Tag: Wegovy

Shares of Novo Nordisk, the Danish company behind Ozempic and Wegovy, fell 18% after the firm warned of lower profits and sales. Chief Executive Maziar Mike Doustdar described the situation as “unprecedented” and “painful,” adding that challenges may get worse before they improve. Steep Price Cuts and Market Pressure Novo Nordisk expects profits and sales to drop by up to 13% due to steep price reductions. The company said the situation worsened following a deal with US President Donald Trump to lower the cost of weight-loss drugs for Americans. Doustdar, appointed CEO last summer, said the price reduction for Wegovy is intended as an “investment for the future” and aims to make the drug accessible to more people. He warned investors that the share price could fall before it rises again. Rising Competition and Patent Expiry Weight-loss drugs like Ozempic, Wegovy, and Eli Lilly’s Zepbound and Mounjaro have grown increasingly popular. Competition has driven down prices, and patent expirations have allowed low-cost copycat drugs to enter the market. Some of these copies carry safety concerns. Novo Nordisk’s Chief Financial Officer, Karsten Munk Knudsen, highlighted that patents for semaglutide in India and China will expire soon. This is expected to increase competition, impacting group sales by around 2% this year. Knudsen emphasized that the company is “not in a race to the bottom” but aims to expand the market rationally. US Price Cuts Under Trump In the US, Trump sought to make weight-loss drugs more affordable, noting that prices there were higher than in other countries. In November, he announced the “most favoured nation” agreement with Novo Nordisk and Eli Lilly. Under the plan, Wegovy and Zepbound users can expect prices to drop from $350 to around $250 per month, while Medicare prices for Ozempic, Wegovy, Mounjaro, and Zepbound will be $245. Many of these drugs previously cost over $1,000 per month without insurance. Novo Nordisk confirmed that lower realized prices, driven by the deal and market access investments, are factored into its reduced profit and sales guidance. Intensifying competition and patent expirations in some markets also weigh on performance. Eli Lilly Sees Gains On the same day, Eli Lilly’s shares rose after the company reported higher-than-expected profits and sales. Analyst Dan Coatsworth noted that Eli Lilly managed side effects from weight-loss drugs better than Novo Nordisk, giving it an advantage. Investor confidence has also favored Eli Lilly, while Novo Nordisk has faced a series of challenges, including leadership changes and recent job cuts. Focus Keyphrase: Wego
Health

Wegovy Price Cuts Hit Novo Nordisk as Shares Plunge

Shares of Novo Nordisk, the Danish company behind Ozempic and Wegovy, fell…

Register Lost your password?