Ozempic and Wegovy are both brand names for medications used to treat type 2 diabetes and obesity. The drugs mimic the action of a gut hormone that kicks in after people eat, boosting insulin release, blocking sugar production, and suppressing appetite.
- Ozempic (semaglutide) is a type of medication called a GLP-1 receptor agonist. It works by mimicking the action of a hormone called GLP-1, which helps regulate blood sugar levels by stimulating insulin secretion and reducing glucose production in the liver. Ozempic is administered as a once-weekly injection and has been shown to be effective in lowering blood sugar levels and reducing the risk of cardiovascular events in people with type 2 diabetes.
- Wegovy (semaglutide) is a higher-dose version of Ozempic that was recently approved by the FDA as a treatment for obesity. It works in a similar way to Ozempic, but at a higher dose and with a focus on weight loss. Wegovy is also administered as a once-weekly injection and has been shown to be effective in helping people with obesity lose weight and improve metabolic health.
Novo Nordisk, is the sole manufacturer of Ozempic and Wegovy and the patent holder of semaglutide, the medications' active ingredient. The Danish drugmaker is profiting on the growing popularity of these medications and in Q4 2022 raised its full-year earnings outlook after reporting better-than-expected profit on strong sales of Ozempic.
The stock reached an all-time high last week and currently has a market-cap of $351 billion, making it Europe’s second-most valuable company, behind the $448 billion luxury goods firm LVMH.
And this week Novo Nordisk announced positive results from its study of higher dosage once-daily oral semaglutide an add-on to a stable dose of 1–3 oral antidiabetic medicines.
However, these medications are now being popularized as miracle weight loss drugs. This is a problem as these medications aren’t designed for people who aren't suffering from diabetes and social media influencers are promoting non-branded formulations.
#Ozempic-tagged TikTok videos have amassed 600m+ views since 2022, according to MIT Technology Review. And Jimmy Kimmel joked at 2023 Oscars, “Everybody looks so great. When I look around this room, I can’t help but wonder, ‘Is Ozempic right for me?’”
People are obtaining these non-branded formulas from compounding pharmacies. However, Novo Nordisk, who is the sole manufacturer of Ozempic and Wegovy, says, “We want consumers and healthcare providers to know and be very clear that Novo Nordisk does not sell Wegovy (or its active ingredient, semaglutide) for the purposes of compounding with other products.” This leads to the question of where these compounding pharmacies are obtaining these medications and if they are actually semaglutide at all.
On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
