Novo Nordisk Is Cutting Wegovy's Price by 50%. Here's What's Really Going On.
Novo Nordisk announced Tuesday that it will slash the U.S. list price of Wegovy, the injectable weight-loss drug, by roughly 50%, to $675 per month starting January 1, 2027. Ozempic, its diabetes drug made from the same compound, will drop about 35% to the same $675 price point. The stock fell 2.6% on the day as investors worried about the revenue hit.
Why this is happening
Novo is losing ground. After dominating the GLP-1 market for years, it's now trailing Eli Lilly whose Zepbound and Mounjaro drugs have taken market share on the back of stronger clinical results. On Monday, Novo's next-generation drug CagriSema failed to beat Lilly's Zepbound in a head-to-head trial, the latest in a string of setbacks. Novo's stock is down roughly 66% from its 2024 peak.
The price cut is partly competitive, partly political. It coincides with new Medicare drug price negotiations under the Inflation Reduction Act, and aligns with a White House program called TrumpRx.gov, which is directly selling certain drugs at reduced prices. A separate pill version of Wegovy has launched at just $149/month starting dose. Novo is also effectively competing with cheaper compounded versions of its own drug.
What it means for patients
Good news on access: $675/month is still expensive for many Americans, but it's a significant reduction from ~$1,349. People who pay out of pocket, particularly those on high-deductible plans whose costs track the list price, stand to benefit most. Whether insurance plans pass through the list price reduction in lower copays is a separate question.
What it means for investors
The price cut eats into Novo's revenue. The company has already guided for a 5–13% sales decline in 2026, its first in years. Eli Lilly, by contrast, is projecting 25% sales growth this year. The GLP-1 race is no longer a rising tide lifting all boats. It's a head-to-head competition, and Novo is currently losing.
Sources: CNBC, Bloomberg, Novo Nordisk