Novo Nordisk Aims for Balanced Sales with Wegovy Amid Insurance Hurdles

Novo Nordisk aims to balance its Wegovy sales through both insurance coverage and direct consumer purchases. As demand soars, especially from its GLP-1 weight-loss drugs, Novo is addressing cost concerns by offering pricing discounts. A new US government pilot program may further boost demand by covering the drugs for Medicare users.

Denmark's Novo Nordisk, known for its weight-loss drug Wegovy, is strategizing to expand insurance coverage for more U.S. consumers. This move aims to balance its thriving direct-to-consumer market, the company's top U.S. executive disclosed.

The demand for weight-loss and obesity medications from companies like Novo Nordisk and its U.S. competitor Eli Lilly has been surging. However, insurance providers have resisted covering these medications due to their high costs. Novo's self-pay segment currently dominates its sales numbers, particularly for its Wegovy pill introduced in the U.S. earlier this year, according to Jamey Millar, the U.S. Executive Vice President.

Novo Nordisk is working to broaden the insurance-covered segment while managing costs. Health insurers, including Cigna, are planning to drop drug coverage, which challenges the company’s efforts. Nonetheless, a government pilot program that begins in July aims to offer these drugs to Medicare enrollees at a reduced cost, potentially increasing accessibility.