Weight loss drugs are becoming cheaper as competition intensifies

Novo Nordisk reported yesterday that it beat first-quarter profit expectations amid booming demand for its weight loss drug.

Due to the blockbuster success of the medication, Wegovy sales more than doubled last quarter. The Danish pharmaceutical giant’s net profit rose 28% to $3.65 billion compared to the previous year.

Riding on the high, the most valuable company in Europe even raised its 2024 outlook.

However, intense competition from rival Eli Lilly forced the company to cut prices of the drug, knocking its shares (as price reduction will lead to lower-than-anticipated revenue).

Since the launch of Lilly’s Zepbound in the US in December, the two pharmaceutical giants have been trying to dominate the global obesity treatment market (though Wegovy is the current market leader) projected to be worth up to $100 billion by the end of the decade.

More price reduction
According to Novo, the company may reduce the drug price further amid increasing competition.