Novo Nordisk Warns of Profit Drop, Sues Over $49 Wegovy Knockoff, Gains Oral Ozempic Approval
Novo Nordisk warned that unprecedented pricing pressure from competitors and tougher payer negotiations will drive its first annual sales and profit decline for its Wegovy obesity and diabetes portfolio. The company sued Hims & Hers over a $49/month compounded Wegovy knockoff, secured FDA approval for three-dose oral Ozempic tablets and filed for a fourth higher dose by year-end.
1. Pricing Pressure Impact
Novo Nordisk projects that aggressive negotiations by government programs and private insurers demanding deeper discounts, along with competition from similar GLP-1 drugs, will cause its first annual sales and profit decline in years for its obesity and diabetes portfolio.
2. Legal Action Against Hims & Hers
The company filed suit against Hims & Hers for selling a compounded version of Wegovy at $49 per month, calling the practice illegal mass compounding that threatens patient safety and infringes on its intellectual property.
3. Oral Ozempic Tablet Approval
FDA approved three-dose oral Ozempic tablets for type 2 diabetes blood sugar control, and Novo Nordisk has submitted a supplemental application for a higher fourth dose, with an FDA decision expected by year-end.
4. Market Outlook and GLP-1 Demand
Despite a 66% share price decline since 2024 highs, analysts highlight strong demand for Novo Nordisk’s oral GLP-1 pill and view the company’s strategic defenses as key to navigating a tougher competitive landscape.