Novo Nordisk's Pivotal Battle: Navigating Market Pressure on Wegovy

Novo Nordisk, the Danish drugmaker behind the popular obesity drug Wegovy, warns of fierce competition and market pressures, potentially leading to layoffs. As compounders produce cheaper copycats, U.S. sales slow. The firm's strategic cost-cutting, R&D adjustments, and legal actions aim to retain market share and revive growth.

Novo Nordisk, renowned for its successful obesity drug Wegovy, is bracing for significant market challenges this year. The Danish pharmaceutical giant warned of intensified competition from copycat versions manufactured by U.S. rivals like Eli Lilly, which may prompt layoffs as the company battles to maintain its market dominance.

Sales of Wegovy, once booming, have begun to plateau, with a slower growth rate anticipated due to increasing competition and compounding market pressures in the United States. Despite being Europe's most valuable company last year with a valuation of $650 billion, Novo's value has waned significantly, losing $95 billion recently.

In response, Novo Nordisk is implementing strategic cost-cutting measures and discontinuing several R&D projects, while also expanding their direct-to-consumer platform. As the market dynamics shift, Novo remains committed to legal strategies against compounding pharmacies and aims to bolster its U.S. consumer base with competitive pricing strategies.

(With inputs from agencies.)