Novo has lowered prices for obesity drugs in the US. This is a new challenge for Eli Lilly

Danish pharma company Novo Nordisk has cut prices for its obesity and diabetes drugs Wegovy and Ozempic in the US on direct sales to patients. The company is seeking to regain market leadership and ease pressure from its U.S. rival Eli Lilly. Novo is also trying to win over patients who have switched to cheaper copies of its drugs made by pharmacies.

Beginning Monday, Nov. 17, Novo will offer new patients who pay for the drugs themselves (rather than getting them through insurance) the lowest doses of Wegovy and Ozempic for $199 per month, the company announced. That cost is in effect for the first two months of therapy, after which the drugs will be sold at $349 per month. That's 30% lower than the current cost ($499), matching Eli Lilly's price for the lowest dosage of its Zepbound drug, but lower than the price of higher doses, Bloomberg noted. The price for the highest dose of Ozempic will remain at $499 a month.

Novo Nordisk shares rose by 0.24% at the end of trading in Copenhagen on November 17. Novo receipts in New York rose by 0.6%. Eli Lilly securities were declining at the moment by 2.6%, but then slowed down to 0.6%.

Novo Nordisk's decision shows the company's willingness to compete on price in its quest to regain market share in the U.S., Bloomberg writes.

The drop in value followed Novo ceding the top spot to Eli Lilly in the obesity drug market, which is growing rapidly and analysts estimate could reach $100 billion by the end of the decade, the agency said. Lilly's Zepbound drug proved more effective than Novo's Wegovy in clinical trials, giving it the edge. In addition, the American manufacturer was the first to introduce such innovations as direct-to-consumer sales, Bloomberg added.

The lower prices will also make Novo's drugs more competitive with copies that pharmacies make by mixing ingredients by hand according to individual prescriptions. Cheaper versions of Wegovy and Ozepmic, which are sold by Hims & Hers Health and similar companies, have become popular because of lower prices and wide availability during periods of shortages of the original drugs, Bloomberg notes. Hims & Hers shares were down 4% in trading on Nov. 17.

About 1.2 million Americans continue to take pharmacy analogs of medications, Novo's head of U.S. operations Dave Moore said. "People will be able to start moving from these counterfeit copies back to brand-name drugs. We're getting down to price levels that aren't so different anymore," he said.

In early November, Eli Lilly and Novo agreed to lower prices in the US for their obesity drugs as part of an agreement with the administration of US President Donald Trump. The agreement stipulates, for example, that the companies' weight-loss drugs will be included in coverage under Medicare, the government health insurance program for elderly Americans.

Medicare and Medicaid patients who are obese and have comorbidities including prediabetes and heart failure will be able to purchase Zepbound and Wegovy injections for $245 per month. For Medicare members, the co-pay will be $50 per month. Under the deal, Eli Lilly and Novo Nordisk will get a three-year reprieve from Trump's new duties on drug imports. At the same time, the agreement with the White House does not take effect until next March.

Novo's price cuts took effect immediately and will be in effect through the end of March 2026, Bloomberg noted. Moore described the price cut as a "bridge" for the transition period before the new, lower prices take effect. It will apply to all places where consumers get their prescriptions, including Donald Trump's TrumpRx platform.

This article was AI-translated and verified by a human editor