Pharmaceutical company Novo Nordisk has said the sales of its weight-loss drug Wegovy have been impacted by the growth of similar off-brand medications, and is pursuing legal action.
The Food and Drug Administration (FDA) has allowed compounding pharmacies in the United States to legally produce off-brand versions of Wegovy, also known as Ozempic or semaglutide, due to a shortage. The shortage period has now ended, the FDA said last month, with off-brand semaglutide set to cease production by May.
“Given the significant growth of compounding in the U.S., it appears to impact Wegovy prescription uptake in 2025 so far,” Novo Nordisk CEO Lars Fruergaard Jørgensen said.
“We are also taking legal actions against these compounders because we believe they are violating our IP and, as such, damaging our business.”
According to Fruergaard Jørgensen, some compounded alternatives included “impurities and even banned products”, but did not identify specific products.
Novo Nordisk’s full-year net profit increased to DK100.99 billion kr. in 2024, compared with 83.68 billion in 2023.
The company broadly discounted Wegovy by around US$150 in the U.S. this month, and will now offer the drug for $499 per month to eligible cash-paying buyers. Rival Eli Lilly cut prices for its similar weight-loss drug Zepbound by $50 in February in a bid against competition.
Novo Nordisk shares have dropped by 25% in March alone, the company’s largest monthly decline since 2002, over concerns about competition from Eli Lilly. It lost its position as Europe’s most valuable company to SAP this week.
Novo Nordisk’s (CPH: NOVO-B) share price closed at DK480.60 kr., down from its previous close at 499.80 kr. Its market capitalisation is 1.69 trillion kr.
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