Novo Nordisk Cuts Wegovy, Ozempic Prices Up To 50% While Warning Sales Fall
Novo Nordisk announced up to 50% price cuts in the US for Wegovy and Ozempic and warned that lower list prices combined with competition from Eli Lilly’s Zepbound, which has overtaken Wegovy in prescriptions, will drive a mid‐single‐digit percentage drop in annual sales. Eli Lilly shares fell on expectations of slower GLP-1 market growth and margin compression at Novo following the cuts.
1. US Price Cuts for GLP-1 Drugs
On February 24, Novo Nordisk unveiled price reductions of up to 50% on its flagship GLP-1 therapies Wegovy and Ozempic in the US, aiming to broaden patient access and preempt payer pushback. The cuts apply to list prices and follow negotiated discounts with insurers, marking the deepest reductions in the company’s history.
2. Sales Guidance Downgrade
The company cautioned that these lower list prices, alongside intensifying competition from Eli Lilly’s Zepbound—which has recently overtaken Wegovy in weekly prescriptions—will result in a mid‐single‐digit percentage decline in full‐year sales volume for its obesity and diabetes franchises. Novo Nordisk flagged that revenue growth will slow materially as it balances volume gains against reduced average selling prices.
3. Investor Response
Eli Lilly shares dropped after the announcement, reflecting investor concerns over the reshaped competitive landscape in the GLP-1 market. Novo Nordisk’s own stock declined on expectations of margin compression and potential downgrades from analysts reevaluating the company’s 2026 earnings outlook.