Pills Could Reshape the Weight-Loss Race
Novo’s entry into the oral weight-loss market could help it recover ground lost in injectables. The company’s pill version of Wegovy demonstrated average weight loss of 16.6% over 64 weeks in clinical trials, putting it ahead of some competing oral treatments still awaiting approval.
Eli Lilly is expected to introduce its own pill-based option later this year, setting up a closely watched head-to-head battle. Analysts note that oral treatments are likely to attract a wider patient base due to convenience, easier storage, and fewer distribution hurdles.
“This approval adds an important new layer to the obesity treatment landscape,” said Sydbank analyst Søren Løntoft Hansen. “It gives Novo Nordisk a real chance to regain market share if it executes well.”
Novo executives have emphasized that the pill delivers comparable effectiveness to injectable Wegovy, potentially removing the traditional tradeoff between convenience and results.
U.S. Consumers Hold the Key
Unlike many blockbuster medicines, weight-loss drugs rely heavily on consumer demand rather than broad insurance coverage. That dynamic places the U.S. market at the center of Novo’s recovery strategy.
Direct-to-consumer sales are becoming increasingly important as pricing pressures grow and insurers limit reimbursement. Agreements reached late last year to lower prices for certain public programs and offer discounted cash-pay options could help Novo compete more effectively, though cheaper compounded alternatives remain a significant challenge.
Morningstar analyst Karen Andersen noted that oral GLP-1 drugs are particularly well suited to direct sales, which could accelerate a shift toward cash-pay models across the industry.
