Novo Nordisk misread market for weight loss drug, leading to vulnerability against Eli Lilly.

From Yahoo Finance: 2025-07-01 06:06:00

Novo Nordisk’s executives ignored warnings about being unprepared for the launch of weight-loss drug Wegovy, leading to vulnerability against Eli Lilly. Novo’s net profit reached $46 billion since mid-2021, but Lilly’s Zepbound surpassed Wegovy in new prescriptions. Novo is restructuring leadership after CEO ouster.

Sales and marketing executives at Novo urged more preparation before Wegovy’s launch, citing supply and insurance coverage issues. Novo’s conservative sales forecast was off as demand for Wegovy surged. Novo faced supply shortages and high out-of-pocket costs, pushing patients to seek cheaper alternatives.

Despite data showing Wegovy’s potential, Novo stuck to modest sales forecasts, leading to unpreparedness for demand. Novo’s pricing strategy faced backlash, launching Wegovy at a higher cost than competitors. Lilly’s bold approach and pricing strategy gave them an edge in the market.

Novo’s missteps with forecasting, supply shortages, and pricing allowed Lilly to dominate the market. Novo’s reluctance to offer meaningful rebates to PBMs frustrated payers. Investors noted Novo’s conservative approach compared to Lilly’s bold strategies. Lilly’s pricing strategy and discounts attracted frustrated payers.

Read more: How Novo Nordisk misread the US market for its weight loss sensation