Novo Nordisk Takes on Eli Lilly in Weight Loss Drug Battle with Wegovy Price Cut

Novo Nordisk has launched NovoCare Pharmacy, a direct-to-consumer (DTC) service for its weight loss drug Wegovy. The move follows Eli Lilly’s expansion into direct-to-consumer sales for its rival drug Zepbound earlier this year. NovoCare lowers the monthly cost of Wegovy to USD$ 499 for all dose strengths, down from the previous USD$ 1,349. The offer is available to uninsured patients and those with commercial insurance that does not cover obesity medications, with home delivery included. The FDA confirmed that it resolved the Wegovy supply shortage, ensuring all dose strengths meet or exceed U.S. demand, following this initiative.

Novo Fights Back with Legal Complaint Over Drug Price Negotiations and Market Pressures

Novo Nordisk’s DTC program responds to Eli Lilly’s LillyDirect, which launched in January 2024. The NovoCare program allows uninsured patients and those with commercial insurance that does not cover weight loss medications to access Wegovy at a lower cost. The company also announced plans to adjust Wegovy’s price at traditional pharmacies in the future to align with the savings offered through NovoCare.

The Danish drug maker has faced congressional oversight over Wegovy’s pricing, particularly as Lilly began offering certain doses of its rival drug Zepbound at a 50% discount through LillyDirect. Additionally, Wegovy, its diabetes counterpart Ozempic, and Novo’s other weight loss drug Rybelsus have been included in the second round of the Inflation Reduction Act’s drug price negotiation program. In response, Novo Nordisk has filed a legal complaint challenging its inclusion in the program.

“Novo Nordisk continues to advance solutions for patients that improve affordability and access to our medicines, whether they have insurance or not. Today, over 55 million people in the U.S. have coverage specifically for weight management medicines, and 90% of Wegovy patients with coverage pay $0 to $25 a month for Wegovy,” said Dave Moore, Executive Vice President, U.S. Operations and Global Business Development and President of Novo Nordisk Inc. “With NovoCare Pharmacy, patients and prescribers alike have another option that provides convenient access to all doses of real, FDA-approved Wegovy at a reduced cost in our high-quality pen.”

FDA Faces Legal Challenge as Compounding Pharmacies Fight Over Semaglutide and Tirzepatide Shortage Declarations

Novo reported approximately USD$ 9.4 billion in obesity product sales for 2024, marking a 56% increase from the previous year. The majority of this revenue came from Wegovy. To protect its market share from competitors, the company introduced a new Wegovy offering as part of the ongoing competition between branded obesity drug manufacturers and compounding pharmacies.

High demand for both Wegovy and Eli Lilly’s Zepbound previously led to shortages, allowing compounding pharmacies to gain market share by selling lower-cost, custom-made versions of GLP-1 obesity drugs, including online sales. Novo Nordisk and Lilly question the purity and quality of these compounded drugs, allowed during shortages. In late February, the FDA declared the semaglutide shortage over, following its December decision that tirzepatide supply issues had been resolved. The Outsourcing Facilities Association, representing compounders, has sued the FDA, arguing that shortages persist and that the agency’s decision lacked due process. Both lawsuits were filed in the U.S. District Court for the Northern District of Texas.

“With both LillyDirect and NovoCare established, both Lilly and Novo look to cut out compounding pharmacies, which have taken some of their product’s sizable demand,” BMO analyst Evan Seigerman said in a research note.

Related posts:

Lilly Slashes Zepbound Vial Prices by Up to 50% to Expand Access for Uninsured Patients FDA to Reassess Shortage Status of Key Obesity Drugs; Compounding Stocks Out of the Red—for Now Wegovy Expands Its Reach: First Weight-Loss Medication Approved to Reduce Cardiovascular Risk The Legal Battlefield of Weight-Loss Drugs: Eli Lilly and Novo Nordisk on the Defensive

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Denisse Sandoval