Compounded Drugs Shake Up Obesity Treatment Market

Novo Nordisk CEO Mike Doustdar highlighted the growing use of compounded GLP-1 drugs in the U.S., which are cheaper but unapproved alternatives for obesity treatment. Despite health risks, cost-sensitive patients opt for these versions. Novo is responding with new pricing and access strategies to regain market share.

Amid a surge in the use of compounded drugs, Novo Nordisk CEO Mike Doustdar addressed their impact on the obesity treatment market during the J.P. Morgan Healthcare Conference. These unapproved alternatives have attracted 1.5 million U.S. patients seeking cost-saving options, drawing attention away from branded products.

Doustdar emphasized the risks of these cheaper, often online, compounded versions of GLP-1 drugs. Novo is taking steps to combat this by launching an affordable oral version of their Wegovy drug, priced at $149 per month, to appeal to uninsured consumers.

Novo is also focusing on swift restructuring to maintain competitiveness. Doustdar stressed the importance of speed in the evolving market, leveraging his long tenure for rapid strategic implementation against counterfeit products and shifting patient needs.

(With inputs from agencies.)