Wegovy sales took a hit this year. Novo’s CEO blames off-brand competition
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Sales of Novo Nordisk’s (NVO-2.01%) blockbuster weight-loss drug Wegovy took a hit due to rising competition from off-brand, or compounded, versions of the treatment, according to the Danish pharma giant’s CEO Lars Fruergaard Jørgensen.
The growing popularity of compounded semaglutide — a copycat version of the active ingredient in Ozempic and Wegovy — was top of mind for both the company’s executives and shareholders at an annual meeting.
Still, Jørgensen touted that the company’s weight-loss drug sales rose 57% last year.
“We are currently treating around 1.2 million obese patients in the U.S., while 55 million people have insurance coverage for Wegovy,” said Jørgensen. “We continue to focus on scaling, supply, commercial execution, and combating compounding.”
Compounding refers to the custom preparation of an otherwise branded drug by a pharmacy or physician to meet the specific needs of an individual patient. Drugs can also be compounded under other conditions, including when a patented medication is in short supply. But with Novo Nordisk ramping up production and Wegovy no longer on the Food and Drug Administration’s (FDA) shortage list, the pharma giant claims that most compounded versions are no longer justified. The FDA has also said it could start citing companies and healthcare providers that continue to offer certain versions of compounded semaglutide starting as early as May 22. Novo Nordisk lists Wegovy at $1,349.02 per month, and drug-shortage rules allowed compounders to sell versions of the drug at lower prices.
Jørgensen acknowledged that the “significant growth of compounding in the U.S.” appears to have affected Wegovy prescriptions in early 2025. For instance, the millennial-targeted telehealth company Hims & Hers started offering compounded semaglutide last May. The company’s total sales grew 69% last year to $1.5 billion.
One shareholder asked how long it would take for the trend to reverse, citing rumors that compounded drugs could account for as much as 40% of the U.S. obesity treatment market.
Jørgensen did not provide a specific timeline but outlined the company’s multi-pronged strategy to combat competition from compounders.
Novo Nordisk says it’s deploying a mix of legal action, physician outreach, and pricing incentives. The company has sued multiple compounders, launched an ad campaign to warn doctors and patients about the risks of non-FDA-approved versions, and introduced a new cash-only option offering Wegovy for $499 per month.
