Novo Nordisk (NVO.US) Delays European Launch of Wegovy to Ensure Adequate Supply

Intelligent Finance APP learned that Novo Nordisk (NVO.US) has postponed the launch of its weight-loss drug Wegovy in Europe until next year to ensure sufficient supply. Previously, the rollout of the drug in the United States was affected by production bottlenecks and drug shortages. The Danish pharmaceutical company originally planned to start selling the weight-loss drug Wegovy in the UK this summer and in other European countries by the end of the year. A spokesperson stated that these rollout plans have now been postponed until 2023.

Although obesity drugs have the potential to become Novo Nordisk's main business, the limited supply of Wegovy has taught pharmaceutical manufacturers a lesson about uncontrollable demand. To address this setback at the end of last year, the company decided to build three new production facilities, but increasing production will take time.

Although a Novo Nordisk spokesperson declined to provide specific details about the UK launch date, she stated that the company is committed to the market, with the goal of treating 1 million obese patients in the UK by 2025. Novo Nordisk aims for global sales of the drug to exceed 25 billion Danish kroner (equivalent to $3.5 billion) by 2030.

Novo Nordisk, known for treating diabetes, has long been committed to researching treatments for the globally prevalent obesity. Pharmaceutical companies have attempted to seize this market but failed, as their drugs either showed disappointing effects or were proven risky. Novo Nordisk and its U.S. competitor, Eli Lilly (LLY.US), are repurposing diabetes medications to revitalize this field.

This strategy has attracted investors' attention: Novo Nordisk's stock price doubled within two years, boosting the company’s market value to approximately $284 billion, surpassing that of Novartis (NVS.US) and AstraZeneca (AZN.US).

Wegovy became the first prescription weight-loss drug to be approved in the U.S. in seven years, giving it an early advantage. If Novo Nordisk can maintain this lead, global sales could exceed $50 billion by 2030, according to Morgan Stanley estimates. However, maintaining stable supplies isn't the only challenge facing Novo Nordisk. Eli Lilly's obesity treatment, Mounjaro, which uses the same technology as Wegovy, received FDA approval in May.