Sign-ups for the weight loss medication Wegovy soared in the US during the first quarter of the year, jumping five-fold to over 25,000 per week, according to Novo Nordisk, the drug’s manufacturer.
This surge reflects an overwhelming demand for Wegovy, which, alongside its counterpart Ozempic used for diabetes, has been hailed as groundbreaking, propelling Novo Nordisk into one of Europe’s most valuable companies.
However, Novo Nordisk now faces new challenges as the high prices of these medications come under scrutiny in the US, especially with competitors like Eli Lilly entering the market with rival offerings.
In its quarterly update for investors, the company announced that it had reduced prices for its drugs in the US during the first three months of the year, with further decreases expected in the coming months. Despite these price cuts and other supply constraints, overall sales are projected to increase by up to 27% this year, slightly higher than previous estimates.
Novo Nordisk’s CEO, Lars Fruergaard Jorgensen, explained that the company’s focus on reaching more “vulnerable” segments of the market contributed to the price reductions. Despite the price adjustments, the company remains optimistic due to the significant demand for its products.
The company disclosed that its diabetes and weight loss drugs served nearly 42 million patients worldwide as of March, with the US being its largest market.
However, the high cost of these drugs has led many health insurance plans, including Medicare, to limit access. Senator Bernie Sanders recently launched an investigation into the issue, highlighting the stark price differences between the US and other countries like the UK.
Jorgenson acknowledged the strain that the demand for these treatments is putting on healthcare systems but expressed confidence in convincing regulators of the drugs’ benefits. He emphasized the recent approval of Wegovy for treating heart disease as a significant milestone.
Despite the challenges, Novo Nordisk has been working to expand its manufacturing capacity to meet demand, investing in new factories. The significant increase in Wegovy prescriptions in the US since December indicates progress in addressing supply chain issues, according to chief financial officer Karsten Munk Knudsen.
Ozempic was first approved for sale in the US in 2017 and in the EU in 2018, while Wegovy was approved in the US in 2021 and in the European Union in 2022.
