Novo Nordisk cuts Wegovy price, plans to launch oral weight-loss pill in US market — All we know

Danish pharmaceutical giant Novo Nordisk said on Nov. 17 that it would lower the price of the injectable option of its obesity drug Wegovy in the United States and plans to “go all-in” on its upcoming oral weight-loss pill to regain lost market share in the lucrative market, Reuters reported.

Novo expects U.S. regulatory approval of Wegovy’s oral version by the end of the year; The pill format is expected to appeal to patients who prefer to avoid injections. “We’ve got more than enough pills this time, so we’re going to do what we can and really make it happen,” CEO Mike Doustdar said at an event hosted by the Danish Shareholders Association.

Locked in a race with US rival Eli Lilly, the company wants to avoid a repeat of the supply problems that hindered the launch of injectable Wegovy in 2021 and paved the way for knock-off versions of Lilly and the compound.

Novo Nordisk reduces Wegovy price: Is the Trump deal valid?

• Novo also announced on Nov. 17 that it would drop the price of its injectable Wegovy for cash-paying patients in the U.S. from $499 to $349 per month.
• Notably, this follows a previously announced agreement with US President Donald Trump that is scheduled to begin in January 2025.
• First doses of Wegovy and Ozempic, a diabetes drug containing the same active ingredient, will be offered for $149 per month to Medicare, Medicaid and cash-paying patients through the government-backed TrumpRx platform or commercial partners such as GoodRx, WeightWatchers and Costco.
• The price adjustments come as Novo struggles to fend off competition from Eli Lilly, which has moved more quickly to make its drug available to cash payers, and from pharmacies and telehealth providers selling cheaper copies of Wegovy.

Doustdar noted that consumers using weight-loss medications exhibit more “consumer-like behavior” than Novo’s traditional diabetes patient base, underscoring the need for greater adaptability in its business approach. “This requires us to adapt to this very quickly,” he said.

Newly elected Novo chairman Lars Rebien Sorensen said on November 14 that he planned to add over-the-counter expertise to the board.

Novo gets aggressive as sales growth stalls

“I like the initiative and the new tone. I have long expected Novo to adopt a more aggressive strategy to gain momentum in the United States,” said Claus Henrik Johansen, CEO of Global Health Invest, a Danish healthcare investment fund that does not currently own Novo shares.

Sales are poised to fall 4% in the fourth quarter, Doustdar said, based on “a mathematical calculation of what we’re telling the market.” Sales rose 18% in the first three months of this year, but growth has slowed since then.

“You could say this is really bad. We’re only giving drugs to a small fraction of those who want and need them,” he said, highlighting the potential of the company’s pricing and throughput strategies to significantly expand patient access.

Paul Major, healthcare-focused portfolio manager at Bellevue Asset Management, which does not currently own Novo shares, said Doustdar’s comments underscore the risks Novo faces in executing its strategy. “It’s the ‘if you build it, they will come’ argument. Prices are coming down and you hope you’ll get volume equilibrium. We’ll have to see,” he said.

(With inputs from Reuters)