Novo Nordisk CEO says weight-loss drug boom has barely begun

 

Pharmaceutical companies have only begun to tap the potential demand for obesity treatments, and expanding access should be a top priority, said Mike Doustdar, the head of Novo Nordisk (NVO), the maker of Wegovy and Ozempic.

Speaking in an interview with the Financial Times, Doustdar said the current reach of these drugs is still limited relative to the scale of need. He said companies in the sector must prioritize broadening availability, noting that tens of millions of people in the United States alone are living with obesity. Despite strong demand, he suggested that only a small fraction of eligible patients are currently being treated, leaving a large untapped population.

He added that even when factoring in competition from Eli Lilly (LLY) and copycat products from compounding pharmacies, the industry is reaching only a modest share of potential users. Much of the conversation, he suggested, has focused on current patients rather than those still outside the system.

Doustdar took over as CEO last year following a challenging stretch for Novo (NVO), during which it ceded market leadership to Eli Lilly (LLY) and faced setbacks in clinical trials. The company is now aiming to regain momentum, including through the rollout of an oral version of Wegovy. However, Eli Lilly (LLY) has also advanced in the same direction, recently securing U.S. approval for its own weight-loss pill, Foundayo.

Improving affordability is central to Novo’s (NVO) strategy. Doustdar said expanding access helped drive the company’s agreement to lower prices for medications distributed through TrumpRx, an initiative backed by the U.S. administration. Other pharmaceutical companies, including Eli Lilly, have struck similar arrangements.

Novo (NVO) is also preparing to reduce U.S. list prices significantly. Wholesale prices for Wegovy are expected to drop by about half, while Ozempic will see a reduction of roughly a third starting next year. According to Doustdar, such pricing moves benefit both policymakers and the company by opening the door to a broader patient base.

At the same time, Novo (NVO) faces growing pressure from patent expirations. The key ingredient in both Ozempic and Wegovy, semaglutide, has recently lost exclusivity in several major markets, including Canada, India, Brazil and China. This has enabled the entry of lower-cost generic alternatives, particularly in India, where multiple companies have already launched competing versions.

Emil Larsen, who oversees Novo’s (NVO) operations outside the U.S., said pricing flexibility will be important in more cost-sensitive regions. The company has already reduced prices for Wegovy injections in India and is prepared to adapt further as competition intensifies.

Larsen noted that the Indian market is becoming increasingly crowded and is likely to grow more competitive in the near term. Novo’s (NVO) goal, he said, is to remain aligned with market pricing as conditions evolve, while continuing to differentiate through product quality and brand reputation.

He said trust plays a crucial role, particularly in emerging markets. Novo’s (NVO) long-standing leadership in insulin, despite decades of generic competition, demonstrates how brand recognition, manufacturing scale and consistent outcomes can sustain market position even after patents expire.

To navigate these challenges, Novo (NVO) has also pursued partnerships. In Brazil, it is working with Eurofarma to market its drugs under new brand names, while in India it has teamed up with Emcure Pharma and Abbott to expand distribution.

Still, Larsen suggested that competition from generics is not the biggest obstacle in some regions. Instead, the more pressing issue is that the market itself remains underdeveloped. In countries like India, he pointed out, relatively few patients are receiving treatment compared with smaller markets such as Denmark.

Ultimately, he said, expanding access will depend heavily on building confidence in established therapies. Strong brands with a track record of delivering reliable outcomes at reasonable prices are likely to play a key role in unlocking growth across emerging markets, the FT reported.

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