URGENT UPDATE: Shares of Novo Nordisk A/S (NYSE:NVO) have surged 7.36% in pre-market trading today, following the U.S. Food and Drug Administration’s (FDA) groundbreaking approval of its GLP-1 weight-loss pill, Wegovy. This monumental decision was announced on Monday, marking the first approval of its kind globally and setting a new standard in obesity treatment.
Beginning in January 2024, Wegovy will be available for purchase at pharmacies and selected telehealth providers at a monthly price of $149. Additionally, patients opting to pay out of pocket can access the pill through President Donald Trump’s direct-to-consumer platform, TrumpRx, thanks to an agreement reached last month.
This approval comes amidst a tumultuous year for Novo Nordisk, which has faced board conflicts, supply chain challenges, and intense competition with Eli Lilly (NYSE:LLY) in the race for effective weight-loss solutions. The approval of Wegovy positions Novo Nordisk strategically ahead of its American rival in a high-stakes market.
On the heels of this success, Novo Nordisk is also pursuing further innovation. Earlier this month, the company submitted a New Drug Application (NDA) for its weekly combination obesity injection, CagriSema, which combines a long-acting amylin analogue with the GLP-1 receptor agonist, semaglutide. If approved, CagriSema would be the first of its kind, potentially enhancing Novo Nordisk’s foothold in the weight-loss sector.
Moreover, the U.S. Centers for Medicare & Medicaid Services (CMS) recently announced plans to negotiate lower prices for 15 high-cost drugs, including Novo Nordisk’s GLP-1 drug. Under these new guidelines, the monthly cost for semaglutide (which includes Wegovy, Ozempic, and Rybelsus) will be reduced to $274 starting in 2027.
Despite the recent surge, Novo Nordisk’s stock has experienced significant volatility this year, with a year-to-date decline of 45.04%, according to data from Benzinga Pro. The company’s stock rose slightly by 0.02% to close at $88.33 on Monday, reflecting investor caution amid ongoing challenges, including disappointing results from the REDEFINE 2 phase 3 trial of CagriSema.
What’s next? Investors and health professionals are keenly watching the market response to Wegovy’s rollout and the potential approval of CagriSema. As the landscape of weight-loss treatments evolves, Novo Nordisk’s strategic moves will likely play a crucial role in shaping its future and the overall market for obesity management.
For those eager to stay informed, this approval marks a pivotal moment not just for Novo Nordisk but for millions seeking effective weight-loss solutions. Share this news and keep the conversation going about the future of healthcare and obesity treatments.
