Novo Nordisk Cuts Obesity Drug Price, Undercuts Eli Lilly and Trump Administration
Novo Nordisk has significantly reduced the pricing of its obesity drugs, Wegovy and Ozempic, to $349 per month. This marks a decline from the previous price of $499. The decision comes as part of a competitive strategy against Eli Lilly, whose drugs Zepbound and Mounjaro retain higher price tags.
Novo Nordisk’s Pricing Strategy
On a new direct-to-consumer platform, TrumpRx, Novo’s drugs will also be priced at $350, while Eli Lilly’s Zepbound is set at $346. This pricing move is seen as a response to the Trump administration’s recent deal with both companies to lower drug costs.
Financial Impact and Sales
The new pricing strategy aims to increase access to these highly sought-after medications, which generated $7.89 billion in combined sales for Novo in the third quarter. The lowered price point may impact consumer choices, particularly for outlets like CVS Health and GoodRx that offer these drugs.
Market Reactions and Analyst Insights
- Novo Nordisk stock increased slightly to 48.46.
- Eli Lilly stock experienced a decrease, finishing at 1,021.70.
- Analyst Michael Cherny from Leerink Partners views this move as a step toward expanding the direct-to-consumer market for weight-loss treatments.
Competitive pricing might also pressure Hims & Hers Health, which specializes in compounded semaglutide. Cherny remarked that while Hims has a strong personalized offering, the growing price competition poses challenges. In response to Novo’s offerings, Hims stock fell by 3.8%, closing at 35.58.
Conclusion
The cost reductions from Novo Nordisk not only position the company favorably against Eli Lilly but also enhance accessibility to effective obesity treatments. This shift reflects evolving strategies within the pharmaceutical industry aimed at increasing market share amidst competitive pressures.
