Novo Nordisk launches Wegovy weight-loss pill in US, triggering price war | Pharmaceuticals industry
The launch of the first pill version of the blockbuster GLP-1 weight loss drug by Novo Nordisk in the US at a lower cost than the injection versions has precipitated a price war in the industry.
Danish pharmaceutical company he said on monday The once-daily Wegovy pill, which received approval from the US regulator just before Christmas, is now said to be available in the country.
It introduced the drug, the first and only pill on the market that mimics the GLP-1 hormone to reduce appetite, at prices significantly lower than injectable versions.
Novo, known for its successful Wegovy and Ozempic injections for obesity and diabetes, respectively, said the launch “opens new possibilities for the more than 100 million Americans living with obesity.”
Self-pay patients can buy the pill for $5 (£3.70) a day or $149 a month for a starting dose of 1.5mg. In addition to being more affordable, the new version is expected to have wider appeal because it does not require injections and is easier to fit into a patient’s routine.
The 4 mg dose will also cost $149 per month until April 15, then $199, with the highest dose being $299 per month. Insured patients pay starting at $25 per month.
Matt Weston, pharmaceutical analyst at UBS, said the price was lower than expected. Although U.S. list prices for weight-loss vaccines are about $1,000 a month or more, Novo Nordisk began selling the Wegovy injection in November for $349 a month to cash payers.
Novo Nordisk’s share price rose more than 4% on Monday on news of the launch, but is still down 44% over the past year amid fierce competition from US rival Eli Lilly’s Mounjaro and Zepbound hits.
The Danish company, once Europe’s most valuable company, hopes the pill will help it regain market share after issuing several profit warnings, cutting thousands of jobs and appointing new management last year.
Both Novo and Eli Lilly have lowered vaccine prices for people who buy with cash instead of using health insurance.
The Wegovy pill has so far only been approved in the US. The starting dose is now available at more than 70,000 U.S. pharmacies, such as CVS and Costco, as well as some telehealth providers, such as Ro, LifeMD and Weight Watchers. Higher doses will become available later this week.
Eli Lilly working on his own anti-obesity pill and, if approved, had planned to cap higher doses at $399 a month for cash-paying patients.
Patients paying cash will also be able to purchase an initial dose of the pill from Donald Trump’s direct-to-consumer website, TrumpRx, for $149 per month.
“We know there are people who want to watch their weight but are waiting on the sidelines for the medication that is right for them,” said Ed Cinca, senior vice president of marketing and patient solutions for Novo Nordisk.
“For many, the wait is over, as we can now deliver the powerful effectiveness of Wegovy in a once-daily pill that shows approximately 17% weight loss if all patients continue treatment.”
The UK medicines regulator is reviewing the company’s application for the Wegovy pill and is expected to make a decision on whether it will be approved before the end of the year.
