FDA approves Novo Nordisk weight-loss pill. Here's what to know

Core Insights - The U.S. FDA approved Novo Nordisk's weight-loss pill, Wegovy, which contains 25 mg of semaglutide, enhancing its competitive position against Eli Lilly [1][2] - The approval is expected to revitalize Novo's sales after a challenging year marked by declining shares and profit warnings [2] - The oral semaglutide pill is aimed at adults with obesity or overweight and related health conditions, potentially tapping into a market projected to reach $150 billion annually by the next decade [3] Company Strategy - Novo is leveraging its first-to-market advantage with the oral pill to regain market share in the U.S., where it has faced competition from Lilly [4] - The company has been preparing for the launch by building up supplies of the pill in North Carolina [5] - Novo's pricing strategy includes a starter dose priced at $149 per month for Medicare and Medicaid, with a recent reduction in the cash price for Wegovy from $499 to $349 [9] Market Dynamics - Approximately 40% of American adults are classified as obese, with around 12% currently using GLP-1 drugs [5] - Analysts predict that oral pills could capture about 20% of the weight-loss market by 2030, appealing to patients who prefer less invasive treatment options [6] - The approval of the oral pill may lead to increased patient uptake, as it addresses injection hesitancy and offers convenience [6][8] Competitive Landscape - Novo's injectable semaglutide initially struggled to meet demand, allowing Lilly to gain an edge with its Zepbound product [6] - Lilly's next-generation weight-loss pill, orforglipron, is expected to be approved soon, intensifying competition in the market [4] - The oral semaglutide requires specific administration guidelines, which may affect its adoption compared to Lilly's pill that has fewer restrictions [11]