Dei BioPharma wins FDA nod in $300bn diabetes, obesity drug race

For millions of Ugandans living with Type 2 diabetes, obesity, heart disease, kidney failure, and even neurodegenerative illnesses like Alzheimer’s and Parkinson’s, the prospect of cutting-edge treatment has always seemed out of reach.

The drugs that have transformed lives in the West, the same injections marketed under brand names like Ozempic and Victoza, cost a fortune, and most families in Uganda can’t afford them.

That may be about to change. On August 7, the U.S. Food and Drug Administration (FDA) quietly gave its nod to a development plan submitted by Dei BioPharma, a Kampala-based company led by scientist and entrepreneur Matthias Magoola.

The agency’s written approval means that Dei can now move ahead with plans to bring biosimilar versions of liraglutide and semaglutide, the active ingredients in those blockbuster drugs, toward U.S. approval and, crucially, global distribution. If all goes as planned, Dei could launch the medicines within 18 months.

It would mark the first time an African company breaks into one of the most lucrative and scientifically advanced corners of the pharmaceutical industry, and it could upset a market dominated by Western multinationals.

“Our promise of making biological drugs affordable to the rest of the world is coming to fruition,” Magoola said in a statement released on August 19.

A market worth hundreds of billions

The class of drugs known as GLP-1 agonists has become the pharmaceutical industry’s gold rush. Originally developed for Type 2 diabetes, they have also been shown to aid weight loss, reduce the risk of heart attacks, and show promise in treating conditions ranging from fatty liver disease to certain forms of addiction.

The global market is enormous. Goldman Sachs estimates that sales of GLP-1 drugs could reach $322 billion annually by 2035, potentially adding a trillion dollars to the U.S. economy in the coming years.

However, those treatments remain financially inaccessible for the vast majority of people outside wealthy nations. Dei’s pitch is simple: manufacture the same drugs in Africa and sell them for a fraction of the price.

The company has already completed the development of its versions and is betting on the FDA’s green light to catapult them into global circulation.

A milestone for Uganda

For Uganda, the news is more than a corporate victory. It signals that a homegrown firm can operate on the same stage as the world’s biggest pharmaceutical companies, a symbolic and practical leap for African science. This is not Dei’s first brush with the FDA.

Last year, the company secured agency approval for its development plan of darbepoetin alfa, a drug used to treat anaemia in cancer patients and those with chronic kidney disease. But this latest decision carries far greater weight: liraglutide and semaglutide are among the world’s most in-demand therapies.

“Uganda has long struggled with access to advanced medicine,” said one Kampala-based health economist, who asked not to be named because of their work with the ministry of Health.

“If these drugs become available at a fraction of the price, the impact could be transformative, not just here but across the continent.”

Still, questions remain. Can a Ugandan company scale production to meet global demand? Will the drugs truly be affordable once they reach pharmacies in Kampala, Nairobi, Lagos, or beyond?

And how will entrenched pharmaceutical giants respond to a new competitor on their turf? Magoola insists the vision is within reach. Dei projects potential revenues of $15 billion per year once the products are launched, enough, the company argues, to sustain an affordable supply without sacrificing financial stability.

For patients, the details matter less than the possibility of access. For years, a diabetes diagnosis here has meant either living with constant fear of complications or relying on older, less effective drugs.

Alzheimer’s and Parkinson’s patients, meanwhile, are left with almost no treatment options. For them, Dei’s FDA milestone represents something closer to hope.

A race against time

The FDA’s approval of Dei’s development plan is not the same as a full market license. Rigorous trials, compliance checks, and regulatory reviews still stand between Magoola’s lab and the world’s patients.

Yet even this early step feels like a breakthrough. As Uganda grapples with rising rates of diabetes, obesity, and cardiovascular disease, the timing could not be more urgent. For patients whose lives are measured in blood sugar readings, dialysis appointments, or fading memories, the countdown has already begun.

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