Novo Nordisk Faces Delayed Obesity Drug Wegovy Launch In New Markets Amid Surging Demand

Danish pharmaceutical company Novo Nordisk A/S NVO announced that introducing its obesity drug Wegovy in most European countries will experience delays, and the drug is not expected to be available in developing nations for an extended period. 

Semaglutide is a peptide sold by Novo Nordisk under Ozempic, Rybelsus, and Wegovy for the long-term treatment of type 2 diabetes or obesity.

Chief Executive Lars Fruergaard Jorgensen assured stakeholders of their commitment to meet patient expectations over time, despite the current challenges in fully meeting demand, Reuters reported.

The World Health Organization also said it is considering adding obesity drugs to its "essential medicines list," used to guide government purchasing decisions in low- and middle-income countries, including Novo Nordisk's Saxenda, Wegovy.

Also, the British government is set to launch a pilot program to explore the use of new weekly weight-loss shots, such as Novo Nordisk's Wegovy, for obese patients outside of specialized services. The market launch of the drug remains uncertain. 

Novo Nordisk has also faced production issues at a contracted manufacturer. Camilla Sylvest, the executive vice president of commercial strategy and corporate affairs, acknowledged that the launch in other European nations would be slower than initially planned. 

Jorgensen highlighted the significant challenges posed by infrastructure limitations, such as inadequate cold chain technology, in many developing countries, making it unlikely for Wegovy to become available there for a considerable period. 

Price Action: NVO shares are down 1.13% at $159.46 during the premarket session on the last check Tuesday.