Novo Nordisk Forges Multiple Partnerships To Sell Wegovy At A Discount

Novo Nordisk’s Multi-Pronged Strategy to Regain Market Share in the Obesity Drug Market

The pharmaceutical firm Novo Nordisk is on a mission to reclaim its market share from Eli Lilly in the competitive obesity drug market. One of its key products, Wegovy (semaglutide), is an injectable prescription medicine designed to aid in weight loss when used in conjunction with a healthy diet and increased physical activity.

In a recent move to bolster its position in the market, Novo Nordisk has announced a strategic partnership with CVS Health Corporation. This partnership gives Wegovy a preferred coverage status over its competitor Zepbound for customers who are insured for obesity medications. Additionally, CVS pharmacy will offer Wegovy at a discounted rate for cash-paying customers who do not have insurance coverage for the medication. This collaboration is part of Novo Nordisk’s larger strategy to make Wegovy more accessible and affordable to a wider range of customers.

In response to shortages of glucagon-like peptide-1 medications like semaglutide and tirzepatide in 2022, Novo Nordisk has also explored alternative options for patients. Compounded versions of these medications became a popular choice during the shortage period, offering a more affordable alternative to the branded products. However, with the shortage issue now resolved, Novo Nordisk is focusing on promoting its branded drugs and phasing out compounded versions.

Telehealth platforms, such as Hims & Hers, have played a significant role in connecting patients with compounded medications and licensed healthcare providers. These platforms offer patients access to GLP-1 medications at a lower cost than the branded products, posing a challenge to Novo Nordisk’s sales strategy. However, with the shortage issue resolved, the focus is shifting back to branded medications.

Novo Nordisk’s direct-to-consumer option, NovoCare Pharmacy, offers uninsured patients the opportunity to purchase Wegovy for a discounted price of $499 per month. This initiative aims to make the medication more accessible to those who may not have insurance coverage for weight loss drugs. Additionally, insured patients may soon benefit from preferred coverage for Wegovy and Saxenda on CVS Caremark’s commercial formularies, further increasing accessibility to these medications.

Overall, Novo Nordisk’s multi-pronged strategy, including partnerships with major healthcare providers and the promotion of branded medications, is aimed at regaining its foothold in the obesity drug market. By offering discounted options and increasing accessibility to its products, Novo Nordisk is positioning itself for success in this competitive industry.