Bei Jing Shang Bao·2025-11-18 14:43Core Viewpoint - Novo Nordisk is lowering the price of its weight loss drug semaglutide in the U.S. to compete with Eli Lilly, indicating a shift in pricing strategies within the GLP-1 drug market [1][2]. Pricing Strategy - Novo Nordisk announced a 30% price reduction for its semaglutide products Wegovy and Ozempic, bringing the self-pay price down to $349 per month, with a limited-time offer of $199 for the first two months [2]. - This new pricing aligns with Eli Lilly's lower dosage Zepbound and is lower than its higher dosage option, enhancing Novo Nordisk's competitiveness against generic versions [2]. Market Dynamics - The popularity of GLP-1 receptor agonists like Zepbound and Wegovy is increasing, with clinical trials showing weight loss of 15%-22% [3]. - However, affordability remains a challenge, as about half of the users find it difficult to pay for these treatments, with monthly costs ranging from $1,000 to $1,350 [3]. Medicare Inclusion - A recent agreement between the White House, Eli Lilly, and Novo Nordisk will significantly reduce the prices of GLP-1 weight loss drugs, with Medicare beneficiaries expected to pay only $50 per month starting April [4]. - Novo Nordisk and Eli Lilly will sell their GLP-1 drugs directly to consumers at an average price of $350, aiming to reduce it to around $250 within two years [4]. Revenue Insights - Novo Nordisk reported third-quarter revenues of approximately DKK 74.98 billion (about $11.53 billion), a 5% year-over-year increase, with GLP-1 product revenues reaching DKK 174.58 billion (about $26.90 billion) [5]. - Eli Lilly's third-quarter revenue was approximately $17.59 billion, a 54% year-over-year increase, with GLP-1/GIP dual agonists generating over $10.1 billion [5]. Competitive Landscape - The GLP-1 market is transitioning from a duopoly between Eli Lilly and Novo Nordisk to a more competitive landscape, with a focus on technological advancements [7]. - The trend towards lower-priced weight loss drugs is expected to reshape industry competition, impacting smaller pharmaceutical companies' ability to enter the market [8][9]. Challenges for Smaller Firms - Smaller pharmaceutical companies may struggle due to reduced profit margins from low-priced oral GLP-1 drugs, potentially leading to project abandonment or mergers [9]. - Novo Nordisk and Eli Lilly have established a competitive advantage through their production capabilities and access to insurance channels, raising market entry barriers for smaller firms [9].