Novo Nordisk Faces Competitive Struggle Amid Wegovy Launch Missteps

Novo Nordisk, the Danish pharmaceutical giant, is facing scrutiny for its missteps during the rollout of its weight-loss drug, Wegovy. Despite Wegovy's promise as an obesity treatment, the company failed to anticipate the overwhelming demand, leading to supply and insurance coverage issues.

Sources revealed that Novo's top executives, including U.S. chief Doug Langa, dismissed warnings to bolster supply before the drug's launch, betting instead on conservative sales forecasts. Due to these miscalculations, rival Eli Lilly's Zepbound rapidly gained market share, outperforming Wegovy in weekly prescriptions.

Amid the competitive shortcomings, Novo reorganized leadership, ousting CEO Lars Fruergaard Jorgensen. As it grapples with these challenges, Novo aims to regain its footing by securing more insurance coverage and offering discounts, but the question remains whether it can sustain its market dominance against a more aggressive Eli Lilly approach.

(With inputs from agencies.)