Novo Nordisk to Cut Wegovy Prices by 50% and Launch DKK15B Buyback
Novo Nordisk’s Wegovy injection outperformed Eli Lilly’s oral competitor in head-to-head trials, prompting management to authorize a DKK 15 billion share buyback (under 1% of market cap). The company will slash U.S. prices by about 50% for Wegovy and 33% for Ozempic next year to boost uptake.
1. Superior Efficacy Data
Novo Nordisk reported that its Wegovy injection delivered greater average weight loss than Eli Lilly’s rival oral therapy in head-to-head clinical trials, underscoring its leading position in obesity treatment.
2. Strategic U.S. Price Reductions
Management plans to cut U.S. list prices by roughly 50% for Wegovy and 33% for Ozempic starting next year, aiming to expand patient access and stimulate demand among tens of millions living with obesity.
3. Share Buyback Program
The board approved a DKK 15 billion share repurchase, representing under 1% of Novo Nordisk’s market capitalization, balancing shareholder returns with continued investment in growth and R&D.
4. Market Outlook and Competition
CEO Mike Doustdar emphasized that the obesity market remains largely untapped, even as competition intensifies from Lilly’s oral pill and emerging semaglutide generics in key markets.