Novo Nordisk's Flexible Pricing Approach: Push for Broader Access, Innovative Payments

Novo Nordisk A/S NVO is reportedly discussing with healthcare systems to introduce innovative pricing arrangements for its popular weight loss drug, Wegovy. 

Addressing the ambitious objective, CEO Lars Jørgensen highlighted the willingness of Novo Nordisk to exhibit flexibility in pricing strategies, intending to facilitate the upfront adoption of medications, allowing for subsequent payments over an extended duration, the Financial Times noted. 

Despite facing competition from Eli Lilly And Co's LLY Zepbound, which plans to introduce a weight-loss drug priced 20% lower than Wegovy, Novo Nordisk remains firm on retaining Wegovy's current pricing. 

However, Jørgensen emphasized their readiness to structure payment plans over time, questioning the rationale behind health systems making significant upfront payments without enjoying substantial future savings. 

He advocated for "risk-based contracts," enabling healthcare providers to extend payment periods while witnessing long-term savings, such as a reduction in costly heart attack treatments, supported by recent trial data demonstrating Wegovy's ability to cut the risk of serious cardiac events by approximately 20%.

In the Financial Times report, Jørgensen acknowledged the challenge of persuading healthcare systems to commit to multi-year payment schemes. Novo Nordisk, similar to companies offering advanced therapies, grapples with adapting these payment models to suit varying healthcare systems, particularly in Europe, where funding typically operates on a year-to-year basis.

Recently, Novo Nordisk announced its plans to introduce its highly sought-after anti-obesity medication, Wegovy, in Japan on February 22, marking its inaugural entry into the Asian market despite facing supply/demand challenges. 

Price Action: NVO shares are down 1.15% at $104.24 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Via Company