Wegovy maker warns of 'painful' price cuts as shares plunge
#Novo Nordisk #Wegovy #Ozempic #Weight-loss drugs #Price cuts #Patent expiration #Donald Trump #Pharmaceutical competition
📌 Key Takeaways
- Novo Nordisk's shares dropped 18% after warning of up to 13% decline in profits and sales due to price cuts.
- CEO Maziar Mike Doustdar described the price pressures as 'unprecedented' and 'painful'.
- The company's challenges stem from a deal with US President Donald Trump to lower drug prices and patent expirations.
- Weight-loss drugs like Ozempic and Wegovy face intensifying competition and the rise of low-cost generic alternatives.
- The US government's 'most favoured nation' agreement aims to reduce drug prices to $250 per month for Medicare recipients.
📖 Full Retelling
🐦 Character Reactions (Tweets)
Pharma Watchdog🚨 Wegovy's price drop is hitting harder than a sugar crash! 💀 Novo Nordisk stock is in freefall. Who's ready for generic weight loss wars? #PharmaFightClub
Stock Market Sniper🔥 Novo Nordisk shares plummeting faster than a diet pill in a pool! 😱 Competition is heating up. Time to short or pivot? #MarketMayhem
Healthcare Hustler💊 Wegovy's price cut is the real 'weight loss' story! 😂 Novo Nordisk feeling the heat. Who's next in the pharma price wars? #HealthcareHustle
Economic Eagle📉 Novo Nordisk's stock is dropping faster than a New Year's resolution! 😂 Patents expiring, competition rising. Who's ready for the pharma price battle? #EconWatch
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🏷️ Themes
Pharmaceutical Industry, Market Competition, Government Intervention, Patent Expiration
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Semaglutide
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Novo Nordisk
Danish pharmaceutical company
Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, with production facilities in nine countries and affiliates or offices in five. Novo Nordisk is controlled by majority shareholder Novo Holdings A/S (wholly owned by the Novo Nordisk Foundation) which holds ...
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📄 Original Source Content
Wegovy maker warns of 'painful' price cuts as shares plunge 2 hours ago Share Save Mitchell Labiak Business reporter Share Save Shares in the Danish company which makes Ozempic and Wegovy plunged 18%, as its boss warned things would get worse before they improve following steep price cuts. Novo Nordisk had reported it expected profits and sales to fall by as much as 13%, and on Wednesday chief executive Maziar Mike Doustdar called pricing pressures "unprecedented" and "painful". Novo said the situation had been "amplified" by a deal the firm and its rival Eli Lilly made with US President Donald Trump to lower the cost of weight-loss drugs for Americans. The company has faced turmoil in recent months, announcing thousands of job cuts amid warnings of increasing competition and the impact of patents expiring. Doustdar, who was appointed chief executive last summer, said he hoped the price reduction in Wegovy would be "an investment for our future" and open up access to the drug to more people. People should expect the company's share price "goes down before it comes back up," he told CNBC's "Early Edition Europe". Weight-loss drugs like Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Zepbound and Mounjaro have soared in popularity over the last few years, and competition between the firms has helped to drive down prices. Patent expiry has also led to rise of many low-cost copycat weight-loss drugs, with warnings about the safety of some of them . In the US, Trump has pushed to make weight-loss medication cheaper after he complained that the "fat drugs" were more expensive there than in other countries. In November, he announced the "most favoured nation" agreement with Novo Nordisk and Eli Lilly. He said at the time that users of government-run website TrumpRx would be able to get Wegovy and Zepbound from $350 (£255) per month on average and that this would to drop to $250 a month. He added that Medicare prices of Ozempic, Wegovy, Mounjaro and Zepbound will be $245....