Danish pharmaceutical company Novo Nordisk will launch the oral version of the weight-loss drug Wegovy for once-daily use in the United States on Monday, January 5th, offering two dosages of 1.5 mg and 4 mg at a monthly cost of $149 for self-pay patients, aiming to tap into the highly competitive weight-loss drug market.
This pill received approval from the US Food and Drug Administration (FDA) last month, providing a significant advantage for Novo Nordisk as they aim to regain market share previously taken by their competitor, Eli Lilly, in the US. Eli Lilly had previously announced that their weight-loss pill was expected to receive approval by March.
Novo Nordisk’s weight-loss drug will also be available in doses of 9 mg and 25 mg, with the latter being designed for long-term use. The company’s website indicates that the monthly cost for these higher dosage medications will be $299, while the 4 mg dosage will increase to $199 starting from April 15th.
The oral form of Wegovy is expected to attract new consumers and potentially provide a turnaround for Novo Nordisk, which faced setbacks last year due to profit warnings and stock price declines. Compared to injectable formulations, this therapy offers greater flexibility and serves as an alternative for patients who dislike injections.
Additionally, this once-daily pill is currently under review by other regulatory bodies, with a decision expected from the UK by the end of this year.
On Monday, the pharmaceutical company’s stocks listed in Denmark rose by 5%, and in the US, they increased by 4.6%, while Eli Lilly’s stocks dropped by 3.5% in afternoon trading.
Novo Nordisk’s success with this drug will depend on its ability to attract consumers who do not have insurance coverage and must pay out-of-pocket. This business model differs significantly from the mainstream practice of drug pricing managed by healthcare plans.
Novo Nordisk has stated that the medication will be available for purchase through US chain pharmacies such as CVS, Costco’s pharmacies, and various telemedicine platforms, including Ro, LifeMD, WeightWatchers, GoodRx, and their NovoCare Pharmacy.
In afternoon trading, the stock prices of telemedicine companies surged by 3% to 14%.
The starting dosage for Wegovy oral tablets is 1.5 mg, with its main ingredient being semaglutide, the same active component used in the company’s popular injectable weight-loss and diabetes treatment drugs, Wegovy and Ozempic. Novo Nordisk also offers the 1.5 mg dose of semaglutide in their oral Type 2 diabetes drug Rybelsus.
Novo Nordisk has mentioned that the remaining dosages of Wegovy oral medication will be available to patients before the end of this weekend.
In response to the approval of their weight-loss pill, Eli Lilly plans to set the monthly cost ceiling for higher dosage medications at $399 (for cash-paying individuals only). Over the past year, Eli Lilly’s weight-loss injectable, Zepbound, has consistently outperformed Novo Nordisk’s Wegovy in terms of weekly prescription volume in the US.
The prices of these injectable drugs in the US are around $1,000 per month or higher. Both companies have reduced the prices of their injectable drugs for self-pay, non-insurance consumers.
Since November of last year, Novo Nordisk has been selling their Wegovy injectable drug to cash-paying individuals for $349 per month.
Under an agreement with the Trump administration, Novo Nordisk and Eli Lilly have agreed to offer the initial dose of their weight-loss drugs to beneficiaries of federal healthcare programs like Medicare and Medicaid at $149 per month. They will also provide the same price to cash-paying consumers through the upcoming direct-to-consumer platform TrumpRx website, set to launch later this month.
Novo Nordisk faced supply shortages multiple times after launching Wegovy injectable in the US. However, the company has stated that they have accumulated inventory ahead of time to meet market demand and are confident in avoiding similar issues with the new oral medication.