Wegovy-maker Novo Nordisk may bend prices like yoga masters – without slashing them – to get more health systems on board with the weight-loss wonder drug

Novo Nordisk, creator of Wegovy, may offer flexible pricing in order to win over additional health systems and secure coverage for their weight-loss medication without lowering its cost.

The weight-loss drug market is bulging at the seams, with millions of potential patients still waiting to be served. To tackle this growing demand, Novo Nordisk, the Danish pharma giant, is considering some out-of-the-box solutions. CEO Lars Fruergaard Jørgensen revealed that they might offer flexible pricing on their drug Wegovy, making it more accessible to patients across a wider market. In an interview with the Financial Times, Jørgensen explained, “We are open to what types of arrangements we can make with healthcare systems that could help them serve the patients who need it the most.” It’s all about breaking down the initial cost barriers for healthcare providers and patients alike.

But why is flexible pricing such a game-changer? Well, studies have shown that drugs like Wegovy can reduce the risk of major cardiac events by a whopping 20%. This not only improves patient outcomes but could also significantly reduce future costs for healthcare providers. Jørgensen questioned, “How can healthcare systems justify making a large one-time payment upfront that leads to significant savings down the road? I think we need to share that risk to get going.” And that’s where flexible pricing comes into play. It allows costs to be spread over time without cutting them, which could encourage governments and private insurers to cover these medications.

Currently, Wegovy comes with a hefty price tag of over $1,300 a month in the U.S. and £199-299 for a month’s supply in the U.K. Many private medical insurance policies do not cover the cost, leaving patients to dig deep into their own pockets. Novo Nordisk’s move towards flexible pricing could change the game, making weight-loss drugs more accessible to all.

Novo Nordisk is not alone in this weight-loss drug frenzy. American pharmaceutical company Eli Lilly is also in the race, with its diabetes drug called Mounjaro, which has been seeing skyrocketing demand. In fact, Lilly’s profits in the third quarter reached a colossal $9.5 billion, a 37% increase from the previous year. To add fuel to the fire, the U.S. Food and Drug Administration recently approved Lilly’s Zepbound, a direct competitor to Wegovy. The competition is heating up, as both companies vie for a share of the estimated $100 billion weight-loss drug market by 2030.

It’s clear that the demand for weight-loss drugs is not going away anytime soon. With approximately 42% of the U.S. population and 26% of adults in the U.K. classified as obese, effective medications are in high demand. This intense competition in the market could potentially drive prices down, making weight-loss drugs more affordable for everyone. At the same time, the insatiable appetite for drugs like Wegovy, Ozempic, and Mounjaro could lead to record-breaking sales for drugmakers.

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So, get ready to witness a heavyweight battle between Novo Nordisk and Eli Lilly as they fight for dominance in the weight-loss drug arena. In the end, it’s the patients who will benefit from more accessible and affordable options. It’s time to shed some weight, both figuratively and literally!

*[FDA]: Food and Drug Administration