Novo Nordisk Slashes Wegovy Price Amid U.S. Obesity Drug Competition

NEW YORK, NY — Novo Nordisk announced on Wednesday it will lower the price of its popular weight-loss drug Wegovy to $499 per month for patients paying cash, responding to rising competition in the U.S. obesity drug market.

The new pricing structure is part of NovoCare Pharmacy, allowing uninsured patients and those whose commercial insurance does not cover obesity medications to purchase Wegovy at a significantly discounted rate. Previously, the drug was priced at $650 per month for cash-paying customers.

This announcement comes just days after Eli Lilly, a key competitor, announced substantial price cuts for its weight-loss drug Zepbound, with reductions between $50 and $350 depending on dosage and purchasing options.

“With both LillyDirect and NovoCare established, both Lilly and Novo look to cut out compounding pharmacies, which have taken some of their product’s sizable demand,” noted BMO analyst Evan Seigerman. The competitive atmosphere has intensified as both companies leverage new pricing strategies to attract consumers amid shifting market dynamics.

Wegovy will be available in all dosage strengths, from 0.25 to 2.4 milligrams, with home delivery options. This pricing move aims to provide a more accessible solution for patients who often face high out-of-pocket costs given the previous price of the drug, which could exceed $1,000 a month without insurance.

Furthermore, the FDA recently updated its classification of Wegovy, affirming that it is no longer considered in shortage—a designation that impacts the ability of compounding pharmacies to sell cheaper versions of the drug. As a result, many compound pharmacies, which previously provided alternatives amid shortages, will soon face restrictions based on the FDA’s determinations.

Shares of Novo Nordisk saw a 4.2% increase, rising to $91.16 in morning trading following the announcement. However, over the past year, shares have fallen by about 25%. Similarly, shares of telehealth provider Hims & Hers, which offers compounded versions of Wegovy, dropped by 4.2% to $38.76.

The strategy to cut prices follows a broader trend among major pharmaceutical companies as they look to capitalize on an obesity treatment market projected to be valued significantly by 2030. A report by Goldman Sachs analysts suggests that the market could reach somewhere between hundreds of billions, indicating immense financial interest in these medications.

In a statement regarding the price changes, Novo Nordisk spokesperson Jamie Bennett affirmed that the company aims to extend the $499 price point to cash-paying customers at other pharmacies “in the near future.” The new prices are positioned to create a competitive advantage in a rapidly evolving marketplace.