Novo Nordisk CEO discusses scaling up production of weight-loss drug Wegovy with Bloomberg journalists. Topics include manufacturing capacity, unit costs, pricing strategies in drug production, long-term use of weight loss drugs, administration routes, and personalized medicine.
Novo Nordisk is expanding drug supply to meet rising demand and aims to treat millions more patients with increased manufacturing capacity.
The company is balancing costs and affordability by reducing list prices, increasing rebates, and considering patient preferences for different drug formulations.
Deep dives
Novo Nordisk Scaling Up Production and Capacity
Novo Nordisk, led by CEO Lars Frogaard-Yorgensen, is addressing the increasing demand for their products, particularly witnessing a rise in new patient starts weekly from 5-6,000 to 27,000. The company is focusing on ensuring continuous patient treatment by expanding manufacturing and offering higher doses. With additional investment of $6.4 billion in manufacturing capacity, Novo Nordisk aims to treat millions more patients and reduce unit costs through improved scale.
Diversified Approach to Manufacturing and Pricing
Novo Nordisk is strategically expanding both API and fill finish capacity, including acquisitions and partnerships to enhance production capabilities. The company emphasizes the balance between added costs due to capacity ramp-up and long-term pricing power. By lowering list prices and increasing rebates over time, Novo Nordisk aims to provide affordable access to patients while managing costs effectively.
Future Outlook and Patient-Centric Approach
Regarding the long-term impact of GLP-1 drugs like Ozempic and Wagovie, Novo Nordisk considers individual patient journeys, with some possibly needing lifelong treatment while others may transition to alternative medications. The company evaluates oral formulations like oral semaglutide alongside injectables based on patient preferences and efficacy requirements, expecting both administration routes to coexist based on patient needs and disease progression.
Novo Nordisk is shipping more introductory doses of its blockbuster weight-loss drug Wegovy in the US as it grapples with supply constraints and competition from Eli Lilly & Co. CEO Lars Fruergaard Jorgensen says the company will continue to ramp up supply of its popular weight-loss drug "gradually." He spoke with Bloomberg's Katie Greifeld and Romaine Bostick.