Novo Nordisk cuts some supply of Wegovy drug amidst skyrocketing need

Novo Nordisk cuts some supply of Wegovy obesity drug as demand grows

Revealed: The Secrets our Clients Used to Earn $3 Billion

Danish pharmaceutical business Novo Nordisk stated Thursday it was cutting the supply of starter dosages of its weight problems drug Wegovy in the U.S. as it has a hard time to stay up to date with rising need.

Chief Financial Officer Karsten Munk Knudsen informed CNBC that cutting in half the supply of Wegovy starter dosages was meant to guarantee existing clients might continue to evaluate the drug in the U.S.

“This has to do with securing connection of take care of clients and, as a repercussion, we just wish to begin clients with the quantity of item in regards to [what] they can continue in treatment,” he informed “Street Signs.”

Novo Nordisk reported forecast-beating first-quarter sales Thursday following a spike in need for its smash hit weight-loss drug.

Still, shares of the pharmaceutical giant were down 7% on Thursday early morning on news of the supply cut.

Knudsen stated the business was “ramping up supply every day,” and presently had 2 agreement makers working to enhance output, with a 3rd anticipated to come online in the 2nd half of2023 He included that there were even more prepares to increase production in the coming years.

“This is likewise a reflection of a huge market and a huge unmet requirement for safe and effective medication, which’s where Wegovy is available in, being really effective and safe for clients [with obesity],” he stated.

Growing meticulously

Knudsen included that while the drug had actually gotten regulative approval in a variety of nations outside the U.S., consisting of the U.K., the business prepared to advance meticulously.

“We are careful not to launch faster than we can scale our supply base,” he stated. “We don’t want to launch into markets and then get into a supply squeeze as you see today with us reducing the initiation doses in the U.S.”

'Miracle' drugs could remake the weight loss industry

Wegovy is among a variety of drugs, along with Ozempic and Mounjaro, which have actually been getting headings amidst a growing push to deal with increasing international weight problems rates.

Last week, Barclays projection that the weight problems drug market might be worth as much as $200 billion within the next years, as the need and usage cases for such drugs swell

An upcoming medical trial, called Select and due to conclude in September, will offer a crucial base test for the cardiovascular advantages of such drugs, Knudsen stated, possibly expanding their possible usage cases.

“Obesity as a recognized medical disease is reasonably young compared to many other disease areas, so that’s why we’re doing a lot of information and education about the importance of treating obesity as a disease, as a chronic disease,” stated Knudsen.

“I’d say the Select trial is one piece of the evidence there in terms of showing that if you have an efficacious product like Wegovy treating obesity it will reduce risks associated with obesity,” he included