Novo Nordisk Ignored Internal Warnings On Wegovy Launch Preparedness: Report

Novo Nordisk A/S’ (NYSE:NVO) executives allegedly ignored internal warnings that the company was unprepared to launch its obesity drug Wegovy.

As rival Eli Lilly and Co.’s (NYSE:LLY) Zepbound gains momentum, the Danish pharmaceutical giant is grappling with the fallout of those early decisions.

Wegovy, approved in the U.S. in mid-2021, marked a major advancement in obesity treatment and helped Novo generate $46 billion in net profit since then.

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But the company has struggled to keep pace with Lilly’s Zepbound, which has surpassed Wegovy in weekly new prescriptions this year.

Amid concerns over its competitiveness in the weight-loss market, Novo is undergoing a leadership shake-up, including the recent dismissal of CEO Lars Fruergaard Jorgensen and earlier departures like U.S. chief Doug Langa.

Sources told Reuters that during tense internal meetings, sales and marketing staff warned Langa about launching Wegovy too quickly after FDA approval.

They urged a delay until supply and insurance coverage were more secure. With a list price of up to $1,300 per month, many patients found the drug unaffordable without insurance, and Novo missed an opportunity to build a more stable launch pad while Lilly’s market entry was still years away.

However, company leadership in Copenhagen held to conservative sales expectations through 2025, Reuters report highlighted, underestimating the scale of demand driven by the global obesity epidemic. Former employees said Novo had internal indicators pointing to stronger uptake but failed to adjust its strategy accordingly.

The consequences were swift. Wegovy’s launch was plagued by supply shortages, leaving patients without doses and discouraging new users. The high cost also pushed some patients toward the gray market of compounded drugs.

Novo further faced criticism for pricing Wegovy significantly higher than its diabetes drug Ozempic, while Lilly entered the market with Zepbound at $1,080 and provided steep discounts through its LillyDirect pharmacy.

One former insider claimed that Novo hesitated to offer competitive rebates to pharmacy benefit managers (PBMs), limiting the drug’s accessibility.

This reluctance hurt relationships with insurers and failed to secure broader coverage, placing Novo at a disadvantage compared to Lilly’s aggressive pricing and reimbursement strategies.

Recently, Novo Nordisk launched its weight-loss drug Wegovy (semaglutide) in India to compete with Eli Lilly.

Price Action: NVO stock is trading higher by 0.13% to 69.11 at last check Tuesday.

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