Novo Nordisk to Ramp Up Wegovy Supply Amid Strong Demand and Competitive Pressure

Last Friday, executives at Novo Nordisk said that Wegovy (semaglutide), a new obesity drug, is preparing for a supply rebound in the second half of this year as competition from Eli Lilly emerges.

Novo's Executive Vice President of Commercial Strategy and Corporate Affairs, Camilla Sylvest, stated on the company’s earnings call that Wegovy sales reached 1.4 billion Danish kroner (approximately $198 million) in the first three months of 2022. Combined with Saxenda (liraglutide) revenue of 2 billion Danish kroner ($283.5 million), Novo Nordisk’s overall obesity drug sales surged by 107%.

Although Wegovy has been in high demand six months after its approval last year, its rollout has not been smooth. At the end of last year, Novo revealed that a contract manufacturing organization responsible for filling the injection pens had halted supply due to production issues, leading to a shortage of the drug.

During this period, Novo suspended the sales and marketing of Wegovy, with the aim of "ensuring continued care for patients who have already started treatment." Additionally, to further prevent new patients from starting treatment, Novo halted the supply of the first two doses of Wegovy in March—0.25 and 0.5mg.

Now, the contract manufacturer of Wegovy pre-filled injectors has resumed production. As production returns to normal, Novo Nordisk expects to provide all doses of Wegovy in the U.S. in the second half of 2022.

Putting aside manufacturing issues, Novo executives have been pleased with the launch of Wegovy so far. Demand has exceeded expectations, with more than 20,000 prescriptions being written each week in the U.S. during the first three months of 2022.

Novo Nordisk's drugs have largely dominated the obesity market, but this may soon face pressure from Eli Lilly's dual GIP/GLP-1 drug tirzepatide, which announced impressive weight loss results on Thursday. In the Phase III SURMOUNT-1 trial, the tirzepatide (5mg, 10mg, 15mg) treatment groups showed significantly better weight loss effects at week 72 compared to the placebo control group, with an average weight loss of up to 22.5% (24kg). Moreover, 63% of patients in the 15mg high-dose group achieved a weight loss of more than 20%. Eli Lilly will discuss with the FDA and seek regulatory approval for this indication.

At constant exchange rates, Novo's overall sales this quarter grew by 18% to reach DKK 42 billion (USD 5.9 billion), described as the "strongest quarterly growth in over two decades" for the Danish pharmaceutical company. This was largely driven by the strong performance of its GLP-1 trio: Ozempic, Rybelsus, and Wegovy, with the Type 2 diabetes blockbuster Ozempic playing a key role.

The newly approved Ozempic 2mg specification will be launched in the coming weeks. Novo Nordisk expects sales growth for the remainder of the year to be between 10%-14%, up from the previously estimated 6%-10%.

Last Friday, executives at Novo Nordisk said that Wegovy (semaglutide), a new obesity drug, is preparing for a supply rebound in the second half of this year as competition from Eli Lilly's product emerges.

Novo Nordisk's Executive Vice President of Commercial Strategy and Corporate Affairs, Camilla Sylvest, stated on the company's earnings call that Wegovy sales reached DKK 1.4 billion (approximately USD 198 million) in the first three months of 2022. Combined with Saxenda's (liraglutide) revenue of DKK 2 billion (USD 283.5 million), Novo Nordisk's overall obesity drug sales climbed by 107%.

Although Wegovy has been in high demand six months after its approval last year, its rollout has not been without challenges. At the end of last year, Novo revealed that a shortage of the drug occurred after a contract manufacturing organization responsible for filling the injection pens halted supply due to production issues.

During this period, Novo suspended the sales and marketing of Wegovy, with the aim of "ensuring continued care for patients who have already started treatment." In addition, to further prevent new patients from starting treatment, Novo halted the supply of the first two doses of Wegovy in March — 0.25 and 0.5mg.

Now, the contract manufacturer of Wegovy pre-filled syringes has resumed production. As production returns to normal, Novo Nordisk expects to make all doses of Wegovy available in the U.S. in the second half of 2022.

Setting aside manufacturing issues, Novo executives have been pleased with the launch of Wegovy so far. Demand has exceeded expectations, with more than 20,000 prescriptions being written each week in the U.S. during the first three months of 2022.

Novo Nordisk's drugs have largely dominated the obesity market, but this may soon face pressure from Eli Lilly's dual GIP/GLP-1 drug tirzepatide, which announced impressive weight loss results on Thursday. In the Phase III SURMOUNT-1 trial, the tirzepatide (5mg, 10mg, 15mg) treatment groups showed significantly better weight loss effects at week 72 compared to the placebo control group, with an average weight loss of up to 22.5% (24kg). Moreover, 63% of patients in the 15mg high-dose group achieved a weight loss of over 20%. Eli Lilly will discuss with the FDA and seek regulatory approval for this indication.

At constant exchange rates, Novo's overall sales this quarter grew by 18% to reach DKK 42 billion (USD 5.9 billion), marking the "strongest quarterly growth in over two decades" for the Danish pharmaceutical company. This was largely driven by the strong performance of its GLP-1 trio: Ozempic, Rybelsus, and Wegovy, with the type 2 diabetes blockbuster Ozempic playing a key role.

The newly approved Ozempic 2mg specification will be launched in the coming weeks. Novo Nordisk expects sales growth for the remainder of the year to be between 10%-14%, up from the previously estimated 6%-10%.