Novo Nordisk sparks a "price war"? Wegovy and Ozempic drastically reduce prices to challenge Eli Lilly

Novo Nordisk A/S announced on Monday that it will lower the monthly cost of the starting doses of its two blockbuster weight-loss drugs, Wegovy and Ozempic, to $199. Analysts believe this indicates the company’s willingness to use price cuts to compete with rival Eli Lilly & Co. in a bid to reclaim more market share in the United States.

Starting this Monday, the entry-level doses of Wegovy and Ozempic will cost just $199 per month, but this price only applies to the first two months. After two months, Novo Nordisk will continue to sell these drugs through its direct sales platform, NovoCare, at a price of $349 per month—30% cheaper than the current out-of-pocket cost. The $349 price matches the low-dose price of Eli Lilly’s obesity injection Zepbound, and is lower than Zepbound’s high-dose price.

On Monday, Novo Nordisk’s stock rose 0.53% in Copenhagen, while Eli Lilly’s stock rose slightly by 0.17% during the trading day in New York.

Media reports say this round of price cuts has also made Novo Nordisk’s drugs more competitive when facing compounded versions dispensed by pharmacies. In the past, due to shortages of branded drugs, telemedicine companies such as Hims & Hers Health Inc. launched compounded versions that attracted many consumers because of better prices and more stable supply.

Dave Moore, head of Novo Nordisk's U.S. division, stated that about 1.2 million Americans are currently using these compounded version drugs.

“People can start switching back from compounded drugs to branded drugs. We’ve reduced the price so that the gap isn’t as big anymore.”

Analysts believe that Novo Nordisk chose this aggressive pricing because Eli Lilly has already surpassed Novo Nordisk in the U.S. market. They predict that by the end of this decade, the global obesity drug market could reach $100 billion. In clinical trials, Eli Lilly’s Zepbound has outperformed Novo Nordisk’s Wegovy, giving Eli Lilly an edge. Additionally, Eli Lilly leads in direct-to-consumer sales and other innovations.

“Transition Measures” Before Weight-Loss Drug Price Cuts Take Effect

Earlier this month, both Novo Nordisk and Eli Lilly reached agreements with the Trump administration to lower prices in the U.S., covering Medicare and out-of-pocket users. Under the agreement, Eli Lilly will lower Zepbound’s price by $50 per month on its LillyDirect platform. Currently, Zepbound’s low dose on LillyDirect costs $349 a month, and the high dose is $499 a month.

However, the price reduction policy promoted by the Trump administration will not officially take effect until March next year. Novo Nordisk is lowering prices from now through the end of March next year.

Moore described this price cut as a “transition measure” to cover the period from now until the new prices officially go into effect next year. The price cut applies regardless of where consumers obtain the drugs. In the future, the price reduction will also cover Trump’s platform, TrumpRx.

GoodRx Holdings Inc. CEO Wendy Barnes said in an interview:

“We must acknowledge that the Trump administration has indeed brought more attention to the issue of drug prices. That attention has prompted pharmaceutical partners to act more actively and driven more discussion.”

GoodRx is a company that provides drug discounts. It is now cooperating with Novo Nordisk to allow more consumers to enjoy lower prices at over 70,000 retail pharmacies across the U.S. GoodRx will also launch new telemedicine services to align with Novo Nordisk's price reduction strategy.

Next, both Novo Nordisk and Eli Lilly plan to launch oral weight-loss drugs. In the coming months, these oral drugs may challenge the current popular injectable products. According to agreements with the Trump administration, the minimum-dose monthly price for these oral weight-loss drugs will be set at $149.

Risk Warning and DisclaimerThe market carries risks, and investments require caution. This article does not constitute personal investment advice, nor does it consider a given user's particular investment objectives, financial situation, or needs. Users should assess whether any opinions, views, or conclusions in this article suit their specific circumstances. If you invest based on this information, the responsibility is yours.