Novo Nordisk’s (NVO) shares edged lower on Tuesday morning despite its latest move to regain ground from archrival Eli Lilly (LLY). The Danish drug-making giant has started to roll out a higher-dose version of its popular Wegovy weight-loss injection across the U.S.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Novo Nordisk Launches Higher-Dose Wegovy Injection
The launch of the 7.2 mg Wegovy HD comes after the drugmaker on March 19 announced that the higher dosage had received approval from the U.S. Food and Drug Administration under the health watchdog’s national priority review program.
Before the FDA approval for Wegovy HD, doctors could only administer the highest authorized dose of 2.4 mg. This is even though Eli Lilly had permission for up to 15 mg for its rival Zepbound drug.
Novo Nordisk said the bigger dose provides more options for patients yet to reach their weight-loss goals on lower-dose injectables or those who still have a significant amount of weight to lose. It is releasing the new dose through channels such as its own NovoCare Pharmacy, other U.S. pharmacies, and select telehealth providers.
Novo Nordisk Turns to Discounting
The launch comes as Novo Nordisk has also turned to a discounting strategy to attract more self-pay customers. These customers, because of their lack of insurance coverage, pay higher out-of-pocket prices for the medication and have been turning to compounded versions.
The Danish drugmaker last month stated plans to offer monthly prices about 30% lower than its regular rates in discounted subscriptions for this type of buyer. In February, the company also revealed plans for sharp price cuts starting in January 2027.
Similarly, Novo Nordisk in January launched its first-to-market Wegovy pill, discounted to attract out-of-pocket buyers. This is even though the drugmaker had earlier agreed to a 71% discount on Wegovy and its type 2 diabetes drug Ozempic, as President Donald Trump’s administration pressured pharma giants for lower drug prices for Americans.
Meanwhile, Eli Lilly last week secured approval for its own weight-loss pill, Foundayo. This could heap more sales pressure on Novo Nordisk, which has predicted weaker sales this year.
Is Novo Nordisk a Good Stock to Buy Now?
On Wall Street, analysts consider Novo Nordisk’s shares a Hold based on their consensus rating. This breaks down into one Buy and seven Holds issued over the past three months.
However, the average NVO price target of $43 still implies about 19% upside from current trading levels.
