Novo Nordisk Lowers Wegovy Costs for Cash-Pay Patients, Stock Up 4%

Novo Nordisk NVO announced that it is launching a new direct-to-patient online pharmacy called NovoCare, which will offer its popular obesity injection, Wegovy (semaglutide), at a discounted price of $499 per month to patients who do not have insurance coverage and pay by cash. The offer is also available to patients with insurance coverage who do not have coverage for obesity medicines. The website provides an option for these patients to have their injections delivered to their homes.Wegovy is currently priced at around $1,350 per month. However, most patients with coverage pay much less, around $0 to $25 a month.NVO’s stock rose almost 4% in response to the news, as this new effort will make Wegovy cheaper and easier to access.However, the stock has plunged 33.1% in the past year compared with a decrease of 2.5% for the industry.Image Source: Zacks Investment ResearchThe discounted prices come on the heels of the FDA’s announcement in late February that the shortage of Wegovy is resolved and the medicine is no longer in short supply.      NVO’s Announcement Follows A Similar Move by LLYNovo Nordisk’s announcement follows a similar move by rival Eli Lilly LLY. Last week, Lilly also announced that it is reducing the prices of its 7.5 mg and 10 mg single-dose vials of obesity treatment Zepbound to $499 per month for customers paying through a new self-pay program called LillyDirect Self-Pay Pharmacy Solutions. The 7.5 mg and 10 mg vials are currently priced at $599 and $699, respectively. Prices of 2.5 mg and 5 mg vials are also being reduced to $349 and $499 per month, respectively.The FDA removed Lilly’s GLP-1 products, Mounjaro and Zepbound (tirzepatide), from its shortage list in December 2024 after determining that Lilly’s supply is currently meeting or exceeding demand and will continue to do so in the future.Stocks of HIMS and LFMD Hit HardNovo Nordisk and Lilly’s semaglutide and tirzepatide medicines, respectively, were added to the FDA’s shortage list in 2022 due to supply shortages. Upon placement of a drug under the FDA’s shortage list, compounding pharmacies are allowed to produce copies of the approved drug to meet existing demand. Compounded drugs are, however, not approved by the FDA.The launch of cheaper versions of NVO and LLY’s obesity treatments and their removal from the FDA’s shortage list have dealt a blow to shares of telehealth companies like LifeMD LFMD and Hims & Hers Health HIMS.LifeMD and Hims & Hers Health offer lower-cost compounded versions of weight-loss drugs at their pharmacies during a shortage. However, with both semaglutide and tirzepatide removed from the shortage lists, LifeMD and Hims & Hers Health will have to stop selling the compounded drugs. Stocks of LifeMD and Hims & Hers Health have plunged more than 30% since the FDA removed Wegovy from the shortage list in late February.Novo Nordisk currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Novo Nordisk A/S Price and Consensus Novo Nordisk A/S price-consensus-chart | Novo Nordisk A/S QuoteOnly $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report LifeMD, Inc. (LFMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks