Novo Nordisk To Slash List Prices for Ozempic, Wegovy as It Fights for Market Share

Novo Nordisk plans to slash list prices up to 50 percent for its popular semaglutide-based GLP-1 weight loss drugs Ozempic and Wegovy, but the new list prices will not take effect until next year.The drugmaker announced on Tuesday that the drugs will be priced at $675 a month starting January 1, 2027. The tablet form of the drugs, including those that are sold as Rybelsus, will also be sold at the lower list price.Many consumers paying out-of-pocket are already paying much less than those prices using discount programs and direct-to-patient sales through Novo’s website, but the new prices could help consumers who are buying the drugs through certain health insurance plans.“The lower list price is intended to connect more people with our innovative medicines, specifically those whose out-of-pocket costs are linked to list price, such as individuals with high-deductible health plans or co-insurance benefit designs,” the executive vice president of American operations of Novo Nordis, Jamey Miller, said in a release.Novo has been in a battle with rival Eli Lilly to capture market share in the weight loss market. Lilly has become the dominant weight loss drugmaker with its Zepbound injectable. Studies have shown Zepbound outperforms Wegovy for weight loss.A pill version of Wegovy went on sale in January, months ahead of the launch of Lilly’s Zepbound pill. The drug companies are hoping to capture potential customers who do not feel comfortable giving themselves shots. Novo has reported a rapid growth of customers on its weight loss pills.The market for weight loss drugs is big and expanding — more than 100 million people in America are obese — but cost concerns remain an issue for its continued growth.About one in eight adults say they are currently taking a GLP-1 drug to lose weight or treat a chronic condition, according to a KFF Health Tracking Poll. BMO Capital markets has predicted the global market for weight-loss drugs will reach $100 billion by 2035.Many insurance companies — including those under the Affordable Care Act — have balked at covering the drugs, however, because of their high prices. The drugs have been too expensive for many patients to pay out-of-pocket — especially on a long-term basis. The drugs are designed to be taken for life.President Trump reached a deal last year with Novo and Lilly to significantly lower the prices for Medicare and Medicaid patients. Out-of-pocket costs for those patients will be capped at approximately $50 a month.The companies also started selling the drugs for less than $500 a month to cash-paying customers through their websites.Novo is also facing competition from compounded versions of semaglutide products. Novo filed a patent infringement suit against Hims & Hers earlier this month over its compounded weight loss drugs. The lawsuit claims Hims is “duping” consumers over the clinical benefits of its knock-off versions.Novo’s stock is down 50 percent in the past 12 months as it has lost market share and it has reported disappointing results in tests for some of its next generation weight loss drugs.

Novo Nordisk To Slash List Prices for Ozempic, Wegovy as It Fights for Market Share

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