Novo Nordisk A/S announced on Monday that the monthly fee for the starting doses of its two star weight loss drugs, Wegovy and Ozempic, will be reduced to $199. Analysts believe this shows the company's willingness to compete with Eli Lilly &amp; Co. by lowering prices to regain more market share in the U.S.
Starting this Monday, the entry-level doses of Wegovy and Ozempic will only cost $199 per month, a price that applies only for the first two months. After two months, Novo Nordisk will continue to sell these two drugs through its direct sales platform, NovoCare, at a price of $349 per month, which is 30% cheaper than the current out-of-pocket price. The $349 price is the same as the low-dose price of Eli Lilly's obesity injection Zepbound and is lower than the high-dose price of Zepbound.
On Monday, Novo Nordisk's stock price rose 0.53% in Copenhagen, while Eli Lilly's stock price in New York saw a slight increase of 0.17%.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/70c98d8d-f7f6-4d69-8472-2f2261b2cf3a.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/70c98d8d-f7f6-4d69-8472-2f2261b2cf3a.png"/>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/491671fe-d1c0-4e6c-a5f7-c68e4cb79913.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/491671fe-d1c0-4e6c-a5f7-c68e4cb79913.png"/>
Media reports indicate that this round of price cuts makes Novo Nordisk's drugs more competitive against compounded versions from pharmacies. In the past, due to shortages of brand-name drugs, compounded versions launched by telehealth companies like Hims &amp; Hers Health Inc. attracted many consumers because they were cheaper and had more stable supplies.
Dave Moore, head of Novo Nordisk's U.S. operations, stated that there are still about 1.2 million Americans using these compounded drugs.
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“People can start switching back from these compounded drugs to the original brand-name drugs. We have lowered the price to a level where the gap is no longer so significant.”
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Analysts believe that Novo Nordisk's choice of such aggressive pricing is due to Eli Lilly surpassing Novo Nordisk in the U.S. market. Analysts expect that by the end of this decade, the global market for obesity drugs could reach $100 billion. In clinical trials, Eli Lilly's Zepbound has shown better results than Novo Nordisk's Wegovy, giving Eli Lilly an advantage. Additionally, Eli Lilly's innovations in direct-to-consumer sales are also ahead.
<h2>&#34;Transitional Measures&#34; Before Weight Loss Drug Price Cuts Take Effect</h2>
Earlier this month, both Novo Nordisk and Eli Lilly reached an agreement with the Trump administration to lower prices in the U.S., covering Medicare and out-of-pocket users. According to the agreement, Eli Lilly will reduce the price of Zepbound on its direct sales platform, LillyDirect, by $50 per month. Currently, the low-dose price of Zepbound on LillyDirect is $349 per month, while the high-dose price is $499 per month
However, the price reduction policy promoted by the Trump administration will not officially take effect until March next year. Novo Nordisk will directly reduce prices starting now, continuing until the end of March next year.
Moor described this price reduction as a &#34;transitional measure&#34; to cover the period from now until the new prices are officially implemented next year. This price reduction will apply regardless of where consumers obtain their medications. In the future, this price reduction will also cover the platform TrumpRx launched by Trump.
Wendy Barnes, CEO of GoodRx Holdings Inc., said in an interview:
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&#34;We must acknowledge that the Trump administration has indeed brought more attention to the issue of drug prices. This attention has prompted our pharmaceutical partners to act more proactively and has led to more discussions.&#34;
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GoodRx is a company that provides discounts on medications. Currently, GoodRx is collaborating with Novo Nordisk to enable more consumers to enjoy lower prices at over 70,000 retail pharmacies across the United States. GoodRx will also launch new telehealth services to complement Novo Nordisk's price reduction strategy.
Next, both Novo Nordisk and Eli Lilly are preparing to launch oral weight loss medications. In the coming months, these oral medications may challenge the currently popular injectable products. According to the agreement reached between Novo Nordisk, Eli Lilly, and the Trump administration, the minimum dosage of these weight loss oral medications will be priced at $149 per month

Novo Nordisk significantly lowered the out-of-pocket prices for Wegovy and Ozempic, directly reducing the entry price to $199 and subsequent prices to $349, creating direct price competition with Eli Lilly's Zepbound. Analysts believe this move aims to reclaim the U.S. weight loss drug market from Eli Lilly through a price war, while also weakening the appeal of generic versions from compounding pharmacies

- Novo Nordisk A/S announced a reduction in the monthly starting price of its weight loss drugs Wegovy and Ozempic to $199, effective immediately for the first two months.  
- This price cut aims to compete with Eli Lilly & Co. and regain market share in the U.S., where approximately 1.2 million people currently use generic versions of these medications.  
- Analysts suggest this aggressive pricing strategy is a response to Eli Lilly's growing dominance in the obesity drug market, which could reach $100 billion by the end of the decade.

Novo Nordisk sparks "price war"? Wegovy and Ozempic significantly reduce prices to challenge Eli Lilly