From Yahoo Finance: 2025-05-07 12:43:00

Novo Nordisk’s investors are concerned about competition from Eli Lilly heating up, causing Novo to lose ground as the first-to-market GLP-1 leader. Despite holding 72% of the global market share, Novo’s stock is down over 22% this year. Lilly’s Zepbound has overtaken Novo’s Wegovy in the obesity drug market.

Novo CEO Lars Jørgensen attributes soft sales to compounding pharmacies’ copycats entering the market due to past shortages. The compounding business is as big as Novo’s, impacting Wegovy and Ozempic sales. Novo reported combined sales of over $7.5 billion.

The FDA recently removed semaglutide (Wegovy’s key ingredient) from its shortage list, giving Novo hope for sales relief in the second half of the year. However, sales guidance was still cut by 3%. Novo is making deals with telehealth platforms to increase access to Wegovy.

Novo’s exclusive deal with CVS as the preferred weight-loss drug caused Lilly’s stock to plummet. Jørgensen clarified that CVS initiated the deal. Investors fear a price war, but Jørgensen emphasizes choice for physicians and patients.

Novo is working to boost Wegovy prescriptions through various strategies, including offering the drug for $499 per month for cash-paying customers. The competition with Eli Lilly is intensifying as Novo aims to be first to market with a pill version of Wegovy.

Jørgensen expects FDA approval for the pill version to be smooth, citing the success of Rybelsus. The competition between Novo and Lilly is expected to escalate in the new pill market. Investors are eager to see if Novo’s strategies will improve sales for the rest of the year.

Read more: Why Novo missed its sales estimates on weight-loss drug Wegovy: CEO