When Novo Nordisk launched the Wegovy pill in January, telehealth provider LifeMD saw its business nearly double overnight. CEO Justin Schreiber shared that patient registrations skyrocketed from around 300–400 to 600–1,000 each day. “The launch of oral medications has clearly improved access,” he noted, underscoring the strong demand for the drug.
Since its rollout, tens of thousands have started using Wegovy, many of whom are new to the GLP-1 category. This growing interest will be closely watched when Novo reports its first-quarter earnings. Investors had initially expected Eli Lilly, another major player in the obesity and diabetes market, to dominate with its new pill, Foundayo, released last month. However, early results indicate that Foundayo’s launch has not generated the same excitement as Wegovy’s.
Analysts had positioned Foundayo as a potential game-changer, with Lilly touting its easier production process compared to Wegovy’s injections. Yet, as Novo’s success with Wegovy became evident, investor sentiment shifted. Evan David Seigerman from BMO Capital Markets observed how Novo seized the opportunity, emphasizing that Wegovy showed nearly 17% weight loss in trials, compared to Foundayo’s reported 12%.
Promotional efforts for Wegovy included high-profile ads, even featuring celebrities like DJ Khaled in its Super Bowl campaign. Novo positioned Wegovy’s price at $149 per month, making it more accessible. The company also highlighted how the oral pill addresses concerns about injections, appealing to those hesitant to use needles.
User preferences are trending towards pills over injections, according to Sesame, a telehealth platform where the choice of GLP-1 pills surpasses shots significantly. Michael Botta, co-founder of Sesame, noted that more men are exploring these medications now, whereas women still make up the majority of new patients.
Novo is closely monitoring the number of patients transitioning to higher doses of Wegovy. Meanwhile, Eli Lilly faces challenges in establishing Foundayo. They’ve reported that over 20,000 people have begun using Foundayo, with 1,000 new daily registrations. However, Lilly still needs to raise awareness; it has yet to launch a widespread advertising campaign.
Analysts suggest waiting a year or two to fully assess Foundayo’s market impact, given the uncertainty. RBC analyst Trung Huynh compared it to Lilly’s Zepbound shot which outperformed Novo’s Wegovy just six months post-launch. Lilly’s confidence remains, as they’ve raised their sales forecasts due to strong performance across their GLP-1 portfolio. They even plan to expand Foundayo internationally later this year.
On the other hand, Novo hasn’t announced its expansion plans for Wegovy outside the U.S. Yet, they are investing $500 million in manufacturing in Ireland to meet both current and future demand. Approval from the European Medicines Agency for Wegovy is expected later this year.
While Wegovy’s introduction has shaken up the market, analysts emphasize that neither company’s future hinges solely on these pills. As Seigerman from BMO commented, “Lilly has enough components to excel, and while Novo may win this round, they need more sustained successes to be seen as champions.”
This evolving landscape reflects a broader trend in healthcare, where innovation and accessibility are becoming increasingly important. The preference for oral medications could signify shifts in patient behavior and expectations in treatment modalities.
For further insights on GLP-1 medications, you can refer to CNBC’s coverage on Lilly and Novo.
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Biotech and Pharmaceuticals,Eli Lilly and Co,Novo Nordisk A/S,LifeMD Inc,United States,Justin Schreiber,business news
