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First mover… disadvantage?

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Facing stiff competition from compounding pharmacies and legacy giants, Novo Nordisk, once Europe’s most valuable company, has been shedding weight since its market value peaked north of $650 billion.

After soaring into the mainstream with Ozempic and Wegovy, Novo has had to watch as competitors caught up to their early lead and launched their own competing drugs and treatments, as appetite for appetite-suppressing GLP-1s exploded.

Now, Eli Lilly’s efforts, Mounjaro and Zepbound, are even outselling Novo’s original GLP-1s, as studies have shown the newer products to be more effective at helping patients lose weight.

But there’s been some good news for Novo Nordisk shareholders to cheer in recent days.

Firstly, on Friday, the company’s weight-loss shot Wegovy was approved by the Food and Drug Administration to treat a liver condition, broadening the potential applications of the treatment. Secondly, the company announced this morning that cash-paying patients can get the diabetes/weight-loss drug Ozempic for half of its list price through its NovoCare direct-to-consumer platform.

Can Novo get back on top? Time will tell — but investors were slightly more optimistic in early trading on Monday, with NVO shares rising 5% in the US, building on Friday’s 3% rise.