Novo Nordisk Cuts Wegovy Price, Commits to Oral Weight-Loss Pill
Novo Nordisk has announced a significant reduction in the price of its injectable weight-loss medication, Wegovy, while also expressing a strong commitment to its forthcoming oral version. The company revealed its strategy on Monday, with plans to “go all in” on the new oral weight-loss pill, aiming to strengthen its position in a competitive market. A decision from U.S. regulators regarding the oral Wegovy pill is expected by the end of the year.
In a bid to make Wegovy more accessible, Novo Nordisk has lowered the monthly price for cash-paying patients in the U.S. from $499 to $349. This adjustment comes earlier than anticipated, following negotiations with former President Donald Trump aimed at reducing drug costs. The company is also offering new users the lowest doses of Wegovy and Ozempic for $149 per month through Medicare, Medicaid, and approved partners such as GoodRx and Costco.
Response to Market Pressures
The decision to decrease prices is largely a response to competitive pressures from Eli Lilly, Novo Nordisk’s primary rival, as well as from pharmacies that have introduced cheaper alternatives to Wegovy. During a call with investors, CEO Mike Doustdar emphasized the need for rapid adjustments to market changes, noting that customers looking for weight-loss solutions behave differently than traditional diabetes patients. He stated, “That requires that we need to very quickly adjust to this.”
Novo Nordisk is also undergoing internal changes to align with its new strategy. Newly appointed chairman Lars Rebien Sorensen intends to recruit board members with expertise in over-the-counter products, reflecting the company’s shift toward a more consumer-oriented approach. Some investors are optimistic about this direction, with Claus Henrik Johansen from Global Health Invest commenting on the company’s new tone and leadership.
Despite the ambitious plans, Doustdar acknowledged potential challenges ahead, predicting a 4% drop in fourth-quarter sales. He remains hopeful that the combination of lower prices and increased supply will allow more individuals to access the treatment. “We are only giving medication to a fraction of those who want it, who need it,” he noted, underscoring the demand for effective weight-loss solutions.
Novo Nordisk’s strategic decisions indicate a proactive approach to reclaiming its market share in the rapidly expanding weight-loss drug sector. As the company prepares for the launch of the oral Wegovy pill, it aims to solidify its place amidst intensifying competition and changing consumer preferences.
