Maggie Fick

Novo Nordisk launches discounted Wegovy subscription for self-pay patients in the US

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Item 1 of 2 An injection pen of Novo Nordisk’s weight-loss drug Wegovy is shown in this photo illustration in Oslo, Norway, November 21, 2023. REUTERS/Victoria Klesty/Illustration/File Photo

[1/2]An injection pen from Novo Nordisk’s weight loss drug Wegovy is shown in this photo illustration in Oslo, Norway, November 21, 2023. REUTERS/Victoria Klesty/Illustration/File Photo Purchase Licensing RIGHTSopen a new tab
  • Novo vying regained share from Lilly in the US market
  • Discount up to almost 30% on the new Wegovy subscription plan
  • Investors, analysts say Novo risks losing Lilly in the price war
  • Novo makes changes as the obesity market shifts to consumer-focus
LONDON, March 31 (Reuters) – Novo Nordisk will launch a discount subscription plan for U.S. Wegovy patients who pay for their own drugs, offering monthly prices up to nearly 30% below standard rates as it tries to expand access and regain ground from Eli Lilly in the growing obesity drug market.
Self-paying obesity drug prices are coming under greater pressure as Novo ( NOVOb.CO )open a new tab and Eli Lilly (LLY.N)open a new tab it’s turning to direct sales and telehealth companies to attract patients, move them away from co-pays and keep them in care longer — even as deeper price cuts threaten margins.

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Analysts and investors say Novo risks being on the losing side of the price war, after cutting deeper than ⁠Lilly to revive prescriptions that have lagged behind rival Lilly’s drug Zepbound.

The new program, available from Tuesday through telehealth platforms including Ro, WeightWatchers and LifeMD, allows eligible self-pay patients to purchase a three-, six- or 12-month supply at a fixed monthly price, with longer plans offering greater discounts. Hims & Hers, Sesame and other telehealth companies are expected to follow soon, Novo said.

The Danish drugmaker last year replaced its CEO and announced major job cuts and named a new head of its US business, as it seeks to better position itself against Lilly, which is rapidly moving into direct-to-consumer sales.

PATIENTS BECOME CONSUMERS

Ed Cinca, Novo’s senior vice president of marketing and patient solutions, said people are looking for “an easier and clearer way to facilitate payment” when they are looking for obesity management.

“We’re seeing patients evolve into health consumers,” he said, adding that people paying out of pocket want simple budgets, clear pricing and easier ways to stay in care.

Under the scheme, Wegovy’s injection pens will cost $329 a month for a three-month plan, $299 for six months and $249 for a 12-month subscription – about 6% to 29% below the usual $349 monthly price.

Wegovy’s pills will cost $289, $269 and $249 a month, or about 3% to 17% below the standard monthly price of $299.

Lilly’s pricing for Zepbound starts at $299 a month for a 2.5 mg dose, $399 for 5 mg and $449 for 7.5 mg and higher doses in its “Self-Travel Program.”

Rival Lilly’s oral obesity drug is under review by the US Food and Drug Administration, and the company expects approval in the second quarter. Reuters reported earlier this year that approval could come in April.

Competition has intensified as both companies try to steer patients away from cheaper generic copies of FDA-approved drugs.

FOLLOWING THE CONSUMER INDUSTRY ROAD

Zach Reitano, CEO of partner telehealth company Novo Ro, said Novo and Lilly are trying new things to reach customers, driving up drug prices as well as distribution costs.

“It’s following the same path that you typically see in other consumer industries,” Reitano said.

Novo is increasingly leaning toward telehealth and direct distribution to reach out-of-pocket patients, a shift outside of traditional insurance channels and physician offices.

Novo reduced the price of Wegovy’s standard monthly self-pay to $349 in November from $499, a reduction of about 30%, after introducing a temporary $199 initial dose offer.

Reporting by Maggie Fick in London Additional reporting by Amina Niasse in New York, editing by Louise Heavens

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