Novo Nordisk Slashes Wegovy Price, Pushes Aggressive US Comeback
Danish pharmaceutical giant Novo Nordisk is cutting the price of its weight-loss drug Wegovy and preparing a major push for its upcoming oral version to reclaim market share in the competitive US obesity treatment market.
Key Developments
- Wegovy injectable price reduced from $499 to $349 per month for cash-paying patients
- Oral version of Wegovy awaiting US regulatory approval by year-end
- Company aims to avoid supply issues that hampered 2021 injectable launch
- Strategic shift to counter Eli Lilly competition and consumer preferences
Price Cuts and Expanded Access
Effective November 17, Novo Nordisk reduced Wegovy’s price to $349 monthly for cash-paying patients. First-time doses of Wegovy and diabetes medication Ozempic will be available for $149 per month to Medicare, Medicaid, and cash-paying patients through the TrumpRx platform and commercial partners including GoodRx, WeightWatchers, and Costco.
CEO Mike Doustdar stated: “We have more than enough pills this time, so we’re going to go all in and really make this happen.” The company is determined to avoid repeating the supply problems that plagued its 2021 injectable Wegovy launch, which allowed rival Eli Lilly and compounded versions to gain market share.
Adapting to Consumer Behavior
Doustdar highlighted that weight-loss drug users show more “consumer-like behaviour” compared to traditional diabetes patients, requiring greater commercial adaptability. “That requires that we need to very quickly adjust to this,” he emphasized.
Market Response and Challenges
Claus Henrik Johansen, CEO of Global Health Invest, welcomed the aggressive strategy: “I like the initiative and the new tone. I have long waited for Novo to push a more aggressive strategy to try and regain momentum in the United States.”
The company faces significant challenges, with fourth-quarter sales projected to fall 4% after 18% growth in the first quarter. Doustdar acknowledged the situation: “You could say it’s really bad. We are only giving medication to a fraction of those who want it, who need it,” while emphasizing the potential for expanded patient access through new pricing and output strategies.
Paul Major of Bellevue Asset Management noted the execution risks: “This is the ‘if you build it, they will come’ argument. Prices fall, and you hope you get a volume offset. We’ll have to see.”
The company’s newly-elected chairman Lars Rebien Sorensen plans to add over-the-counter expertise to the board, signaling further strategic adjustments.
