Asger Risom
The Danish pharmaceutical giant underestimated U.S. demand for its weight-loss drug Wegovy, leading to supply shortages, pricing backlash, and a leadership shake-up.
The Danish pharmaceutical giant underestimated U.S. demand for its weight-loss drug Wegovy, leading to supply shortages, pricing backlash, and a leadership shake-up.
Internal Warnings Ignored
Executives at Novo Nordisk proceeded with Wegovy’s U.S. launch despite internal concerns about supply readiness and insurance coverage.
Supply Shortages Emerge
The premature launch led to repeated supply shortages, leaving patients scrambling and turning to alternative sources.
High Costs Deter Patients
With a monthly price tag of up to $1,300, many patients found Wegovy unaffordable, especially without robust insurance coverage.
Conservative Forecasts Backfire
Novo’s modest sales projections failed to anticipate the overwhelming demand, despite clear indicators from clinical data and physician feedback.
Leadership Changes at the Top
CEO Lars Fruergaard Jorgensen and other key executives stepped down amid the fallout from the mismanaged launch.
Competitor Gains Ground
Eli Lilly’s Zepbound surpassed Wegovy in new prescriptions, capitalizing on Novo’s supply issues and pricing missteps.
Global Launch Strategy Questioned
Novo’s approach of “volume-capped launches” in various countries, prioritizing high-price markets, drew criticism for neglecting influential European markets.
Pricing Strategy Under Fire
Insurers and patients balked at Wegovy’s high cost, especially as Lilly offered competitive pricing and discounts for Zepbound.
Novo’s Market Position at Risk
The combination of supply issues, pricing backlash, and leadership changes has put Novo Nordisk’s dominance in the obesity treatment market in jeopardy.
Looking Ahead
Novo Nordisk faces the challenge of regaining trust and market share in a rapidly evolving and competitive weight-loss drug landscape.
