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Novo Nordisk (NVO, Financial) shares rallied 4% Wednesday morning after the drug maker cut the price of its popular weight-loss drug, Wegovy, by more than 50%. The company now offers all doses of Wegovy for $499 per month, down from a previous price of $1,349 for a 28-day supply. In tandem, Novo Nordisk launched NovoCare Pharmacy, an online platform that delivers the FDA-approved drug directly to patients' homes.
The pricing shift and digital rollout intensified competitive pressures, prompting shares of rival Hims & Hers (HIMS, Financial) to slide. Hims & Hers markets lower-cost compounds containing the same active ingredient as Wegovy, putting it at a disadvantage in the expanding weight-loss market.
Dave Moore, Executive Vice President of U.S. Operations and Global Business Development, said NovoCare Pharmacy offers a convenient alternative for cash-paying patients while upholding the company's high-quality standards. Investors will monitor how these strategic moves affect market share amid ongoing industry shifts.
Analysts expect the price cut and online initiative to boost share.
This article first appeared on GuruFocus.