Novo Nordisk has launched Novocare, an online pharmacy where consumers can purchase Wegovy, a weight loss drug, directly from the company for $499 a month. This move follows Eli Lilly’s successful launch of its own online pharmacy, Lillydirect, which offers discounts for the obesity treatment Zepbound. The availability of Wegovy became possible after an end to two years of supply shortages, while both Wegovy and its sister drug, Ozempic, share the active ingredient Semaglutide.
Wegovy’s standard list price is $1,349, but costs vary significantly for insured patients. In contrast, Zepbound, which has shown promising weight loss results, is priced around $1,086 but also varies based on insurance. Both companies are competing aggressively in the obesity market, with Bernstein analysts noting that Zepbound’s US market share is closing in on that of Wegovy.
While Novo Nordisk is seeking to gain ground, Eli Lilly’s business remains strong, in part due to its larger capacity and ongoing innovations. Lilly is also preparing for the upcoming results of clinical trials for Orforglipron, an anticipated oral GLP-1 weight loss treatment, which could further enhance its market position. Stock market reactions indicate a favorable outlook for both companies, with shares of Novo rising 4% and Lilly nearly 1% after the announcement of Novo’s new offering.
Despite these developments, analysts believe Eli Lilly is still in a solid position in the GLP-1 race, supported by robust demand and strategic business moves, while Novo seeks to enhance its competitive edge in consumer access to obesity medications.
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