Weight Loss Medication Attracts 25,000 New Users Every Week in US
Sign-ups for the weight loss drug Wegovy in the US surged five-fold in the first quarter of the year, hitting over 25,000 per week, according to Novo Nordisk, the manufacturer.
The remarkable increase reflects the soaring demand for Wegovy and its sister diabetes drug Ozempic, which have been hailed as groundbreaking and have propelled Novo Nordisk into one of Europe’s most valuable companies.
However, Novo Nordisk is now facing new challenges as the high prices of these medications come under scrutiny in the US, compounded by competition from Eli Lilly’s rival offerings.
In its quarterly update for investors, the company revealed that it had reduced prices for its drugs in the US during the first three months of the year. It anticipates further price decreases for Wegovy and Ozempic in the coming months.
Despite these price cuts and other supply constraints, overall sales are still projected to increase by up to 27% this year, slightly higher than earlier forecasts. CEO Lars Fruergaard Jorgensen emphasized that the volume opportunity far outweighs concerns about lower price points.
Jorgensen attributed the price reductions in part to the company’s efforts to reach more “vulnerable” segments of the market. As of March, Novo Nordisk’s diabetes and weight loss drugs were serving nearly 42 million patients globally.
While the US represents the company’s largest market, the high cost of these drugs has led many health insurance plans, including Medicare, to limit access. Senator Bernie Sanders recently initiated an investigation into the issue, highlighting the stark price disparity between the US and other countries like the UK.
Acknowledging the strain on healthcare systems, Jorgensen expressed optimism about the drugs’ value proposition and their benefits, especially in treating heart disease, which was recently approved.
Novo Nordisk has been grappling with meeting the surging demand and investing in expanding manufacturing capacity to address supply chain challenges. The significant increase in Wegovy prescriptions signals progress in overcoming these issues, according to CFO Karsten Munk Knudsen, who sees it as a testament to their confidence in scaling operations.
Ozempic received approval 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 EU in 2022.
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