Novo Nordisk's Ozempic Usage Suspended - Belgium Implements Temporary Ban Amid Medication Shortage

Belgium has temporarily banned Novo Nordisk A/S's NVO Ozempic for weight loss amid a shortage.

The country issued a royal decree, published in the Official Gazette on Tuesday, outlining the suspension of Ozempic's use for weight loss.

Ozempic, primarily approved to address Type 2 diabetes, has gained traction for "off-label" weight loss treatments due to its shared active ingredient with Novo's highly sought-after anti-obesity drug, Wegovy. 

However, the scarcity of Wegovy has led to an increased off-label prescription of Ozempic for weight management.

Acknowledging the surging demand for Ozempic, Belgium's federal medicine agency had previously recommended limiting its prescription exclusively to diabetic patients, Reuters noted. 

The agency forecasts the restricted availability of the drug until June 2024, emphasizing the need for caution in its distribution.

In its Q3 earnings, the company said it is investing in internal and external capacity to increase supply both short and long-term.

"While supply capacity for Wegovy is gradually being expanded, the supply of the lower dose strengths in the U.S. will remain restricted to safeguard continuity of care," the company said in a statement.

Last week, Novo Nordisk announced its plans to invest more than DKK 42 billion ($6 billion) starting in 2023 to expand existing manufacturing facilities in Kalundborg, Denmark.

The investment, which includes GLP-1 products, will increase Novo Nordisk's ability to meet future market demands, the company said.

Price Action: NVO shares are down 1.55% at $99.22 on the last check Tuesday.