Danish pharmaceutical giant Novo Nordisk announced on November 17 its strategic decision to significantly lower the price of its injectable obesity drug, Wegovy, in the United States. This move is coupled with an aggressive plan to 'go all in' on its forthcoming oral weight-loss pill, aiming to reclaim lost market share in the highly competitive and lucrative US market. The company is currently awaiting US regulatory approval for the oral version of Wegovy, anticipated by year-end, which is expected to appeal significantly to patients who prefer non-injection methods.

CEO Mike Doustdar emphasized the company's readiness for the oral pill's launch, stating, "We have more than enough pills this time, so we're going to go all in and really make this happen." This commitment highlights Novo Nordisk's intent to avoid a recurrence of the supply shortages that hampered the 2021 launch of injectable Wegovy, an issue that allowed rival Eli Lilly and various compounded copycat versions to gain traction.

The price reduction for injectable Wegovy sets it at $349 per month for cash-paying patients in the US, a notable decrease from the previous $499. This adjustment, effective November 17, precedes a previously announced deal with US President Donald Trump, which was slated for January 2025. Furthermore, first-time doses of both Wegovy and Ozempic – a diabetes drug sharing the same active ingredient – will be made available for $149 per month. This discounted rate will apply to Medicare, Medicaid, and cash-paying patients through the government-backed TrumpRx platform, as well as via commercial partners like GoodRx, WeightWatchers, and Costco.

These pricing adjustments are a direct response to intensifying competition. Novo Nordisk has faced challenges in defending its market position against Eli Lilly, which moved swiftly to offer its competing drug to cash payers, and from pharmacies and telehealth providers selling more affordable, copycat versions of Wegovy. Doustdar observed that consumers of weight-loss drugs exhibit a more 'consumer-like behaviour' compared to Novo Nordisk's traditional diabetes patient base, underscoring the necessity for greater adaptability in the company's commercial strategies. In line with this, newly-elected Novo chairman Lars Rebien Sorensen, on November 14, indicated plans to bolster the board with over-the-counter expertise.

The company's aggressive shift has garnered attention from industry observers. Claus Henrik Johansen, CEO of Global Health Invest, commended the initiative, stating, "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." However, this renewed push comes amid slowing sales growth; Doustdar noted that fourth-quarter sales were projected to decline by 4%, contrasting sharply with the 18% growth seen in the first three months of the year. While acknowledging that only a fraction of patients in need are currently receiving medication, Doustdar expressed confidence in the potential of their new pricing and output strategies to dramatically expand patient access. Paul Major, a healthcare-focused portfolio manager, highlighted the inherent risks in executing such a strategy, likening it to the 'if you build it, they will come' argument, where price reductions are expected to be offset by increased volume, a scenario that remains to be seen.