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.
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