Novo Nordisk, a pharmaceutical company, is implementing a comprehensive strategy to recapture market share lost to Eli Lilly in the competitive obesity drug market. One of its weight loss products, Wegovy (semaglutide), is a prescription medicine that requires a weight loss plan and increased physical activity. (Photo by: Michael Siluk/UCG/Universal Images Group via Getty Images)
Novo Nordisk is taking steps to regain its market share in the obesity drug market, which it lost to Eli Lilly. Recently, Novo Nordisk announced a partnership with CVS Health Corporation to offer Wegovy, a weight loss drug, with preferred coverage status over its competitor Zepbound for insured customers. Additionally, CVS pharmacy will provide Wegovy at a discount for cash-paying customers without insurance for the medication. Novo Nordisk has also collaborated with telehealth companies to offer discounted Wegovy and sells weight loss products through its NovoCare Pharmacy program at reduced prices.
There was a shortage of glucagon-like peptide-1 medications like semaglutide (Ozempic, Wegovy) and tirzepatide (Mounjaro, Zepbound) in 2022, but the FDA declared the shortages over. Compounded versions of these medications were available during the shortage, offering a more affordable option for patients. Telehealth platforms connect patients to licensed healthcare providers who can prescribe compounded medications like GLP-1s at lower costs than branded products, posing a challenge to Novo Nordisk’s sales.
With the shortages resolved, compounded GLP-1s are being phased out in favor of discounted branded drugs. Eli Lilly and Novo Nordisk have adopted direct-to-consumer strategies for their products, allowing patients to purchase the medication at a discounted rate. Novo Nordisk’s NovoCare Pharmacy offers Wegovy for $499 per month for uninsured patients, while Eli Lilly’s LillyDirect service provides access to Zepbound for $499. CVS Caremark will make Wegovy and Saxenda the preferred GLP-1 medicines on its commercial formularies starting in July.
Overall, Novo Nordisk and Eli Lilly are adapting their sales strategies to meet the demands of the market and provide affordable options for patients seeking obesity treatments.
