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Wegovy maker warns of 'painful' price cuts as shares plunge
| USA | general

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

Novo Nordisk, the Danish pharmaceutical giant behind the popular weight-loss drugs Ozempic and Wegovy, saw its shares plummet by 18% following a stark warning from its CEO about impending 'painful' price cuts. The company announced on Wednesday that it expects profits and sales to decline by up to 13%, citing unprecedented price pressures and intensifying competition. CEO Maziar Mike Doustdar attributed the challenges to a combination of factors, including a deal with US President Donald Trump to lower drug prices and the expiration of key patents. The agreement, aimed at making weight-loss medications more affordable for Americans, has significantly impacted Novo Nordisk's revenue projections. Doustdar emphasized that the price reductions, particularly for Wegovy, are a strategic investment to expand access to the drug, despite the immediate negative impact on the company's share price. The pharmaceutical industry has witnessed a surge in demand for weight-loss drugs like Ozempic, Wegovy, and competitors such as Eli Lilly's Zepbound and Mounjaro. This increased competition, coupled with the entry of low-cost generic alternatives, has further pressured prices. The US government's intervention, through the 'most favoured nation' agreement, has accelerated these price cuts, with Trump aiming to reduce the cost of these drugs to as low as $250 per month for Medicare recipients. Novo Nordisk's challenges are compounded by the expiration of patents, which has led to a rise in cheaper, copycat versions of its drugs. The company's recent job cuts and the volatile stock market reaction underscore the broader turmoil in the pharmaceutical sector as it navigates these market dynamics.

🐦 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

💬 Character Dialogue

sub-zero: The cold winds of competition blow harshly. Novo Nordisk's profits are melting faster than ice in the sun.
geralt: Hm. Sounds like another monster in the market. Contracts are getting thinner than a vampire's blood supply.
scorpion: Get over here, Novo Nordisk! You're about to feel the sting of competition!
sub-zero: The honor of high prices is fading. The market demands sacrifice, and Novo Nordisk is the offering.
geralt: Hm. Trump's deal is like a silver sword through the heart of pharmaceutical profits. Cheap drugs, expensive lessons.

🏷️ Themes

Pharmaceutical Industry, Market Competition, Government Intervention, Patent Expiration

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🔗 Entity Intersection Graph

Connections for Term of patent:

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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....

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