Novo Nordisk Shifts Strategy as US Weight-Loss Drug Price War Intensifies

Novo Nordisk DK0062498333

The battle for dominance in the lucrative US market for weight-loss medications is entering a new phase. In a strategic pivot, Danish pharmaceutical giant Novo Nordisk is preparing to launch a lower-cost vial version of its blockbuster drug Wegovy later this year. This move, reported by Reuters and Healthcare Digital on February 15, is a direct counter to aggressive pricing tactics from rival Eli Lilly, which has already captured significant market share through similar measures.

Eli Lilly set the stage for this escalation by introducing vials for its drug Zepbound in 2024 and subsequently cutting the price by at least $50 in 2025, according to Reuters. This calculated assault on Novo Nordisk's leadership has compelled a response. The shift to vials represents a notable change in direction for Novo Nordisk, which has historically focused on injection pens and, more recently, a tablet form.

CEO Mike Doustdar confirmed the vial launch plans to investors, simultaneously preparing them for a challenging period. He stated that the substantially lower prices are essential to compete not only with Lilly but also with pharmacies compounding their own versions of the active ingredient.

Legal Action and Operational Momentum

Amidst the pricing pressure, the newly launched tablet version of Wegovy is gaining initial traction. Data from IQVIA, cited by Ticker Report, indicates approximately 38,220 prescriptions were written in the fifth week following its January launch, with a monthly entry price set at $149.

Concurrently, Novo Nordisk is pursuing legal avenues to protect its market. As reported by Simply Wall St on February 14, the company has filed a lawsuit against Hims & Hers for distributing unauthorized copycat versions of Wegovy. This legal action coincides with a U.S. Food and Drug Administration (FDA) announcement to restrict the use of GLP-1 active ingredients in pharmacy-compounded drugs, citing quality and safety concerns.

Financial Forecast and Market Reaction

The company's outlook for 2026 has been tempered by the fierce competition. Management now anticipates a decline in both revenue and operating profit, projecting a drop of 5 to 13 percent. This guidance overshadowed the full-year 2025 results, which saw a 10 percent revenue increase to over 309 billion Danish kroner, driven by a 41 percent surge in Wegovy sales.

Investors reacted sensitively to the mix of strategic expansion and weakened forecast. On February 13, Novo Nordisk's NYSE-listed shares closed at $49.57, marking a 5.4 percent decline since the start of the year. The stock's 52-week range, between $43.08 and $93.80, underscores the significant correction from its peak.

According to Defense World, the current analyst consensus rating for the stock is "Hold," with an average price target of $56.07.