturing site in India, the company plans to use locally produced medicines for exports to markets around the world, tapping into India's established contract manufacturing sector. "We are actually looking at India to be a hub, part of our global supply chain, and therefore supplying the world," Winselow Tucker, president of Lilly India, said at a biotechnology industry event in Hyderabad.

Tucker indicated the company will continue to evaluate and scale its investments over time but declined to identify specific contract manufacturers or to discuss plans for a dedicated Lilly plant in India.

Pipeline and product plans

Beyond Mounjaro, Lilly intends to introduce more of its medicines into the Indian market, including the Alzheimer’s drug donanemab and potential future obesity treatments such as the experimental oral candidate orforglipron, contingent on regulatory approvals.

Competitive and pricing dynamics

On the competitive front, Lilly contends with Danish rival Novo Nordisk, which markets Wegovy. The Indian market is poised for heightened price competition as local manufacturers prepare to launch lower-cost, generic versions of Wegovy following the imminent expiry of Novo's semaglutide patent in India.

In response to market pressures last year, Novo Nordisk reduced Wegovy's price by up to 37% to defend share. Tucker dismissed concerns that Mounjaro would face comparable pricing erosion, saying the drug's formulation delivers superior efficacy and that Lilly has "priced it (Mounjaro) for value, and we believe it is priced appropriately."

Distribution and demand expansion

To broaden Mounjaro's reach beyond major urban centres, Lilly is prioritizing digital and social media outreach aimed at raising awareness of obesity and expanding uptake in smaller cities. The company has also extended distribution through partnerships with local pharmaceutical and digital health firms, including a tie-up with Cipla and collaborations with platforms such as Tata 1MG, Practo and Apollo.

Those distribution moves fit within Lilly's stated goal of scaling local production and supply as part of a wider, globally integrated manufacturing and distribution network based in India.


Summary

Lilly plans to use India as a manufacturing and export hub under a $1 billion contract manufacturing commitment, driven in part by rapid Mounjaro sales that have made it the company's top medicine by value in India. The company will also pursue additional product launches and expand distribution while defending pricing against competition and looming generic entries for rival drugs.

Risks

  • Imminent generic competition in India after Novo Nordisk's semaglutide patent expiry could intensify price competition in the obesity drug market - impacting pharmaceutical margins and market share dynamics.
  • Lilly's plan to rely on contract manufacturers rather than a dedicated in-country plant introduces uncertainties around supplier selection and scalability of exports - affecting supply chain reliability for pharmaceuticals.
  • Pressure on pricing from competitors' discounting strategies, exemplified by Wegovy's price cuts of up to 37% last year, could challenge revenue and unit economics if similar moves arise.

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