Telehealth provider LifeMD has experienced a remarkable surge in business since the launch of Wegovy’s oral semaglutide tablets in January. The company reported an increase in patient intake from 300-400 new patients daily to between 600 and 1,000—a surge that caught CEO Justin Schreiber by surprise. “There’s no question that the launch of oral medications has improved access,” he stated, reflecting the growing interest in this new form of treatment.
Since their introduction, tens of thousands of individuals have begun using Novo Nordisk’s Wegovy pill, primarily newcomers to the GLP-1 medication category. Investors are keenly awaiting Novo’s first-quarter results, which are set to offer insights into the pill’s success and its impact on the broader market.
Eli Lilly, a competitor in the obesity and diabetes sector, recently launched its own oral medication, Foundayo, but initial analysis suggests its rollout has not been as successful as Wegovy. BMO Capital Markets analyst Evan David Seigerman noted that doubts have emerged regarding Lilly’s stronghold on the market. Though Foundayo was heavily promoted, Novo’s Wegovy pill has demonstrated stronger efficacy in clinical trials, prompting Novo to capitalize on this competitive edge.
The launch was marked by a significant advertising push, with promotions across major cities and even a Super Bowl ad featuring celebrities like DJ Khaled. Novo emphasized Wegovy’s lower price point of $149 per month and its injection-like efficacy, addressing concerns from potential users about the requirement to take the pill without food and with minimal water.
As the GLP-1 market expands with both the Wegovy and Foundayo pills, patients who were previously deterred by injections are now more willing to explore these oral options. According to Jamey Millar, head of U.S. operations at Novo, many initial users are beginning with the lowest starter dose, and patient transitions to higher doses will be closely monitored.
Despite the initial success of Wegovy, Eli Lilly is working to carve out its place in the market. Company CEO Dave Ricks mentioned that over 20,000 individuals had started Foundayo within weeks of its launch, with many being new to GLP-1 treatments. The company remains focused on building consumer awareness and has yet to initiate widespread advertising.
Analysts suggest that it may take time for Foundayo to gain traction, with RBC’s Trung Huynh advising a wait-and-see approach for a clearer picture of the drug’s momentum in the coming months. Notably, Lilly’s previous injectable, Zepbound, surpassed prescriptions for Wegovy six months after its U.S. introduction, despite launching two years later.
While Lilly is eyeing global expansion for Foundayo, Novo has invested $500 million in manufacturing capabilities in Ireland to prepare for future demands of its oral line, with expectations of potential approval in Europe later this year.
As Novo prepares to release its earnings report, market analysts are keeping an eye on both short-term sales impact and longer-term forecasts. While there may be concerns about declining sales in face of upcoming generic competition and the lower price point of oral medications, the initial success of Wegovy has reshaped investor expectations. However, analysts caution that further victories will be necessary for Novo to solidify its leadership position, emphasizing the complexity of the pharmaceutical market beyond just these new products.
