Novo Nordisk has announced plans to significantly reduce the list prices of two of its leading medications—Wegovy, a weight-loss injection, and Ozempic, a diabetes treatment. This price reduction, slated to take effect on January 1, 2027, could see these drugs drop by as much as 50%, bringing their monthly cost down to $675. This reduction represents a substantial decrease from the current pricing, halving the cost of Wegovy and reducing Ozempic’s price by approximately one-third. Additionally, similar price adjustments will apply to the oral version, Rybelsus.
This move is seen as part of a broader strategy to maintain competitiveness in the rapidly expanding GLP-1 drug market, where Novo Nordisk finds itself in direct competition with Eli Lilly, the manufacturer of Mounjaro and Zepbound. According to estimates from investment bank TD Cowen, the GLP-1 market is projected to nearly double, reaching $139 billion by 2030, making this a critical battleground for these pharmaceutical giants.
The company has indicated that the price cuts are specifically designed to alleviate the financial burden on patients facing high out-of-pocket costs, particularly those enrolled in high-deductible health plans or those with co-insurance rates that are directly linked to list prices. Although the specific amounts that insured individuals currently pay have not been disclosed, Novo Nordisk has suggested that patients could see their costs decrease to as low as $25 per month under the new pricing structure.
However, it is important to note that the cash prices offered by Novo Nordisk to consumers paying out of pocket, which vary between $149 to $499 each month depending on the medication and dosage, will remain unchanged. Discounts provided through the federal TrumpRx site are also expected to stay the same.
This pricing strategy arrives in tandem with newly negotiated prices for Medicare, which, starting in 2027, will allow for a 30-day supply of Ozempic and Wegovy to be obtained for just $274—significantly below the planned list price. Following the announcement, shares for both Novo Nordisk and Eli Lilly experienced a decline, reflecting market reactions to the forthcoming changes.
