Novo Nordisk is focusing its efforts on the launch of its Wegovy pill, a new oral weight loss medication. During a fourth quarter earnings call, CEO Maziar Mike Doustdar said, “We have gone all in. This has been the best launch . . . because we have really put in all the activities and the promotions that they could think of.” The company is promoting the product heavily, including advertising during major televised events.
Despite these efforts, analysts remain concerned about Novo Nordisk’s ability to maintain its market position. The Wegovy pill currently enjoys exclusivity after receiving approval from the U.S. Food and Drug Administration at the end of 2025. However, competitor Eli Lilly has submitted orforglipron for FDA approval and received a priority review voucher to accelerate the process.
Doustdar addressed concerns about competition by emphasizing patient preferences for significant weight loss results: “I would say that the last two years has taught us something very specific with the obesity market. It has taught us that the number one criteria for a patient picking up anti-obesity medication is the magnitude of weight loss.” He noted that clinical trials showed patients taking Wegovy lost 16.6% of their body weight, compared to 12.4% for Eli Lilly’s rival drug.
“If you ask pretty much any patient, and certainly ask me, which one would you rather take? 17% weight loss or 12%? I know my answer, and we have seen the answer from 170,000 [patients] coming on very quickly,” Doustdar said.
In November, Novo Nordisk reached an agreement with the Trump administration to offer its weight loss drugs at lower prices in exchange for higher volumes. As a result of this strategy and reduced prices, Novo released its fourth-quarter earnings early and projected a 5% decline in sales for 2026.
CFO Karsten Munk Knudsen explained that it is too soon to fully understand how increased volume will affect overall sales but expressed optimism based on initial prescription data following both price reductions and product launches. He also stated that making GLP-1 products available through Medicare should influence sales by mid-year.
“We are seeing a volume response to the lower prices,” Knudsen confirmed.
Knudsen anticipates modest growth throughout 2026 with clearer trends expected in 2027 as more data becomes available regarding volume increases due to price changes and broader access via Medicare.
Lower pricing may also reduce demand for compounded versions of Wegovy produced by third parties during previous supply shortages. David Moore, executive vice president of U.S. operations, commented: “We certainly expect that there could be some switching that’s coming from compounding, but it’s a little bit early to tell.” He added that more research is needed to determine if patients are returning from compounded products as pill prescriptions rise.
The company faced earlier challenges when high demand outpaced supply for injectable Wegovy formulations. Doustdar said those issues have been addressed: “We have seen an incredible uptick, I would say, in the first month, and today I will reaffirm to you that we feel incredibly confident that we will be able to supply the U.S. market.”
Novo Nordisk’s recent performance reflected these shifts; while fourth-quarter results surpassed analyst expectations, projections for 2026 were less optimistic due to anticipated impacts from lower drug pricing (https://www.biospace.com/article/novo-nordisk-beats-in-q4-but-projects-sales-decline-for-2026/). The company’s rapid ascent in recent years was driven by strong demand for GLP-1 medications such as Ozempic and Wegovy (https://www.biospace.com/article/how-glp-1s-drove-novo-nordisk-s-rise-and-fall/), but new competition and evolving market dynamics present ongoing challenges.
