Novo Nordisk slashed the price of its weight-loss blockbuster, Wegovy, by more than half on Wednesday amid a bitter rivalry with pharmaceutical compounder Hims & Hers Health.
Novo Nordisk launched an online pharmacy called NovoCare Pharmacy. Cash-paying patients can order all doses of the weight-loss drug for $499 per month. That's at a steep discount to the list price — which doesn't take into account insurance, rebates or discounts — of $1,349 for a 28-day supply.
The news was a blow to Hims stock, which tumbled as much as 7.6%. But shares managed to claw back and close with a 1.1% gain at 40.94. The Food and Drug Administration recently determined the active ingredient behind Wegovy, semaglutide, is no longer in shortage. This means Hims & Hers will soon have to stop selling lower-cost versions of the same dosages Novo sells.
Hims has said it plans to focus on personalized semaglutide doses. But the price cut for Wegovy could sway some patients to buy from the original manufacturer. Novo reiterated safety concerns with "fake or illegitimate" compounded semaglutide in its news release.
"NovoCare Pharmacy offers reliable access to authentic, FDA-approved Wegovy in our once-weekly, single-dose pen," the company said.
Shares of Novo Nordisk popped 3.8%, closing at 90.85.
Novo Nordisk Follows Lilly's Trail
Novo Nordisk is following in the footsteps of Eli Lilly which, last year, launched its own direct-to-consumer platform called LillyDirect. LillyDirect sells treatments for obesity, diabetes and migraines.
NovoCare will focus on uninsured patients and patients with commercial insurance who don't have coverage for weight-loss drugs. The company notes it now has the capacity to meet or exceed "both current and projected U.S. demand."
Demand for weight-loss drugs has skyrocketed in recent years. According to MarketsandMarkets, the obesity treatments space was worth $37.4 billion in 2023 and $47.4 billion in 2024. By 2032, it will soar nearly tenfold to $471.1 billion.
Novo Nordisk and Eli Lilly are projected to be big participants in that market — but not the only ones. In 2030, the latest year for which FactSet has estimates, Wegovy is expected to bring in nearly $23 billion in sales. Zepbound, Lilly's obesity drug, is forecast to generate $22.7 billion in sales.
Analysts expect the first sales from Viking Therapeutics' obesity drug to come online in 2028 with $241.1 million, growing to $704.2 million and $1.35 billion in 2029 and 2030, respectively. In the same three years, Amgen's MariTide is projected to generate a respective $43.3 million, $999 million and $2.47 billion.
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