Novo Nordisk, the biggest pharmaceutical company in Europe, has said that it will sell Wegovy, its best-selling weight-loss medication, for less than half of its retail price. This follows a similar move by its biggest US rival, Eli Lilly, last week, intensifying the competition in the obesity drug market.
Following the announcement, Novo Nordisk’s stock increased 3.8% in US markets, while Eli Lilly’s stock increased 2% after initially declining 0.7% on Wednesday. Nevertheless, the Danish pharmaceutical company’s stock has underperformed, increasing just 4.2% this year compared to Eli Lilly’s 19% surge.
Compounding pharmacies are allowed to sell copies of medications when there is a shortage of those medications, according to US Food and Drug Administration (FDA) policy. This has made it possible for smaller telehealth competitors, including Hims & Hers Health, to use compounding pharmacies to provide less expensive forms of obesity medication.
However, the FDA recently announced that Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound were no longer in short supply. Because of this, patients may soon have fewer options for cheaper, compounded weight-loss prescriptions at these pharmacies, which will force them to buy the drugs elsewhere. At retail costs, Zepbound from Eli Lilly and Wegovy from Novo Nordisk both cost more than $1,300 a month before insurance and other discounts.
Also Read:
Zelenskyy Believes Ukraine will Demand a Special Tribunal be Included in Peace Negotiations
